Edible Oil Co Products and By Products Market Outlook

The global edible oil co-products and by-products market is projected to reach an estimated value of USD 260 billion by 2035, growing at a CAGR of approximately 5.2% from 2025 to 2035. This growth is primarily driven by the increasing demand for cooking oils due to the rising global population, greater health awareness regarding the nutritional benefits of plant-based oils, and the growing trend of incorporating edible oils into various culinary practices. Additionally, the expanding food and beverage sector, along with innovative applications of edible oils in non-food products such as cosmetics and biofuels, is further propelling market growth. As consumers become more conscious about their dietary choices, there is a notable shift towards healthier oil alternatives, thereby fueling the innovation and diversification of oil products.

Growth Factor of the Market

Several factors contribute to the growth of the edible oil co-products and by-products market. A significant factor is the escalating health consciousness among consumers, prompting a shift towards healthier cooking oil options. This shift is evident in the increasing popularity of oils high in monounsaturated fats, such as olive oil and canola oil, which are perceived as heart-healthy alternatives. Moreover, the surge in vegan and vegetarian diets has boosted the demand for plant-based oils, as they are essential components in plant-derived meals. Additionally, the rising awareness concerning the environmental impact of animal-based products has led consumers to opt for oils that are more sustainable and environmentally friendly. The food processing industry is also evolving, with manufacturers seeking out oils that not only enhance flavor but also offer health benefits, thus driving demand for diverse edible oil products. Furthermore, the expansion of distribution channels, particularly online platforms, has made a wide range of oils more accessible to consumers, thereby stimulating market growth.

Key Highlights of the Market

• The global edible oil co-products and by-products market is expected to grow at a CAGR of 5.2% by 2035.
• Health consciousness is driving the demand for plant-based oils.
• Innovative applications in cosmetics and biofuels are emerging as new market drivers.
• Expansion of online distribution channels is enhancing product accessibility.
• Growing awareness about sustainable products is impacting consumer choices.

By Product Type

Vegetable Oils:

Vegetable oils represent a significant segment within the edible oil market, encompassing a wide range of oil types derived from various plants. These oils are primarily extracted from seeds and fruits, making them a popular choice for cooking due to their neutral flavors and high smoke points. The versatility of vegetable oils allows for their use in various cooking techniques, from frying to baking, and they are often considered healthier alternatives to animal fats. The increasing consumer preference for healthier cooking options is boosting the demand for vegetable oils, particularly those rich in omega-3 and omega-6 fatty acids. Furthermore, these oils are used in processed food items, which adds to their overall consumption in the food industry. The production of vegetable oils is also witnessing advancements in extraction technologies, enhancing yield efficiency and reducing production costs.

Olive Oil:

Olive oil is a premium segment in the edible oil market known for its unique flavor, health benefits, and culinary versatility. Often regarded as a staple in Mediterranean diets, olive oil is rich in monounsaturated fats and antioxidants, which contribute to heart health and overall wellness. The rising awareness of these health benefits is driving the demand for high-quality extra virgin olive oil. Moreover, as more consumers adopt Mediterranean dietary principles, the consumption of olive oil is expected to rise steadily. The premium pricing associated with high-quality olive oil offers significant margins for producers, but the market faces challenges such as adulteration and pricing volatility resulting from fluctuating harvests. The growing trend towards organic products further supports the demand for authentic and sustainably sourced olive oil among health-conscious consumers.

Sunflower Oil:

Sunflower oil is recognized as one of the most widely used cooking oils due to its light flavor and high smoke point, making it suitable for various cooking methods, including frying and baking. It is rich in vitamin E and low in saturated fats, which positions it as a healthier alternative in the frying oil segment. The demand for sunflower oil has significantly increased in regions with a strong culinary preference for fried foods. Additionally, the adoption of sunflower oil in the food processing industry, especially in packaged foods, is enhancing its market presence. Geopolitical factors and climatic conditions affecting sunflower production can lead to market volatility, but innovations in farming practices and crop yield improvements can help stabilize supply. The growing emphasis on healthful cooking oils also contributes significantly to the increasing popularity of sunflower oil.

Coconut Oil:

Coconut oil has gained immense traction in recent years, owing to its perceived health benefits and versatility in culinary applications. Often used in tropical regions for cooking and baking, coconut oil has transitioned into mainstream markets, particularly in health food segments. It is promoted for its medium-chain triglycerides (MCTs), which are believed to support weight management and energy levels. Additionally, coconut oil is utilized in cosmetics and personal care products due to its moisturizing properties. The rise in wellness trends and the popularity of natural ingredients in consumer products have propelled the demand for coconut oil. However, market fluctuations due to climatic factors affecting coconut production can pose challenges, but innovations in extraction techniques continue to enhance the quality and yield of coconut oil.

Palm Oil:

Palm oil is a highly versatile and widely used edible oil, accounting for a significant share of the global edible oil market due to its cost-effectiveness and functional properties. It is commonly used in food products, including margarine, baked goods, and processed foods, because of its stability and long shelf life. The demand for palm oil has surged in developing regions as economic growth drives consumption of processed and convenience foods. However, palm oil production has faced criticism due to environmental concerns related to deforestation and habitat destruction. Consequently, there is a growing movement towards sustainable palm oil production, with initiatives aimed at maintaining ecological balance and fair trade practices. While the market for palm oil is robust, the industry must adapt to changing consumer preferences towards sustainability and transparency.

By Application

Food Industry:

The food industry is the dominant application category for edible oils, utilizing various oil types in cooking, frying, baking, and food processing. Edible oils are essential for flavor enhancement, food preservation, and improving texture in various culinary applications. The growing global population and changing dietary habits are increasing the demand for diverse food products, which in turn drives the consumption of cooking oils. Moreover, the rise of food service industries, including restaurants and catering, has expanded the market for bulk edible oils. As consumers become more health-conscious, there is a noticeable shift towards oils that are perceived as healthier options, such as extra virgin olive oil or oils high in omega fatty acids. Additionally, innovations in food formulations are pushing the edible oil market to adapt to new trends, including organic and non-GMO offerings.

Cosmetics:

The cosmetics industry has emerged as a notable application segment for edible oils, with many oils being incorporated into skincare, haircare, and beauty products. Oils such as coconut oil and olive oil are prized for their moisturizing properties and are widely used in formulations for creams, lotions, and serums. The trend towards natural and organic beauty products has further propelled the demand for oils derived from plants, as consumers seek safe and environmentally friendly ingredients. These oils not only provide nourishment and hydration but also offer additional benefits, such as anti-aging properties and skin repair. As the clean beauty movement gains momentum, the use of edible oils in cosmetics is expected to grow, with manufacturers continuously exploring new formulations and applications that highlight these ingredients.

Pharmaceuticals:

In the pharmaceuticals sector, edible oils are increasingly being utilized as carriers in drug formulation and delivery systems. Oils such as soybean oil and sunflower oil serve as excipients in various pharmaceutical products, helping to improve bioavailability and absorption of active ingredients. The demand for plant-based solutions in pharmaceuticals is on the rise, driven by the growing preference for natural alternatives over synthetic compounds. Additionally, the increasing prevalence of chronic diseases that require long-term medication is driving the need for effective delivery mechanisms, where edible oils play a crucial role. The ongoing research into therapeutic applications of specific oils is opening new avenues for integrating edible oils into pharmaceutical products, thereby enhancing market dynamics.

Biofuels:

Biofuels are an emerging application for edible oils, with many regions exploring the potential of using vegetable oils as renewable energy sources. The push towards sustainability and reduction of fossil fuel dependency has led to a heightened interest in biodiesel production from edible oils. Oils such as palm oil and soybean oil are commonly used to produce biodiesel, which serves as an alternative fuel for transportation and other applications. The growth of the biofuels market is supported by government initiatives promoting renewable energy sources and reducing greenhouse gas emissions. However, the competition between food and fuel uses of edible oils raises concerns about food security and price fluctuations, prompting the need for sustainable practices in oil production. As technologies for biofuel production continue to evolve, the contribution of edible oils to the energy sector is expected to grow significantly.

Others:

This category encompasses various miscellaneous applications of edible oils beyond the primary sectors of food, cosmetics, pharmaceuticals, and biofuels. Edible oils are increasingly being utilized in industrial applications, such as lubrication and manufacturing processes, where they can replace synthetic oils. Additionally, edible oils find their way into the production of animal feed, where certain oils contribute to the nutritional profile of livestock. The versatility of edible oils allows for innovative applications that continue to evolve, driven by consumer demands and technological advancements. As industries seek out natural and biodegradable alternatives, the potential for edible oils in diverse applications is expanding, thereby bolstering overall market growth.

By Distribution Channel

Supermarkets/Hypermarkets:

Supermarkets and hypermarkets dominate the distribution channel for edible oils, providing consumers with a wide variety of oil products under one roof. These retail environments offer convenience and accessibility for shoppers, allowing them to compare brands and prices effectively. The presence of various brands and packaging options caters to diverse consumer preferences, from budget-friendly choices to premium oils. Additionally, in-store promotions and bulk buying options contribute to the sales volume in this channel. The increasing trend of health-conscious shopping has prompted supermarkets and hypermarkets to expand their organic and specialty oil offerings, meeting the demand for healthier alternatives. As consumers continue to prioritize convenience, this channel is expected to remain a key player in the distribution of edible oils, enhancing the overall market landscape.

Online Stores:

The rise of e-commerce has significantly transformed the distribution landscape for edible oils, with online stores becoming a popular choice among consumers. The convenience of shopping from home and the ability to access a broader range of products without geographical limitations drive the growth of this distribution channel. Online platforms provide consumers the opportunity to read reviews, compare prices, and discover new products, including niche and artisanal oils that may not be readily available in brick-and-mortar stores. Furthermore, subscription models and delivery services enhance customer loyalty, allowing consumers to receive their preferred oils regularly. The COVID-19 pandemic accelerated the shift towards online shopping, and as consumers become accustomed to this convenience, the online distribution channel is poised for continued growth in the edible oil market.

Convenience Stores:

Convenience stores have emerged as a significant distribution channel for edible oils, particularly in urban areas where consumers seek quick and easy shopping experiences. These stores typically stock essential household items, including cooking oils, allowing customers to make impulsive purchases or restock their kitchens without significant time investments. The growing trend of convenience-driven lifestyles has led to increased foot traffic in these establishments, bolstering sales for edible oils. Moreover, convenience stores often offer competitive pricing and promotions, attracting budget-conscious shoppers. The accessibility of these stores makes them an important player in the edible oil distribution landscape, catering to the needs of busy consumers.

Specialty Stores:

Specialty stores, including health food stores and gourmet shops, cater to a niche market focused on high-quality and organic edible oils. These outlets provide a curated selection of oils that often feature unique flavors or health benefits, appealing to consumers who prioritize quality over quantity. The trend towards clean eating and natural ingredients has bolstered the demand for specialty oils, such as cold-pressed or artisanal varieties. Retailers in this segment educate consumers about the various benefits and uses of different oils, enhancing their shopping experience. As the consumer base for specialty products continues to expand, this distribution channel is likely to grow, contributing positively to the overall edible oil market.

Others:

This category encompasses various alternative distribution channels for edible oils, including wholesale distributors, food service providers, and direct sales through farmers' markets. Wholesale distributors play a critical role in supplying bulk edible oils to restaurants, catering companies, and food manufacturers, ensuring a steady supply for commercial applications. Additionally, food service providers that cater to institutional clients, such as schools and hospitals, require large quantities of cooking oils, creating a substantial market segment. Direct sales through farmers' markets and local producers are gaining popularity as consumers seek fresher and locally sourced products. The diversification of distribution channels allows for better access to edible oils for a wide range of consumers, enhancing overall market dynamics.

By Ingredient Type

Soybean Oil:

Soybean oil is one of the most commonly used cooking oils globally, known for its versatility and affordability. It is extracted from soybeans and is rich in polyunsaturated fats, making it a popular choice for frying and baking. The oil's neutral flavor allows it to blend seamlessly into a variety of dishes, from salad dressings to snack foods. The increasing demand for soybean oil is driven by the growth of the food processing industry and the rising consumption of packaged foods. Additionally, the oil is often used as a key ingredient in margarine and shortening, which further expands its application scope. As health awareness rises, there is a growing trend towards non-GMO and organic soybean oil, with consumers seeking high-quality options that align with their dietary preferences.

Canola Oil:

Canola oil is renowned for its light flavor and high smoke point, making it an ideal choice for saut├®ing, frying, and baking. Derived from rapeseed, canola oil is low in saturated fat and high in monounsaturated fats, making it a heart-healthy option. The demand for canola oil is on the rise, driven by health-conscious consumers and the growing trend of cooking from scratch. Additionally, the oil is favored in commercial food preparation due to its versatility and cost-effectiveness. The advent of high-oleic canola varieties has further enhanced the nutritional profile of this oil, appealing to health-oriented consumers. Furthermore, as more food manufacturers seek to reduce trans fats in their products, canola oil's role as a healthier alternative is likely to be further solidified.

Corn Oil:

Corn oil is extracted from the germ of corn kernels and is valued for its light flavor and high smoke point, making it suitable for frying and baking applications. The oil is often considered a staple in many households due to its affordability and availability. Corn oil is also utilized in the food processing industry, particularly in the production of margarine and salad dressings. Its light texture and neutral taste make cornoil an attractive choice for various culinary applications. However, the increase in health-conscious behavior among consumers is leading to a shift towards oils perceived as healthier alternatives. This has prompted manufacturers to innovate and promote the health benefits of corn oil, such as its phytosterol content, which has cholesterol-lowering properties. The growth of organic corn and the demand for minimally processed oils is likely to influence the future market dynamics for corn oil.

Peanut Oil:

Peanut oil, known for its rich flavor and high smoke point, is a popular choice for frying and cooking in Asian cuisines. It is derived from ground peanuts and is often selected for its ability to enhance the taste of fried foods. The oil is rich in monounsaturated fats and contains a high level of vitamin E, making it a nutritious option. The demand for peanut oil is particularly noticeable in regions with a strong culinary tradition of frying, such as China and Southeast Asia. As global culinary influences continue to expand, so does the popularity of peanut oil in various international dishes. However, the oil is not suitable for individuals with peanut allergies, which can limit its market potential. Nonetheless, the increasing appreciation for diverse cooking oils is likely to drive growth in the peanut oil segment.

Cottonseed Oil:

Cottonseed oil is a lesser-known edible oil, extracted from the seeds of cotton plants. It is often used in commercial food processing due to its high stability and ability to withstand high temperatures, making it suitable for frying and baking applications. The oil is rich in polyunsaturated fats, which appeal to health-conscious consumers. However, there has been a growing concern regarding pesticide residues in cottonseed oil, which has led to increased scrutiny from health advocates. Despite this, the oil's affordability and versatility have sustained its presence in the market, particularly in the snack food and restaurant industries. As consumer preferences shift towards cleaner, more sustainable oils, the cottonseed oil market may face challenges but also opportunities for reformulation and branding.

By Region

The edible oil co-products and by-products market spans across various regions, each contributing uniquely to the overall market dynamics. In North America, the market is projected to grow significantly due to the increasing health consciousness among consumers, with a surge in demand for organic and non-GMO oils. The region is expected to witness a CAGR of around 4.8% from 2025 to 2035, driven by innovations in product formulations and marketing strategies targeting health-focused consumers. Conversely, the Asia Pacific region is anticipated to dominate the market in terms of volume, reflecting a growing population and rising disposable incomes, which propel the consumption of cooking oils, particularly in countries such as India and China. The regional market is projected to experience robust growth as urbanization and changing lifestyles continue to influence dietary patterns.

In Europe, the market for edible oils is characterized by a strong preference for high-quality and organic products, with consumers increasingly gravitating towards healthier options. The growth in the European market is driven by the rising trend of cooking at home, which amplifies the demand for quality oils. Furthermore, the stringent regulations regarding food quality and safety in this region encourage manufacturers to innovate and offer premium products. The Latin America market, while smaller in comparison, is witnessing growth primarily due to the rising popularity of cooking oils in traditional cuisines, as well as the increasing awareness of health benefits associated with certain oils. Meanwhile, the Middle East and Africa are emerging markets for edible oils, primarily driven by population growth and increasing urbanization, creating new opportunities for market expansion.

Opportunities

The edible oil co-products and by-products market presents numerous opportunities for growth and innovation as global consumption patterns shift. One of the most significant opportunities lies in the increasing demand for organic and sustainably sourced oils. As consumers become more aware of the environmental and health implications of their dietary choices, there is a growing trend towards organic products, which are perceived as healthier and more environmentally friendly. This trend offers manufacturers the chance to innovate and create new product lines that cater to this segment, including organic variants of popular oils such as olive, canola, and coconut. Additionally, as the food processing industry continues to evolve, there is potential for the development of fortified oils enriched with vitamins and minerals, catering to health-conscious consumers looking for added nutritional benefits.

Another promising opportunity is the expansion of edible oil applications in the cosmetics and personal care sectors. With growing consumer preferences for natural ingredients, there is an increased demand for oils that can be used in skincare and haircare formulations. Oils such as argan oil, jojoba oil, and coconut oil are becoming increasingly popular in beauty products due to their nourishing properties. Manufacturers can capitalize on this trend by developing specialty oils tailored for specific cosmetic applications while emphasizing the benefits of using plant-based ingredients. Additionally, the biofuel industry presents a unique opportunity for edible oils, as renewable energy sources gain traction globally. The use of vegetable oils for biodiesel production can create new revenue streams for producers, particularly as regulations around renewable energy continue to evolve.

Threats

The edible oil co-products and by-products market faces several threats that could potentially hinder growth and profitability. One of the most pressing challenges is the volatility in raw material prices, driven by factors such as climate change, geopolitical tensions, and fluctuating demand. This volatility can significantly impact the cost structure for producers, leading to price increases that may deter consumers from purchasing certain oil types. Additionally, the rising competition among manufacturers, especially in the organic and specialty oil segments, poses a threat to market players. As more companies enter the market, differentiation becomes critical, and companies must invest in marketing and product innovation to maintain a competitive edge. Furthermore, regulatory challenges surrounding food safety, labeling, and sustainability practices can create barriers for new entrants and established players alike, necessitating adherence to stringent standards that may increase operational costs.

Another significant threat is the growing consumer preference for alternative cooking methods, such as air frying and steaming, which may reduce the overall demand for cooking oils. As consumers become increasingly concerned about health and fat consumption, there is a likelihood that they may opt for lower oil usage in their cooking practices. Additionally, the rising trend of plant-based diets and the increased promotion of alternative fats, such as avocado oil or nut-based oils, may pose competition to traditional edible oils. This diversification of consumer preferences necessitates continuous innovation and adaptation from market players to meet the changing landscape effectively. Producers must be vigilant in understanding consumer trends and preferences to navigate these potential threats successfully.

Competitor Outlook

• Cargill, Inc.
• Bunge Limited
• Archer Daniels Midland Company (ADM)
• Wilmar International Limited
• Olam International Ltd.
• IOI Corporation Berhad
• Louis Dreyfus Company
• Associated British Foods plc
• Unilever plc
• Kraft Heinz Company
• Kerry Group plc
• BASF SE
• Marico Limited
• Adani Wilmar Limited
• DowDuPont Inc.

The competitive landscape of the edible oil co-products and by-products market is characterized by several key players who dominate various segments through their extensive product offerings and strategic positioning. Companies like Cargill, Inc. and Archer Daniels Midland Company (ADM) lead the market with a comprehensive portfolio of oils, catering to both consumer and industrial needs. These players invest heavily in research and development to innovate and produce healthier and more sustainable oil options. Additionally, their vast distribution networks allow for significant market penetration and brand recognition among consumers, solidifying their position as industry leaders. Bunge Limited and Wilmar International Limited also play pivotal roles in the market, leveraging their operational efficiencies and extensive supply chains to meet growing consumer demands effectively.

In recent years, consumer preferences have shifted towards healthier and more sustainable edible oils, prompting companies to adapt their