United States Soybean Oil Market Size & Forecast 2025–2033

United States Soybean Oil Market Outlook

The United States Soybean Oil Market is anticipated to grow strongly, rising from US$ 27.06 billion in 2024 to US$ 59.85 billion by 2033, according to Renub Research. This marks a robust CAGR of 9.22% during the forecast period of 2025–2033. Fueling this growth are increasing consumer preferences for healthier cooking oils, expanding utilization across food processing sectors, and rising adoption of soybean oil in biofuel and industrial applications.

Soybean oil—extracted from one of America’s most abundant and versatile crops—remains the most widely used cooking oil in the United States. Its neutral flavor, light texture, and high smoke point make it a go-to ingredient for frying, sautéing, baking, and blending in processed foods. From packaged snacks and dressings to margarine and bakery products, soybean oil plays an essential role in the American diet.

A significant portion of its popularity also stems from its nutritional profile. Being rich in heart-healthy unsaturated fats, omega-3 fatty acids, and low in saturated fat, it is widely regarded as a suitable alternative to animal fats and costly premium oils. At the same time, rising sustainability efforts and advancements in soybean cultivation continue to support the growth of this market across both food and industrial sectors.

Key Growth Drivers in the United States Soybean Oil Market

1. Rising Demand for Plant-Based and Healthier Oils

The American consumer is becoming increasingly health-conscious, with preferences shifting toward plant-based and low-saturated-fat oils. Soybean oil fits perfectly into this trend.

Its versatility in vegan and vegetarian products—combined with its clean-label appeal—has significantly boosted demand. Brands rely on it not only as a functional ingredient but also as a marketing advantage in plant-based foods such as meat alternatives, vegetarian snacks, fortified dairy substitutes, and ready-made meals.

A recent example reinforcing market momentum is the December 2022 investment by Bunge, which announced US$ 550 million toward a new soy protein concentrate and textured soy protein facility in Morristown, Indiana. The expansion aligns with soaring demand for plant-based ingredients, directly benefitting soybean oil extraction and processing industries.

2. Growth in the Foodservice & Processed Food Industries

The U.S. processed food sector continues to expand, with fast-food chains, quick-service restaurants, and bakeries playing a major role in soybean oil consumption. Its affordability, heat stability, and wide availability make it the ideal choice for large-scale frying, food preparation, and packaged product formulation.

Foodservice operators prefer soybean oil for its ability to produce crispier fried foods while maintaining a neutral taste profile—an essential requirement in high-volume kitchens.

In October 2023, Louis Dreyfus Company (LDC) announced a soybean processing facility in Upper Sandusky, Ohio, featuring crushing, refining, and lecithin production units, reinforcing the strengthening supply network that supports food processors and manufacturers nationwide.

3. Expanding Industrial and Biodiesel Applications

Beyond the kitchen, soybean oil has become a valuable industrial resource. One of the biggest drivers is its growing use in biodiesel—a renewable fuel gaining strong government support and adoption in the U.S. transportation sector.

Soybean oil-based biodiesel significantly reduces greenhouse gas emissions while offering a reliable and domestically produced energy source. This shift toward renewable energy has been supported by policy frameworks, including Renewable Fuel Standard (RFS) mandates and state-level biodiesel blending programs.

In January 2025, the United Soybean Board (USB), USSEC, and ASA jointly updated their 2030 National Sustainability Goals, aiming to reduce:

Land use by 10%

Soil loss by 25%

Energy use by 10%

Greenhouse gas emissions by 10%

Such initiatives will strengthen the soybean supply chain and further elevate demand for soybean oil in sustainable fuel production.

Additionally, soybean oil’s emollient properties support its use in cosmetics, soaps, lubricants, paints, and bioplastics—diversifying growth opportunities across non-food industries.

Challenges in the U.S. Soybean Oil Market

1. Growing Competition from Premium Alternative Oils

Soybean oil faces strong competition from canola, olive, sunflower, avocado, and specialty oils marketed for heart health, flavor depth, or organic purity. Olive oil's powerful health-driven branding and canola oil's cost-competitiveness pose significant challenges.

To stay competitive, manufacturers will need to emphasize soybean oil’s own nutritional advantages, affordability, and versatility while investing in value-added formulations and packaging.

2. Price Volatility and Supply Chain Vulnerability

Soybean oil prices are heavily influenced by:

Weather conditions affecting soybean crops

International trade policies

Global edible oil markets

Feedstock availability for biodiesel

Tariffs, export disruptions, or delayed harvests can significantly impact market stability. This volatility affects food manufacturers, industrial buyers, and consumers, highlighting the need for improved logistics and sustainable supply strategies.

Market Segment Insights

United States Conventional Soybean Oil Market

Conventional soybean oil remains the dominant segment due to its unmatched affordability and widespread availability. It is the preferred oil in:

Restaurants and fast-food chains

Bulk cooking operations

Processed foods

Packaged snacks

Margarine and shortening production

Given large-scale domestic production and a robust supply chain, this segment will continue to be the foundation of the U.S. soybean oil market.

United States Organic Soybean Oil Market

Organic soybean oil is witnessing rapid growth driven by clean-label demand, sustainability awareness, and rising preference for pesticide-free food options. It is especially popular in:

Organic retail chains

Specialty baking

Natural beauty products

Premium home cooking

Though higher in price, this segment appeals to affluent and health-conscious consumers, ensuring consistent expansion.

Application-Wise Market Breakdown

Cooking & Frying

Soybean oil is the top choice for frying across American households and quick-service restaurants due to its high smoke point, stability, and mild flavor. This remains the largest and most stable application segment.

Bakery Products

Used extensively in cakes, cookies, pastries, and breads, soybean oil improves texture, softness, and shelf life. As bakery consumption rises across the U.S., demand for soybean oil in this category will grow further.

Margarine & Shortening

Soybean oil is a core ingredient in margarine and shortening production, benefiting from the rising acceptance of plant-based butter alternatives.

Non-Food Applications

The non-food segment includes:

Cosmetics & skincare

Soaps and detergents

Biodiesel

Industrial lubricants

Printing inks

Bioplastics

The growing focus on eco-friendly materials will further boost demand.

State-Level Market Analysis

California

California represents one of the largest and most dynamic soybean oil markets in the U.S. Its vast population, culinary diversity, and booming foodservice industry create high demand for both conventional and organic soybean oil.

Premium grocery retailers and natural food chains are especially strong drivers of organic soybean oil sales.

New York

New York’s densely populated urban centers support strong demand from restaurants, fast-casual chains, and bakeries. The state is also a leader in premium oil consumption, but soybean oil maintains dominance due to its cost-effectiveness and key role in packaged foods.

Washington

Washington has emerged as a niche growth market driven by sustainability-focused consumers and expanding biodiesel production. Organic and non-GMO soybean oil consumption is notably strong in this region.

Market Segmentation Overview

By Type

Organic

Conventional

By Application

Cooking & Frying

Margarine & Shortening

Salad Dressings & Mayonnaise

Bakery Products

Non-Food Applications

Top 10 States

California, Texas, New York, Florida, Illinois, Pennsylvania, Ohio, Georgia, Washington, New Jersey

Key Players Covered

(With Overviews, Key Persons, Recent Developments, SWOT, and Revenue Insights)

Archer Daniels Midland Company (ADM)

Wilmar International Limited

AAK AB

Bunge Global SA

Cargill, Incorporated

DuPont

Unilever PLC

Associated British Foods

These companies dominate the U.S. soybean oil landscape with integrated supply chains, strong retail presence, and expanding industrial portfolios.

Final Thoughts

The U.S. Soybean Oil Market is entering a high-growth era driven by health-conscious consumers, evolving foodservice trends, and expanding industrial demand—particularly in biodiesel. With a projected market size of US$ 59.85 billion by 2033, the sector is poised for strong, sustained growth.

As sustainability initiatives, technological improvements, and plant-based dietary movements continue accelerating, soybean oil will remain a critical ingredient—both in America’s kitchens and in its renewable energy infrastructure.