United States Soybean Oil Market Projected to Reach $59.85 Billion by 2033

Introduction

According to Renub Research Latest Report United States soybean oil market is set for strong growth over the next decade, expanding from US$ 27.06 billion in 2024 to an anticipated US$ 59.85 billion by 2033. This translates into a compound annual growth rate (CAGR) of 9.22% during the forecast period of 2025–2033.

Soybean oil, derived from soybeans, is a versatile plant oil widely used in households, food processing, and industrial applications. Its high smoke point, neutral flavor, and nutritional profile—rich in unsaturated fats and omega-3 fatty acids—make it a preferred choice for cooking, frying, baking, and salad dressings.

Beyond the kitchen, soybean oil has industrial applications in biodiesel, lubricants, and cosmetics, broadening its market reach. Rising consumer preference for plant-based diets and healthier food options further reinforces the demand for soybean oil, establishing it as a staple in both domestic and commercial sectors.

Market Overview

Soybean oil’s prominence in the U.S. stems from its versatility and widespread production. Its light consistency and neutral taste make it ideal for frying, sautéing, and baking. Processed food manufacturers rely on it as a key ingredient in snacks, ready-to-eat meals, margarine, and spreads.

Increasing awareness of healthy fats has positioned soybean oil as a superior alternative to animal fats, contributing to its growing popularity among health-conscious and vegetarian consumers. Additionally, government initiatives promoting plant-based diets and renewable energy policies supporting biodiesel production have strengthened its market potential.

👉 Want to explore detailed market trends, segment insights, and forecasts? 🔗 Request Sample Report

Growth Drivers

1. Rising Demand for Plant-Based and Healthy Oils

The growing trend toward vegetarian, vegan, and health-conscious diets in the U.S. is a major driver of soybean oil consumption. Consumers prefer it for its low saturated fat content, omega-3 fatty acids, and adaptability across culinary applications.

Soybean oil is increasingly incorporated into plant-based food products, aligning with the rapid expansion of the vegan and vegetarian food market. Its nutritional value, affordability, and broad usability make it a preferred choice for both household and commercial use.

For example, in December 2022, Bunge announced a $550 million investment in a new plant in Morristown, Indiana, to produce soy protein concentrate (SPC) and textured soy protein concentrate (TSPC), creating 70 jobs and addressing growing demand for plant-based ingredients.

2. Expansion of Processed Food and Foodservice Sectors

The U.S. processed food industry is a major consumer of soybean oil, using it in baked goods, snacks, sauces, and ready-to-eat meals. Quick-service restaurants (QSRs) and foodservice operators heavily rely on soybean oil for frying and cooking due to its high smoke point, affordability, and consistency.

As dining out and takeout habits increase, the demand for reliable and cost-effective cooking oils continues to rise. In October 2023, Louis Dreyfus Company (LDC) announced a new soybean processing facility in Upper Sandusky, Ohio, featuring in-house crushing, vegetable oil refining, and lecithin production to meet the growing needs of food manufacturers and restaurants.

3. Industrial and Biofuel Applications

Soybean oil is increasingly used in biodiesel production, aligning with U.S. policies promoting renewable energy. Its role in biofuel helps stabilize market demand and supports local soybean producers. Non-food applications, including cosmetics and personal care, further diversify demand.

In January 2025, the United Soybean Board (USB), U.S. Soybean Export Council (USSEC), and American Soybean Association (ASA) revised their 2030 sustainability objectives, aiming to reduce land use by 10%, soil loss by 25%, energy consumption by 10%, and greenhouse gas emissions by 10%. These initiatives ensure a sustainable and reliable soybean oil supply chain.

Market Challenges

1. Competition from Alternative Edible Oils

Soybean oil faces competition from canola, sunflower, avocado, and olive oils. While olive oil is marketed as a premium, heart-healthy option, canola oil competes on price and versatility. Consumers’ increasing awareness of alternative oils could constrain soybean oil growth unless brands emphasize its nutritional benefits, affordability, and multifunctional use.

2. Price Volatility and Supply Chain Constraints

Soybean oil prices fluctuate due to variations in soybean crop yields, weather conditions, and international trade policies. Tariffs, export controls, and logistical disruptions can affect both domestic and international supply. Price instability challenges producers, food processors, and industrial users, highlighting the importance of robust supply chain management for sustained market growth.

👉 For deeper analysis, detailed segment data, and company insights: 🔗 Request Customization Report

Product Segmentation

1. Conventional Soybean Oil

Conventional soybean oil dominates the U.S. market due to affordability and widespread availability. It is extensively used in households, restaurants, and food processing industries. Its scalability, reliable supply, and cost-effectiveness maintain its position as the leading segment despite growing interest in organic alternatives.

2. Organic Soybean Oil

Organic soybean oil is gaining popularity among health-conscious and environmentally aware consumers. Used in specialty foods, natural baking, and cosmetic products, organic soybean oil commands premium pricing but continues to grow steadily as demand for clean-label, pesticide-free products rises.

Application Segmentation

Cooking & Frying

Soybean oil’s neutral flavor and high smoke point make it ideal for sautéing, deep-frying, and general cooking. It remains a staple in households and restaurants, particularly in quick-service outlets. This application accounts for one of the largest shares of soybean oil consumption in the U.S.

Bakery Products

Soybean oil is widely used in the bakery sector for its ability to add texture, retain moisture, and extend shelf life. It is a preferred ingredient in bread, cakes, cookies, and pastries due to its neutral taste and cost advantage, supporting the growing packaged bakery market.

Margarine & Shortening

Soybean oil serves as a key raw material in margarine and shortening production. It offers a low-cost, neutral-flavored alternative to butter, suitable for baking and frying. Rising demand for plant-based butter alternatives further supports this segment.

Salad Dressings & Mayonnaise

Soybean oil is commonly used in salad dressings, mayonnaise, and sauces due to its light flavor and smooth texture. Its functionality in emulsification and nutritional profile make it a preferred choice in both commercial and retail products.

Non-Food Applications

Beyond food, soybean oil is used in biodiesel, cosmetics, lubricants, and industrial applications. These non-food markets provide additional avenues for growth, diversifying demand and stabilizing the overall market.

Regional Insights

California

California leads in soybean oil demand due to its large population, diverse food culture, and extensive restaurant sector. Health-conscious consumers and high-end grocery stores drive demand for both conventional and organic oils. California’s innovative food industry and emphasis on plant-based products make it a dynamic market segment.

New York

New York’s urban population, multicultural cuisine, and vibrant foodservice industry make it a strong market for soybean oil. Restaurants, bakeries, and packaged food manufacturers rely heavily on soybean oil. Premium and organic products see higher demand in natural food stores and specialty retailers.

Washington

Washington is emerging as a key market for organic and non-GMO soybean oils, reflecting local consumer preference for sustainability and healthy eating. The state’s foodservice and biofuel industries also contribute significantly to soybean oil demand, making it a niche but growing segment.

Other top states include Texas, Florida, Illinois, Pennsylvania, Ohio, Georgia, and New Jersey, each contributing to the U.S. market based on population, food processing capacity, and health-conscious consumer bases.

Key Players

Leading companies operating in the U.S. soybean oil market include:

Archer Daniels Midland Company (ADM)

Wilmar International Limited

AAK AB

Bunge Global SA

Cargill, Incorporated

DuPont

Unilever PLC

Associated British Foods

These players focus on technological advancements, sustainable production, and strategic investments in processing facilities to meet rising consumer and industrial demand.

Future Outlook

The U.S. soybean oil market is expected to continue its strong growth trajectory through 2033. Drivers such as increasing demand for plant-based and healthier foods, rising processed food consumption, and diversified industrial applications will continue to propel the market.

Sustainability initiatives, including organic farming and renewable energy applications, are poised to create additional growth opportunities. Companies investing in eco-friendly production processes and new processing facilities are likely to gain a competitive edge.

With the rising popularity of vegan and vegetarian diets, growing awareness of health and wellness, and expanding applications in both food and industrial sectors, the U.S. soybean oil market is well-positioned for long-term growth.

Conclusion

The United States soybean oil market is projected to reach US$ 59.85 billion by 2033, growing at a CAGR of 9.22% from 2025 to 2033. Its versatility, nutritional benefits, and affordability make it a staple in both household and industrial applications.

While competition from alternative oils and supply chain challenges pose some hurdles, rising health-conscious consumer behavior, growth in processed foods and foodservice, and industrial uses such as biodiesel production are driving market expansion.

Conventional soybean oil remains dominant due to affordability and scale, while organic and specialty variants capture niche segments with premium pricing. Regional markets, especially California, New York, and Washington, demonstrate strong growth due to population size, dietary trends, and sustainability focus.

With technological innovation, sustainability efforts, and strategic market expansion, the U.S. soybean oil sector is set to thrive, meeting the evolving needs of both consumers and industries.

Note: If you need details, data, or insights not covered in this report, we are glad to assist. Through our customization service, we will collect and deliver the information you require, tailored to your specific needs. Share your requirements with us, and we will update the report to align with your expectations.