The global fats and oils market continues to evolve rapidly, driven by shifting dietary patterns, rising health consciousness, and expanding food processing applications. Valued at USD 271.8 billion in 2024, the market is projected to reach USD 323.7 billion by 2029, growing at a CAGR of 3.6% during the forecast period. This growth reflects not only increasing food consumption but also rising demand from specialized diets and the expanding bakery and confectionery sectors.
Diet Trends Reshaping the Demand for Fats & Oils
Modern dietary preferences have become a major determinant of the type of fats and oils consumers purchase. Among these, the ketogenic (keto) and paleo diets have gained tremendous traction across global markets.
The Keto Influence on Fat Consumption
The keto diet emphasizes high-fat, low-carbohydrate intake to achieve ketosis, a metabolic state in which the body burns fat for fuel instead of carbs. As noted by Medical News Today, 55–60% of daily calories for a keto follower must come from fat sources. This has significantly boosted the consumption of:
- Coconut oil
- MCT oil (medium-chain triglycerides)
- Butter
These fats not only provide essential ketogenic nutrients but also enhance flavor, cooking versatility, and overall dietary satisfaction.
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Butter & Margarine Lead the Market Share Among Fats
The butter and margarine segment is expected to remain dominant throughout the forecast period.
Why Butter & Margarine Remain Market Leaders
Both products are essential in:
- Cooking
- Baking
- Foodservice
- Household use
Their widespread application and longstanding culinary appeal give them an edge in the fats category.
Rising Preference for Margarine
Margarine is gaining momentum globally for several reasons:
- Cost-effective large-scale production
- Preference among price-sensitive consumers
- Essential use in bakery & confectionery, where its texture, melting point, and solid-fat content are critical
In commercial bakeries, margarine is indispensable for achieving consistency, desired mouthfeel, and structural integrity in baked goods.
Liquid Oils Continue to Dominate the Market by Form
The liquid oils segment holds strong in the global fats and oils market, driven by consumer health trends and increasing use in food manufacturing.
Why Liquid Oils Are Preferred?
Most plant-derived oils—such as olive, canola, and sunflower oils—are considered healthier due to:
- Lower saturated fat content
- Higher unsaturated fatty acid levels
- Associated benefits like improved heart health and reduced cholesterol
These oils are widely used in:
- Cooking & frying
- Salad dressings
- Baking
- Packaged foods
Their versatility and flavor-enhancing properties continue to make liquid oils a favorite in households and food industries alike.
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Asia Pacific Market: China Maintains Its Commanding Position
Within the Asia Pacific region, China is set to maintain its dominance in the fats & oils market over the coming years.
China’s Massive Oil Consumption Landscape
Despite a reported 5.5% decline in total oil and fat consumption in 2022 (39.49 million metric tons), China remains one of the largest global consumers, alongside Europe and the U.S.
Key oils consumed widely in China include:
- Soybean oil (largest share)
- Rapeseed oil
- Peanut oil
- Sesame oil
The country’s culinary diversity heavily influences regional oil choices.
Changing Dietary Patterns and Health Awareness
A study from China Food Hygiene Magazine found that over 50% of Chinese adults exceed the recommended intake of 30 grams of cooking oil per day. Rising health concerns, coupled with exposure to international culinary trends, have led to increased interest in:
- Olive oil
- Butter
- Other Western-style fats & oils
Economic growth, urbanization, and evolving lifestyles continue to make China a key driver of fats and oils demand in the Asia Pacific region.
Leading Fats and Oils Companies
The global fats & oils market features a competitive mix of multinational corporations and regionally dominant players. Some of the key companies include:
- ADM (US)
- Wilmar International Ltd (Singapore)
- Cargill, Incorporated (US)
- Bunge (US)
- Mewah Group (Singapore)
- Associated British Foods plc (UK)
- United Plantations Berhad (Malaysia)
- Ajinomoto Co., Inc. (Japan)
- Fuji Oil Co., Ltd. (Japan)
- Oleo-Fats (Philippines)
- Borges Edible Oils (Spain)
These companies are focusing on product innovation, sustainable sourcing, advanced refining technologies, and expanding their geographic presence to meet growing global demand.
