U.S. Edible Oils & Fats Market Size, Share & Industry Analysis, By Oil Type (Canola Oil {Clear Canola Oil, and High Oleic Canola Oil}, Soybean Oil {Clear Soybean Oil, Creamy Soybean Oil, and High Oleic Soybean Oil}, Peanut Oil, Palm Oil, Corn Oil, Rice Bran Oil, Sunflower Oil, Coconut Oil, Olive Oil, Sesame Oil, Cottonseed Oil, Linseed Oil, Castor Oil, & Avocado Oil), By Fat Type (Beef Tallow, & Lard), By Application (Food Service {Quick Service Restaurants, Casual Dining Restaurants, Institutes, and Others}, Retail {C-store, & Supermarkets/Hypermarkets}), and By Metro Area, 2025-2032

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 a CAGR of 4.5% during the forecast period.

Edible oils and fats are lipids that are derived from seeds, animals, or, less often, from parts of fruits. Both fats and oils comprise triglycerides, which are esters of fatty acids and glycerol. Although fats and oils are chemically similar, the difference is that oils remain liquid, and fats are semi-solid/solid at room temperature. With respect to edible oils, such products are often bleached, deodorized, and refined to produce a consistent color and taste. Also, edible oils have high nutritional value and offer vitamin E, micronutrients, and dietary fats.

In contrast, edible fats are known to be safe for human consumption and are extracted from plants, marine, or animal sources. Some well-known examples of fats and oils include lard, butter, avocado, peanut, soybean, olive oil, and others. Margarines, deep frying oil, spreads, ice cream fats, infant nutrition, salad dressings, and others are a few of the commercially available products that contain oil or fat as a key ingredient.

The evolving food service industry and growing demand for a range of edible oils are the pivotal factors propelling the edible oils and fats market.  

MARKET DYNAMICS

Market Drivers

Growing Demand from Food Processing and Food Service Industry to Drive Market’s  Momentum

The U.S. edible fats and oils market is experiencing notable growth, primarily driven by rising demand from the food processing and food service industry. The food service industry is one of the major industries in the U.S. With the growing number of quick-service restaurants in the region, the consumption of edible oils and fats will increase, as frying oils are essential for preparing popular dishes such as French fries, fried chicken, and other snack items. The burgeoning processed and convenience food industry is also a significant driver of demand for edible oils and fats. With busy lifestyles and increased dependency on ready-to-eat or ready-to-cook meals, manufacturers are incorporating oils such as canola, soybean, and palm into products for their texture, flavor, and shelf stability benefits. Furthermore, consumer awareness of health risks linked with saturated and trans fats has led to a shift toward healthier alternatives. Oils rich in unsaturated fats, such as olive oil and high-oleic sunflower oil, are gaining traction due to their heart health benefits.

Increasing Consumer Demand for Diverse Edible Oils to Drive Industry’s Growth

As global food trends continue to shift toward interesting culinary experiences, consumers seek unique and more distinctive flavors in their meals. A vast range of edible oils in the market offers different aromas and tastes and can be used for baking, salad dressings, and drizzling over veggies and other dishes. Food chefs are always seeking ways to upgrade their dishes. Different types of oils have various smoking points that make them suitable for varied applications, imparting authentic taste and aromatic qualities, leading to increased demand for oil and consolidating U.S. edible oils & fats market growth. Moreover, since the pandemic, consumers are also increasingly experimenting, and the trend of cooking at home has grown ever since. Individuals are constantly searching for healthier options, such as cold-pressed oils and extra virgin olive oil, which are rich in antioxidants, omega-3s, and monounsaturated fats. As a result, this has led to a surge in demand for premium and specialty oils.

Market Restraints

High Price Volatility of Edible Oils & Fats Obstructs Market’s Potential

One of the primary reasons for variations in the prices of the edible oils and fats market is the volatile cost of raw ingredients. Key edible oils such as canola, palm, and soybean oil are highly dependent on agricultural output, which can be affected by adverse climatic conditions, pests, and diseases. A poor harvest in major producing countries can lead to supply shortages. Conversely, a surplus in production can cause prices to drop sharply, making it difficult for businesses to plan long-term pricing strategies.

Market Challenges

Variations in Trade Policies Hinder Production Rate of Oils & Fats 

Trade policies and geopolitical wars further exacerbate price instability. The U.S. market relies on imports for some of its edible oils and fats supply, especially palm oil from Southeast Asia and canola oil from Canada. Tariffs, political conflicts, and export bans disrupt imports, leading to sudden price spikes. For instance, trade disputes between the U.S. and China have long affected soybean exports and pricing, impacting the availability and cost of soybean oil, a widely used edible oil in the U.S.

Market Opportunities

Surging Use of Cold-Pressed Cooking Oil with Clean Label and Non-GMO Ingredients Unlocks Growth Opportunities

The augmented use of cold-pressing cooking oils with non-GMO and clean-label ingredients creates numerous growth opportunities for the market. In this health-centric era, most consumers actively seek oils with lower saturated fat content and higher nutritional value. This demand escalates the popularity of olive, avocado, and canola oil among U.S. consumers. Cold-pressed oils, especially organically produced, known for retaining natural antioxidants and nutrients, are experiencing growing acceptance among those who wish to incorporate minimally processed food options in their diets. Consumers of today’s age favor natural foods over artificial ones and are mindful of the food choices they make. As a result, several manufacturers are launching new clean-label and organically harvested oils to cater to the growing consumer preferences. For instance, in March 2020, Nutiva Inc., a U.S.-based organic plant-based product company, launched a range of organic avocado oils available in three varieties: Organic MCT Oil Blend Avocado Oil, Organic 100% Pure Avocado Oil, and Organic Extra Virgin Avocado Oil.

EDIBLE OILS & FATS MARKET TRENDS

Augmented Demand for Plant-based Shortenings and Low-Fat Oil is the Current Trend

For a decade, consumers have become more health-conscious and ecologically aware, which has led to a shift toward plant-based alternatives compared to conventional animal-based products such as lard, tallow, and butter. Margarine and shortenings are commonly extracted from vegetable-based oils, which include palm oil and sunflower oil, as they have less saturated fat content and are typically cholesterol-free. This appeal has gained traction among the dietary preferences of vegetarians, vegans, and flexitarians who seek to minimize their use of animal-derived goods for health, environmental, and ethical reasons. Moreover, the increasing frequency of lactose intolerance and dairy-related allergies prompts consumers to opt for dairy-free alternatives such as plant-based shortenings and margarine.

Impact of COVID-19

The COVID-19 pandemic considerably affected the edible oils & fats industry in the U.S. The pandemic caused severe supply chain disruptions due to lockdowns across U.S. states, labor shortages, and logistics bottlenecks. To fulfil U.S. consumer demands, most edible oils, such as sunflower, palm, and canola, are imported from other countries. Disruptions in exporting countries such as Malaysia, Indonesia, and Canada led to delayed shipments and supply shortages in the U.S. Labor shortages in the crushing and refining plants across the U.S. slowed down production, thus creating backlogs in oil refining and packaging. With restrictions on transportation activities, hurdles were also witnessed in the domestic and international movement of edible oils and fats, leading to regional shortages and price hikes.

SEGMENTATION ANALYSIS

By Oil Type

Soybean Oil Segment Dominated the Market Owing to Its Vast Usage in Cooking

Based on oil type, the U.S. edible oils market is segmented into different types of oils, which includes canola oil, soybean oil, peanut oil, palm oil, corn oil, rice bran oil, sunflower oil, coconut oil, olive oil, sesame oil, cottonseed oil, linseed oil, castor oil, avocado oil, and others. Among all, the soybean oil held the highest share in 2024. This oil is widely used by individual households as well as large-scale food industry players to produce processed food products. The growing importance of soy-based oil as a key source of numerous nutritional constituents, including omega-6 fatty acids, vitamin E, and others, in the food and beverage industry drives segmental growth. Moreover, significant health benefits associated with high oleic soybean oil over animal fats stimulate the edible oils market growth.

By Fat Type

Lard Fat Led the Market Owing to Its Various Applications

Based on fat type, the market is segmented into beef tallow, lard, and others. The edible fats category is projected to grow at the fastest CAGR of 4.9% during the forecast period. Lard dominated the market, mainly due to the surge in consumption of processed and convenience food items such as bakery, confectionery, and savory snacks that use animal fats. This fat has flavor-enhancing properties and versatility and, therefore, has become a key ingredient in the food industry.

By Application

Food Service Segment Led Market Due to Increasing Eating Out Culture

Based on application, the U.S. edible oils & fats market is bifurcated into food service and retail. Foodservice is sub-segmented into quick-service restaurants, casual dining restaurants, institutes, and others.

Among the two, the food service application segment secured a leading position by generating the maximum revenue. The U.S. market has one of the largest food service markets and is anticipated to grow faster in the near term. The industry growth is attributed to bulk quantity purchases for cost savings, convenience, quality control, and sustainability. Players in the food service sector order large volumes at once since oil suppliers can offer products at economical prices due to their lower overhead costs and bulk purchasing power. Also, bulk purchasing assures the quality of the product, as suppliers often have strict quality measures in place to ensure that their products are of superior quality.

The retail segment holds a considerable share of the U.S. edible oils & fats market. It is predicted to soar at the highest CAGR as it is one of the easiest and most convenient options for purchasing a small quantity of a variety of products for individual consumers. The retail segment is sub-categorized into supermarkets/hypermarkets, convenience stores, and others. Individual consumers purchase oils & fats in smaller quantities from these stores for at-home cooking purposes. Post-pandemic, cooking at home has become the new normal, and the shift from dining out to eating home-cooked meals has altered entire market dynamics, consolidating segmental expansion.

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U.S. Edible Oils & Fats Market Metro Area Outlook

The demand for edible oils and fats has considerably increased in the U.S. over the past decade due to rising consumer awareness of health-conscious diets, growing demand for plant-based alternatives, and innovations in packaging. With respect to production, the U.S. is recognized as one of the largest producers of oil and fats in North America. According to Oil World Data statistics, the country produced 1.7 million tons of oils and fats in 2021. The booming packaged and processed foods industry extensively uses edible oils and fats as key ingredients in baked goods, snacks, savory items, and ready-to-eat (RTE), ready-to-cook (RTC) meals. Moreover, the expansion of the e-commerce industry positively boosts the U.S. edible oils & fats market share.

New York City dominated the market in 2024, and its dominance can be attributed to the large consumption of edible oils & fats for household and commercial usage. The metro areas such as Cincinnati, Pittsburgh, Kansas City, San Antonio, Cleveland, Milwaukee, Hartford, Memphis, New Orleans, Des Moines, Tulsa, Birmingham, Columbia, Greensboro, and Rochester have a significant growth rate above 6% during the forecast period.

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Competitive Landscape

Key Industry Players

U.S. Players are Focusing on Product Innovation and Expansion to Establish their Positions in the Market 

Active players in the U.S. market include Cargill, Incorporated, Bunge Ltd., Fuji Oil Company, Ltd., and Louis Dreyfus Company, among others. All these players focus on two major strategies: base expansion and product launches across the U.S. market. In order to cater to the rising consumer demands, most of the key players are trying to expand their base to strengthen their production capacity and are also focusing on introducing novel products across the U.S..

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)

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.


• October 2023: Cargill, Incorporated, a prominent manufacturer in the U.S., planned to exclusively offer palm oil certified by the Roundtable for Sustainable Palm Oil (RSPO) from its U.S. refineries. Thus, this decision reflects the increasing demand for sustainably sourced ingredients from consumers and manufacturers.


• April 2023: Bunge, a U.S.-based agribusiness firm, through its Bunge Loders Croklaan JV with IOI Corporation Berhad, agreed with Fuji Oil New Orleans, LLC to acquire its newly constructed, port-based refinery in Avondale, Louisiana. The project includes a new vegetable oil processing line and additional structures to support increased oil production.


• March 2023: The Archer Daniels Midland Company, a multinational conglomerate in the U.S., launched the Knwble Grwn brand, a direct-to-consumer food ingredient line derived from sustainably sourced crops, at the Natural Products Expo West. The products offered to the consumers include flax oil, hemp oil, flaxseed, hemp seed, and quinoa.


• December 2021: Fuji Oil Holdings Inc., a Japanese oil company, agreed with ITOCHU Corporation, a trading firm in Japan, to build a joint venture company, Fuji Oil International Inc. (FII), to expand their vegetable oil business in North America.

Investment Analysis and Opportunities

The market study report provides comprehensive investment analysis and opportunities aimed at providing investors and business leaders with actionable insights. The report highlights the various opportunities that have the potential for investments, including new product launches, technological advancements, mergers & acquisitions, and geographic expansions.

REPORT COVERAGE

The market report includes quantitative and qualitative insights into the market. It also offers a detailed U.S. edible oils & fats market analysis of the sizing and growth rate for all possible market segments. Various key insights presented in the market research report are an overview of related markets, competitive landscape, recent industry developments such as mergers & acquisitions, the regulatory scenario in critical countries, and market trends.

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