Introduction: A Core Ingredient of the U.S. Food and Industrial Economy

The United States vegetable oil market is on a stable growth trajectory, supported by its essential role in food consumption, food processing, and an expanding range of industrial applications. Vegetable oils are deeply embedded in everyday life—used extensively in cooking, baking, frying, food manufacturing, and increasingly in renewable energy, cosmetics, and personal care products. As dietary preferences shift and industries diversify, vegetable oils continue to gain strategic importance within the U.S. economy.

According to Renub Research, the United States Vegetable Oil Market is expected to grow from US$ 96.07 billion in 2024 to US$ 139.48 billion by 2033, registering a compound annual growth rate (CAGR) of 4.23% from 2025 to 2033. This growth is being driven by the expansion of food processing industries, rising consumer demand for plant-based products, and the widening use of vegetable oils across both edible and non-edible applications.

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United States Vegetable Oil Industry Overview

The U.S. vegetable oil industry is evolving steadily, shaped by changing dietary habits, technological advancements in processing, and growing sustainability considerations. Oils such as soybean, canola, sunflower, corn, olive, and palm oil form the backbone of the market, with soybean oil dominating domestic consumption due to its availability, affordability, and versatility. Vegetable oils are widely used in home cooking, restaurants, packaged foods, and industrial food production, making them indispensable to the nation’s food system.

Consumer preferences are gradually shifting toward healthier oil alternatives with lower trans-fat content and higher levels of unsaturated fats. This has strengthened demand for oils such as canola, sunflower, and olive oil, particularly in retail and foodservice channels. At the same time, the U.S. foodservice sector—including restaurants, bakeries, and institutional catering—continues to consume large volumes of vegetable oils for frying, baking, and food preparation.

Beyond food, vegetable oils are increasingly being used in non-food industries. Their application in biodiesel production has expanded significantly as the United States emphasizes renewable energy and carbon reduction. Vegetable oils are also used in cosmetics, pharmaceuticals, soaps, lubricants, and personal care products, broadening the market’s scope. Strong supply chains, advanced refining technologies, and a well-developed agricultural base further support the industry’s steady growth.

Despite these positives, the market faces challenges such as agricultural dependency, raw material price volatility, and environmental concerns related to large-scale crop cultivation. However, ongoing investments in sustainable farming practices, efficient processing technologies, and diversified end-use applications are expected to support long-term market resilience.

Key Factors Driving the United States Vegetable Oil Market Growth

Strong Domestic Production and Export Competitiveness

The United States remains one of the world’s leading producers of vegetable oils, particularly soybean oil. Advances in seed genetics, precision agriculture, and large-scale farming operations have significantly improved yields and production efficiency. In 2023, U.S. soybean production reached approximately 4.2 billion bushels, up from around 3.5 billion bushels in 2019, with the Midwest—especially Illinois, Iowa, and Minnesota—remaining the dominant production region.

This strong domestic supply base supports consistent oil extraction and refining, even amid global market volatility. Export infrastructure through Gulf Coast and West Coast ports enables U.S. vegetable oils to reach international markets efficiently. Quality certification, traceability initiatives, and risk management tools such as crop insurance and futures trading further strengthen the industry’s competitiveness. As global demand for plant-based oils rises across food, feed, and fuel applications, the U.S. is well positioned to maintain its role as a reliable supplier.

Expanding Culinary, Industrial, and Value-Added Applications

Vegetable oils are no longer confined to traditional cooking and food processing uses. In 2024, soybean oil consumption in the United States reached approximately 12.51 million metric tons, far exceeding the use of palm oil, which stood at about 1.8 million metric tons. This highlights the dominance of domestically produced oils in the U.S. market.

Food manufacturers are increasingly reformulating products to meet consumer demand for healthier, plant-based ingredients. Vegetable oils now serve as functional components in baked goods, plant-based protein products, and nutraceuticals, acting as emulsifiers, carriers, and stabilizers. Beyond food, derivatives of vegetable oils are being used in biodegradable lubricants, coatings, inks, and sustainable packaging materials, supporting circular economy initiatives.

Public–private collaborations and private investment are driving research into cold-pressed oils, antioxidant stabilization, and advanced fractionation techniques. These innovations enable premium, value-added products that help insulate the market from commodity price fluctuations while opening new revenue streams across industrial and health-focused segments.

Growing Consumer Preference for Plant-Based Diets

One of the most influential drivers of vegetable oil demand in the United States is the growing adoption of plant-based diets. Health-conscious consumers are increasingly reducing their intake of animal fats and seeking plant-derived alternatives. Oils such as olive, canola, sunflower, and soybean are widely perceived as heart-healthy options due to their unsaturated fat profiles and low cholesterol content.

This shift is evident in both retail and foodservice markets. Supermarkets are expanding their range of vegetable oils, including organic and specialty variants, while restaurants and food manufacturers are reformulating menus and products to align with plant-based and flexitarian diets. As plant-based eating continues to move into the mainstream, vegetable oils are becoming even more central to modern American dietary patterns.

Challenges in the United States Vegetable Oil Market

Price Volatility and Supply Chain Risks

The U.S. vegetable oil market is closely tied to agricultural productivity, making it vulnerable to weather variability, pest infestations, and fluctuations in crop yields. Soybean, sunflower, and corn harvests can be significantly affected by droughts, floods, or other climatic events. In addition, global trade policies, tariffs, and geopolitical tensions influence import and export flows, adding to price instability.

Supply chain disruptions—such as those experienced during global crises—can delay availability and increase costs for processors and end users. These factors create uncertainty across the value chain, from farmers to food manufacturers. Addressing these risks requires diversified sourcing strategies, investment in resilient logistics networks, and improved inventory and risk management systems.

Environmental and Sustainability Pressures

Large-scale cultivation of oilseed crops raises concerns related to deforestation, soil degradation, water usage, and biodiversity loss. Environmental groups and policymakers are increasingly scrutinizing the ecological footprint of vegetable oil production, particularly when unsustainable practices are involved. These concerns influence consumer perceptions and regulatory frameworks alike.

As sustainability becomes a priority, producers are under growing pressure to adopt environmentally responsible farming methods, reduce carbon emissions, and ensure traceability throughout the supply chain. While transitioning to sustainable practices involves higher upfront costs, it is essential for maintaining consumer trust, regulatory compliance, and long-term market growth. Failure to address environmental challenges could limit expansion opportunities in the U.S. vegetable oil market.

United States Vegetable Oil Market Overview by States

California Vegetable Oil Market

California is one of the largest regional markets for vegetable oils in the United States, driven by its strong food processing, hospitality, and retail sectors. The state’s emphasis on health and wellness has boosted demand for oils such as olive, avocado, and canola oil. California also plays a role in renewable energy initiatives, supporting the use of vegetable oils in biodiesel production. With a combination of consumer demand, industrial use, and agricultural strength, California remains a leading contributor to national market growth.

Texas Vegetable Oil Market

Texas holds a significant share of the U.S. vegetable oil market due to its large population, expansive foodservice industry, and growing renewable energy sector. Restaurants and catering businesses drive consistent demand for cooking and frying oils, while biodiesel initiatives increase industrial usage. Texas’s agricultural output and processing capabilities further support market availability, making it a key growth hub.

New York Vegetable Oil Market

New York’s dense population and diverse culinary culture generate steady demand for vegetable oils across foodservice, retail, and packaged food manufacturing. Health-conscious consumers are driving interest in premium oils such as olive and sunflower oil. The state’s focus on sustainability and plant-based lifestyles further supports growth, positioning New York as a critical consumption-driven market.

Florida Vegetable Oil Market

Florida’s vegetable oil market is strongly influenced by tourism, hospitality, and foodservice demand. Restaurants, hotels, and catering operations rely heavily on vegetable oils, while growing health awareness boosts demand for higher-quality oil varieties. The state’s biofuel initiatives and diverse consumer base make Florida an important regional contributor to overall market expansion.

Recent Industry Developments

In April 2023, Bunge announced the acquisition of a newly built multi-oil refinery from Fuji Oil New Orleans, LLC, located in Avondale, Louisiana. The strategically positioned facility enhances Bunge’s capacity to serve food, feed, and fuel markets across North America. This move aligns with the company’s long-term strategy to expand value-added oil offerings and strengthen its footprint in the U.S. vegetable oil market.

Market Segmentation Overview

By Oil Type:
Palm Oil, Soybean Oil, Rapeseed Oil, Sunflower Oil, Olive Oil, Others

By Application:
Food, Feed, Others

By Distribution Channel:
B2B, B2C

By States:
California, Texas, New York, Florida, Illinois, Pennsylvania, Ohio, Georgia, New Jersey, Washington, North Carolina, Massachusetts, Virginia, Michigan, Maryland, Colorado, Tennessee, Indiana, Arizona, Minnesota, Wisconsin, Missouri, Connecticut, South Carolina, Oregon, Louisiana, Alabama, Kentucky, Rest of the United States

Competitive Landscape

The U.S. vegetable oil market is moderately consolidated, with major global agribusiness and food companies competing on scale, efficiency, sustainability, and innovation. Key players include Archer Daniels Midland Company, Wilmar, AAK, Unilever Plc, Bunge, Cargill, Sime Darby, and Associated British Foods. These companies focus on supply chain integration, sustainable sourcing, and expansion into high-value applications.

Final Thoughts

The United States vegetable oil market is positioned for steady and sustainable growth, with revenues expected to reach US$ 139.48 billion by 2033. Strong domestic production, expanding food and industrial applications, and rising consumer preference for plant-based diets form the foundation of this positive outlook.

While challenges related to price volatility and environmental sustainability persist, continued investment in advanced processing, responsible agriculture, and diversified end-use markets is strengthening industry resilience. As vegetable oils continue to bridge nutrition, sustainability, and industrial innovation, they will remain a vital component of the U.S. food system and broader economic landscape in the years ahead.