Soybean Oil Market Size to Reach $57.66 Billion by 2031 Driven by Biofuel Demand and Supply-chain Traceability, Reports Mordor Intelligence

Posted on September 21st, 2026 | Filed under Press Releases

HYDERABAD, India, Sept. 21, 2026 /PRNewswire/ — According to Mordor Intelligence, the global soybean oil market size is estimated to grow from USD 43.87 billion in 2026 to USD 57.66 billion by 2031, registering a CAGR of 5.62% during the forecast period (2026-2031). Growth is being anchored by rising renewable diesel and biofuel demand, even as the EU Deforestation Regulation pushes retailers and processors toward traceable, certified supply chains, and additional crushing capacity in Brazil and Argentina offsets slower North American expansion.

Soybean Oil Market Key Growth Factors

Renewable Diesel and Biofuel Mandates Anchor Structural Demand

Renewable energy mandates across the United States, Canada, Brazil, and the European Union are guaranteeing a structural demand floor for soybean oil as a biofuel feedstock, buffering the market against cyclical swings in food consumption. Demand is broadening further as plant-based food manufacturers and industrial oleochemical producers add to the feedstock’s traditional edible-oil base.

In the United States, the EPA finalized record-high Renewable Fuel Standard volumes for 2026 and 2027 in March 2026, with biodiesel and renewable diesel production projected to grow more than 60% versus 2025 levels. The rule strengthens the policy floor under soybean oil demand and is reinforcing crush margins for domestic processors.

EU Deforestation Regulation Reshapes Sourcing and Traceability Requirements

The EU Deforestation Regulation is pushing retailers and processors that place soy products on the EU market to secure traceable, certified supply chains, adding a new layer of compliance cost and complexity to global soybean oil sourcing. Soy is one of seven commodities explicitly covered by the regulation, alongside palm oil and cocoa.

Large and medium operators face a compliance deadline of December 30, 2026, with micro and small operators following by June 30, 2027. Suppliers able to document deforestation-free origin are positioned to capture preferential access to EU-facing demand as the deadline approaches.

Brazil and Argentina Crushing Capacity Expansion Offsets Slower North American Growth

Additional crushing capacity coming online in Brazil and Argentina is balancing slower capacity expansion in North America, keeping global soybean oil production on an upward trajectory even as regional growth rates diverge.

Technological gains such as high-oleic cultivars and enzyme-assisted extraction are helping processors lower costs and extend product shelf life, supporting margins as South American supply takes on a larger share of incremental global output.

“As renewable energy mandates and EU deforestation-compliance requirements reshape sourcing across the soybean oil value chain, our structural analysis maps shifting demand across food, feed, and biofuel end uses. Built on direct supply-chain auditing and objective volume tracking, this report equips commercial leaders with a verified, defensible foundation for strategic procurement and investment,” says Bhavesh-Narasinha Varute, Senior Research Manager.

Soybean Oil Market Recent Industry Developments

2026 – The EPA finalized record-high Renewable Fuel Standard volumes for 2026-2027 in March 2026, with biodiesel and renewable diesel production projected to grow more than 60% versus 2025, reinforcing structural biofuel demand for soybean oil.
2026 – The EU Deforestation Regulation’s compliance deadline for large and medium operators was set at December 30, 2026, requiring traceable, deforestation-free sourcing for soy and six other commodities entering the EU market.

Soybean Oil Market Segment Insights

By Nature

Conventional
Organic

By End User

Food Processing
Foodservice
Retail
Animal Feed
Industrial
Others

Soybean Oil Market Regional Insights

South America, led by Brazil and Argentina, is emerging as the primary growth engine for global soybean oil supply, as new crushing capacity comes online faster than in North America and export-oriented biofuel and food-processing demand expands.

North America remains a strategically important market anchored by renewable diesel demand and established food-processing infrastructure, even as capacity expansion there proceeds more slowly than in South America.

Europe’s demand is increasingly shaped by regulatory compliance, with the EU Deforestation Regulation reshaping how processors and retailers source soy-based products. Asia-Pacific and the Middle East and Africa continue to represent large, price-sensitive consumption markets for food-grade soybean oil, supporting steady volume demand alongside the biofuel-driven growth in the Americas.

Discover the latest trends, growth opportunities, and competitive developments in the Soybean Oil Market in Japanese: https://www.mordorintelligence.com/ja/industry-reports/global-soybean-oil-market?utm_source=prnewswire

Competitive Landscape

The global soybean oil market remains moderately consolidated, with major crushers and integrated agribusiness companies competing on production scale, crush capacity, feedstock sourcing, and distribution reach across food, feed, and biofuel end markets.

Compliance capability is emerging as a new competitive differentiator: companies able to document deforestation-free, traceable soy sourcing are better positioned to retain EU-facing customers ahead of the region’s December 2026 compliance deadline.

Producers are also investing in additional crushing capacity in South America and technology such as high-oleic cultivars and enzyme-assisted extraction to lower costs, diversify end-use exposure across food, feed, and industrial applications, and reduce reliance on any single demand channel.

Key Companies in the Soybean Oil Market

Bunge Limited
Cargill, Incorporated
Wilmar International Ltd
Archer-Daniels-Midland Company
Richardson International Limited

Explore More Industry Research by Mordor Intelligence   

Cold-Pressed Oil Market: The global cold-pressed oil market is projected to expand from USD 25.33 billion in 2026 to USD 33.21 billion by 2031, registering a 5.57% CAGR during 2026-2031. Market momentum is anchored by consumer demand for unrefined oils retaining bioactive polyphenols, essential fatty acids, and heat-sensitive vitamins. While feedstock volatility across olives, coconuts, and oilseeds impacts raw material costs, value realization is expanding as major supermarket and wholesale networks scale distribution for certified single-origin and premium unrefined oils.

Vegetable Oil Market Size: The global vegetable oil market size is projected to reach from USD 421.23 billion in 2026 to USD 598.85 billion by 2031, advancing at a 7.29% CAGR. Expanding plant-based dietary adoption and rising convenience food manufacturing are driving baseline volume throughput across retail and foodservice channels. In response to tightening international ESG mandates, refiners are accelerating investments in deforestation-free traceability programs and upgraded processing technologies to optimize oxidative stability and clean-label functional performance.

Palm Oil Market Share: The global palm oil market is expected to grow from USD 74.51 billion in 2026 to USD 92.01 billion by 2031, at a 4.31% CAGR during 2026-2031. Demand is underpinned by extensive cross-industry utilization across industrial food processing, personal care, and oleochemical derivatives. While RBD palm oil retains structural dominance in commercial frying and bakery shortenings, high-margin expansion is concentrated in specialized palm kernel fractions engineered for confectionery fats and dairy-alternative formulations.

About Mordor Intelligence:  

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With a team of over 550 domain experts and on-ground specialists spanning 150+ countries, Mordor Intelligence possesses a unique understanding of the global business landscape. This expertise translates into comprehensive syndicated and custom research reports covering a wide spectrum of industries, including aerospace & defense, agriculture, animal nutrition and wellness, automation, automotive, chemicals & materials, consumer goods & services, electronics, energy & power, financial services, food & beverages, healthcare, hospitality & tourism, information & communications technology, investment opportunities, and logistics.  

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