Cooking Oil Market 2030: The Impact of Urbanization on Demand

The global cooking oil market was valued at USD 171,938.3 million in 2023 and is projected to reach USD 253,750.0 million by 2030, growing at a CAGR of 5.8% from 2024 to 2030. This growth is primarily driven by population expansion, which naturally increases the demand for essential food items, including cooking oil.

Urbanization and evolving consumer lifestyles have also contributed to shifting dietary patterns. The growing preference for processed and convenience foods, which typically involve oil-based cooking methods, has further stimulated market growth. Additionally, rising disposable incomes, especially in developing countries, are enabling consumers to spend more on higher-quality and specialty oils.

The market offers a wide variety of oils to meet diverse culinary needs and preferences. Widely used vegetable oils include palm, soybean, sunflower, and canola (rapeseed) oils, commonly used in everyday cooking, frying, and processed food production. Olive oil is highly regarded for its health benefits and is a staple in Mediterranean cuisine, while coconut oil is popular for both culinary and non-culinary applications. In addition, animal-based oils like butter, ghee, and lard continue to be widely used in traditional cuisines across various regions. Meanwhile, specialty oils such as avocado, flaxseed, and grapeseed oil are gaining popularity among health-conscious consumers due to their nutritional value.

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Key Market Trends & Insights

• Regional Insights: In 2023, North America dominated the cooking oil market, accounting for a 32.4% revenue share. Consumer preferences in the region are shaped by flavor, health benefits, and cooking versatility. Canola oil, with its high smoke point and neutral flavor, is widely used, while olive oil remains popular due to its health-enhancing properties.
• Type Insights: The palm oil segment held the largest revenue share at 28.5% in 2023. Known for being one of the most cost-effective and versatile vegetable oils, palm oil is extensively used not only in cooking but also in processed foods, margarine, snacks, and baked goods, particularly in developing countries.
• Processing Type Insights: Refined oils led the market with a dominant 80.2% revenue share in 2023. These oils undergo processing to eliminate impurities, thereby extending shelf life and ensuring stability in warm climates. The refinement process also removes strong odors and flavors, making refined oils more adaptable to various culinary uses.
• Packaging Insights: The bottles segment accounted for the largest market share of 42.4% in 2023. Bottled oil offers convenience in terms of handling, pouring, and storage. In particular, glass bottles help preserve oil quality by protecting it from light and air exposure, which can lead to spoilage.
• End Use Insights: The commercial segment dominated the market with a 72.6% revenue share in 2023. Cooking oil is a staple in commercial kitchens, including those in restaurants, hotels, and institutional catering, due to its widespread use in high-heat cooking and large-volume food preparation.
• Distribution Channel Insights: The food processing channel held the largest share at 51.2% in 2023. This channel ensures that cooking oil is processed and refined under strict quality and safety standards, which is critical for maintaining consumer trust and product consistency in packaged and processed food applications.

Market Size & Forecast

• 2023 Market Size: USD 171,938.3 Million
• 2030 Projected Market Size: USD 253,750.0 Million
• CAGR (2024-2030): 5.8%
• North America: Largest market in 2023
• Asia Pacific: Fastest growing market

Key Companies & Market Share Insights

The cooking oil market is competitive and influenced by product innovation, regional production strengths, and changing consumer habits. Leading companies are heavily investing in R&D and advanced processing technologies to deliver cost-effective, high-quality products.

To enhance market presence and geographic expansion, companies are engaging in joint ventures, partnerships, mergers, and acquisitions. There is also a growing focus on ingredient transparency and compliance with international regulatory standards, as consumers become more conscious of health and sustainability in food choices.

Key Players

• Archer Daniels Midland Company
• Cargill, Incorporated
• Bunge Limited
• Wilmar International Limited
• Olam International Limited
• Marico
• Sime Darby Plantation
• Fuji Oil Group
• George Weston Foods Limited
• Nutiva

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Conclusion

The global cooking oil market is on a steady growth trajectory, fueled by population growth, urbanization, increased disposable incomes, and evolving dietary patterns. Consumer demand is shifting toward higher-quality, health-oriented, and versatile oil products, with refined oils, especially palm and canola, maintaining widespread popularity.

North America remains the leading market, while Asia Pacific is projected to grow at the fastest pace, driven by expanding middle-class populations and increased consumption of processed foods. With innovation and sustainability becoming key differentiators, market players are likely to focus on transparent labeling, eco-friendly practices, and technological advancement to remain competitive and meet the growing global demand through 2030.