U.S. Edible Oils & Fats Market
Market Overview
The U.S. edible oils & fats market size was valued at 32.00 billion lbs in 2024. The market is projected to grow from 33.61 billion lbs in 2025 to 45.60 billion lbs by 2032, exhibiting a growth at CAGR of 4.5% during the forecast period.
List of Key U.S. Edible Oils & Fats Companies Profiled:
- American Vegetables Oils, Inc. (U.S.)
- Bunge Ltd. (U.S.)
- Cargill, Incorporated (U.S.)
- Columbus Vegetable Oils (U.S.)
- Connoils LLC (U.S.)
- Fuji Oil Company, Ltd. (Japan)
- Louis Dreyfus Company (Netherlands)
- Olam International (Singapore)
- The Archer Daniels Midland Company (U.S.)
- Wilmar International Ltd. (Singapore)
Market Composition and Segmentation
1. Vegetable Oils
Vegetable oils represent the largest segment in the U.S. edible oils and fats market. It is widely used across households, restaurants, and food manufacturing due to its neutral flavor, affordability, and high heat tolerance.
Canola oil follows closely, favored for its low saturated fat content and high levels of omega-3 fatty acids. Sunflower, corn, and safflower oils are also increasingly popular, especially among consumers seeking non-GMO, heart-healthy alternatives.
2. Animal Fats
Animal fats, including lard and tallow, have traditionally played an important role in American cooking and baking. However, their popularity declined in recent decades due to health concerns related to cholesterol and saturated fats. Nonetheless, they are making a modest comeback, particularly among those following high-fat diets like keto or paleo. Furthermore, animal fats are increasingly being used in industrial applications such as biofuel production.
3. Specialty and Functional Oils
Oils like olive, coconut, avocado, and grapeseed have seen rising demand in recent years. These oils are typically marketed as premium, healthy, and functional products. Olive oil, rich in monounsaturated fats and antioxidants, is especially popular in Mediterranean-style cooking and among health-conscious consumers. Avocado oil, with its high smoke point and neutral taste, is gaining ground in both culinary and cosmetic uses.
Source: https://www.fortunebusinessinsights.com/u-s-edible-oils-fats-market-112871
Key Market Drivers
1. Health & Wellness Trends
Modern consumers are more aware of how dietary fats impact overall health. This has led to increased demand for oils high in unsaturated fats and free from trans fats. Many households now opt for cold-pressed, unrefined oils that retain more nutrients and antioxidants. Labels highlighting heart health, organic certification, or non-GMO ingredients are also becoming key purchase influencers.
2. Plant-Based and Clean Label Movements
The rise in vegetarian, vegan, and flexitarian lifestyles has contributed significantly to the growth of plant-based oils. Consumers are increasingly avoiding hydrogenated oils and artificial additives, prompting brands to reformulate products and improve ingredient transparency. Clean-label cooking oils and snacks are in high demand, especially among millennials and Gen Z consumers.
3. Biofuel and Renewable Energy Demand
An important but often overlooked driver is the use of edible oils and fats in renewable diesel and biodiesel production Used cooking oil, animal fats, and soybean oil are major contributors to the growing renewable energy market, supported by state and federal incentives.
Market Challenges
While growth prospects remain promising, several challenges persist:
- Price Volatility: Weather patterns, geopolitical tensions, and export restrictions affect the pricing of oilseeds like soybean and canola.
- Sustainability Concerns: The environmental impact of palm oil production and the carbon footprint of large-scale agriculture remain critical issues.
- Supply Chain Disruptions: Global supply chain instability has caused delays and shortages in both raw material sourcing and final product distribution.
- Regulatory Pressure: Stricter regulations on labeling, trans fats, and genetically modified organisms (GMOs) are pushing manufacturers to innovate or reformulate.
Future Outlook
The U.S. edible oils and fats market is expected to grow at a CAGR of around 4.5% between 2025 and 2032. Factors such as the rising popularity of functional foods, growing demand for clean-label products, and the use of oils in non-food applications like cosmetics and bioenergy will further boost the industry.
In the coming years, we can expect:
- Increased adoption of precision agriculture and biotech for higher oilseed yields.
- Continued shift toward organic and specialty oils.
- Innovation in fat-alternative technologies, such as structured lipids or plant-based emulsifiers.
KEY INDUSTRY DEVELOPMENTS
- October 2023: Louis Dreyfus Company (LDC), a Netherlands-based agriculture merchant, announced the construction of a new soybean processing plant in Upper Sandusky, Ohio. The facility will integrate crushing, vegetable oil refining, lecithin production, and packaging capabilities. As a result, the plant will strengthen LDC’s core merchandising capabilities by adding capacity to process U.S. soy into value-added products such as edible oils and lecithin.
