PHO and Non PHO based Oils and Fats

Oils and Fats Market Outlook

The global Oils and Fats market is anticipated to reach approximately USD 250 billion by 2035, growing at a compound annual growth rate (CAGR) of around 4.5% during the forecast period from 2025 to 2035. As consumers are increasingly leaning towards healthier eating habits and dietary choices, there is a significant shift towards non-PHO (Partially Hydrogenated Oils) based oils, driving the growth of the market. Additionally, the rising demand for natural and organic products is further fuelling the interest in various oil types, such as coconut and olive oils, which are perceived as healthier alternatives. Moreover, the expansion of the food and beverage industry worldwide is expected to bolster the demand for oils and fats, as they are essential ingredients in numerous food formulations. Additionally, the growing popularity of plant-based diets and the increasing awareness regarding the health impacts of fats are also influencing market dynamics.

Growth Factor of the Market

The growth of the Oils and Fats market is influenced by several pivotal factors. Primarily, the rising affinity for convenience foods is compelling manufacturers to include various types of oils in their products, thereby enhancing the market's volume. Moreover, the increasing disposable income across developing nations is encouraging consumers to indulge in a wider variety of high-quality oils, further propelling market growth. The health revolution in several regions is catalyzing a shift towards the acceptance of healthier fats, particularly non-PHO alternatives that offer better nutritional benefits. Furthermore, advancements in technology have streamlined the extraction and refining processes of oils, providing improved quality and shelf-life, which are essential for consumer satisfaction and product efficacy. Additionally, the global trend towards sustainability is pushing manufacturers to adopt eco-friendly practices in oil production and sourcing, thereby aligning with the preferences of environmentally conscious consumers.

Key Highlights of the Market

• The global Oils and Fats market is projected to grow at a CAGR of 4.5% from 2025 to 2035.
• Increasing demand for natural and organic oils is reshaping consumer preferences.
• PHO-based oils face declining demand due to health concerns and regulatory restrictions.
• Technological advancements in oil extraction methods are improving product quality.
• The rise of e-commerce is transforming the distribution landscape for oils and fats.

By Product Type

PHO-Based Oils:

PHO-based oils have been widely used in various food applications for their stability and cost-effectiveness. However, the increasing awareness regarding the adverse health implications associated with trans fats has led to a significant decline in their consumption. Regulatory measures in multiple countries are further restricting the use of PHO-based oils in food production. This segment has seen a shift, as both consumers and manufacturers are opting for healthier alternatives. The demand for PHO-based oils is projected to decrease substantially in the coming years as brands reformulate products to eliminate trans fats and improve nutritional profiles.

Non-PHO Based Oils:

Non-PHO based oils are experiencing robust growth in the market as they are perceived as healthier options. The increasing consumer preference for oils with better nutritional profiles, such as olive oil, coconut oil, and avocado oil, is benefiting this segment significantly. As health-conscious consumers prioritize clean-label and minimally processed foods, manufacturers are responding by diversifying their product offerings. With the advent of organic certifications and the rising trend of plant-based diets, non-PHO based oils are becoming essential ingredients in various culinary applications, making them a key driver of market expansion.

By Application

Food and Beverages:

The food and beverages application segment stands as the largest contributor to the Oils and Fats market. Oils are vital ingredients in cooking, baking, and food processing, providing flavor and texture to various products. The growing trend of convenience foods coupled with an increase in the restaurant industry has bolstered the demand for cooking oils. Consumers are also shifting towards healthier cooking methods, leading to an uptick in the use of oils like olive and avocado oil, which are considered healthier options. Additionally, as the trend of plant-based diets continues to rise, the demand for oils used in food preparation is expected to grow significantly.

Pharmaceuticals:

In the pharmaceuticals sector, oils and fats are utilized as excipients and active components in a broad range of formulations. The segment is gaining traction due to the increasing need for lipophilic drugs and the growing trend of natural and organic pharmaceutical products. Oils such as castor oil and olive oil are often used for their therapeutic properties, enhancing drug absorption and efficacy. With rising health awareness and the shift towards holistic remedies, the demand for health-oriented oils in this sector is likely to see sustained growth in the upcoming years.

Personal Care:

Oils and fats are fundamental ingredients in personal care products, including moisturizers, lotions, and hair oils. The personal care segment has been witnessing a shift towards natural and organic products, driving the usage of oils like jojoba oil, coconut oil, and argan oil. Consumers are increasingly aware of the benefits these oils provide, such as hydration, nourishment, and soothing properties, which has led to an uptick in demand for products enriched with these ingredients. Additionally, the trend of DIY personal care products is further boosting the market as consumers opt for oils to create their formulations.

Others:

The “Others” application segment includes various industries that utilize oils and fats in production processes, such as lubricants, biodiesel, and industrial applications. This segment, though smaller compared to food, pharmaceuticals, and personal care, is significant due to the growing use of bio-based oils for sustainable production. The demand for renewable energy sources is promoting the use of vegetable oils in biodiesel production, which is expected to expand as governments impose regulations on fossil fuels. Thus, this segment may witness notable growth as industries seek sustainable solutions.

By Distribution Channel

Online Stores:

The rise of e-commerce has significantly transformed the distribution landscape for oils and fats, with online stores emerging as a prominent channel for purchase. The convenience of shopping from home and the availability of a wider range of products cater to the growing demand for specialty and organic oils. Furthermore, online retailers often offer competitive pricing and promotional discounts, attracting consumers who prioritize value. The COVID-19 pandemic has accelerated this trend, as more consumers have turned to online shopping for their grocery needs, making this channel a crucial aspect of the market's growth strategy.

Supermarkets/Hypermarkets:

Supermarkets and hypermarkets continue to be traditional yet essential distribution channels for oils and fats. These large retail formats provide consumers with a vast selection of products, allowing for easy comparison and informed purchasing decisions. The presence of various brands and types of oils in one location enhances consumer choice and encourages bulk purchases. Additionally, promotional campaigns and in-store discounts often attract shoppers, further bolstering sales in this segment. As consumer preferences evolve, these retailers are increasingly incorporating health-focused oils, catering to the growing demand for non-PHO and organic options.

Specialty Stores:

Specialty stores play a significant role in the distribution of niche oils and fats, particularly organic and health-focused products. These stores cater to consumers seeking specific dietary needs, such as gluten-free, vegan, or health-enhancing oils like flaxseed or hemp oil. The knowledgeable staff in specialty stores can provide personalized recommendations, which enhances the shopping experience for health-conscious consumers. As awareness regarding the benefits of various oils continues to grow, specialty stores are likely to expand their offerings, creating more opportunities for manufacturers focusing on premium oils.

Others:

This segment encompasses various distribution methods, including wholesalers and direct sales. While it may not account for a significant portion of market share, it plays a vital role in ensuring product availability across different channels. Wholesalers often supply large quantities to smaller retailers, ensuring that products reach a wider audience. Furthermore, as the market diversifies, direct-to-consumer sales from manufacturers are becoming increasingly common, especially among brands focusing on premium and organic oils. This approach enables manufacturers to engage directly with consumers and build brand loyalty.

By Ingredient Type

Palm Oil:

Palm oil is one of the most widely used cooking oils globally due to its versatility, high yield, and relatively low cost. It is commonly found in processed foods, margarine, and cosmetics. However, the ingredient has faced scrutiny over its environmental impact, particularly regarding deforestation and biodiversity loss. As a result, there is a growing trend towards sustainably sourced palm oil, which is gaining traction among consumers and manufacturers alike. The market for palm oil continues to remain strong; however, emphasis on sustainable practices is critical for its long-term viability.

Soybean Oil:

Soybean oil is a popular choice among food manufacturers due to its neutral flavor and high smoke point, making it ideal for frying and baking. It is also rich in polyunsaturated fats, leading to its perception as a healthful oil option. The increasing demand for plant-based diets is likely to continue driving the soybean oil market, particularly in the food processing industry. Additionally, soybean oil is also utilized as an ingredient in biodiesel production, further enhancing its appeal as a versatile oil in a variety of applications.

Coconut Oil:

Coconut oil has surged in popularity due to its health benefits and unique flavor profile. It is favored in cooking and baking while also being a popular ingredient in personal care products due to its moisturizing properties. The rise of the health and wellness trend has spurred interest in coconut oil, particularly among consumers seeking alternative oils for health-conscious cooking. The market for coconut oil is expected to grow significantly, propelled by its versatility and positive perception in both culinary and beauty applications.

Olive Oil:

Olive oil is often regarded as a premium cooking oil, known for its numerous health benefits, including heart health and anti-inflammatory properties. Its popularity has soared globally, particularly in Mediterranean cuisine and among health-conscious consumers. With the rise of the clean label trend, olive oil has become a staple in many households, as it is perceived as a natural and healthful fat. The increasing consumer awareness regarding the importance of healthy fats and the push for organic products are boosting the olive oil market, fostering growth opportunities for producers.

Others:

The 'Others' ingredient type segment includes various oils such as sunflower oil, canola oil, and avocado oil, each with unique properties and applications. This segment is growing as consumers increasingly seek diversity in their cooking oils, driven by dietary preferences and culinary trends. Avocado oil, for example, has gained popularity due to its high smoke point and health benefits, while sunflower oil remains a favorite for frying due to its neutral taste. As health trends evolve, the demand for specialty oils is likely to increase, presenting opportunities for innovation and product development in this space.

By Region

The Oils and Fats market exhibits a diverse geographical landscape, with significant contributions from various regions. In North America, the market is anticipated to grow at a CAGR of 4.0%. Consumers in this region are increasingly shifting towards healthier oil options, particularly non-PHO based oils, driven by rising health awareness and regulatory measures against trans fats. The demand for organic and natural oils is also on the rise, aligning with the trend of clean eating. Conversely, the Asia Pacific region is expected to dominate the market, accounting for more than 40% of the global share by 2035. The increasing population and urbanization in countries like India and China are propelling the demand for cooking oils and fats in the food sector.

In Europe, the market is benefitting from stringent regulations limiting trans fats, prompting a shift towards healthier alternatives. The increasing focus on sustainability is also influencing consumer choices, promoting the growth of organic and sustainably sourced oils. Latin America and the Middle East & Africa are expected to exhibit moderate growth due to rising disposable incomes and changing dietary patterns. In particular, the expansion of the food and beverage industry in these regions presents significant opportunities for oils and fats manufacturers. The convergence of health trends and environmental awareness is shaping the future of the Oils and Fats market across all geographical regions.

Opportunities

As the Oils and Fats market continues to evolve, several opportunities are emerging for manufacturers and distributors. One of the most promising avenues is the growing demand for health-oriented products. Consumers are increasingly prioritizing oils that offer health benefits, such as high omega fatty acid content or antioxidant properties. This trend is pushing manufacturers to innovate and formulate products that align with health-conscious consumer preferences. As the market for organic and natural products expands, companies that focus on sustainable sourcing and production practices are likely to gain a competitive edge. Moreover, increasing awareness about the nutritional aspects of oils can drive the demand for specialty oils, such as avocado and flaxseed oil, further contributing to market growth.

Additionally, the rise of the e-commerce channel presents significant opportunities for market players to reach a broader consumer base. With consumers increasingly turning to online shopping, manufacturers can partner with e-commerce platforms to enhance their visibility and cater to changing shopping behaviors. Innovative marketing strategies, including social media campaigns and influencer partnerships, can help brands effectively engage with consumers, particularly younger demographics. Furthermore, the exploration of new applications of oils and fats in industries such as cosmetics, pharmaceuticals, and biodiesel can provide additional revenue streams. Capitalizing on these emerging trends can position companies favorably within the competitive landscape of the Oils and Fats market.

Threats

While the Oils and Fats market is poised for growth, it also faces several threats that could impact its expansion. One of the primary challenges is the increasing regulatory scrutiny regarding the use of trans fats and PHO-based oils. Governments across the globe are enacting stringent regulations to combat health risks associated with trans fats, leading to a decline in market share for PHO-based oils. This can create significant hurdles for manufacturers who rely on these oils in their product formulations. Furthermore, shifting consumer preferences towards natural and organic products may pose a threat to traditional oil producers who may not adapt to these changing demands promptly. Failure to innovate and align with health trends can result in lost market opportunities.

Additionally, fluctuations in raw material prices can significantly impact the profitability of oils and fats producers. The volatile nature of agricultural commodities can lead to unpredictability in production costs, making it challenging for manufacturers to maintain consistent pricing and margins. Climate change and environmental concerns can also pose risks to the supply chain of certain oils, such as palm and soybean oil, leading to potential shortages or price increases. Lastly, intense competition within the market may pressure companies to lower prices, impacting overall profitability. Addressing these threats through strategic planning, innovation, and sustainable practices will be essential for companies aiming to succeed in this dynamic market.

Competitor Outlook

• Unilever
• Cargill
• Archer Daniels Midland Company (ADM)
• Wilmar International
• Bunge Limited
• Associated British Foods plc
• IOI Corporation Berhad
• Olam International
• Kadoya Sesame Mills
• Sakthi Sugars
• DAWN Foods
• Southern Oil Pty Ltd
• Malaysia Palm Oil Board (MPOB)
• Vantage Specialty Chemicals
• Nature's Way Products, LLC

The competitive landscape of the Oils and Fats market is characterized by a diverse array of global and regional players. Leading companies such as Unilever and Cargill dominate the market, leveraging their extensive distribution networks and established brand reputations. These companies focus on innovation and sustainability, frequently reformulating products to meet changing consumer needs. Additionally, many of these firms are actively investing in research and development to improve oil extraction and refining processes, further enhancing product quality. The competitive scenario is also marked by partnerships and collaborations, as companies seek to expand their market presence and harness new growth opportunities.

Another significant aspect of the competitive landscape is the trend towards mergers and acquisitions as companies pursue strategic growth and diversification. Mergers allow firms to combine resources, enter new markets, and access a broader customer base. For instance, the acquisition of smaller specialty oil producers can enable larger companies to diversify their portfolios and improve their position in niche segments. This strategy is particularly evident in the rise of organic and health-focused oils, where companies are keen to capitalize on emerging trends by acquiring innovative brands. The competitive dynamics within this market are continually shifting as firms adapt to evolving consumer preferences and regulatory landscapes.

Key players such as Archer Daniels Midland Company (ADM) and Bunge Limited are also making strides in sustainable sourcing practices to enhance their market appeal. With growing consumer awareness of environmental issues, these companies are focusing on sustainability certifications and transparent supply chains to build consumer trust. The demand for responsibly sourced oils is expected to drive competition in the market, with companies prioritizing sustainability initiatives to differentiate their products. Additionally, firms like Olam International and Wilmar International are investing in technological advancements to optimize oil extraction processes, further enabling them to meet the high-quality standards expected by consumers. This competitive focus on sustainability and innovation will be critical in positioning companies favorably within the evolving Oils and Fats market.

• 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 Cargill
    • 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 Unilever
    • 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 DAWN Foods
    • 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 Sakthi Sugars
    • 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 Olam International
    • 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 Kadoya Sesame Mills
    • 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 Southern Oil Pty Ltd
    • 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 Wilmar International
    • 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 IOI Corporation Berhad
    • 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 Nature's Way Products, LLC
    • 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 Vantage Specialty Chemicals
    • 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 Associated British Foods plc
    • 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 Malaysia Palm Oil Board (MPOB)
    • 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 PHO and Non PHO based Oils and Fats Market, By Application
    • 6.1.1 Food and Beverages
    • 6.1.2 Pharmaceuticals
    • 6.1.3 Personal Care
    • 6.1.4 Others
  • 6.2 PHO and Non PHO based Oils and Fats Market, By Ingredient Type
    • 6.2.1 Palm Oil
    • 6.2.2 Soybean Oil
    • 6.2.3 Coconut Oil
    • 6.2.4 Olive Oil
    • 6.2.5 Others
  • 6.3 PHO and Non PHO based Oils and Fats Market, By Distribution Channel
    • 6.3.1 Online Stores
    • 6.3.2 Supermarkets/Hypermarkets
    • 6.3.3 Specialty Stores
    • 6.3.4 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 Asia Pacific - Market Analysis
    • 10.2.1 By Country
      • 10.2.1.1 India
      • 10.2.1.2 China
      • 10.2.1.3 Japan
      • 10.2.1.4 South Korea
  • 10.3 Latin America - Market Analysis
    • 10.3.1 By Country
      • 10.3.1.1 Brazil
      • 10.3.1.2 Argentina
      • 10.3.1.3 Mexico
  • 10.4 North America - Market Analysis
    • 10.4.1 By Country
      • 10.4.1.1 USA
      • 10.4.1.2 Canada
  • 10.5 Middle East & Africa - Market Analysis
    • 10.5.1 By Country
      • 10.5.1.1 Middle East
      • 10.5.1.2 Africa
  • 10.6 PHO and Non PHO based Oils and Fats Market by Region

• 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 PHO and Non PHO based Oils and Fats market is categorized based on

By Application

• Food and Beverages
• Pharmaceuticals
• Personal Care
• Others

By Distribution Channel

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

By Ingredient Type

• Palm Oil
• Soybean Oil
• Coconut Oil
• Olive Oil
• Others

By Region

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

Key Players

• Unilever
• Cargill
• Archer Daniels Midland Company (ADM)
• Wilmar International
• Bunge Limited
• Associated British Foods plc
• IOI Corporation Berhad
• Olam International
• Kadoya Sesame Mills
• Sakthi Sugars
• DAWN Foods
• Southern Oil Pty Ltd
• Malaysia Palm Oil Board (MPOB)
• Vantage Specialty Chemicals
• Nature's Way Products, LLC