US vegetable oil market to hit $139.5B by 2033, growing at 4.23% CAGR

United States Vegetable Oil Market: Size, Outlook, and Growth Dynamics (2025–2033)

According to Renub Research United States vegetable oil market is positioned for significant expansion over the next decade, with the market size anticipated to grow from USD 96.07 billion in 2024 to approximately USD 139.48 billion by 2033. This growth represents a CAGR of 4.23% from 2025 to 2033. The market’s momentum is supported by an evolving food industry landscape, widespread consumer preference for plant-based products, expanding industrial applications, and an increased emphasis on sustainability and bio-based energy sources.

Industry Overview

The U.S. vegetable oil sector is undergoing steady development, driven by changing dietary practices, shifting consumer lifestyles, and the growing role of plant-derived oils in food preparation and manufacturing. Oils such as soybean, canola, corn, and sunflower remain staples across both household and commercial culinary operations, where they are used extensively for frying, grilling, baking, and packaged food production. At the same time, healthier alternatives—particularly oils low in saturated fats or devoid of trans-fats—are gaining remarkable traction as more consumers prioritize heart-healthy nutrition.

The foodservice sector—from quick-service restaurants to large institutional kitchens—relies heavily on vegetable oils due to their affordability, versatility, and consistent supply. Modern refining technologies, including advanced extraction, cold-pressing, and filtration methods, have strengthened product quality and yield efficiency, contributing to stable growth in the market.

Beyond the food sector, vegetable oils are playing an increasingly diversified role in non-food industries. They are integral ingredients in cosmetics, pharmaceuticals, personal care items, bio-lubricants, and biopolymers, and hold a rising share in biodiesel production, reflecting the push toward renewable and eco-friendly energy alternatives. Supportive government policies, investment in sustainable fuel technologies, and corporate commitments to carbon reduction are reinforcing the importance of vegetable oils as renewable industrial feedstock.

Nevertheless, the industry faces challenges as well, including variability in crop yields, environmental concerns related to agriculture, and raw material price fluctuations. But innovation in sustainable farming, resilient supply networks, and advanced processing methods continue to mitigate these risks while opening new opportunities for market adoption.

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Key Factors Accelerating Market Growth

1. Strong Domestic Production and Rising Export Competitiveness

The United States remains one of the world’s leading producers of soybean oil, supported by robust agricultural infrastructure and advanced farming technologies. In 2023, U.S. soybean production reached approximately 4.2 billion bushels, significantly higher than levels recorded just a few years earlier. Major producing states—Illinois, Iowa, and Minnesota—continue to anchor this output, benefiting from genetically improved seeds, precision farming tools, optimized irrigation, and centrally managed agronomic practices.

Sophisticated crushing and extraction facilities have helped reduce waste, maximize yields, and sustain supply stability even during global disruptions. Strong export channels, facilitated by ports along the Gulf of Mexico and the West Coast, allow U.S. vegetable oils to reach major international markets in Asia and Europe. Quality assurance programs, non-GMO certifications, and traceability systems further enhance global buyer confidence.

Risk-management frameworks—including crop insurance, futures hedging, and diversified procurement—help maintain financial stability for growers and processors. With global demand for plant-based oils rising, the U.S. remains strategically positioned as a top supplier of consistent, high-volume vegetable oil.

2. Expanding Culinary and Industrial Applications

Vegetable oils have grown far beyond household kitchen use, becoming essential components in multiple industrial segments. Soybean oil dominates U.S. consumption, with usage reaching over 12.5 million metric tons in 2024, far surpassing other oils such as palm oil. This widespread adoption is driven by both functional and nutritional attributes.

In the food industry, vegetable oils serve as emulsifiers, flavor carriers, texturizing agents, and essential inputs in:

• baked goods
• ready-to-eat meals
• plant-based meat and dairy analogs
• confectionery and snacks
• frozen and packaged foods

The rise of plant-based diets further boosts demand for oils used in vegan products, protein alternatives, and fortified foods. Consumers increasingly favor oils rich in mono- and poly-unsaturated fats, prompting manufacturers to reformulate products around canola, sunflower, and high-oleic varieties.

Non-food applications are also expanding. Vegetable oil derivatives are used in:

• biodegradable lubricants
• industrial coatings
• packaging materials
• bio-chemicals and polymers

As companies and governments emphasize circular economy principles, the integration of vegetable oils into renewable material streams continues to rise. Collaborative investments between private firms and research institutions are promoting innovations in cold-pressed extraction, antioxidant enhancement, and oil fractionation—creating new high-value markets and reducing vulnerability to commodity price swings.

3. Growing Consumer Preference for Plant-Based and Health-Forward Diets

The cultural shift toward plant-based nutrition is a major force shaping the U.S. vegetable oil market. Consumers are increasingly avoiding animal fats and partially hydrogenated oils in favor of cleaner, more natural alternatives. Oils such as olive, canola, and sunflower are widely recognized for their cardiovascular benefits, appealing to health-conscious households and foodservice operators alike.

Retail shelves continue expanding their offerings of premium oils, including organic, cold-pressed, and specialty oils such as avocado or grapeseed. This shift aligns with broader lifestyle trends, including:

• low-cholesterol diets
• vegan and vegetarian lifestyles
• weight-management programs
• interest in anti-inflammatory foods

As these consumer preferences strengthen, the demand for high-quality vegetable oils is expected to continue rising across grocery, online retail, and food delivery channels.

Key Challenges in the Market

1. Price Instability and Raw Material Supply Risks

Fluctuations in agricultural output create significant volatility in vegetable oil prices. Yield levels are frequently affected by:

• weather disruptions and climate change
• pest infestations
• global supply chain bottlenecks
• trade policies and tariff adjustments

Price instability can squeeze profit margins for food processors, restaurants, and manufacturers, while also influencing retail pricing for consumers. During global crises, delays in transportation and logistics can further complicate availability. To mitigate these risks, companies are increasingly exploring diversified sourcing, alternative oilseeds, and advanced inventory planning.

2. Environmental and Sustainability Concerns

Large-scale cultivation of oilseed crops raises environmental questions related to land use, water consumption, soil degradation, and emissions. Pressure from regulators, sustainability watchdogs, and environmentally conscious consumers is pushing companies to adopt more responsible agricultural practices.

Manufacturers are responding by:

• promoting regenerative farming
• using certified sustainable sourcing programs
• improving traceability through digital tracking systems
• reducing carbon footprints in production and logistics

While these transitions require financial investment, they are crucial for long-term competitiveness and maintaining consumer trust.

State-Level Market Insights

California

California is one of the most robust regional markets due to its expansive food processing industry, hospitality sector, and strong consumer inclination toward healthy, plant-forward eating. Oils such as olive, canola, and avocado are particularly popular. California’s agricultural ecosystem also contributes to the supply chain, and the state’s focus on renewable fuels supports the use of vegetable oils in biodiesel production.

Texas

Texas benefits from a large population base, a thriving restaurant industry, and a strong industrial sector. Vegetable oils are widely used in commercial food operations and increasingly in alternative energy production. The state’s agricultural activity in oilseed production further supports supply consistency, while retail demand for healthier options continues to rise.

New York

New York’s dense population and diverse culinary environment generate substantial usage in restaurants, bakeries, and packaged food production. Premium oils such as olive and sunflower enjoy strong retail demand. Additionally, the state hosts various small-scale cosmetic and manufacturing businesses that rely on vegetable oils for specialized applications.

Florida

Florida’s large tourism, hospitality, and service economy creates continuous demand for cooking oils. Multicultural dietary preferences support high use of soybean, corn, and canola oils, while biofuel initiatives are further expanding industrial consumption.

Recent Industry Developments

A major strategic move occurred in April 2023 when Bunge acquired a modern multi-oil refinery from Fuji Oil New Orleans, LLC. Located in a high-value port region, this facility enhances Bunge’s ability to serve food, feed, and fuel markets across North America. Commercial operations were expected to begin in mid-2023, strengthening Bunge’s footprint in the U.S. vegetable oil sector and advancing its strategy of expanding value-added oil offerings.

Market Segmentation

• Oil Type: Palm, Soybean, Rapeseed, Sunflower, Olive, Others
• Application: Food, Feed, Others
• Distribution Channel: B2B, B2C
• States Covered: All major markets including CA, TX, NY, FL, IL, PA, OH, GA, NJ, WA, NC, MA, and many more

Key companies operating in the market include:
Archer-Daniels-Midland (ADM), Wilmar, AAK, Unilever, Bunge, Cargill, Sime Darby, and Associated British Foods, each contributing through innovation, regional expansion, and product diversification.