In this article, we will shed light on edible oils with the highest demand worldwide and what makes them popular. If you want to skip our analysis of the edible oil industry and innovations that come from changing health preferences, read 8 Most Consumed Edible Oils In The World.
Palm oil, soybean oil, sunflower oil, and rapeseed (canola) oil are among the most consumed edible oils in the world. The global edible oil industry has experienced significant growth since the demand for dietary fats and oils has seen a parallel increase. The global edible oil industry was valued at $212.6 billion in 2022 and is expected to grow at a CAGR of 4.8% between 2022 and 2027 to reach $$268.9 billion by 2027. Of this, the two top global edible oils by consumption, namely palm oil and soybean oil, are the biggest stakeholders. According to Precedence Research, the market value of palm oil was $65.08 billion in 2022, and at a CAGR of 5.2%, it will reach $107.53 billion by 2032. Likewise, the market value of soybean oil was recorded to be $48.16 billion in 2021 and will reach $60.08 billion by 2028 at a CAGR of 3.21%, according to Fortune Business Insights.
We have already covered some crops that produce the most popular edible oils, like soybean and corn oil, and are absolutely necessary for the world’s survival. Learn more in 20 Most Grown Crops In The World.
Companies Banking On The Edible Oil Industry
Besides their obvious use in food, some of the most consumed edible oils have now found their way into the fuel industry. Green diesel, also called renewable diesel or hydrotreated vegetable oil (HVO), is a biofuel produced from renewable sources. It is produced through a refining method named ‘hydrotreating, unlike traditional biodiesel (which is made through transesterification). The feedstocks for green diesel include vegetable oils (like soybean or palm oil), animal fats, and waste residues. Chemically, green diesel is very similar to petroleum-based diesel, so it can be used directly in diesel engines without any modifications.
Given the rising demand for green diesel, many companies have started diversifying their edible oil supply chains to allocate some of their stock to biofuels. For instance, to compete in the green diesel market, Archer-Daniel-Midland Company (NYSE:ADM) and Marathon Petroleum Corp (NYSE:MPC) have announced to build a $350 million soybean crush in Spiritwood, North Dakota. The plant, called Green Bison Soybean Processing Plant, will produce soybean oil to be used as renewable diesel feedstock, among other regular uses. The joint venture is expected to produce 600 million pounds of refined soybean oil that will be then supplied to Marathon Petroleum Corp (NYSE:MPC) as a feedstock for renewable diesel. Since Archer-Daniel-Midland Company (NYSE:ADM) has an extensive logistics network and the plant will be in a major soybean-producing region, its production and processing capacity will be unmatched.
President of Archer-Daniel-Midland Company (NYSE:ADM) ‘s Ag Services & Oilseeds business, Greg Morris, said:
“This exciting new project allows us to partner with North Dakota farmers to further advance the role of agriculture in addressing climate change through the production of low carbon feedstocks for products such as renewable diesel.”
Further, the ADM’s president of North America Oils, Biodiesel, and Renewable Chemicals, Ken Campbell, added:
“The need for lower-carbon, more sustainable products is one of the fundamental trends underlying ADM’s strategy and purpose, and we’re proud to continue to scale up our leadership in this critical area.”
As the state-of-the-art project of Marathon Petroleum Corp, (NYSE:MPC) and ADM will have a processing capacity of 150,000 soybean bushels per day, it’s surely going to be fundamental in the region’s self-sufficiency in oil production.
Bunge Limited (NYSE:BG) is another global leader in sourcing and supplying oilseed and grain products. The company operates in the edible oil supply chain by procuring, processing, and distributing oil products. Very recently, Bunge Limited (NYSE:BG) acquired a state-of-the-art oil refinery from Fuji Oil in Louisiana to expand its foothold in the edible oil market. Bunge Limited (NYSE:BG) aims to serve its customers through the newly acquired oil facility in the second quarter of 2023. Bunge’s President of Food Solutions, Aaron Buettner, said: “This acquisition delivers on our long-term strategy to expand our value-added oils business by accelerating reach across North America.”
We have already covered the 12 Biggest Palm Oil Companies in the World; read this intelligent study to learn about the market’s main entities.
Let’s now proceed with the top edible oils by consumption.
15 Most Consumed Edible Oils In The World
Our Methodology
We found the world’s favorite edible oils from the Food and Agriculture Organization of The United Nations (UN FAO) database. Notably, we used the latest annual production on file of these oils as a proxy of their consumption since there’s limited credible data on their per-year use. Also, for two of the most popular cooking oils globally, we derived the consumption figures from their seed production, which we will explain later.
Based on our findings, here are the leading edible oils in worldwide consumption:
15. Safflower Oil
Latest Annual Consumption: 69517 metric tons
Safflower oil is produced from the seeds of the safflower plant (Carthamus tinctorius). Major safflower oil producers include India, the United States, and Mexico. In India, Maharashtra and Rajasthan are the leading safflower-cultivating states because of their appropriate weather. Notably, the oil has witnessed an upsurge in demand due to its health benefits as it is rich in unsaturated fats and low in saturated fats, which resulted in its inclusion in foods and supplements.
14. Mustard Oil
Latest Annual Consumption: 0.212 million metric tons
Mustard oil is extracted from the seeds of the mustard plant and is a staple in many South Asian cuisines, especially in India, Bangladesh, and Nepal. India is the world’s largest producer and consumer of mustard oil. The country’s Rajasthan, Uttar Pradesh, and Haryana states are the primary mustard-cultivating regions. Besides culinary usage, mustard oil is also employed in medicines and has applications in therapeutic massage. Like castor oil, we found the estimated annual consumption of mustard oil based on the fact that the average yield of mustard seeds is 38.5%.
With this formula, here’s what annual mustard consumption would look like:
- Mustard seed production in 2021: 0.551 million tons
- Average oil production from mustard seeds: 38.5%
- 0.551 million tons (seed production) x 0.385 (oil content) = 0.212 million tons or 212,135 tons.
13. Castor Oil
Latest Annual Consumption: 0.892 million metric tons
Castor oil comes from the seeds of the Ricinus communis plant, which is native to tropical areas in Eastern Africa. Owing to agricultural advancements, the plant is now cultivated in other regions as well. For instance, India is a leading producer of castor oil, followed by Brazil and China. Economically, castor oil is also an essential industrial raw material in the manufacture of cosmetics, soaps, lubricants, and some pharmaceuticals. Since there were no official figures on the annual production/consumption of castor oil, we took castor oil seeds’ annual production from the UN FAO database. Then, on average, castor oil seeds produce 40-50% oil, so using the mid-point of 47.5% can provide a safe number.
So we calculated the annual consumption using this formula:
- Castor oil seeds = 1.88 million
- Average oil production from seeds = 47.5%
- 1.88 million tons (seed production) x 0.475 (oil content) = 0.892 million tons or 892,000 tons
The final consumption figure for castor oil stood at 0.892 million metric tons annually.
12. Flaxseed Oil
Latest Annual Consumption: 0.955 million metric tons
Linum usitatissimum is the only source of flaxseed oil, which is celebrated for its rich alpha-linolenic acid (ALA) content, a form of omega-3 fatty acid. Canada and China dominate flax production, but Russia and Kazakhstan also contribute to global supply. Flaxseed oil’s health benefits in cardiovascular wellness and inflammation reduction have recently boosted its demand in health-conscious people.
11. Sesame Oil
Latest Annual Consumption: 1.34 million metric tons
Sesame oil is pressed from sesame seeds and boasts a distinctive nutty aroma. Its flavor profile makes it a staple in Asian and Middle Eastern cuisines. Myanmar, India, and China are top producers of sesame oil and drive its market value up to $4.12 billion. Like other most consumed edible oils, this one also has uses in traditional medicines like Ayurveda. The oil’s antioxidant properties have made it a key export commodity in the aforementioned countries.
10. Coconut Oil
Latest Annual Consumption: 2.61 million metric tons
Coconut oil is produced from the kernel of mature coconuts in the Philippines, Indonesia, and India. The major exporters of coconut oil are, again, the Philippines, Indonesia, Malaysia, and Thailand. India isn’t a major exporter of coconut oil because of its vast domestic consumption. Notably, coconut has a moderate smoke point, so it is not used for high-heat cooking, like the deep fryers used in commercial kitchens. The oil’s moisturizing attributes have made it a staple in skincare and haircare formulations.
9. Olive Oil
Latest Annual Consumption: 3.37 million metric tons
Olive oil is a cornerstone of Mediterranean diets, where it is pressed from green olives. Unsurprisingly, Spain, Italy, and Greece are the top consumers and prime producers of this cherished oil. The economic influence of olive oil in these regions is also profound, as it shapes agricultural practices and export strategies.
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Disclosure: None. 15 Most Consumed Edible Oils In The World is originally published at Insider Monkey.