United States Soybean Oil Market Accelerates on Health Trends, Food Processing

United States Soybean Oil Market Size and Forecast 2025–2033

The United States soybean oil market is entering a high-growth phase, supported by shifting dietary preferences, expanding food processing applications, and rising industrial usage. According to Renub Research, the United States Soybean Oil Market is projected to grow from US$ 27.06 billion in 2024 to US$ 59.85 billion by 2033, registering a strong CAGR of 9.22% from 2025 to 2033.

This robust growth reflects soybean oil’s strategic position in the U.S. food system and industrial economy. As consumers increasingly prioritize plant-based and healthier cooking oils, soybean oil continues to gain traction due to its affordability, versatility, and nutritional profile. At the same time, demand from processed food manufacturers, restaurants, and the renewable energy sector is reinforcing long-term market expansion.

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United States Soybean Oil Market Outlook

Soybean oil is a vegetable oil extracted from soybeans, one of the most widely cultivated crops in the United States. It is the most commonly used cooking oil in the country, valued for its neutral flavor, light texture, and high smoke point. These characteristics make it suitable for a wide range of culinary applications, including frying, baking, sautéing, and roasting.

Beyond household kitchens, soybean oil plays a vital role in the food processing industry. It is extensively used in packaged foods, salad dressings, mayonnaise, margarine, spreads, and snack products, where it contributes to texture, shelf life, and consistency. Its nutritional attributes—particularly its low saturated fat content and presence of polyunsaturated fats and omega-3 fatty acids—have strengthened its appeal among health-conscious consumers.

Soybean oil also has a growing presence outside the food sector. It is increasingly used in biodiesel production, industrial lubricants, inks, plastics, cosmetics, and personal care products. This diversification of applications reduces reliance on a single demand source and enhances market stability. As consumer diets shift toward plant-based foods and sustainability-focused consumption patterns, soybean oil remains a staple ingredient across both food and industrial value chains in the United States.

Growth Drivers in the United States Soybean Oil Market

Rising Demand for Plant-Based and Healthier Oils

The growing preference for plant-based and healthier diets in the U.S. is a major driver of soybean oil consumption. Consumers are increasingly reducing their intake of animal fats and turning to vegetable oils perceived as heart-friendly and versatile. Soybean oil, with its low saturated fat content and favorable fatty acid profile, fits well within this trend.

It is widely used in home cooking, commercial kitchens, and plant-based food products, aligning with the rapid expansion of vegan and vegetarian lifestyles. Food manufacturers also rely on soybean oil as a key ingredient in meat alternatives and dairy-free products. In December 2022, Bunge Global SA announced plans to invest US$ 550 million in a new soy protein concentrate and textured soy protein facility in Indiana, highlighting the rising demand for plant-based ingredients and reinforcing soybean oil’s role within this ecosystem.

Expansion of Processed Food and Foodservice Industries

The steady growth of the U.S. processed food sector continues to fuel demand for soybean oil. It is a core ingredient in snacks, ready-to-eat meals, sauces, baked goods, and frozen foods. Its cost-effectiveness, consistent quality, and wide availability make it a preferred choice for large-scale food manufacturers.

Foodservice operators, including quick-service restaurants and institutional kitchens, also rely heavily on soybean oil for frying and large-volume cooking. As dining out, takeout, and food delivery remain integral to American lifestyles, demand for reliable and affordable cooking oils continues to rise. In October 2023, Louis Dreyfus Company announced the construction of a new soybean processing facility in Ohio, incorporating crushing, oil refining, and lecithin production, further strengthening domestic supply capacity.

Growing Industrial and Biofuel Applications

Industrial usage is emerging as a powerful growth engine for the U.S. soybean oil market. One of the most significant applications is biodiesel production, where soybean oil serves as a key renewable feedstock. Government policies promoting cleaner energy and reduced carbon emissions are driving increased adoption of biofuels, directly supporting soybean oil demand.

Beyond energy, soybean oil is used in lubricants, coatings, inks, and personal care products due to its biodegradable and emollient properties. In January 2025, the United Soybean Board, along with the U.S. Soybean Export Council and the American Soybean Association, updated national sustainability goals aimed at reducing land use, soil loss, energy consumption, and greenhouse gas emissions. These initiatives support a more sustainable soybean oil supply chain and strengthen long-term industrial demand.

Challenges in the United States Soybean Oil Market

Competition from Alternative Edible Oils

Soybean oil faces increasing competition from other edible oils such as canola, sunflower, olive, avocado, and specialty blends. These alternatives are often marketed as premium, clean-label, or heart-healthy options, appealing to niche consumer segments. Olive oil, in particular, benefits from strong brand recognition and perceived health benefits, while canola oil competes directly on price and versatility.

To maintain market share, soybean oil producers must continue emphasizing nutritional value, cost advantages, and functional performance across applications. Product innovation, including high-oleic soybean oil variants, is also becoming important in differentiating soybean oil from competing products.

Price Volatility and Supply Chain Uncertainty

Soybean oil prices are closely linked to soybean crop yields, weather conditions, global trade policies, and geopolitical factors. Fluctuations in raw material supply, export regulations, and transportation costs can create price volatility, affecting both producers and end users.

Supply chain disruptions not only influence pricing but also complicate long-term planning for food processors and industrial buyers. Ensuring supply stability through domestic processing investments, diversified sourcing, and improved logistics remains critical to sustaining market growth.

Segment Analysis

United States Conventional Soybean Oil Market

Conventional soybean oil continues to dominate the U.S. market due to its affordability and widespread use. It is a staple in households, restaurants, and food manufacturing facilities, particularly for frying and large-scale cooking.

Food processors prefer conventional soybean oil for snacks, margarine, and packaged foods because of its low cost and consistent supply. Despite rising interest in organic alternatives, conventional soybean oil retains the largest market share, supported by strong domestic production and scalability.

United States Organic Soybean Oil Market

Organic soybean oil is gaining momentum as consumers increasingly seek clean-label, non-GMO, and pesticide-free products. This segment is particularly popular among health-conscious consumers and environmentally aware buyers.

Organic soybean oil is widely used in premium food products, specialty baking, and natural personal care items. Although it commands higher prices, demand continues to grow through natural food stores and niche retail channels. Sustainability credentials and transparency are key growth drivers for this segment.

Application Insights

Cooking and Frying

Cooking and frying represent the largest application segment for soybean oil in the U.S. Its neutral taste, high smoke point, and affordability make it ideal for everyday cooking at home and in commercial kitchens. Quick-service restaurants rely heavily on soybean oil for deep frying due to its heat stability and cost efficiency.

Bakery Products

Soybean oil is essential in the bakery industry, where it enhances texture, moisture retention, and shelf life. It is commonly used in bread, cakes, pastries, and cookies, offering functional benefits without overpowering flavor. Rising demand for packaged and convenience bakery items supports continued growth in this application.

Margarine and Shortening

Soybean oil is a key raw material in margarine and shortening production. These products are widely used as butter alternatives and in industrial baking and frying. Growing interest in plant-based and vegan alternatives is further boosting demand for soybean oil-based margarine and shortening products.

United States Soybean Oil Market Overview by States

California

California is a major soybean oil market driven by its large population, diverse food culture, and strong foodservice sector. Restaurants and food manufacturers rely heavily on soybean oil for cooking and processing. Health-conscious consumers also support demand for organic soybean oil, making the state a high-growth market.

New York

New York’s soybean oil market benefits from a large urban population and a vibrant foodservice and bakery industry. Demand spans both conventional and organic soybean oil, supported by multicultural cuisine, processed food production, and premium retail channels.

Washington

Washington is an emerging market with strong demand for organic and non-GMO soybean oil, reflecting the state’s sustainability-focused consumer base. The biofuel sector also contributes to demand, aligning soybean oil usage with renewable energy goals.

Market Segmentation Overview

By Type:
Organic
Conventional

By Application:
Cooking & Frying
Margarine & Shortening
Salad Dressings & Mayonnaise
Bakery Products
Non-Food Applications

Top States Covered:
California, Texas, New York, Florida, Illinois, Pennsylvania, Ohio, Georgia, Washington, New Jersey, Rest of United States

Competitive Landscape

The U.S. soybean oil market is characterized by the presence of large agribusiness and food companies with integrated supply chains. Key players include Archer Daniels Midland Company, Wilmar International Limited, AAK AB, Bunge Global SA, Cargill, Incorporated, DuPont, Unilever PLC, and Associated British Foods.

These companies compete through scale, processing efficiency, sustainability initiatives, and innovation across food and industrial applications.

Final Thoughts

The United States Soybean Oil Market is set for strong and sustained growth, reaching US$ 59.85 billion by 2033, driven by rising demand for healthier plant-based oils, expanding food processing usage, and increasing industrial and biofuel applications.

While competition from alternative oils and price volatility present challenges, soybean oil’s versatility, affordability, and integration into both food and energy systems ensure its continued relevance. Supported by sustainability initiatives, domestic processing investments, and evolving consumer preferences, soybean oil will remain a cornerstone of the U.S. edible oil and industrial markets through 2033 and beyond.