Global Demand Trends in Edible Oils: Palm, Soybean, and Sunflower Oil
Global Demand Trends in Edible Oils: Palm, Soybean, and Sunflower Oil
The different types of Edible Oil must be thoroughly understood in this world where their demand is never stable. Let us work on an example of palm and soybean oil. The demand for palm oil fluctuates between periods of increased and decreased demand. Demand for a different type, like soybean oil, may take its place. Do you know why demand fluctuates so much? It may be due to changes in prices, festival demands, geopolitics, or many other factors.
By studying the demand and supply gaps for various vegetable oils, one can begin to fully understand how to conduct trade in this industry.
We should look at the cycles of production and consumption for the most popular and extensively used edible oils—sunflower, soybean, and palm oil—in order to better understand this. Businesses involved in edible oil trade will be equipped better to analyze and deal with any fluctuations with ease. Tradologie.com, a platform that facilitates global B2B edible oil trade, is a game changer that has helped to eliminate edible oil demand issues because verified importers from 100+ countries trust and import in bulk using the platform throughout the year.
More on the platform later, but first, we must acknowledge that the growing use of edible oils in non-food applications such as biofuels, changing dietary preferences, and population growth all have an impact on the demand for edible oils.
Growing Use of Edible Oils
From its projected value of $250 billion in 2024 to about $307 billion in 2029, the edible oil market is anticipated to expand at a compound annual growth rate (CAGR) of more than 4%. According to some reports, the market is expected to grow to $342 billion by 2032. The world's growing population and shifting dietary preferences toward more convenient and healthful options due to rising incomes are the main causes of this growth.
Palm oil continuously holds the top spot in terms of production volume in this steadily expanding edible oil market. According to recent data, palm oil produces the most of all edible oils, with its production set to increase to reach about 79.8 MMT in 2024–2025.
Second only to palm oil in terms of volume, soybean oil is one of the most popular cooking oils used worldwide. With South America (led by Brazil, Argentina, and Paraguay) becoming a key player in the world's oil supply chain, production is still rising. It is anticipated that growth in Brazil alone will consistently outpace that of the US.
Due in large part to disruptions in Ukraine, sunflower oil production is declining, resulting in the lowest global output since 2021–2022, at about 20.6 million tonnes. However, there is still a high demand for sunflower oil in some markets, which is helped in part by the limited supply of other edible oils.
Trends in Prices and Market Forces
According to the FAO, rising demand and limited supply for palm, soy, and sunflower oils caused vegetable oil prices to rise 7.1% month over month in July 2025, reaching a three-year high. India responded by reducing import taxes by 10% on all major edible oils in an effort to curb skyrocketing retail prices. These patterns show how supply disruptions, policy changes, and geopolitical upheavals can quickly alter market dynamics.
What This Means for Industry Stakeholders
Growing populations, changing dietary habits, and changing policies are all contributing to an unquestionably rising demand for edible oils worldwide, with palm, soybean, and sunflower leading the way. However, distinct structural pressures are faced by every type of oil:
Export restrictions and sustainability are problems for palm oil. With the help of South American supply, soybean oil is still rising. Geopolitical shocks limit the supply of sunflower oil.
Being flexible in this environment requires diversifying the sources of supplies, keeping an eye on changes in policy, and responding to changing price signals. Not only is the edible oil market growing globally, but it is also changing.
Production plateaus and sustainability are issues for palm oil producers.
Particularly in South America, soybean oil producers have enormous growth potential. Because of regional instability, sunflower growers need to expect ongoing volatility.
Diversification is essential for exporters of edible oil. By taking advantage of the trend toward soybeans while guarding against a shortage of palm oil. In order to manage risk, price volatility indicates the need for adaptable logistics and contract strategies.
Strategic measures like duty reductions can aid in stabilizing domestic prices for importers of edible oil. Flexibility in geographic sourcing is essential to maintaining a steady supply in the face of worldwide disruptions.
These hassles can be avoided if one has the ability to cater in bulk to global markets. Tradologie has gained significant traction due to regular demand from verified global buyers who are willing to purchase in bulk. By simply registering on the platform, one can gain access to these buyers' daily demands, quote the best price for bulk volume purchases, and begin closing deals in a matter of hours. It significantly reduces resource consumption and makes exporting less stressful.
