Top 20 Companies Driving Change in Edible Oil Market 2025

Edible oils are fats that are derived from plants, animals, or microbes and are safe to eat. They are used in cooking, baking, salad dressings, and other food preparations. Edible oils are usually liquid at room temperature, but some oils that contain saturated fat, like coconut oil, are solid. Edible oils play a vital role in daily culinary practices, serving as an essential ingredient for cooking, frying, and baking. They are derived from various plant and animal sources, offering diverse flavors, nutritional profiles, and applications.

There are many types of edible oils, including olive oil, canola oil, soybean oil, corn oil, peanut oil, sesame oil, sunflower oil, and more. In this blog, we will be exploring the realm of edible oil, including its types, production processes, market trends, and the major companies shaping the market.

Types of Edible Oils

Edible oils are of many types, but they are categorized mainly into the following 4 categories:

• Vegetable Oils

Vegetable oils are derived from seeds, nuts, and fruits. These are some of the most common types of edible oils. Popular examples include sunflower oil, soyabean oil, palm oil, and olive oil. These oils are rich in essential fatty acids, making them a staple in households and various industries.

• Animal-based Oils

Animal-based oils are extracted from animal fats. These types of oils include lard (pig fat) and fish oil. Although they are mostly not very common in modern diets, they remain significant in traditional cuisines and niche markets.

• Specialty Oils

This category includes oils such as avocado oil, sesame oil, and flaxseed/linseed oil. These oils are known for their unique flavors, health benefits, and culinary applications in modern times.

• Blended Oils

These are mixtures of different oils designed to optimize cost, flavor, and nutritional value. A few examples of such oils are rice bran oil, canola oil, and coconut and sesame oil.

Production Process

Following are several key steps involved in the production of edible oils.

1. Extraction

There are two main processes for the extraction of vegetable oils.

• Cold Pressing

Cold pressing is a type of mechanical process of extraction of oil. It is a type of process that retains oil’s natural nutrients and flavor. It is commonly used for premium oils such as almond oil and sesame oil.

• Solvent Extraction

Solvent extraction is a chemical process that employs chemical solvents to maximize the oil yields, primarily used in large scale production.

2. Refining

Crude oils undergo refining to remove impurities, free fatty acids, and odors, resulting in a neutral, stable product. This process includes steps like degumming, neutralization, bleaching, and deodorization.

3. Packaging

Oils are packaged in various formats, including plastics, glass containers, and pouches, depending on market preference and environmental considerations.

Top Companies in Market

Several global and regional companies dominate the edible oil market, each contributing to its growth and innovation. Below are some of the major players in the edible oil market.

1. Wilmar International Limited

Wilmar International Limited was founded in 1991 and is headquartered in Singapore. Wilmar is involved in the manufacturing, packaging, distribution, marketing, and sale of a wide range of food products, including flour, cooking oils, and snacks. Having a strong presence in the edible oil segment, it is one of the largest producers of palm oil and owns popular brands like Fortune.

2. Cargill Incorporated

Founded in 1865, Cargill Inc. is headquartered in Minnetonka, Minnesota, USA. Cargill is the largest privately held company in the United States by revenue. A global powerhouse based in the United States, Cargill produces a wide range of edible oils, including soybean, sunflower, and palm oils. The company emphasizes sustainability and innovation in its operations.

3. Archer Daniels Midland Company (ADM)

The Archer-Daniels-Midland Company (ADM) was founded in 1902 in Minneapolis, Minnesota, USA. The company's headquarters are located in Chicago, Illinois, USA. ADM is a multinational corporation and a major supplier of vegetable oils, including canola and corn oils. It is a pioneer in producing high-quality oils for both retail and industrial use.

4. Bunge Limited

Headquartered in St. Louis, Missouri, USA, Bunge Limited is a world leader in oilseed processing and a leading producer and supplier of specialty plant-based oils and fats. It was founded in 1818 in Amsterdam, Netherlands. Bunge specializes in soybean and rapeseed oil production. The company is known for its commitment to sustainable sourcing and traceability.

5. Olam International

Olam International was founded in Nigeria in 1989. It has its headquarters situated in Singapore. Olam International is involved in the production and distribution of various edible oils, including palm and peanut oil. The company focuses on sustainable practices.

Challenges for Edible Oil Manufacturers

Environmental Impact

The production of certain oils, particularly palm oil, has been linked to deforestation, habitat destruction, and greenhouse gas emissions. Companies must adopt sustainable practices to mitigate these effects.

Health Concerns

The consumption of certain oils, such as hydrogenated and trans-fat-rich oils, has raised health concerns, prompting stricter regulations and consumer scrutiny.

Price Volatility

Fluctuations in raw material prices, driven by weather conditions, geopolitical factors, and market demand, pose a significant challenge for producers.

Future Outlook

The edible oil market is poised for growth, driven by rising global demand and a shift toward healthier and sustainable products. Following are some of the key areas for focus in the future.

Innovation in Product Development: Companies are continuing to invest in developing healthier, fortified, and organic oil varieties in order to develop the best possible product.

Sustainability: Adopting sustainable sourcing and production practices will be crucial to address environmental concerns and meet regulatory requirements.

Digital Transformation: Technology will play a pivotal role in optimizing supply chains, improving traceability, and enhancing customer engagement.

Conclusion

The edible oil market is a critical component of the global food system, meeting billions of people's different cuisines and nutritional needs. With a strong emphasis on health, sustainability, and innovation, the market is adapting to the problems and opportunities of the twenty-first century. Companies that value quality, sustainability, and consumer preferences will do well in this dynamic market.