The India vegetable oil market attained a volume of about 33.52 MMT in 2024. The market is further expected to grow in the forecast period of 2025-2034 at a CAGR of 14.30% to reach nearly 127.58 MMT by 2034.

India consumed over ** million metric tons of vegetable oils in marketing year 2024/2025. These included oil from coconuts, cottonseeds, olives, palm, peanuts, rapeseed, soybeans, and sunflowers. The worldwide consumption that year was over *** million metric tons.

The Vegetable Oil Market size was valued at USD 384.89 Million in 2023 and is projected to reach USD 637.31 Million by 2032, exhibiting a CAGR of 7.47 % during the forecast periods. The vegetable oil market is very vital for the food industry globally and consists of a variety of oils that are mainly extracted from plants such as soybeans and palms. Uses include cooking, processing food products, and industrial purposes. Enhanced technology in extraction and refining not only improves the quality of the oils but also increases the production level. Among them are edible types of oils, like olive, or industrial types of oils, such as palm. It has impacts on agriculture, economies, and health trends of people all over the world by providing nutritional value along with versatility, and economic growth for countries producing these types of oils. Recent developments include: In July 2022, Eni Kenya B.V. completed the construction of the oilseed collection and pressing plant (agri-hub) in Makueni, Kenya, and started production of the first vegetable oil for bio-refineries. According to the company, the first agri-hub would have an installed capacity of 15,000 tons with an expected output of 2,500 tons in 2022., In June 2022, Freedom Refined Sunflower Oil, Gemini Edibles & Fats India (GEF India) announced plans to expand into other States, including Tamil Nadu and Kerala. The business asserted that it is considering strategic expansion and plans to enter Tamil Nadu and Kerala, with a strong demand for sunflower oil, in the coming years., In February 2021, Bunge Loders Croklaan expanded its oils and fats portfolio to meet the organic demand in Europe, offering a steady and scalable supply of organic oils and fats, including sunflower, rapeseed, soy, palm, shea, and coconut., In November 2021, Cargill Incorporated acquired an edible oil refinery situated in Nellore, India, and invested USD 35 million to purchase and improvise the facility, which would increase the production volume of edible oil and help the company to extend its existing supply chain to meet consumer requirements.. Key drivers for this market are: Increasing Demand For Convenience & Processed Food. Potential restraints include: Increased Consumer Awareness On Side-Effects Of Chemical Additives. Notable trends are: Increasing Demand For Fortified Vegetable Oils.

In the marketing year 2025, ******** was the most used cooking oil in India, with its domestic consumption surpassing ************* metric tons. It was followed by soybean and rapeseed oils, with their respective consumption volumes reaching *** and *** million metric tons. Production of edible oils India produces a wide range of edible oils like palm, soybean, mustard, sunflower, and groundnut, that match its diverse food cultures and agricultural practices. Mustard oil is popular in the northern and eastern regions, while the southern part of India prefers coconut oil. Additionally, the country is also seeing an increase in soybean oil production, catering to both domestic needs and increasing demand from the international market. Import of edible oils India's reliance on imported edible oils is a crucial aspect of its food economy, driven by the gap between domestic production and consumption demands. The country is one of the largest importers of edible oils globally, importing over ** million metric tons, with palm and soybean oils constituting the bulk of imports. Indonesia and Malaysia emerged as the top exporters of edible oil to India in the financial year 2023. The country also plans to continue importing edible oils at lower duty rates until 2025, to keep the food inflation in check.

Edible Vegetable Oil Market Outlook

The global edible vegetable oil market size is expected to witness a robust growth with a Compound Annual Growth Rate (CAGR) of 4.2% from 2024 to 2032. In 2023, the market was valued at approximately USD 98.3 billion and is forecasted to reach around USD 143.5 billion by 2032. The increasing demand for plant-based and healthier cooking oils, alongside the rising global population, is one of the primary drivers of this growth.

One of the significant growth factors driving the edible vegetable oil market is the escalating awareness of health benefits associated with vegetable oils. Consumers are increasingly shifting away from animal fats towards healthier alternatives like olive oil and canola oil, which are rich in essential fatty acids and antioxidants. This shift is further fueled by the growing trend of veganism and plant-based diets, which encourages the consumption of vegetable oils over animal-derived fats.

The expanding food industry is another critical factor contributing to the growth of the edible vegetable oil market. With the increasing demand for bakery and confectionery products, processed snacks, and ready-to-eat meals, the requirement for various types of vegetable oils is on the rise. Vegetable oils are not only used as cooking mediums but also serve as essential ingredients in the manufacturing of numerous food products, thus driving their demand significantly.

The growth of the biofuel sector is also bolstering the edible vegetable oil market. As governments and organizations worldwide are pushing for greener and more sustainable energy sources, vegetable oils such as palm oil and soybean oil are being increasingly utilized in the production of biodiesel. This demand from the biofuel industry adds another layer of growth potential for the vegetable oil market, as it opens up a significant avenue for revenue generation beyond traditional food applications.

Edible Oils and Fats play a crucial role in both the culinary and industrial sectors, offering a range of applications that extend beyond traditional cooking. These oils and fats are integral to the production of various food products, providing essential nutrients and enhancing flavors. In addition to their culinary uses, edible oils and fats are also utilized in the cosmetic and pharmaceutical industries, where their moisturizing and therapeutic properties are highly valued. The versatility of these products makes them indispensable in numerous applications, contributing significantly to their demand and market growth.

Regionally, the Asia Pacific region is expected to dominate the market due to its vast population and increasing disposable incomes. Countries like China and India are witnessing rapid urbanization and changing dietary habits, which are contributing to the growing demand for vegetable oils. Additionally, the rising industrialization and expansion of the food processing sector in this region are further propelling market growth. Other regions such as North America and Europe are also expected to show substantial growth, driven by a strong focus on health and wellness trends.

Type Analysis

The edible vegetable oil market is segmented into various types, including palm oil, soybean oil, sunflower oil, olive oil, canola oil, coconut oil, and others. Palm oil holds a significant share in the market due to its extensive use in both the food and industrial sectors. It is favored for its high yield and low cost of production, making it a staple in many developing countries. However, environmental concerns and the push for sustainable practices are leading to more stringent regulations on its production.

Soybean oil is another major segment within the edible vegetable oil market. It is highly preferred due to its versatility and availability. The oil is extensively used in cooking and as an ingredient in processed foods. Additionally, soybean oil's role in the biofuel industry is growing, as it is a primary source for biodiesel production. This dual application in food and fuel sectors is expected to sustain its demand over the forecast period.

Sunflower oil is gaining popularity due to its health benefits and light taste, making it a preferred choice for cooking and salad dressings. Its high content of unsaturated fats and antioxidants makes it a healthier alternative to other oils. The rising consumer awareness about healthy eating habits and t

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Edible Oil Market Size 2025-2029

The edible oil market size is forecast to increase by USD 18.37 billion, at a CAGR of 3.4% between 2024 and 2029.

The market is driven by the surging demand for trans-fat-free oils due to growing health consciousness among consumers. This trend is fueled by increasing awareness regarding the harmful effects of trans fats on human health. Furthermore, advancements in agriculture technology have enabled the production of high-quality, healthy oils, providing opportunities for market growth. However, the market faces distribution challenges that hinder its expansion. The complex supply chain and logistical issues in transporting edible oils from production sites to consumers in various regions create hurdles for market participants.
Companies must navigate these challenges by implementing robust logistics strategies and collaborating with reliable partners to ensure the timely and efficient delivery of their products. By addressing these challenges and catering to the evolving consumer preferences, market players can capitalize on the growing demand for healthier edible oil options and strengthen their market position. Consumer preferences for healthier alternatives, such as olive oil, are driving demand for alternative oils

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The market continues to evolve, shaped by dynamic market forces and shifting consumer preferences. Unsaturated fats, such as monounsaturated and polyunsaturated fatty acids, have gained prominence in food processing due to their health benefits. Cold-pressed oils, like olive and avocado, with their desirable nutritional profiles and high omega-3 and omega-6 fatty acid content, have gained popularity in various sectors. The fatty acid profile of oils, including rapeseed, sunflower, safflower, and canola, influences their applications in food processing and dietary guidelines. Smoke point and peroxide value are crucial factors in determining the suitability of oils for cooking applications. Linseed oil, with its high polyunsaturated fat content and low smoke point, is often used in non-cooking applications.

Price volatility, driven by factors like supply chain disruptions and government regulations, impacts the market. Organic and unrefined oils, with their perceived health benefits and higher production costs, command premium prices. Oxidation stability and moisture content are essential considerations for maintaining the quality and shelf life of edible oils. Sustainability concerns, particularly in the palm oil sector, have led to increased scrutiny and regulations. Corn oil, peanut oil, and other vegetable oils are used extensively in salad dressings and food manufacturing. Labeling requirements and consumer preferences for trans-fat-free and low-saturated fat options continue to shape the market landscape. The market is a complex web of interconnected factors, from production methods like solvent extraction and expeller-pressed oil to consumer preferences and government regulations.

The ongoing unfolding of market activities and evolving patterns underscores the importance of staying informed and adaptable in this ever-changing industry.

How is this Edible Oil Industry segmented?

The edible oil industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

End-user

  Retail
  Food service
  Food processor


Packaging

  Pouches
  Bottles
  Jars
  Cans


Type

  Palm oil
  Soybean oil
  Sunflower oil
  Mustard oil
  Others


Geography

  North America

    US
    Canada


  Europe

    Germany
    Russia
    UK


  APAC

    China
    India
    Indonesia
    Japan


  South America

    Brazil


  Rest of World (ROW)

By End-user Insights

The Retail segment is estimated to witness significant growth during the forecast period. The market encompasses various types of oils, including unsaturated ones like rapeseed, sunflower, safflower, olive, and avocado, which provide healthier alternatives to saturated fats. The futures market plays a significant role in price determination, influencing the supply chain. Trans fats, however, are a concern due to their adverse health effects, leading to increased focus on omega-6 and omega-3 fatty acids. Cholesterol content is a critical consideration, with olive, canola, and flaxseed oils offering heart-healthy benefits. Food processing techniques, such as cold-pressing, expeller-pressing, and solvent extraction, impact the oil's nutritional value, smoke point, and oxidation stability. Consumer preferences prioritize monounsatura

Vegetable Oil Market Outlook

The global vegetable oil market size is projected to witness substantial growth from USD 245.8 billion in 2023 to USD 335.7 billion by 2032, at a compound annual growth rate (CAGR) of 3.5%. The driving forces behind this growth include increasing health consciousness among consumers, rising demand for biofuels, and expanding food processing industries. As the world becomes more health-conscious and eco-friendly, the vegetable oil market is poised to benefit significantly from these evolving trends.

One of the primary growth factors in the vegetable oil market is the increasing consumer preference for healthier and sustainable food options. With growing awareness about the adverse effects of trans fats and the health benefits associated with unsaturated fats, there is a marked shift towards vegetable oils. Oils such as olive, canola, and sunflower are gaining popularity due to their health benefits, including reducing bad cholesterol levels and providing essential fatty acids. This shift in consumer preference is driving the demand for a variety of vegetable oils across different demographics and regions.

Another significant growth driver is the escalating demand for biofuels. Vegetable oils are increasingly being used as feedstock for biodiesel production, which is a renewable and environmentally friendly alternative to fossil fuels. Governments and regulatory bodies worldwide are encouraging the use of biofuels to reduce greenhouse gas emissions and dependence on petroleum-based fuels. This governmental push, coupled with technological advancements in biodiesel production, is expected to propel the vegetable oil market further.

The food processing industry's rapid expansion is also fueling the vegetable oil market's growth. Vegetable oils are a staple ingredient in various food products, including baked goods, snacks, confectionery, and ready-to-eat meals. As urbanization and busy lifestyles continue to rise, the demand for convenient and processed food items is expected to increase. Consequently, this will drive the need for vegetable oils, boosting market growth.

From a regional perspective, the Asia Pacific region is expected to hold a significant share of the vegetable oil market. This can be attributed to the region's large population, increasing disposable incomes, and growing awareness about the health benefits of vegetable oils. Countries like China and India are experiencing rapid urbanization and a rising middle class, which is driving the demand for both food and industrial applications of vegetable oils. Moreover, the availability of raw materials and favorable climatic conditions for oilseed cultivation further bolster the market's growth in this region.

Type Analysis

The vegetable oil market is segmented by type, including palm oil, soybean oil, sunflower oil, olive oil, canola oil, coconut oil, and others. Palm oil dominates the market due to its wide availability and versatility in both food and industrial applications. It is extensively used in cooking, as well as in manufacturing margarine, shortening, and various baked goods. However, concerns about deforestation and sustainability practices are pushing producers and consumers to seek alternative oils, which might impact the growth trajectory of palm oil.

Soybean oil is another significant segment in the vegetable oil market. With its high protein content and extensive use in cooking, baking, and as a salad oil, soybean oil holds a substantial market share. The United States, Brazil, and Argentina are major producers of soybean oil. The rising demand for plant-based protein and soy products is expected to propel this segment's growth over the forecast period.

Sunflower oil, known for its light taste and high levels of vitamin E, is gaining popularity among health-conscious consumers. This oil is widely used in salads, frying, and baking. Europe is a significant market for sunflower oil, thanks to its extensive cultivation and consumption. The increasing demand for healthier cooking oils is likely to drive the growth of this segment.

Olive oil, revered for its health benefits and culinary versatility, is another crucial segment. The Mediterranean diet's popularity, which emphasizes the use of olive oil, has significantly boosted its demand globally. Besides culinary uses, olive oil is also finding applications in cosmetics and pharmaceuticals, further expanding its market reach. The high cost of production and limited geographical cultivation areas could

The India Edible Oil Market reached a volume of 10,00,000 Mt Tons, driven by rising consumer health consciousness and a shift towards organic and low-cholesterol edible oils. This trend reflects a growing awareness of health and wellness among Indian consumers, leading to increased demand for healthier oil options.

As of February 2024, Patanjali Foods led the vegetable oil and product category with a market capitalization of over *** billion Indian rupees in India. Manorama Industries came in second with a market capitalization of approximately ** billion Indian rupees.

The global vegetable oil market, valued at $384.89 million in 2025, is projected to experience robust growth, driven by increasing demand from the food and biofuel sectors. A Compound Annual Growth Rate (CAGR) of 7.47% from 2025 to 2033 indicates a significant expansion of this market. Key drivers include rising global populations leading to increased food consumption, growing adoption of biofuels as a sustainable energy source, and increasing industrial applications in cosmetics and other manufacturing processes. The market segmentation reveals palm oil, soybean oil, and rapeseed oil as dominant types, with applications spanning food (energy), animal feed, and industrial uses. While challenges exist, such as fluctuating crop yields and price volatility associated with raw material costs, the long-term outlook remains positive, fueled by consistent demand and ongoing research into sustainable oil production methods. The market is geographically diverse, with significant contributions from North America, Europe, and the Asia-Pacific region. North America, with its large consumer base and established food processing industry, is expected to maintain a leading market share. However, the Asia-Pacific region is poised for rapid growth due to its burgeoning population and rising disposable incomes. Competition within the market is intense, with major players including Archer Daniels Midland, Sime Darby Plantation, Bunge Limited, and Wilmar International continually striving for market share through innovation, mergers and acquisitions, and strategic partnerships. Future growth will be shaped by factors such as evolving consumer preferences towards healthier oils, government regulations promoting sustainable agriculture, and advancements in oil extraction and processing technologies. The increasing focus on reducing reliance on fossil fuels will further enhance demand for vegetable oils in the biofuel segment. Recent developments include: In July 2022, Eni Kenya B.V. completed the construction of the oilseed collection and pressing plant (agri-hub) in Makueni, Kenya, and started production of the first vegetable oil for bio-refineries. According to the company, the first agri-hub would have an installed capacity of 15,000 tons with an expected output of 2,500 tons in 2022., In June 2022, Freedom Refined Sunflower Oil, Gemini Edibles & Fats India (GEF India) announced plans to expand into other States, including Tamil Nadu and Kerala. The business asserted that it is considering strategic expansion and plans to enter Tamil Nadu and Kerala, with a strong demand for sunflower oil, in the coming years., In February 2021, Bunge Loders Croklaan expanded its oils and fats portfolio to meet the organic demand in Europe, offering a steady and scalable supply of organic oils and fats, including sunflower, rapeseed, soy, palm, shea, and coconut., In November 2021, Cargill Incorporated acquired an edible oil refinery situated in Nellore, India, and invested USD 35 million to purchase and improvise the facility, which would increase the production volume of edible oil and help the company to extend its existing supply chain to meet consumer requirements.. Notable trends are: Increasing Demand For Fortified Vegetable Oils.

The size of the Cooking Oil Market was valued at USD 180.82 billion in 2023 and is projected to reach USD 268.32 billion by 2032, with an expected CAGR of 5.8 % during the forecast period. Cooking oil is an indispensable ingredient in daily cooking: frying, baking, sautéing, dressing. It is obtained from various plant and animal sources. Some of the most common types of cooking oils include vegetable oil, olive oil, sunflower oil, canola oil, and coconut oil, each with its flavors, health benefits, and cooking properties. Some oils, such as olive oil, are revered for their heart-healthy fats, while others, like coconut oil, may be prized for their high smoke point and unique flavor. Cooking oils contain fats that are necessary for energy, but the type of fat—saturated, unsaturated, or trans fats—has a bearing on health. Unsaturated fats are held to be healthier, though trans fats are associated with health risks. With increased awareness about healthy living, there has been an increasing demand for oils low in saturated fats and particularly those rich in omega-3 fatty acids, like flaxseed or walnut oil. Recent developments include: In July 2024, Louis Dreyfus Company relaunched its edible oil brand, Vibhor, specifically targeting the North Indian market. This strategic move aims to cater to the growing demand for high-quality edible oils in the region. The company plans to offer Vibhor in various packaging options, including 1-liter, 5-liter, and 15-liter containers, to enhance accessibility for consumers. The brand will focus on promoting its health benefits and quality, leveraging the increasing consumer awareness regarding nutrition and wellness , In February 2023, Cargill India launched its first edible oil brand, Gemini Pureit, in South India, supported by a USD 35 million investment in an existing facility in Nellore, Andhra Pradesh. The sunflower oil will be produced at this plant and distributed across four South Indian states. Cargill plans to gradually increase investments in the region and expand its product range over the coming years .

This report covers India Edible Oil Market, Market Share, Revenue Cooking Oil Industry, Competition in Rice Bran Oil Market, Future Opportunities Edible Oil.

The size of the Vegetable Oil Market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 4.6 % during the forecast period. Vegetable oil is a very common cooking oil extracted from plant sources, such as soybeans, sunflower, corn, canola, or palm. It is a versatile oil because of its mild flavor, high smoke point, and low price, so it is well suited for most cooking methods: frying, sautéing, baking, and grilling. Vegetable oil is often chosen for its ability to maintain stability at high temperatures, which is crucial for deep frying and other high-heat cooking techniques. It is also used in salad dressings, marinades, and as an ingredient in various processed foods. While vegetable oil provides essential fats, it is generally high in polyunsaturated fats, which can help lower bad cholesterol when consumed in moderation. Still, some of the varieties, like palm oil, have raised concerns due to their negative environmental impact and high saturated fat content. Thus, people often opt for alternatives that are sustainable or healthier, such as olive or avocado oil. Recent developments include: In February 2024, Cargill launched its Gemini Pureit sunflower oil brand in four southern states of India: Andhra Pradesh, Telangana, Karnataka, and Tamil Nadu. , In July 2022, Eni, the Italian energy giant, started producing vegetable oil for biorefining in Kenya. They have established an oilseed collection and pressing facility, called an agri-hub, in Makueni, Kenya, with an initial production capacity of 15,000 tons. .

This statistic shows the global consumption of vegetable oils from 2013/14 to 2024/25. In 2024/25, sunflower seed oil consumption was forecast to be at over 20.27 million metric tons worldwide. Global vegetable oil production amounted to around 228 million metric tons in that same period. Vegetable oils Vegetable oils are oils or fats extracted from a plant. Their texture can be described as liquid, oily and fatty. Most vegetable oils are able to fulfill two functions: they can either be used as cooking oil or for fuel and diesel production. The most common oil types include palm oil, soybean oil, canola oil and sunflowerseed oil. Palm oil is extracted from the flesh of the palm fruit, which is primarily found in the tropical climate of Africa, South America and South East Asia. It is estimated that about 90 percent of palm oil is used for food consumption, whereas industrial consumption such as cosmetic products or fuel and diesel claim the remaining 10 percent. In terms of consumption as a food product, vegetable oils are seen as the healthier alternative as they contain more unsaturated fatty acids than animal fats. One of the most widely used cooking oils is canola oil, also known as rapeseed oil. It is obtained by extraction from the rapeseed, which is first slightly heated and then crushed. Rapeseed oil, in particular, is seen to have the advantages of containing a higher amount of omega-3 (linolenic acid) and omega-6 (linoleic) fatty acids and to be low in saturated fatty acids.

The global vegetable oil market is a significant and dynamic sector, exhibiting robust growth driven by increasing global population, rising disposable incomes, and shifting dietary habits toward healthier cooking oils. The market's size in 2025 is estimated at $250 billion, reflecting a considerable expansion from previous years. This growth is further fueled by the rising demand for vegetable oils in food processing, culinary applications, and the biofuel industry. Key market drivers include the increasing preference for healthier fats compared to saturated animal fats, the growing demand for convenience foods requiring vegetable oils, and the expanding application of vegetable oils in various industrial settings like cosmetics and bioplastics. Furthermore, the exploration of sustainable and ethically sourced vegetable oils is influencing consumer purchasing decisions and driving innovation within the industry. However, factors like price volatility due to fluctuating crop yields and climate change, coupled with the increasing concerns regarding the environmental impact of large-scale palm oil production, pose significant restraints. Segment-wise, palm oil maintains a significant market share owing to its cost-effectiveness and widespread usage, while other oils like canola, coconut, and soybean oil are experiencing growth driven by health consciousness and specific applications. The market is expected to maintain a healthy Compound Annual Growth Rate (CAGR) of 5% from 2025 to 2033, projecting a substantial market value by the end of the forecast period. Regional market analysis reveals that Asia Pacific, particularly India and China, remains a dominant consumer region due to its large population and expanding middle class. North America and Europe also contribute significantly to market demand, driven by factors such as evolving consumer preferences and a robust food processing industry. Leading players in the market, including Archer Daniels Midland, Cargill, and Wilmar International, are actively engaged in expansion strategies, focusing on innovation, strategic partnerships, and sustainable sourcing initiatives to gain a competitive edge. This competitive landscape necessitates continuous adaptation to changing consumer needs and governmental regulations related to environmental sustainability and ethical sourcing.

Dive deep into the dynamics of India Cooking Oil Industry. Unlock data-backed intelligence on market size at USD XX in 2023, featuring major players and future outlook.

In financial year 2024, the market share of the edible oils product segment of Adani Wilmar was ** percent. This was an increase as compared to the edible oils market share in the financial year 2021. Adani Wilmar is an Indian FMCG company, a joint venture of Adani Group and Wilmar International, and is headquartered in Ahmedabad.

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Hydrotreated Vegetable Oil Market Size 2025-2029

The hydrotreated vegetable oil market size is forecast to increase by USD 20.11 billion, at a CAGR of 13.3% between 2024 and 2029.

The Hydrotreated Vegetable Oil (HVO) market is driven by several key factors. Firstly, supportive government measures aimed at reducing greenhouse gas emissions and promoting the use of renewable fuels are propelling market growth. The adoption of eco-friendly fuel alternatives, particularly in the transportation sector, is a significant trend shaping the market. However, the market faces challenges as well. Fluctuations in the prices of raw materials, such as vegetable oils and natural gas, can significantly impact the production costs of HVO. Additionally, the market's growth may be hindered by the high capital investment required for the production of HVO.
Companies seeking to capitalize on market opportunities must stay abreast of raw material price trends and explore cost-effective production methods. Meanwhile, those looking to navigate challenges effectively should consider strategic partnerships and collaborations to share risks and resources. Overall, the HVO market presents both opportunities and challenges, with the potential for significant growth in the renewable fuels sector.

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The hydrotreated vegetable oil (HVO) market continues to evolve, driven by the ongoing quest for sustainable fuels and the increasing focus on reducing carbon emissions across various sectors. HVO, derived from renewable feedstocks such as palm oil, soybean oil, sunflower oil, and waste oils, undergoes a hydrotreating process to produce drop-in diesel fuel that is compatible with existing infrastructure. The aviation industry is a significant market for HVO, with sustainable aviation fuels (SAFs) gaining traction as a viable alternative to conventional jet fuel. HVO-derived SAFs offer similar performance characteristics to fossil fuel-based jet fuel, making them an attractive option for airlines seeking to reduce their carbon footprint.

Hydrotreating plays a crucial role in the production of HVO, as it removes impurities and converts the vegetable oil into a consistent, high-quality product. The process also reduces the aromatic hydrocarbons content, making HVO a cleaner-burning fuel that emits fewer greenhouse gases than conventional diesel fuel. Emission regulations continue to drive demand for HVO in the transportation sector, with governments and organizations setting ambitious targets for reducing carbon emissions. HVO's ability to offer significant emissions reductions, up to 90% compared to conventional diesel fuel, makes it an attractive option for fleet operators and other industrial applications.

Cost optimization is a critical factor in the HVO market, with refineries seeking to maximize efficiency and minimize costs. Renewable resources, such as waste oils, offer a cost-effective feedstock option, making them an attractive choice for HVO production. The HVO market's continuous dynamism is reflected in the evolving patterns of market activities. The market's growth is underpinned by the ongoing demand for sustainable fuels, the increasing focus on reducing carbon emissions, and the development of new technologies and production methods. The market's future direction will be shaped by regulatory developments, technological advancements, and the availability of renewable feedstocks.

How is this Hydrotreated Vegetable Oil Industry segmented?

The hydrotreated vegetable oil industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Source

  Food and feed crops
  Animal fats


Application

  Sustainable aviation fuel
  Automotive fuel
  Others


Distribution Channel

  B2B
  Direct Sales
  Online Retail


End-User

  Energy Sector
  Food Manufacturers
  Industrial Users


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    UK


  APAC

    China
    India
    Japan
    South Korea


  South America

    Brazil


  Rest of World (ROW)

By Source Insights

The food and feed crops segment is estimated to witness significant growth during the forecast period.

The hydrotreated vegetable oil (HVO) market is driven by the growing demand for renewable fuels, particularly in the transportation sector. HVO, a drop-in diesel fuel derived from various feedstocks such as vegetable oils (rapeseed, soybean, sunflower), animal fats, and waste oils, offers several advantages over conventional diesel fuel. Its

The global edible vegetable oil market is estimated to reach USD XXX million in 2025, registering a CAGR of XX% during the forecast period (2025-2033). The market is primarily driven by the increasing demand for vegetable oils in cooking, salad dressing, and food processing industries. Moreover, the growing awareness about the health benefits of vegetable oils, such as their low saturated fat content and high unsaturated fat content, is further fuelling the market growth. The edible vegetable oil market is segmented based on application and type. In terms of application, the market is categorized into cooking oils, salad dressings, margarine, and others. Cooking oils hold the largest market share due to their extensive use in various cuisines around the world. Based on type, the market is divided into palm oil, soybean oil, sunflower oil, canola oil, and others. Palm oil is the most consumed vegetable oil, owing to its low cost and versatility. The market is also segmented geographically into North America, South America, Europe, Middle East & Africa, and Asia Pacific. Asia Pacific holds the largest market share due to the high demand for vegetable oils in countries like China and India.

Edible Oil and Fats Market Outlook

The global edible oil and fats market size was valued at approximately USD 247.43 billion in 2023 and is projected to reach around USD 357.23 billion by 2032, growing at a CAGR of 4.2% from 2024 to 2032. The significant growth factor driving the edible oil and fats market includes increasing consumer health consciousness, which has elevated the demand for high-quality edible oils and fats with specific health benefits. The rising global population and rapid urbanization are also key drivers, coupled with an increasing demand for processed foods and innovations in oil extraction and refining technologies.

One of the primary growth factors for the edible oil and fats market is the heightened awareness of the nutritional benefits of various oils and fats. Consumers are now more informed about the health implications associated with different types of fats, leading to a higher demand for oils that are rich in essential fatty acids, vitamins, and antioxidants. This shift in consumer behavior towards healthier options has been a significant catalyst for market growth. The increasing adoption of oils like olive oil and avocado oil, which are known for their heart-healthy properties, has further propelled the market.

Another major driver is the expanding use of edible oils and fats in the food industry. The food processing sector heavily relies on various types of oils and fats for cooking, baking, and as additives to enhance flavor and texture. The growth of the processed food industry, particularly in emerging economies, has led to an upsurge in the demand for edible oils and fats. Additionally, the trend of eating out and the proliferation of fast-food chains have also contributed to the increased consumption of these products. This trend is expected to continue over the forecast period, driven by changing lifestyles and increasing disposable incomes.

The biodiesel industry represents a significant growth avenue for the edible oils and fats market. With the global push towards sustainable and renewable energy sources, the use of vegetable oils, particularly palm and soybean oils, in biodiesel production has gained substantial traction. Governments across various countries are promoting biodiesel as part of their energy policy, providing tax incentives and subsidies to boost production. This not only provides an alternative market for edible oils and fats but also ensures price stability for farmers and producers, thereby supporting overall market growth.

Soy Oil and Palm Oil are pivotal in the biodiesel industry due to their abundant availability and cost-effectiveness. These oils are not only essential in food applications but also play a crucial role in the production of renewable energy. The versatility of soy oil and palm oil makes them ideal candidates for biodiesel production, as they provide a sustainable alternative to fossil fuels. The cultivation and processing of these oils have been optimized over the years, ensuring a steady supply for both food and energy sectors. As the demand for cleaner energy sources grows, the role of soy oil and palm oil in biodiesel production is expected to expand, further supporting the edible oils and fats market.

Regionally, the Asia Pacific region is anticipated to witness significant growth in the edible oil and fats market. This growth is attributed to the large population base, increasing disposable incomes, and changing dietary habits in countries like China and India. North America and Europe are also substantial markets due to high consumption rates of processed foods and the growing trend of premium cooking oils. The Middle East & Africa and Latin America are emerging markets with significant growth potential due to increasing urbanization and rising health awareness among consumers.

Product Type Analysis

The edible oil and fats market can be segmented by product type into vegetable oils, animal fats, specialty fats, and others. Vegetable oils dominate this segment due to their widespread use in cooking, industrial applications, and biodiesel production. Popular vegetable oils include palm oil, soybean oil, sunflower oil, and olive oil. Palm oil, in particular, is extensively used in packaged foods and personal care products due to its cost-effectiveness and versatility. The rising demand for healthy cooking oils has also propelled the growth of olive oil and avocado oil within this segment.

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