Global Soybean Oil Market Size and Forecast 2025–2033

Introduction

The Global Soybean Oil Market is entering a period of rapid expansion supported by strong consumer demand, evolving food industry trends, and rising biofuel production. According to Renub Research, the market is projected to grow from US$ 89.91 billion in 2024 to US$ 229.06 billion by 2033, reflecting an impressive CAGR of 10.95% from 2025 to 2033. This remarkable growth highlights soybean oil’s growing significance—not just as a household cooking staple but also as a critical industrial and renewable energy resource.

As consumers shift toward healthier and more sustainable food choices, plant-based oils are gaining unprecedented traction. Soybean oil, known for its mild flavor, high smoke point, and beneficial fatty acid profile, has become a preferred option around the world. Additionally, its widespread adoption in biodiesel production has strengthened its global market position, especially as nations push toward cleaner and renewable energy sources.

Soybean Oil Market Overview

Soybean oil is extracted from the seeds of the soybean plant and ranks among the most consumed vegetable oils worldwide. Its neutral taste and versatility make it a reliable choice for cooking, frying, baking, and food preparation. Rich in omega-3 and omega-6 fatty acids, soybean oil is often perceived as a heart-healthy alternative to saturated fats. Beyond the kitchen, it plays a vital role in industrial applications, including lubricants, plastics, paints, pharmaceuticals, cosmetics, and biodiesel.

Growing urbanization, rising disposable incomes, expanding foodservice industries, and escalating demand for processed food products continue to expand the market’s footprint. Moreover, increased consumer awareness of health and wellness, especially the benefits of polyunsaturated fats, further reinforces soybean oil’s global appeal.

Key Growth Drivers in the Soybean Oil Market

1. Rising Biofuel Production Strengthens Market Demand

One of the most powerful drivers shaping the soybean oil industry is the growing demand for biodiesel. The International Energy Agency (IEA) states that global biofuel demand is expected to rise by 38 billion liters between 2023 and 2028, marking a significant 30% surge compared to previous years. Total biofuel consumption is projected to reach 200 billion liters by 2028, underlining the increasing attention to environmentally friendly energy alternatives.

Soybean oil is a major feedstock in biodiesel manufacturing, making it an essential commodity in regions promoting renewable fuel mandates. As countries strengthen their carbon-reduction commitments, biodiesel derived from soybean oil continues to gain relevance. The push toward sustainable fuels offers long-term growth opportunities for producers and exporters worldwide.

2. Expanding Use of Edible Oils Across Food Categories

Food manufacturing worldwide is undergoing rapid transformation, driven by evolving consumer demands for convenience foods and plant-forward diets. Edible oils—including soybean oil—are increasingly utilized in:

packaged foods

bakery and confectionery

snacks and ready-to-eat meals

foodservice establishments

frying and sautéing applications

Soybean oil’s versatility, affordability, and neutral profile make it highly attractive for large-scale food production.

Further, consumers seeking healthier options are turning toward non-GMO, organic, and vitamin-fortified oils. This trend has prompted food companies to innovate and launch nutrient-enriched or specialized soybean oil variants. As a result, the edible oil segment is set to remain a core growth pillar in the coming decade.

3. Growing Awareness of Health and Nutritional Benefits

Health consciousness is becoming a global movement, with consumers actively switching to oils that support cardiovascular wellness. Soybean oil aligns well with this shift due to its advantageous fatty acid composition.

A study published in the National Library of Medicine highlights that soybean oil consumption reduces circulating cholesterol levels and lowers the risk of coronary heart disease—all without negatively affecting inflammation or oxidation markers.

These scientific validations help reinforce consumer trust in soybean oil, driving its adoption in households, restaurants, and the packaged foods industry.

Market Challenges

Despite its strong growth potential, several challenges affect the soybean oil market landscape:

1. Intense Competition from Other Vegetable Oils

Soybean oil competes directly with palm, sunflower, canola, and olive oils. Price competitiveness plays a major role—palm oil, for instance, remains a cheaper alternative heavily used in processed foods. Meanwhile, consumer preferences for specialty oils like coconut, avocado, and olive oil add competitive pressure in premium segments.

To stay ahead, soybean oil manufacturers are increasingly focusing on product diversification, better refining processes, and nutritional fortification.

2. Price Volatility due to Climatic and Market Factors

Soybean oil prices fluctuate significantly due to:

variable crop yields

climate change impacts (droughts, floods)

shifting global demand

tariff changes and trade policies

supply chain disruptions

Any fluctuation affects both producers and end-users, making stable pricing a challenge. As climate risks escalate globally, managing supply consistency will become even more critical for the soybean oil sector.

Regional Market Overview

North America

The U.S. leads the regional market thanks to abundant soybean cultivation, advanced processing facilities, and strong biodiesel demand.

Notable developments include:

October 2024: AG Processing Inc. announced a new soybean processing facility in David City, set to begin operations in 2025. It is expected to process over 50 million bushels annually, boosting domestic supply.

November 2024: Perdue AgriBusiness launched the “Miss Madeline” vessel to streamline soybean oil transport, reduce emissions, and support sustainability initiatives.

Such infrastructure enhancements strengthen the United States’ position as a global soybean oil powerhouse.

Europe

Germany is one of the region’s most significant soybean oil consumers. Despite limited domestic production, strong demand in food processing and biodiesel industries keeps imports high. Increasing consumer preference for plant-based oils and clean energy supports further growth.

However, soybean oil faces stiff competition from locally abundant rapeseed and sunflower oils, particularly in the EU.

Asia-Pacific

Asia-Pacific remains the fastest-growing region, fueled by population growth, urbanization, rising disposable incomes, and expanding packaged food industries.

India

India is one of the world’s largest importers of soybean oil. Demand is surging due to the growing middle class, increasing consumption of edible oils, and rising health awareness. Imports from Brazil and the U.S. remain crucial.

China

As a major consumer of edible oils, China continues to be a significant market for soybean oil used in both food applications and industrial processing.

Japan, South Korea, Indonesia, and Malaysia

These nations are witnessing rising consumption supported by greater adoption of Western food habits, growth in bakery and processed food sectors, and expansion of foodservice industries.

Latin America

Brazil, Mexico, and Argentina play a dual role as both major producers and consumers. Brazil remains a key exporter supplying global markets, especially Asia.

Middle East & Africa

Demand in Saudi Arabia, UAE, and South Africa continues to rise due to population growth, expanding foodservice industries, and preference for plant-based oils. Limited domestic production drives heavy reliance on imports.

Market Segmentation

By Type

Organic

Conventional

By Application

Cooking & Frying

Margarine & Shortening

Salad Dressings & Mayonnaise

Bakery Products

Non-Food Applications

By Regions

North America: U.S., Canada

Europe: France, Germany, Italy, Spain, U.K., Belgium, Netherlands, Turkey

Asia-Pacific: China, Japan, India, South Korea, Thailand, Malaysia, Indonesia, Australia, New Zealand

Latin America: Brazil, Mexico, Argentina

Middle East & Africa: Saudi Arabia, UAE, South Africa

Key Player Analysis

Major companies shaping the global soybean oil landscape include:

Archer Daniels Midland (ADM) Company

Wilmar International Limited

AAK AB

Bunge Global SA

Cargill, Incorporated

DuPont

Unilever PLC

Associated British Foods

These companies are heavily engaged in product innovation, global expansion, vertical integration, and investment in sustainable energy alternatives such as biodiesel.

Final Thoughts

The Global Soybean Oil Market stands at the intersection of agricultural innovation, renewable energy expansion, and changing dietary habits. As consumers demand healthier choices and industries seek cost-efficient raw materials, soybean oil is well positioned for consistent growth.

From food processing to biodiesel, and from developing economies to advanced industrial markets, soybean oil remains a fundamental commodity shaping global food and energy systems. With its projected growth to US$ 229.06 billion by 2033, the market promises strong opportunities for producers, exporters, investors, and stakeholders across the value chain.