The soybean oil market is undergoing a phase of steady expansion, driven by rising demand across the food, feed, and industrial sectors. In 2024, the market reached a volume of 61.30 Million Metric Tons (MMT) and is expected to register a Compound Annual Growth Rate (CAGR) of 1.40% between 2025 and 2034. By the end of the forecast period, the market is projected to reach 70.44 MMT, making it a significant commodity in the global vegetable oil landscape.
Insights on Soybean Oil Market
Expert market research highlights that the soybean oil industry is poised for steady expansion, driven by its versatile applications and growing consumer preference for healthier oils. This research reveals increasing demand not only in food and feed sectors but also in biofuel production, which is gaining momentum globally. Innovations in sustainable farming and refining technologies are expected to enhance product quality and supply efficiency. Additionally, emerging markets in Asia Pacific and Latin America offer promising growth opportunities, while health-conscious consumers are fueling the rise of organic and non-GMO soybean oil variants. This blend of factors creates a dynamic and resilient market landscape.
Market Size of the Soybean Oil Industry
The soybean oil market reached a significant volume of 61.30 Million Metric Tons (MMT) in 2024, making it one of the largest segments in the vegetable oil industry. This large market size reflects the widespread usage of soybean oil across food, feed, and industrial sectors globally. The food industry accounts for the largest share, driven by the oil’s versatility, affordability, and health benefits. Additionally, soybean oil serves as a crucial ingredient in processed foods, bakery products, salad dressings, and margarine. In developing economies, rising disposable incomes and changing dietary habits have led to increased consumption of cooking oils, significantly boosting demand.
Market Trends in Soybean Oil
Several emerging trends are shaping the global soybean oil market, making it dynamic and responsive to shifting consumer and industrial demands. One of the most prominent trends is the growing popularity of plant-based and heart-healthy oils. Consumers are increasingly aware of the health benefits associated with unsaturated fats, which has led to higher preference for soybean oil due to its low saturated fat content and omega-3 fatty acids.
Another critical trend is the rising use of soybean oil in biodiesel production, particularly in countries promoting renewable energy sources. The U.S. and European Union are actively incorporating soybean-based biodiesel into their energy policies, which drives industrial demand and reduces reliance on fossil fuels. Additionally, manufacturers are investing in technologies to improve the oil’s stability, reduce trans fats, and enhance nutritional value.
There’s also a growing shift towards non-GMO and organic soybean oil, especially in North America and Europe, as consumers become more health- and environmentally-conscious. Sustainability is another key trend; companies are now focusing on reducing their environmental footprint through responsible sourcing and eco-friendly production techniques. Furthermore, e-commerce growth and online grocery platforms are playing a crucial role in increasing soybean oil accessibility in urban and semi-urban regions, thereby expanding consumer reach and market penetration.
Market Opportunities and Challenges
The global soybean oil market presents various growth opportunities, particularly in biofuel production and emerging markets where dietary patterns are evolving. However, challenges such as price volatility of raw soybeans, environmental concerns related to soybean farming, and competition from alternative oils like canola and sunflower oil remain significant hurdles. Strategic investments and sustainable farming initiatives can help mitigate these challenges.
Segmentation of the Soybean Oil Market
Breakup by End Use
- Food
- Feed
- Industrial
- Others
Breakup by Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
Growth of the Soybean Oil Market
The soybean oil market is projected to witness steady growth over the next decade, supported by strong fundamentals across multiple end-use sectors. Rising consumption in food processing and packaged foods, especially in fast-growing economies, continues to be a primary driver. Countries like India, China, and Brazil are experiencing rapid urbanization and increased consumer spending, which translates into higher demand for affordable edible oils like soybean oil.
Government initiatives promoting biofuels and renewable energy sources are significantly contributing to the industrial use of soybean oil. Biodiesel, derived from soybean oil, has become a vital alternative fuel in regions such as the U.S. and the EU, creating additional market growth pathways. The global shift towards health-conscious lifestyles also supports soybean oil’s growth. Consumers are actively choosing oils with better nutritional profiles, and soybean oil, with its unsaturated fat content, is gaining favor in health-centric diets. Additionally, foodservice and hospitality industries are major users, and as they rebound post-COVID-19, the demand for cooking oils is recovering strongly.
Strategic investments by leading manufacturers in expanding refining capacities, enhancing distribution networks, and launching new variants such as fortified and organic oils are further stimulating long-term market growth globally.
Soybean Oil Market Forecast for 2025 to 2034
Looking ahead, the global soybean oil market is expected to grow at a CAGR of 1.40% between 2025 and 2034, reaching a volume of 70.44 Million Metric Tons by 2034. This forecast underscores consistent and reliable growth driven by expanding food consumption, industrial applications, and increased acceptance of plant-based oils worldwide.
The forecasted growth is particularly robust in the Asia Pacific region, where rising urbanization, dietary diversification, and increasing per capita income are contributing to sustained demand. Latin America and Africa are also expected to emerge as high-potential markets due to agricultural development and expanding local oilseed processing facilities.
On the industrial front, the biodiesel sector will remain a crucial contributor to growth. As countries intensify efforts to meet carbon reduction targets, soybean oil’s role in the renewable energy transition will become even more prominent. Technological innovations in oil extraction and refining will enhance production efficiency and quality, making the product more competitive in international markets.
Soybean Oil Market Competitor Analysis
The soybean oil market is dominated by key players involved in extensive processing and global distribution networks. These companies are increasingly investing in sustainability, product innovation, and vertical integration to maintain their competitive edge.
Key Players in the Market:
Archer Daniels Midland Company (ADM): A global leader in oilseed processing and food ingredient solutions.
Bunge Limited: Operates globally in agribusiness and food production with a strong focus on edible oils.
Cargill, Inc.: Offers sustainable soybean oil products with strong distribution capabilities.
Wilmar International Ltd.: One of Asia’s largest agribusiness groups, known for its edible oils segment.
AG Processing Inc. (AGP): U.S.-based processor focusing on soybean oil and protein production.
Olam Agri Holdings Pte Ltd.: Provides a diverse portfolio of agricultural and food products globally.
Louis Dreyfus Company B.V.: Engages in commodity trading and soybean oil distribution across markets.
CHS Inc.: A cooperative business providing agricultural services and refined soybean oil products.
Aceitera General Deheza: Argentina-based company specializing in oilseed processing.
IB Group: A significant Indian agribusiness firm with growing edible oil operations.
Others: Includes regional and niche players expanding through strategic alliances.
