Vegetable Fats and Oils Procurement Intelligence Report, 2030

Vegetable Fats and Oils Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

  • Published Date: ---
  • Base Year for Estimate: 2022
  • Report ID: GVR-P-10522
  • Format: Electronic (PDF)
  • Historical Data: 2020 - 2021
  • Number of Pages: 0

Vegetable Fats and Oils Category Overview

The vegetable fats and oils category is anticipated to grow at a CAGR of 3.8% from 2023 to 2030. The rising consumer awareness about health and wellness and the adoption of healthier dietary habits are driving the demand for vegetable oils. Consumers prefer vegetable oils as a healthier alternative to traditional cooking oils. This is due to their higher content of unsaturated fats and less content of saturated fats. Additionally, the rising usage of natural ingredients in personal care and food products is fueling the demand for vegetable oils. Oils such as avocado, coconut, olive, and palm are sustainable as compared to synthetic oils and animal-based oils. The rising number of vegetarian and vegan consumers is also driving the demand for plant-derived oils.

Rising demand from industrial plants, pharmaceuticals, and biodiesel plants that are heavily reliant on the production of vegetable oils is expected to boost growth at the regional level. Around 70% of the global biodiesel is vegetable oil-based as of 2023. In the U.S., standards such as state-level low-carbon fuel standards, renewable fuel standards, and IRA tax credits are boosting the demand for bio-jet fuel and renewable diesel. These requirements are met through production from a mixture of feedstock such as rapeseed oil, soybean, used cooking oil, and corn oil. Moreover, biodiesel production from used cooking oil (UCO) is expected to gain traction in the U.S., European Union, and Singapore.

Government policies, tax incentives, subsidies, and regulations that support the production and use of vegetable oils in food processing have stimulated the category growth. For instance, in November 2023, the U.S. FDA (Food and Drug Administration) planned to cancel the regulation allowing the utilization of Brominated Vegetable Oil (BVO) in food. This is because the FDA and the National Institutes of Health (NIH) in the U.S. concluded through a study that BVO is no longer considered safe for health effects in humans.

The category is fragmented in nature. The top players such as ADM, Fuji Oil Holdings Inc., Cargill, Wilmar International, and Bunge hold dominant positions in the market. These companies are continuously involved in oil-producing capacity expansion, mergers, and acquisitions to meet the growing demand for vegetable oil across industries such as food, personal care and cosmetics, and biofuel. For instance:

  • In November 2023, Cargill completed the expansion and modernization project of its soybean processing plant in Sidney City, Ohio. The project would double soy crushing capacity, giving local farmers access to the broader market, and helping the company meet the growing demand for soybean oil. Additionally, Cargill, in October 2023, became the first U.S. large-scale supplier of Roundtable for Sustainable Palm Oil (RSPO) certified palm oil, which is a sustainably sourced oil. Further, the company declared that it would no longer offer conventional palm oil.

  • In April 2023, Bunge acquired Fuji Oil’s port-based refinery located in Louisiana. The facility is a state-of-the-art multi-oil refinery that will help Bunge expand its existing consumer base. The deal would also connect North American food, fuel, and feed industry customers to the global market.

Buyers, such as food processors and retailers, may have some bargaining power, especially if there are many suppliers offering similar types and quality oils. However, if there are limited sources for specific types of vegetable fats and oils or if the products are highly differentiated, the bargaining power of buyers may be lower.

To produce vegetable oil, raw materials (seeds), labor, facility, machinery, and packaging are some of the costs incurred in the production. Other costs include transportation and distribution, repair and maintenance, marketing costs, and utilities. Vegetable oils can be produced from various seeds such as soybean, mustard, peanuts, coconut, and others. Hiring skilled labor can reduce the cost of vegetable oil processing by 30%. The equipment cost of a 5-ton/day oil mill can be around USD 8,000. The prices of vegetable oil are highly dependent on the supply and cost of raw materials. The global price of vegetable oil as of December 2023 was around USD 1.5/kg. The price of soybean oil was around USD 1.64/kg. Similarly, the price of coconut oil in December 2023 was around USD 1.44/kg.

In terms of sourcing vegetable fats and oils, producers adopt a complete in-house team of processing oilseeds into vegetable oils. Companies such as ADM and Bunge, for instance, have a complete internal team for storing agricultural raw materials and further crushing and processing oilseeds into vegetable oil and protein meals. These companies provide oils for animal feed, food processing, and biofuel industries. Bunge also provides unrefined vegetable oil to its own refined and specialty refined oil business that converts it into edible oil products. Having product quality handling and warehousing, transportation, and distribution internally can benefit the company over the long run. Developing a strong relationship with seed suppliers and equipment suppliers and ensuring consistency is key to sourcing the category.

Vegetable Fats and Oils Procurement Intelligence Report Scope

Report Attribute


Vegetable Fats and Oils Category Growth Rate

CAGR of 3.8% from 2023 to 2030

Base Year for Estimation


Pricing growth Outlook

 4% - 9% (annual)

Pricing Models

Volume based Pricing; Competition based pricing

Supplier Selection Scope

Cost and pricing, volume, production capacity, geographical presence, and compliance

Supplier selection criteria

Quality and type of oil, bulk quantity available, packaging type, end-use industries served, contract terms, delivery option, safety and environmental compliance, location and presence of supplier, and others

Report Coverage

Revenue forecast, supplier ranking, supplier matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model

Key companies profiled

ADM, Fuji Oil Holdings, Cargill, Wilmar International, Bunge, Mewah, Unilever, Associated British Foods Plc, Olam, IFFCO.

Regional scope


Revenue Forecast in 2030

USD 324.8 billion

Historical data

2020 - 2021

Quantitative units

Revenue in USD billion and CAGR from 2023 to 2030

Customization scope

Up to 48 hours of customization free with every report.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options

Frequently Asked Questions About This Report

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Add-on Services

Should Cost Analysis

Component wise cost break down for better negotiation for the client, highlights the key cost drivers in the market with future price fluctuation for different materials (e.g.: steel, aluminum, etc.) used in the production process

Rate Benchmarking

Offering cost transparency for different products / services procured by the client. A typical report involves 2-3 case scenarios helping clients to select the best suited engagement with the supplier

Salary Benchmarking

Determining and forecasting salaries for specific skill set labor to make decision on outsourcing vs in-house.

Supplier Newsletter

A typical newsletter study by capturing latest information for specific suppliers related to: M&As, technological innovations, expansion, litigations, bankruptcy etc.

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