Cooking Oil

Cooking Oil Market Outlook

The global cooking oil market is projected to reach approximately USD 200 billion by 2035, expanding at a compound annual growth rate (CAGR) of around 5% from 2025 to 2035. This growth trajectory is primarily attributed to the increasing consumption of cooking oil due to rising populations and changing dietary habits around the world. Additionally, the shift towards healthier oils and the growing trend of home cooking, intensified by the COVID-19 pandemic, are further fueling demand. Innovations in oil extraction processes, alongside the introduction of fortified oils enriched with essential vitamins and nutrients, are also expected to contribute significantly to market expansion. Furthermore, the rising awareness regarding the health benefits of specific cooking oils is catalyzing their usage in both commercial and residential kitchens. This multifaceted growth factor landscape positions the cooking oil market for robust future development.

Growth Factor of the Market

The cooking oil market is experiencing an upward trajectory due to several influential growth factors. Firstly, the increasing global population is leading to higher food consumption, subsequently increasing the demand for cooking oils. Secondly, the trend of healthy eating is steering consumers towards oils that are perceived as healthier alternatives, such as olive and coconut oil, which boast beneficial properties compared to traditional oils. Moreover, the diversification of culinary cultures and the popularity of international cuisines are fueling the demand for various types of cooking oils. Additionally, the expansion of the food service industry, particularly in emerging markets, is providing further opportunities for market growth. Lastly, advancements in production technology that allow for the extraction of oils without chemical additives are resonating well with health-conscious consumers, driving further demand.

Key Highlights of the Market

• The global cooking oil market is projected to reach USD 200 billion by 2035.
• Vegetable oil remains the dominant segment within the market, driven by its extensive applications.
• The online distribution channel is witnessing remarkable growth, especially post-pandemic.
• Changing dietary trends are pushing consumers towards healthier oil options, creating new opportunities.
• The Asia-Pacific region is expected to witness the highest growth rate, with a CAGR of over 6% during the forecast period.

By Product Type

Vegetable Oil:

Vegetable oil remains the most consumed type in the cooking oil market, accounting for a significant share due to its versatility and affordability. This oil is derived from a variety of plant sources, including soybeans, rapeseeds, and sunflowers. The health benefits associated with vegetable oils, such as being low in saturated fats and containing essential fatty acids, contribute to their popularity among consumers. Additionally, vegetable oil is widely used in food processing and cooking, making it a staple in households and commercial kitchens alike. The rising trend of plant-based diets and food formulations further solidifies vegetable oil's position as a leading product type in the market.

Canola Oil:

Canola oil has gained traction in the cooking oil market, particularly due to its favorable nutritional profile, including low saturated fat and high levels of omega-3 fatty acids. It is commonly used in various culinary applications, ranging from frying to baking, making it a versatile choice for both home cooks and professional chefs. The growing awareness of heart health is also driving the demand for canola oil as a healthier cooking alternative. Furthermore, its neutral flavor profile makes it an ideal ingredient for salad dressings and sauces, contributing to its increasing popularity in the food industry.

Olive Oil:

Olive oil is renowned for its health benefits, particularly its rich content of monounsaturated fats and antioxidants. This has led to a surge in demand as consumers become increasingly health-conscious and seek oils with superior nutritional profiles. Olive oil is frequently used in Mediterranean cuisines and has found its way into households globally, often utilized for salad dressings, marinades, and sautéing. The segment is also witnessing growth in premium products, including extra virgin olive oil, which commands a higher price point due to its quality and perceived health benefits. The rise of gourmet cooking and increased consumer interest in authentic culinary experiences bolster the growth of this segment.

Coconut Oil:

Coconut oil has rapidly gained popularity due to its unique flavor and culinary properties, along with its perceived health benefits. As a saturated fat, it has been a topic of debate; however, many consumers embrace it for its potential anti-inflammatory and antimicrobial properties. Coconut oil is not only used for cooking but has also found applications in baking and as a dairy substitute in vegan diets. The growth of the health and wellness sector is further supporting the demand for coconut oil, as it is often marketed as a natural alternative in beauty and personal care products. The versatility of coconut oil is a significant factor contributing to its ongoing growth in the cooking oil market.

Sunflower Oil:

Sunflower oil is favored for its light flavor and high smoke point, making it an ideal choice for frying and baking. The oil is extracted from sunflower seeds and is known for its high vitamin E content and low saturated fat, making it a healthier option in cooking. The rising trend of clean-label products is fueling the demand for sunflower oil, as consumers are increasingly looking for oils that are minimally processed and free from additives. Additionally, sunflower oil’s application in the food processing industry is significant, further bolstering its market presence. The growing interest in plant-based diets is also contributing to the expanding consumer base for sunflower oil.

By Application

Household:

The household application segment of the cooking oil market is a significant contributor to overall demand, as cooking oil is a staple in virtually every kitchen. Consumers typically purchase various types of cooking oil based on their cooking methods and culinary preferences. The increasing trend of home cooking, particularly during the pandemic, has led to a surge in cooking oil consumption in households. Additionally, the growing awareness of healthy cooking practices is leading consumers to choose oils that align with their health goals, such as olive or canola oil, further driving growth in this segment.

Food Industry:

The food industry represents a substantial segment of the cooking oil market, encompassing various sectors including food processing, packaged foods, and catering services. Cooking oils are essential ingredients in food preparation, influencing taste, texture, and overall quality. Manufacturers of processed foods, snacks, and ready-to-eat meals rely heavily on different types of oils for frying, baking, and flavor enhancement. With the ongoing expansion of the fast-food sector and the rise of convenience foods, the demand for cooking oils in the food industry is expected to remain robust, ensuring a steady growth trajectory.

Restaurants:

The restaurant sector is a crucial application area for cooking oils, as they are integral in commercial food preparation. Restaurants utilize a variety of oils depending on the cuisine and cooking techniques employed, with frying being a particularly oil-intensive method. The growing dining out trend and the increasing number of global restaurant chains are driving demand for cooking oils in this sector. Additionally, many restaurants are shifting towards healthier oil options, which is fuelling the growth of premium oils like olive and canola oil. As foodservice continues to evolve, the restaurant segment will remain a key player influencing the cooking oil market.

Others:

The 'Others' segment encompasses various applications of cooking oil outside the traditional household and food industry settings. These can include industrial uses, biofuels, and cosmetics, where cooking oils are often utilized for their properties. The rise of biodiesel production as an alternative fuel source is sparking interest in cooking oils previously considered waste products. This segment's growth is also attributed to the increasing use of natural oils in personal care products, as consumers seek healthier and more sustainable options. The diversification of application areas is creating new opportunities for growth within the cooking oil market.

By Distribution Channel

Supermarkets/Hypermarkets:

Supermarkets and hypermarkets are major distribution channels for cooking oils, providing consumers with a wide range of options and brands. These retail outlets benefit from high foot traffic and the convenience of one-stop shopping, attracting customers seeking essential cooking ingredients. The competitive pricing and promotional offers run by these stores further enhance consumer purchasing decisions. Additionally, supermarkets often carry both standard and premium cooking oils, catering to diverse consumer preferences. As consumers increasingly opt for larger pack sizes for cost-efficiency, this distribution channel is expected to maintain its significance in the cooking oil market.

Online Stores:

The rise of e-commerce has revolutionized the distribution of cooking oils, with online stores emerging as a rapidly growing channel. The convenience of shopping from home, coupled with the ability to compare prices and access exclusive online offers, is driving consumers towards online purchasing. The COVID-19 pandemic accelerated the adoption of online grocery shopping, solidifying its permanence in consumer behavior. Additionally, the growth of subscription services and delivery options is further enhancing the appeal of purchasing cooking oil online. As digital platforms continue to evolve, online stores are poised to capture an even larger share of the market, attracting tech-savvy consumers.

Convenience Stores:

Convenience stores play a vital role in the distribution of cooking oils, particularly for consumers seeking quick and easy access to essential products. These stores cater to on-the-go consumers who may require cooking oils for spontaneous cooking or meal preparations. The availability of smaller pack sizes is particularly attractive to those looking for immediate solutions without needing to buy in bulk. Additionally, convenience stores often stock popular brands and varieties, ensuring they meet the needs of local customers. As lifestyles become increasingly fast-paced, the demand for cooking oil through convenience stores is likely to rise.

Specialty Stores:

Specialty stores that focus on organic, health-focused, or gourmet products are a growing segment in the cooking oil market. These outlets cater to consumers who are specifically looking for premium, high-quality oils that may not be available in mainstream supermarkets. Specialty stores often emphasize the health benefits of their products, such as cold-pressed or organic oils, appealing to health-conscious consumers. Additionally, they provide consumers with information on the sourcing and production processes, enhancing the overall shopping experience. As the demand for specialty foods continues to rise, these stores are expected to contribute significantly to the cooking oil market.

By Ingredient Type

Soybean Oil:

Soybean oil is one of the most widely used cooking oils globally, primarily due to its affordability and versatility. Rich in polyunsaturated fats, it is often used in both household cooking and food processing applications. The high smoke point of soybean oil makes it suitable for frying and baking, which contributes to its popularity among consumers. Furthermore, the increasing demand for plant-based products is enhancing the market potential for soybean oil, particularly in vegetarian and vegan cooking. As a key ingredient in many processed foods, soybean oil’s ubiquitous presence in the market ensures its continued relevance in the cooking oil segment.

Palm Oil:

Palm oil is another significant player in the cooking oil market, known for its high yield and versatility. It is predominantly used in food processing and is a common ingredient in many packaged foods, snacks, and baked goods. The growing demand for palm oil is driven by its affordability and the ability to withstand high temperatures during cooking. However, the production of palm oil has raised environmental concerns, leading to increased scrutiny and calls for sustainable sourcing practices. As consumer awareness regarding sustainability grows, the cooking oil market is likely to witness a shift towards sustainably sourced palm oil options.

Corn Oil:

Corn oil is recognized for its light flavor and high smoke point, making it suitable for a variety of cooking applications, including frying and baking. It is also seen as a healthier alternative due to its high content of polyunsaturated fats and vitamin E. The growing trend of health-conscious eating is bolstering the demand for corn oil, particularly as consumers become more aware of the benefits of including healthy fats in their diets. Additionally, corn oil is used in a variety of food products and is often blended with other oils to achieve desired taste profiles, further enhancing its market presence.

Peanut Oil:

Peanut oil is characterized by its rich flavor and high smoking point, making it a popular choice for frying, particularly in Asian cuisines. Due to its unique taste, it is often used in stir-frying and deep-frying applications, contributing to its popularity among chefs and home cooks alike. The rising interest in ethnic foods is driving the demand for peanut oil, as it is integral to traditional dishes. Moreover, the health benefits associated with peanut oil, including its high monounsaturated fat content, are appealing to health-conscious consumers. As culinary diversity continues to grow, peanut oil is poised to maintain its relevance in the cooking oil market.

By Region

The cooking oil market is experiencing significant growth across various regions, with Asia Pacific leading the way due to its large population and diverse culinary preferences. In this region, the demand for cooking oil is expected to grow at a CAGR of 6% from 2025 to 2035, driven by the increasing consumption in countries such as China and India. The rise in disposable income and changing food habits are contributing to the greater usage of various cooking oils, including vegetable and sunflower oils. Furthermore, the growing trend of home cooking, particularly in urban areas, is creating substantial opportunities within the market. The Asia Pacific region not only dominates in terms of demand but also serves as a major production hub for several types of cooking oils.

North America and Europe are also significant markets for cooking oil, with a focus on premium and healthy oil options. In North America, olive oil and avocado oil are gaining popularity as consumers become more health-conscious and seek better alternatives. The growing food service industry in both regions is contributing to an increase in demand for cooking oils. Meanwhile, Latin America is witnessing notable growth due to its strong agricultural base, with countries like Brazil being major producers of soybean and palm oil. The Middle East and Africa are also emerging markets, driven by urbanization and the growing food industry, although their market size remains relatively smaller compared to the aforementioned regions. Overall, the regional dynamics of the cooking oil market are characterized by varying consumer preferences and growth rates, contributing to a diverse and thriving global market.

Opportunities

The cooking oil market presents a wealth of opportunities, particularly in the realms of product innovation and sustainability. As consumers increasingly gravitate towards health-conscious products, there is a growing demand for oils that offer added nutritional benefits, such as those fortified with vitamins or omega fatty acids. Companies have the chance to innovate by developing new oil blends that cater to these preferences or by enhancing the extraction processes to produce oils with improved flavor profiles. Furthermore, the trend towards organic and non-GMO cooking oils is gaining momentum, which opens up new avenues for brands that focus on transparency and sustainability in their sourcing and production practices. This aligns with the broader consumer shift towards health and wellness, presenting a lucrative opportunity for growth within the market.

Another significant opportunity for the cooking oil market lies in the expanding e-commerce sector. With the rise of digital shopping, brands can leverage online platforms to reach a wider audience and cater to the growing demand for convenient purchasing options. Retailers can capitalize on this trend by offering subscription services or exclusive online promotions to attract consumers. Additionally, as consumers become more adventurous in their cooking habits, the demand for specialty and international oils is likely to rise. Companies that can adapt to these changing preferences by offering diverse product lines or unique flavor profiles will stand to benefit in a competitive market landscape.

Threats

Despite the bright outlook for the cooking oil market, there are several threats that could impact its growth trajectory. One of the most significant challenges is the increasing scrutiny of health aspects related to certain oils, particularly saturated fats. As public health campaigns continue to stress the importance of healthy eating, oils that are high in saturated fats, such as palm and coconut oils, may face declining demand. Additionally, the ongoing environmental concerns associated with palm oil production, including deforestation and habitat destruction, could lead to regulatory challenges and consumer backlash. Brands that do not address these issues may find themselves at a disadvantage as consumers increasingly prioritize sustainability and ethical sourcing in their purchasing decisions.

Another potential threat to the cooking oil market is the volatility of raw material prices. Fluctuations in agricultural production due to climate change, trade policies, or other economic factors can severely impact the availability and cost of key oilseeds like soybeans, palm, and canola. This price volatility can create challenges for manufacturers in terms of maintaining profitability and pricing strategies. In addition, the emergence of alternative cooking fats and oils, such as avocado and flaxseed oil, is intensifying competition within the market. Brands must remain agile and responsive to these trends to ensure they stay relevant and competitive in a rapidly evolving marketplace.

Competitor Outlook

• Bunge Limited
• Cargill, Incorporated
• Archer Daniels Midland Company (ADM)
• Wilmar International Limited
• Unilever
• Associated British Foods plc (ABF)
• Kraft Heinz Company
• Colavita USA
• Pompeian, Inc.
• California Olive Ranch, Inc.
• Ajinomoto Co., Inc.
• Friedman’s Inc.
• Louis Dreyfus Company
• Golden Barrel
• Nutiva, Inc.

The competitive landscape of the cooking oil market is characterized by a mix of established multinational corporations and smaller, innovative players. Major companies such as Bunge Limited, Cargill, and Archer Daniels Midland Company dominate the market, leveraging their extensive distribution networks and economies of scale to maintain a strong market presence. These industry giants are often involved in various stages of the supply chain, from farming to processing, which allows them to have significant control over product quality and pricing. Furthermore, these companies are increasingly investing in sustainability initiatives and expanding their product portfolios to include a wider range of healthy and specialty oils, in response to shifting consumer preferences.

On the other hand, smaller companies and niche brands are making significant inroads into the market by focusing on health, quality, and transparency. Brands like California Olive Ranch and Nutiva are carving out a niche for themselves by offering premium oils that cater to health-conscious consumers. These companies often leverage direct-to-consumer sales models and engage with consumers through social media and other digital platforms to build brand loyalty. The competition is further intensified by the entry of new players that focus on organic and ethically sourced products, challenging established companies to innovate continuously and enhance their offerings.

In summary, the cooking oil market is shaped by a diverse array of competitors, ranging from large conglomerates to specialized brands. As consumer preferences evolve towards healthier and sustainable options, companies must adapt by investing in product innovation, enhancing their supply chain practices, and engaging with consumers effectively. The competitive dynamics of the market are expected to intensify in the coming years, necessitating that all players remain vigilant and responsive to emerging trends and challenges.

• 1 Appendix

  • 1.1 List of Tables
  • 1.2 List of Figures

• 2 Introduction

  • 2.1 Market Definition
  • 2.2 Scope of the Report
  • 2.3 Study Assumptions
  • 2.4 Base Currency & Forecast Periods

• 3 Market Dynamics

  • 3.1 Market Growth Factors
  • 3.2 Economic & Global Events
  • 3.3 Innovation Trends
  • 3.4 Supply Chain Analysis

• 4 Consumer Behavior

  • 4.1 Market Trends
  • 4.2 Pricing Analysis
  • 4.3 Buyer Insights

• 5 Key Player Profiles

  • 5.1 Unilever
    • 5.1.1 Business Overview
    • 5.1.2 Products & Services
    • 5.1.3 Financials
    • 5.1.4 Recent Developments
    • 5.1.5 SWOT Analysis
  • 5.2 Colavita USA
    • 5.2.1 Business Overview
    • 5.2.2 Products & Services
    • 5.2.3 Financials
    • 5.2.4 Recent Developments
    • 5.2.5 SWOT Analysis
  • 5.3 Nutiva, Inc.
    • 5.3.1 Business Overview
    • 5.3.2 Products & Services
    • 5.3.3 Financials
    • 5.3.4 Recent Developments
    • 5.3.5 SWOT Analysis
  • 5.4 Bunge Limited
    • 5.4.1 Business Overview
    • 5.4.2 Products & Services
    • 5.4.3 Financials
    • 5.4.4 Recent Developments
    • 5.4.5 SWOT Analysis
  • 5.5 Golden Barrel
    • 5.5.1 Business Overview
    • 5.5.2 Products & Services
    • 5.5.3 Financials
    • 5.5.4 Recent Developments
    • 5.5.5 SWOT Analysis
  • 5.6 Pompeian, Inc.
    • 5.6.1 Business Overview
    • 5.6.2 Products & Services
    • 5.6.3 Financials
    • 5.6.4 Recent Developments
    • 5.6.5 SWOT Analysis
  • 5.7 Ajinomoto Co., Inc.
    • 5.7.1 Business Overview
    • 5.7.2 Products & Services
    • 5.7.3 Financials
    • 5.7.4 Recent Developments
    • 5.7.5 SWOT Analysis
  • 5.8 Kraft Heinz Company
    • 5.8.1 Business Overview
    • 5.8.2 Products & Services
    • 5.8.3 Financials
    • 5.8.4 Recent Developments
    • 5.8.5 SWOT Analysis
  • 5.9 Cargill, Incorporated
    • 5.9.1 Business Overview
    • 5.9.2 Products & Services
    • 5.9.3 Financials
    • 5.9.4 Recent Developments
    • 5.9.5 SWOT Analysis
  • 5.10 Louis Dreyfus Company
    • 5.10.1 Business Overview
    • 5.10.2 Products & Services
    • 5.10.3 Financials
    • 5.10.4 Recent Developments
    • 5.10.5 SWOT Analysis
  • 5.11 Friedman’s Inc.
    • 5.11.1 Business Overview
    • 5.11.2 Products & Services
    • 5.11.3 Financials
    • 5.11.4 Recent Developments
    • 5.11.5 SWOT Analysis
  • 5.12 California Olive Ranch, Inc.
    • 5.12.1 Business Overview
    • 5.12.2 Products & Services
    • 5.12.3 Financials
    • 5.12.4 Recent Developments
    • 5.12.5 SWOT Analysis
  • 5.13 Wilmar International Limited
    • 5.13.1 Business Overview
    • 5.13.2 Products & Services
    • 5.13.3 Financials
    • 5.13.4 Recent Developments
    • 5.13.5 SWOT Analysis
  • 5.14 Associated British Foods plc (ABF)
    • 5.14.1 Business Overview
    • 5.14.2 Products & Services
    • 5.14.3 Financials
    • 5.14.4 Recent Developments
    • 5.14.5 SWOT Analysis
  • 5.15 Archer Daniels Midland Company (ADM)
    • 5.15.1 Business Overview
    • 5.15.2 Products & Services
    • 5.15.3 Financials
    • 5.15.4 Recent Developments
    • 5.15.5 SWOT Analysis

• 6 Market Segmentation

  • 6.1 Cooking Oil Market, By Application
    • 6.1.1 Household
    • 6.1.2 Food Industry
    • 6.1.3 Restaurants
    • 6.1.4 Others
  • 6.2 Cooking Oil Market, By Product Type
    • 6.2.1 Vegetable Oil
    • 6.2.2 Canola Oil
    • 6.2.3 Olive Oil
    • 6.2.4 Coconut Oil
    • 6.2.5 Sunflower Oil
  • 6.3 Cooking Oil Market, By Ingredient Type
    • 6.3.1 Soybean Oil
    • 6.3.2 Palm Oil
    • 6.3.3 Corn Oil
    • 6.3.4 Peanut Oil
    • 6.3.5 Others
  • 6.4 Cooking Oil Market, By Distribution Channel
    • 6.4.1 Supermarkets/Hypermarkets
    • 6.4.2 Online Stores
    • 6.4.3 Convenience Stores
    • 6.4.4 Specialty Stores
    • 6.4.5 Others

• 7 Competitive Analysis

  • 7.1 Key Player Comparison
  • 7.2 Market Share Analysis
  • 7.3 Investment Trends
  • 7.4 SWOT Analysis

• 8 Research Methodology

  • 8.1 Analysis Design
  • 8.2 Research Phases
  • 8.3 Study Timeline

• 9 Future Market Outlook

  • 9.1 Growth Forecast
  • 9.2 Market Evolution

• 10 Geographical Overview

  • 10.1 Europe - Market Analysis
    • 10.1.1 By Country
      • 10.1.1.1 UK
      • 10.1.1.2 France
      • 10.1.1.3 Germany
      • 10.1.1.4 Spain
      • 10.1.1.5 Italy
  • 10.2 Cooking Oil Market by Region
  • 10.3 Asia Pacific - Market Analysis
    • 10.3.1 By Country
      • 10.3.1.1 India
      • 10.3.1.2 China
      • 10.3.1.3 Japan
      • 10.3.1.4 South Korea
  • 10.4 Latin America - Market Analysis
    • 10.4.1 By Country
      • 10.4.1.1 Brazil
      • 10.4.1.2 Argentina
      • 10.4.1.3 Mexico
  • 10.5 North America - Market Analysis
    • 10.5.1 By Country
      • 10.5.1.1 USA
      • 10.5.1.2 Canada
  • 10.6 Middle East & Africa - Market Analysis
    • 10.6.1 By Country
      • 10.6.1.1 Middle East
      • 10.6.1.2 Africa

• 11 Global Economic Factors

  • 11.1 Inflation Impact
  • 11.2 Trade Policies

• 12 Technology & Innovation

  • 12.1 Emerging Technologies
  • 12.2 AI & Digital Trends
  • 12.3 Patent Research

• 13 Investment & Market Growth

  • 13.1 Funding Trends
  • 13.2 Future Market Projections

• 14 Market Overview & Key Insights

  • 14.1 Executive Summary
  • 14.2 Key Trends
  • 14.3 Market Challenges
  • 14.4 Regulatory Landscape

Segments Analyzed in the Report

The global Cooking Oil market is categorized based on

By Product Type

• Vegetable Oil
• Canola Oil
• Olive Oil
• Coconut Oil
• Sunflower Oil

By Application

• Household
• Food Industry
• Restaurants
• Others

By Distribution Channel

• Supermarkets/Hypermarkets
• Online Stores
• Convenience Stores
• Specialty Stores
• Others

By Ingredient Type

• Soybean Oil
• Palm Oil
• Corn Oil
• Peanut Oil
• Others

By Region

• Asia Pacific
• North America
• Latin America
• Europe
• Middle East & Africa

Key Players

• Bunge Limited
• Cargill, Incorporated
• Archer Daniels Midland Company (ADM)
• Wilmar International Limited
• Unilever
• Associated British Foods plc (ABF)
• Kraft Heinz Company
• Colavita USA
• Pompeian, Inc.
• California Olive Ranch, Inc.
• Ajinomoto Co., Inc.
• Friedman’s Inc.
• Louis Dreyfus Company
• Golden Barrel
• Nutiva, Inc.