Global Soybean Oil Market Size and Forecast 2025–2033

Introduction

The global soybean oil market is entering a powerful growth phase, driven by changing dietary preferences, expanding industrial applications, and the accelerating shift toward renewable energy sources. According to Renub Research, the Soybean Oil Market is expected to reach US$ 229.06 billion by 2033, up from US$ 89.91 billion in 2024, growing at a strong CAGR of 10.95% from 2025 to 2033. This impressive trajectory reflects not only the rising demand for plant-based oils but also soybean oil’s expanding role in biodiesel production, food processing, and non-food industrial uses.

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Soybean oil, extracted from the seeds of the soybean plant, is one of the most widely consumed vegetable oils in the world. Known for its mild flavor, high smoke point, and versatility, it is a staple in household kitchens, restaurants, and large-scale food manufacturing. Beyond food, soybean oil has become increasingly important in pharmaceuticals, cosmetics, and especially in the renewable energy sector, where it serves as a key feedstock for biodiesel.

As global populations grow, urban lifestyles expand, and health awareness rises, soybean oil continues to benefit from its reputation as an affordable, adaptable, and relatively heart-friendly oil. These trends, combined with supportive government policies for biofuels and sustainability, are reshaping the future of the global soybean oil industry.

Soybean Oil Market Overview

Soybean oil is a vegetable oil derived from soybean seeds and is widely used in cooking and food processing due to its neutral taste and high smoke point. It is rich in polyunsaturated fats, including omega-3 and omega-6 fatty acids, which are generally associated with cardiovascular health when consumed in moderation. Because of these nutritional attributes and its cost-effectiveness, soybean oil has become a preferred choice in both developed and developing economies.

In addition to its extensive use in food applications such as frying, baking, salad dressings, margarine, and shortening, soybean oil plays a growing role in non-food sectors. It is used in the production of biodiesel, inks, lubricants, soaps, and cosmetics. This multi-sector demand base makes soybean oil less dependent on a single industry and provides greater resilience against market fluctuations.

The market’s expansion is also supported by the broader shift toward plant-based diets and sustainable raw materials. Consumers and industries alike are increasingly favoring renewable, plant-derived inputs over animal fats and fossil-based products, which further strengthens soybean oil’s long-term outlook.

Key Growth Drivers

Expanding Production of Biofuel

One of the most powerful growth engines for the soybean oil market is the rising production of biofuels, particularly biodiesel. According to the International Energy Agency (IEA), global biofuel demand is projected to increase by 38 billion liters between 2023 and 2028, representing growth of more than 30% compared to the previous five-year period. By 2028, worldwide biofuel consumption is expected to reach around 200 billion liters, marking a 23% increase.

Soybean oil is a crucial feedstock for biodiesel production, especially in countries like the United States, Brazil, and parts of Europe. As governments tighten environmental regulations and push for lower carbon emissions, biodiesel is increasingly being adopted as an alternative to conventional petroleum diesel. This shift directly boosts demand for soybean oil, not just as a food ingredient, but as a strategic energy resource.

The growing focus on energy security, sustainability, and reduced greenhouse gas emissions ensures that biofuels—and by extension, soybean oil—will remain a key part of the global energy transition story.

Rising Use of Edible Oils Across Food Categories

The global food industry has undergone major transformation in recent years, driven by urbanization, changing lifestyles, and the rapid growth of packaged and convenience foods. Food manufacturers are investing heavily in product innovation to meet evolving consumer preferences, and edible oils play a central role in this ecosystem.

Soybean oil is widely used in baking, cooking, frying, snacks, packaged foods, and foodservice applications. Its functional properties, including stability and neutral taste, make it suitable for a wide range of recipes and industrial food processes. Additionally, the growing popularity of plant-based diets has increased the use of vegetable oils such as soybean, palm, olive, and coconut oil.

Consumers are also showing greater interest in organic, non-GMO, and vitamin-fortified oils, pushing producers to diversify their soybean oil offerings. This trend toward healthier and more transparent food ingredients continues to support long-term growth in the soybean oil market.

Rising Health Awareness

Health consciousness is another major factor fueling demand for soybean oil worldwide. As more consumers pay attention to fat quality, cholesterol levels, and heart health, vegetable oils with favorable fatty acid profiles are gaining preference over traditional animal fats.

Scientific literature supports this shift. For instance, research cited by the National Library of Medicine suggests that soybean oil can help lower circulating cholesterol and reduce the risk of coronary heart disease, without significantly affecting markers of oxidation or inflammation. These findings have improved the perception of soybean oil among health-aware consumers.

Combined with rising incomes and better access to nutritional information, this growing health awareness is encouraging households and food manufacturers to choose soybean oil as a regular cooking and processing ingredient.

Challenges in the Soybean Oil Market

Competition from Other Oils

Despite its strong position, soybean oil faces intense competition from other vegetable oils such as palm, canola, sunflower, olive, coconut, and even specialty oils like avocado oil. Palm oil, in particular, remains a major rival due to its lower cost and widespread use in food processing and packaged foods.

Some consumers also perceive oils like olive oil and sunflower oil as healthier or more premium, which can shift demand away from soybean oil in certain segments. This competitive pressure forces soybean oil producers to focus on product differentiation, sustainability certifications, and value-added variants such as organic or non-GMO offerings.

Price Volatility

Price volatility remains a significant challenge for the soybean oil market. Factors such as weather conditions, crop yields, global demand fluctuations, trade policies, and supply chain disruptions can all influence soybean and soybean oil prices.

Natural disasters like droughts or floods can sharply reduce soybean output, leading to supply shortages and higher prices. Similarly, changes in government tariffs or export restrictions can disrupt global trade flows. This volatility creates uncertainty for both producers and buyers, making long-term planning and cost management more complex.

Regional Market Overview

The soybean oil market shows diverse dynamics across different regions:

North America remains a strong market, with the United States as a major producer and consumer, driven by food use and biodiesel production.

Asia-Pacific is witnessing rapid growth, especially in China and India, due to population growth, urbanization, and changing dietary habits.

Latin America, led by Brazil and Argentina, plays a crucial role as a major exporter and producer of soybeans and soybean oil.

Europe maintains steady demand, although competition from rapeseed and sunflower oil influences market dynamics.

United States Soybean Oil Market

The U.S. soybean oil market continues to expand, supported by strong domestic production, high consumption in food processing, and growing demand from the biodiesel sector. The country benefits from a well-established agricultural infrastructure and advanced processing capabilities, making it one of the world’s leading producers and exporters of soybean oil.

In November 2024, Perdue AgriBusiness introduced the vessel “Miss Madeline”, aimed at improving the transportation of crude soybean oil while reducing emissions and road congestion, aligning with sustainability goals.

Also in November 2024, Wilmar International Limited announced plans to sell a 6.5% stake in Adani Wilmar by February 2025 to meet Indian regulatory requirements, a move expected to strengthen its financial position and support improvements in soybean oil supply and processing.

In October 2024, AG Processing Inc. (APG) revealed plans for a new plant in David City, scheduled to open in 2025. This facility is expected to process over 50 million bushels of soybeans annually, boosting domestic soybean oil output, supporting U.S. farmers, and strengthening local economies.

Germany Soybean Oil Market

Germany’s soybean oil market is driven by demand from food processing, cooking, and biofuel production. As the country has limited domestic soybean production, it relies heavily on imports. Rising health awareness and the push for renewable energy have supported demand, particularly for biodiesel.

However, soybean oil in Germany faces strong competition from rapeseed and sunflower oil, which are more locally produced. Despite this, soybean oil remains popular due to its affordability, versatility, and suitability for both food and industrial applications.

India Soybean Oil Market

India is one of the world’s largest importers of edible oils, and soybean oil plays a key role in meeting the country’s growing demand. The market is expanding rapidly due to increased consumption in household cooking, food processing, and packaged foods.

Rising health awareness, a growing middle class, and the expansion of the foodservice sector are all contributing to higher soybean oil consumption. India primarily imports soybean oil from countries such as the United States and Brazil, making global price movements and trade policies especially important for the domestic market.

Saudi Arabia Soybean Oil Market

In Saudi Arabia, the soybean oil market is growing steadily, supported by rising demand for vegetable oils in cooking and food preparation. As the country depends heavily on imports, soybean oil remains an important part of its edible oil supply mix.

The shift toward healthier, plant-based, and heart-friendly oils, combined with population growth and the expansion of the foodservice industry, is driving demand. Soybean oil’s affordability and versatility make it a preferred choice for both households and commercial kitchens.

Market Segmentation

By Type:

Organic

Conventional

By Application:

Cooking & Frying

Margarine & Shortening

Salad Dressings & Mayonnaise

Bakery Products

Non-Food Applications

Regional Coverage

North America:

United States

Canada

Europe:

France

Germany

Italy

Spain

United Kingdom

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

Competitive Landscape

All key players are analyzed from four viewpoints:

Overview

Key Persons

Recent Developments & Strategies

Financial Insight

Key Players Include:

Archer Daniels Midland Company

Wilmar International Limited

AAK AB

Bunge Global SA

Cargill, Incorporated

DuPont

Unilever PLC

Associated British Foods

These companies continue to invest in capacity expansion, supply chain optimization, sustainability initiatives, and product innovation to strengthen their positions in the global soybean oil market.

Final Thoughts

The global soybean oil market is clearly on a strong upward trajectory. With Renub Research forecasting growth from US$ 89.91 billion in 2024 to US$ 229.06 billion by 2033, the industry is set to benefit from powerful long-term trends, including the rise of plant-based diets, expanding food processing industries, and the accelerating shift toward renewable energy and biofuels.

While challenges such as competition from other oils and price volatility remain, soybean oil’s versatility, affordability, and expanding role in both food and non-food applications give it a resilient and promising future. For investors, producers, and policymakers alike, soybean oil is no longer just a kitchen staple—it is becoming a strategic commodity at the intersection of food security, health, and sustainable energy.