Soybean Oil Market Size, Share & Industry Analysis, By Application (Cooking & Frying, Margarine & Shortening, Salad Dressings & Mayonnaise, Bakery Products, and Non-Food Applications), and Regional Forecast, 2024-2032

The global soybean oil market size was USD 51.23 billion in 2023 and is projected to grow from USD 52.86 billion in 2024 to USD 68.42 billion by 2032, exhibiting a CAGR of 3.28% during the forecast period. Moreover, the soybean oil market size in the U.S. is projected to grow significantly, reaching an estimated value of USD 14.81 billion by 2032, driven by the fastest-growing and expanding food processing industry. Asia Pacific dominated the soybean oil market with a market share of 46.52% in 2023. 

The global impact of COVID-19 has been unprecedented and staggering, with healthy edible oils witnessing a positive impact on demand across all regions amid the pandemic.

The increasing use of soybean oil by food processors and food service operators for baked and fried food products or to sell as a cooking oil in packaged bottles fuels the market growth. The recently developed biodiesel industry in various countries has begun to utilize the oil to produce environment-friendly renewable fuel. This is further anticipated to drive the market growth during the forecast period.

The global soybean industry recorded a major impact due to the nationwide lockdown and restrictions imposed on global trade due to the rapid spread of the COVID-19 pandemic. Thus, with the decline in the availability of soybean oil, which is one of the most significant by-products of soybean processing, a significant decrease in global consumption has been recorded. The food service sector, which was one of the major consumers of soy oil, recorded a massive impact that disrupted the global food service industry in the initial stage, majorly due to the closing of food service operators due to the lockdown. This caused a ripple effect, further impacting the soy oil industry. In addition, the soy oil industry recorded a declining consumption owing to a sudden drop in the demand for biodiesel.

The demand for biodiesel has decreased primarily in the U.S., which has the largest usage of the oil for biodiesel. Biodiesel demand has been growing sharply in Brazil in recent years. This demand has been impacted due to the pandemic. However, as the lockdowns uplift worldwide, the market is expected to increase across restaurants and other food service channels. The growing concerns regarding health among consumers are anticipated to drive the demand for non-GMO and organic soy products over the forecast period.

Soybean Oil Market Snapshot & Highlights

Market Size & Forecast:

• 2023 Market Size: USD 51.23 billion
• 2024 Market Size: USD 52.86 billion
• 2032 Forecast Market Size: USD 68.42 billion
• CAGR: 3.28% from 2024–2032

Market Share:

• Asia Pacific dominated the soybean oil market with a 46.52% share in 2023, driven by increasing consumption in China and India, growing food service demand, and rising purchasing power.
• By application, cooking & frying is expected to retain the largest market share in 2025, supported by its high smoke point, growing foodservice industry, and widespread usage in home and industrial cooking.

Key Country Highlights:

• U.S.: Market projected to reach USD 14.81 billion by 2032, fueled by an expanding food processing sector and growing biodiesel production.
• China: Leading importer; high domestic demand exceeds production, driving market growth alongside the flourishing foodservice industry.
• Brazil: Major global producer and exporter; biodiesel investments and soy oil use in industrial applications are driving regional expansion.
• Germany: Rising biodiesel production and consumer demand for non-GMO and organic soy oil are supporting market growth across Europe.

Soybean Oil Market Trends

Rising Utilization of Edible Oils across Various Food Segments to Drive Market Growth

Over the past few years, the food industry has evolved tremendously across the world. Food manufacturers and processors are exponentially investing in developing innovative products to capitalize on the growing demand among consumers. The edible oil sector is witnessing prominent growth due to their rising application in various products such as bakery, cooking, packaged foods, snacks, and food service. The growth of the edible oil sector is also largely driven by the demand for cooking oils in retail aisles. The amplifying demand for plant-based foods has increased the utilization of soybean oil, palm oil, olive oil and coconut oil. The emerging trend of vitamin-fortified, organic, non-GMO oils among consumers to make healthy food is further driving the market growth. Asia Pacific witnessed a growth from USD 23.02 billion in 2022 to USD 23.83 billion in 2023.

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Soybean Oil Market Growth Factors

Increasing Utilization in Production of Biofuel to Drive Market Growth

Biofuel is an emerging sector due to the rising concerns related to non-renewable energy sources. Various countries are now actively investing in the production of biofuels. The increased biodiesel production capacity has a huge impact on the global demand for soybean-derived oil. The use of the oil as feedstock for biodiesel production provides a higher BTU (British Thermal Units) value and burns more efficiently and cleanly. The U.S. government provides a USD 1 per gallon subsidy to biodiesel producers that produce biodiesel from virgin vegetable oil feedstock.

According to the May 2021 World Agricultural Supply and Demand Estimates report by the U.S. Department of Agriculture (USDA), the use of soybean oil for biofuel production is forecasted to be higher in the upcoming years. In June 2021, the oil’s demand on the Chicago Board of Trade soared almost 70% due to the growing demand from the biodiesel sector. The increasing investments by the governments of various countries and fuel producers to improve the biodiesel production process are anticipated to further propel the demand for soybean oil in the upcoming years.

Expanding Application Scope in Food Sector to Fuel Market Growth

The oils and fats sector is witnessing promising growth across the globe attributed to their rising use in food manufacturing and processing. According to the USDA, soy oil is the second-largest consumed vegetable oil in the world. It is extensively utilized for cooking, frying, shortenings, and margarine. Soybean oil usage has also increased across the bakery sector, which significantly fuels the market growth. The growing consumer knowledge regarding its health benefits ultimately propels the market growth. This oil is one of the leading poly-unsaturated cooking oils. It has a high smoke point (257°C), which enables setting oil at higher temperatures for deep frying. The higher shelf life of soybean oil also drives its utilization in food processing and food service industries.

In June 2018, the Food and Drug Administration (FDA) announced that all food manufacturers are required to remove partially hydrogenated oils (PHOs) from their food products. The oil manufacturers actively invest in the interesterification of high oleic soy oil to develop shortenings that closely match the properties of PHO.

RESTRAINING FACTORS

Increasing Availability of Substitute and Alternate Oils to Act as a Key Restraint for Market Growth

The market is highly affected by the availability of various other oilseeds that can be used as an alternative or a substitute for soy oil. Palm oil, olive oil, rapeseed oil, sunflower oil and canola oil are major competitors of this oil. Palm oil is the only vegetable oil in the world that is regularly priced at a discounted price, which significantly hampers the growth of the market. Palm oil has higher saturated fat content than soybean, rapeseed, sunflower, and other oils and tends to be solid at room temperature. Palm oil is preferred for making baked goods with a flaky texture, such as biscuits and pies. Furthermore, the growing awareness regarding nutritional and healthy oils such olive oil among consumers has considerably affected the utilization of this oil across retail aisles.

Soybean Oil Market Segmentation Analysis

By Application Analysis

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Cooking & Frying Holds Highest Soybean Oil Market Share owing to Expansion of Foodservice and Retail Sectors

The global market is segmented by application and geography. The cooking & frying segment is expected to hold a 32.4% share in 2023.

Soybean oil is extensively utilized for cooking and frying purposes in countries such as China and India. The higher smoke point of soy oil compared to the other cooking oils has tremendously increased its use across the food service industry in Asian countries. The rising discretionary income among consumers in countries such as India, Indonesia, and China has increased the trend of dining out. This has amplified the demand for this oil for various purposes, such as bakery products and prepared foods.

The increasing use of soy oil in European countries and North America for manufacturing shortenings, margarine, and salad dressings have also significantly contributed to its rising demand. The growing demand for edible oils in the biofuel industry is expected to drive the growth of this market in the foreseeable years.

REGIONAL INSIGHTS

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Asia Pacific to be Leading as well as Fastest-Growing Region

Rapidly growing markets in Asia Pacific such as China and India have significantly increased soy oil consumption over the past few years. The increased purchasing power of Chinese and Indian consumers has contributed to sharp increases in consumption as they can afford to purchase more oil. Although Chinese crush capacity has increased substantially, Chinese processors do not produce enough oil to meet domestic consumer demand. China is also the leading importer of this oil in the world. The evolving food service industry in the region is expected to drive market growth further.

The market is witnessing promising growth in North America. The U.S. is the major consumer of this oil due to the fastest-growing and expanding food processing industry. This oil is extensively utilized for margarine, and shortenings are widely used in the food processing industry across the region. The rapidly growing bakery industry in North American countries further fuels its demand. The growing knowledge regarding the health benefits of organic food has significantly increased the demand for organic soy oil among consumers. The rising use of this oil to produce biofuel is expected to drive market growth in the upcoming years.

South America is experiencing substantial growth in this market as Brazil and Argentina are significant producers and exporters of this oil. Soybean processors in Brazil and Argentina sell their oil to refiners, which is processed into refined, bleached and deodorized (RBD) oil that can be sold to food processors for cooking and manufacturers that use the oil to produce biodegradable plastics and lubricants, and biodiesel. China imports most of its oil from Argentina and Brazil. The growing investment by the Brazilian government to increase biodiesel production by using soy oil is expected to drive the regional market.

Europe is witnessing strong growth in the market due to the rising utilization of soy oil for biodiesel production. The increasing government intervention to drive biofuel production has considerably fueled the market growth in the region. The highly evolved food sector in the region has changed consumer buying patterns. Consumers nowadays seek healthier oil options which boost the demand for variants such as non-GMO, non-PHO, and organic soy oil in European countries. The rising interest in plant-based food products is expected to drive market growth across the region further.

The Middle East and Africa market is at a nascent stage. The growth of the market is driven by the increasing use of soy oil in Iran. Iran is a major importer of this oil purchased by refiners and food processors and used in the processing of ghee, a staple food product. The rapidly increasing discretionary income of Middle Eastern and African consumers is expected to further boost the regional market growth in the upcoming years. In Japan, the cooking & frying segment is estimated to hold a 52.36% market share in 2023.

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List of Key Companies in Soybean Oil Market

ADM is Investing in Facility Expansion to Fortify its Business

Archer Daniels Midland Company (ADM) is a leading food processor focusing on the expansion of its soybean activities to fortify its business in the global market. For example, in May 2021, ADM announced plans to expand its soybean crushing plant and refinery in North Dakota, U.S. This facility aims to increase the production of this oil. The global market displays a moderately consolidated structure, with certain companies holding a considerable share in the market. The major companies such as Associated British Foods, plc, Bunge and Cargill, Inc. are focusing on strategic partnerships, mergers & acquisitions and new product launches for more consolidation in the market. The entry of niche players in this market considerably increases the competition within the market, which propels the growth of the market.

List of Top Soybean Oil Companies:

• Archer Daniels Midland Company (Illinois, U.S.)
• Associated British Foods, plc (London, U.K.)
• Bunge (Missouri, U.S.)
• Cargill, Inc. (Minnesota, U.S.)
• Louis Dreyfus Company (Rotterdam, Netherlands)
• Wilmar International Limited (Singapore)
• DuPont (Delaware, U.S.)
• Unilever plc (London, U.K.)
• AMAGGI Group (Cuiaba, Brazil)
• SunOpta, Inc. (Brampton, Canada)

KEY INDUSTRY DEVELOPMENTS

• August 2021 – ADM and Marathon Petrolium Corp announced a joint venture to produce soybean oil to fulfill its rising demand to produce renewable diesel fuel.
• September 2019- CHS, Inc., a leading oilseed processor in the U.S., announced the expansion of its Minnesota soybean processing plant. This expansion will enable the company to increase its soybean crush and soy oil production capacity.

REPORT COVERAGE

An Infographic Representation of Soybean Oil Market

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The global market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, applications, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over recent years.

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