The US global vegetable oil market is experiencing robust growth, propelled by surging demand across food, biodiesel, and industrial sectors. With a steady focus on healthier edible oils and expanding biofuel mandates, industry players are innovating to deliver sustainable, non-GMO, and specialty oils. The period from 2025 to 2035 is marked by significant investments in extraction technology and vertical integration, with companies like ADM and Cargill leading the transition towards green production and supply diversification.
Latest Market Dynamics
Key Drivers
Rising Demand for Healthier Edible Oils: As American consumers become more health-conscious, the demand for oils such as canola, olive, and sunflower has increased sharply. Archer Daniels Midland Company
has expanded its portfolio with low-trans fat and non-GMO oils in response to shifting preferences in the US market.
Growth in Biodiesel Production: The US biofuel sector is experiencing substantial growth, underpinned by government incentives and sustainability targets. In June 2024, Cargill invested in new facilities dedicated to producing vegetable oil-based biodiesel, directly addressing the accelerating market for renewable energy solutions.
Key Trends
Technological Advancements in Extraction: Companies are integrating enzyme-assisted and cold-press extraction technologies to improve oil yield and nutritional profiles. Wilmar International recently upgraded its US processing plants leveraging advanced enzyme-based methods in 2024.
Sustainable Supply Chain Initiatives: Sustainability remains a top trend with firms optimizing sourcing and traceability. Bunge Limited launched a blockchain-based traceability program in July 2024 to ensure sustainably sourced palm and soybean oils.
Key Opportunities
Expansion in Cosmetics and Personal Care: Vegetable oils are increasingly utilized in the cosmetics sector for their natural emollient properties. Conagra Brands formed a partnership with leading cosmetics manufacturers in August 2024 to supply high-grade sunflower and coconut oils for skin and hair care products.
Growing Industrial Applications: Manufacturers are leveraging vegetable oils in industrial lubricants and chemicals, supported by eco-friendly regulations. Fuji Oil Holdings entered the US market with a new line of industrial solutions using hydrogenated vegetable oils in September 2024.
Key Challenges
Price Volatility in Raw Materials: Fluctuations in oilseed prices can squeeze margins and disrupt planning. In H2 2024, Bunge Limited reported margin pressures due to unexpected price hikes for soybeans in the Midwest.
Supply Chain Disruptions: Global and domestic logistics constraints continue to challenge market players. In July 2024, Richardson International faced bottlenecks at US ports, causing delivery delays for imported palm oil.
Key Restraints
Stringent Regulatory Compliance: Tightening US and international regulations on trans fats and genetically modified products can restrict market entry. Louis Dreyfus Company had to reformulate several oil blends in September 2024 to remain compliant.
Competition from Substitute Products: The growing market for alternative fats and spreads, such as margarine and synthetic oils, is limiting traditional vegetable oil growth. Ventura Foods faced slower supermarket segment growth in August 2024 due to consumer shift towards plant-based butters.
US Global Vegetable Oil Market Share by Type, 2025
In 2025, soybean oil maintains its dominance, followed by palm and canola oils. The pie chart reveals that soybean oil accounts for 38% of the total market share, indicative of its broad application across food, industrial, and biodiesel sectors. Palm oil (23%) remains vital due to its wide usage in processed foods and foodservice, while canola oil (17%) attracts health-conscious consumers owing to its lower saturated fat content. The market also includes notable shares for sunflower and coconut oils, reflecting consumer interest in specialty and healthier alternatives. Market dynamics continue to favor players expanding non-GMO and specialty oil portfolios. These shifts are supported by innovations in extraction technology and a strong focus on traceability and sustainable sourcing.
US Global Vegetable Oil Market Share by Applications, 2025
Food application leads the US vegetable oil market with a commanding 55% share in 2025, driven by high consumption in household cooking, processed foods, and the foodservice industry. The industrial and biodiesel sectors represent 18% and 13% respectively, benefiting from growing demand for eco-friendly solutions and renewable energy sources. Pharmaceutical, cosmetics & personal care applications (10%) are steadily expanding, fueled by the demand for plant-based ingredients in health and beauty products, while animal feed holds the remaining 4%. These application shares reflect the sector’s adaptability to changing consumer trends, regulatory shifts, and technological advancements, especially with major food companies and biofuel producers increasingly sourcing premium and sustainable vegetable oils.
US Global Vegetable Oil Market Revenue (USD Million), 2020-2035
The US vegetable oil market revenue has displayed consistent growth, climbing from $42,500 million in 2020 to a projected $68,120 million by 2035. This upward trajectory is propelled by accelerated demand in food, industrial, and biodiesel applications, alongside adoption of advanced extraction technologies and value-added products. Strategic investments by top vendors, together with rising consumer preference for healthier and sustainable oils, have further buoyed market expansion. As a result, new revenue streams from industrial lubricants and specialty oils are projected to maintain robust momentum towards 2035.
US Global Vegetable Oil Market YOY Growth (%), 2020-2035
Year-on-year (YOY) growth in the US vegetable oil market demonstrates a positive trend, with an average growth rate of 3.5% between 2020 and 2025, peaking at 4% in the mid-2020s, then gradually stabilizing around 2.6% by 2035. This growth is attributed to rising health awareness, technological innovations, and continual demand from industrial and biodiesel manufacturers. Fluctuations may occur due to raw material price volatility and regulatory changes, but overall the market remains robust, fueled by continuous adaptation to consumer and industry needs.
US Global Vegetable Oil Market Share by Regions, 2025
In 2025, the Midwest leads with 41% of the US vegetable oil market, being the hub for major oilseed production and processing. The Southern region, buoyed by biodiesel manufacturing and food processing facilities, follows with 27%. The Western US claims 18%, supported by growing demand for specialty and organic oils, while the Northeast accounts for 14% due to substantial foodservice operations. This regional distribution highlights the strategic advantages of proximity to raw materials, processing infrastructure, and evolving consumer preferences across different US geographies.
US Global Vegetable Oil Market Players Share, 2025
Archer Daniels Midland Company and Cargill dominate the US market, holding 21% and 18% shares respectively in 2025, owing to substantial investments in production capacity, R&D, and sustainability initiatives. Bunge Limited and Wilmar International secure 15% and 10% shares, respectively, reflecting robust global supply chains and product diversification. The remaining 36% includes established global and regional players, each focusing on specialized products and innovative extraction technologies. Continued consolidation and partnerships are expected as firms strive for greater competitive advantage.
In 2025, food manufacturers account for the largest buyer segment with 48% market share, driving procurement of diverse vegetable oils for processed foods and cooking applications. Industrial and biodiesel producers follow at 22% and 16% respectively, supported by regulatory mandates and the expansion of green energy solutions. Pharmaceutical and cosmetics & personal care buyers constitute 9%, while animal feed producers and others represent 5%. Buyer preferences are increasingly aligned with traceability, sustainability certifications, and non-GMO attributes, shaping supply relationships across the value chain.
Study Coverage
Metrics
Details
Years
2020-2035
Base Year
2025
Market Size
Revenue (USD Million)
Regions
Midwest, South, West, Northeast
Segments
By Type (Soybean Oil, Palm Oil, Canola Oil, Sunflower Oil, Coconut Oil, Olive Oil), By Application (Food, Industrial, Biodiesel, Pharmaceuticals, Cosmetics & Personal Care, Animal Feed), By Distribution Channels (Supermarkets/Hypermarkets, Convenience Stores, Online Retail, Food Service, Specialty Stores, Direct Sales), By Technology (Mechanical Extraction, Solvent Extraction, Enzyme-Assisted Extraction, Cold Pressing, Hydrogenation, Interestification), By Organization Size (Small, Medium, Large)
On July 15, 2024, Bunge Limited announced it would acquire a majority stake in a Texas-based specialty sunflower oil processor to bolster its US specialty oils business.
On August 8, 2024, Archer Daniels Midland Company revealed plans to expand its Midwest processing facility with a focus on non-GMO and cold-pressed canola oil lines.
In June 2024, Cargill launched a new US soy oil-based biodiesel plant in Iowa, enhancing its renewable energy output and supply reliability.
On September 5, 2024, Fuji Oil Holdings introduced a new hydrogenated vegetable oil range for industrial lubricant and foodservice applications in the US market.
In July 2024, Bunge Limited unveiled its blockchain-based sustainable sourcing system, improving traceability of soybean and palm oils throughout the American supply chain.
Frequently Asked Questions
About the Author
Ankita R
Lead Industry Analyst
Ankita R is a Lead Industry Analyst specializing in market research, industry analysis, and business consulting across Food and Beverages. Ankita R brings a commercially grounded perspective to sectors shaped by changing demand, innovation, and competitive dynamics, helping turn complex market trends into clear strategic insights for business decision-makers. With 10+ years of experience across research, analytics, and strategic advisory roles, Ankita R has helped organizations translate data into actionable growth strategies.
Food and BeveragesMarket ResearchIndustry AnalysisStrategic Consulting
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