North America Cooking Oil Market Outlook to 2030

North America Cooking Oil Market Overview

• The North America cooking oil market is valued at USD 21.5 billion, driven by increasing health consciousness among consumers and the rising demand for alternative cooking oils such as olive oil and avocado oil. This market is primarily influenced by evolving consumer dietary preferences, as people shift toward oils that offer health benefits, such as lower cholesterol and higher nutrient content. Additionally, strong demand from the foodservice industry, particularly in the HoReCa (Hotel, Restaurant, Catering) segment, further fuels market growth. The region's strategic production capacity for key oils like soybean and canola oil has strengthened its market position, enabling steady supply amidst global uncertainties.
• In terms of geographic dominance, the United States leads the North America cooking oil market, with Canada following closely. This dominance is attributed to the U.S.'s extensive agricultural infrastructure, particularly in the production of soybean and corn, which are major sources of cooking oil. Furthermore, high consumer awareness around the health benefits of alternative oils and the presence of robust retail and distribution networks ensure the U.S.'s continued market dominance. Canada also enjoys significant growth due to its canola oil production and growing preference for organic and cold-pressed oils.
• The U.S. Food and Drug Administration (FDA) has played a pivotal role in regulating the cooking oil industry through its policies on trans fats. In 2018, the FDA implemented a ban on partially hydrogenated oils (PHOs), which were the primary source of artificial trans fats in processed foods. This regulation has significantly impacted the cooking oil market in North America by pushing manufacturers to switch to healthier alternatives like canola, sunflower, and olive oils. As a result, the cooking oil industry has experienced a transformation, with an increased demand for oils rich in unsaturated fats that comply with these health standards. In 2024, FDA regulations continue to emphasize healthier oils, influencing market trends and consumer choices.

North America Cooking Oil Market Segmentation

By Product Type: The North America cooking oil market is segmented by product type into vegetable oils, specialty oils, blended oils, and cold-pressed oils. Vegetable oils, including soybean, canola, and corn oil, continue to dominate the market share due to their widespread availability and cost-effectiveness. Soybean oil, in particular, holds a significant market share as it is widely used in both household and commercial food preparation. Its versatility, high smoke point, and affordability make it a staple in the American diet.

By End-User: The market is also segmented by end-user into household, HoReCa (Hotels, Restaurants, Catering), food processing industry, and retail. The food processing industry holds a dominant position in the market, with significant demand for oils used in the production of baked goods, snacks, and processed foods. The industry's reliance on cost-effective and high-volume oils, such as palm oil and soybean oil, drives this demand. Household consumption of cooking oils is also substantial, particularly due to the rise of home cooking during the pandemic and the growing trend of using healthier oil options like olive oil.

North America Cooking Oil Market Competitive Landscape

The North America cooking oil market is competitive, with several key players controlling a substantial portion of the market. Major global and regional companies compete on the basis of price, product quality, distribution reach, and brand reputation. The market's competitive landscape is dominated by agricultural giants with strong supply chains and vertically integrated operations.

North America Cooking Oil Market Analysis

Growth Drivers

• Rise in Health-Conscious Consumption (Olive Oil, Avocado Oil, and Other Healthy Alternatives): Health consciousness among North American consumers has driven a significant shift toward the consumption of healthier cooking oils such as olive oil and avocado oil. According to the U.S. Department of Agriculture, the consumption of olive oil has been steadily increasing, with a current demand of approximately 400,000 metric tons in 2023. The popularity of avocado oil has also surged due to its beneficial properties, such as high levels of monounsaturated fats. The growing awareness around cardiovascular health is influencing these shifts, particularly in the United States, where heart disease is the leading cause of death. The data reflects a trend in which consumers are replacing traditional oils like canola and vegetable oils with healthier alternatives, aligning with dietary recommendations from health organizations like the American Heart Association, which promotes oils rich in unsaturated fats.
• Growing Demand for Organic and Non-GMO Oils: The demand for organic and non-GMO cooking oils is growing rapidly in North America, fueled by increasing awareness of genetically modified foods and a general shift toward organic eating habits. Reports from the U.S. Organic Trade Association show that the market for organic products reached $62 billion in 2023, with organic oils being a significant part of that market. Oils such as organic sunflower oil and organic coconut oil are in high demand, as consumers seek products free from pesticides and chemicals. In Canada, the non-GMO food segment is growing as well, with regulations and consumer preferences pushing manufacturers to develop cleaner, non-GMO alternatives in cooking oils.
• Regulatory Policies Promoting Healthier Fats and Oils: In North America, regulatory frameworks have been set up to promote healthier cooking oils by limiting the use of harmful trans fats. The U.S. Food and Drug Administration (FDA) has enforced regulations that ban the use of partially hydrogenated oils, the primary source of artificial trans fats, in processed foods. This move has encouraged food manufacturers to shift toward healthier alternatives like sunflower, safflower, and olive oils. Additionally, Canada has implemented similar regulations aimed at reducing trans-fat consumption, aligning with global health initiatives led by the World Health Organization (WHO) to eliminate trans fats by 2023. These regulatory efforts have not only shaped the market but have also driven the demand for healthier fats and oils.

Market Challenges

• Supply Chain Disruptions and Fluctuating Raw Material Costs (Palm, Soy, and Canola Oils): One of the primary challenges facing the North American cooking oil market is the volatility in raw material prices, which impacts palm oil, soy oil, and canola oil supplies. The global palm oil supply, mainly imported from Southeast Asia, has seen disruptions due to geopolitical tensions, labor shortages, and environmental concerns. Similarly, the U.S. soybean oil industry has faced production challenges due to fluctuating yields, exacerbated by unpredictable weather patterns. These supply chain disruptions have made it difficult for manufacturers to stabilize prices and maintain profitability.
• Environmental Impact and Sustainability in Oil Production (Palm Oil, Soybean Oil): Sustainability concerns, particularly around palm oil and soybean oil production, are a significant challenge for the North American cooking oil market. The production of palm oil has long been associated with deforestation and habitat destruction in tropical regions. In 2023, the Roundtable on Sustainable Palm Oil (RSPO) reported that U.S. imports of certified sustainable palm oil have increased, but the demand still far exceeds supply. Meanwhile, soybean oil production in the U.S. is facing criticism due to its high-water usage and impact on soil health, pushing the industry to explore more sustainable farming techniques.

North America Cooking Oil Market Future Outlook

The North America cooking oil market is poised for steady growth, driven by evolving consumer preferences and advancements in oil production technologies. Increasing awareness regarding the health benefits of oils like olive, avocado, and coconut, coupled with the growing demand for organic and non-GMO products, is expected to propel market expansion. Additionally, innovations in oil packaging, particularly eco-friendly options, are likely to further boost market penetration across retail and foodservice sectors.

Market Opportunities

• Rise of Cold-Pressed Oils as a Health-Conscious Alternative: The demand for cold-pressed oils, which retain more nutrients and have fewer chemical residues compared to traditionally refined oils, is growing rapidly in North America. Cold-pressed olive oil and sesame oil are particularly popular among health-conscious consumers who prioritize the nutritional content of their food. In 2023, health food stores and specialty grocery chains reported a rise in sales of cold-pressed oils, which aligns with the growing demand for organic and clean-label products.
• Increasing Adoption of Smart Packaging Solutions for Extended Shelf Life: In response to consumer demand for fresher products and less food waste, the cooking oil industry in North America is increasingly adopting smart packaging technologies. As consumers continue to prioritize freshness and sustainability in their purchasing decisions, companies that invest in these advanced packaging solutions are gaining a competitive edge. Data from the U.S. Packaging Machinery Manufacturers Institute indicates that the market for smart packaging is growing, with applications in the food and beverage sector, including cooking oils, expected to see increased adoption in 2024 and beyond.