Oilseeds Market: Growth Trends, Drivers, and Future Outlook
The global Oilseeds Market is undergoing a significant transformation, driven by rising demand for vegetable oils, biotechnology advancements, and shifting dietary patterns across developing economies. The global oilseeds market size is valued at USD 377.54 billion in 2026, projected to reach USD 609.05 billion by 2034 at a CAGR of 6.16% during 2026–2034. This steady growth trajectory underscores the increasing importance of oilseeds as a foundational commodity across food, industrial, and energy sectors worldwide.
Market Size and Growth Trajectory
The oilseeds industry has demonstrated consistent expansion in recent years. The global oilseeds market size was valued at USD 355.64 billion in 2025, with the market projected to grow from USD 377.54 billion in 2026 to USD 609.05 billion by 2034, exhibiting a CAGR of 6.16% during the forecast period. This robust growth reflects the crop's expanding role not just as a food source but as a critical raw material across multiple industries.
Why Oilseeds Matter
Oilseeds occupy a unique position among global agricultural commodities. Oilseed crops are considered promising crops with high potential to prevent malnutrition, improve human diets and food security, and create employment opportunities through income generation. Beyond their nutritional value, oilseeds are also used in several industrial applications such as fertilizer, biodiesel, medicine, cosmetics, animal feed, fibers, and paint, among others.
The rising global appetite for vegetable oils is one of the strongest forces propelling this market forward. Increased consumption of vegetable oils and high production levels across various developing countries are fueling demand for oilseeds. Notably, according to a 2022 Organisation for Economic Co-operation and Development (OECD) report, vegetable oil consumption is projected to reach 249 million tonnes by 2031, with food use accounting for 66% of total consumption, driven by population growth and rising per capita vegetable oil use in low- and middle-income countries.
Biotechnology Reshaping the Industry
Genetic engineering is playing an increasingly central role in oilseed cultivation. Genetic engineering approaches have presented a significant breakthrough in elevating oil content in oilseed crops, with agricultural biotechnology advancement serving as a major driver for improving oilseed economics through the introduction of genetically modified (GM) seeds. Traits such as insect resistance and herbicide tolerance are adding further value to seed varieties, making them more attractive to large-scale producers.
A notable industry example illustrates this trend: in June 2022, Corteva Agriscience, BASF SE, and M.S. Technologies signed an agreement to develop next-generation Enlist E3 soybeans featuring a Nematode-Resistant Soybean (NRS) trait for farmers in the U.S. and Canada. Such collaborations highlight how major agribusiness players are investing in next-generation crop traits to boost yields and resilience.
Pandemic-Era Disruptions
The COVID-19 pandemic left a lasting imprint on the oilseeds sector. The pandemic moderately affected industry growth due to strong demand for vegetable oils alongside a slight production decline, particularly in rapeseed and soybeans. As consumer behavior shifted, retail grocery demand spiked because of supply chain disruption risks, with home cooking replacing much of the food service consumption that had previously dominated. Trade restrictions compounded these pressures, and according to a 2020 USDA report, the United States recorded 3.8 million tonnes of soybean stock in 2020, a figure lower than the previous year, while the region also saw canola prices spike to levels not seen since the global financial crisis.
Breaking Down the Market by Type
Among oilseed varieties, soybean stands out as the dominant segment. The soybean segment is expected to hold a significant share of the global oilseeds market, as soybean oil is increasingly used by food processors and food service operators for fried and baked food products, as well as in cooking, frying, margarine, and shortenings. Its utility extends beyond the kitchen too — soy oil is also extensively used as feedstock for biodiesel production because it provides a higher British Thermal Unit (BTU) value and burns more efficiently.
This growing demand is prompting expansion among major producers. For example, in May 2022, Cargill Inc. planned to build a new soybean processing facility in Missouri to support the rising demand for oilseeds across food, animal feed, and fuel markets.
Rapeseed is also carving out a strong growth path. The rapeseed segment is expected to grow at a high CAGR during the forecast period, supported by rising retail consumption driven by its nutritional benefits and easy availability. Rapeseed contains notable amounts of magnesium, calcium, and potassium, and is also used in personal care products such as creams, oils, and lotions.
Category and End-Use Insights
When it comes to category, conventional oilseeds continue to lead the market. The conventional segment is expected to hold a major share of the global market, as conventional oilseeds are cheaper than genetically modified varieties and benefit from rising demand for organic and healthy products.
In terms of application, the food and beverage industry remains the largest consumer of oilseeds. The food & beverage segment is expected to hold a significant global market share, with oilseeds offering opportunities for the food industry due to their high oil and protein content, while their omega-3 fatty acids, lignans, and phytosterols are also steering development of novel food products. Industry players are responding with major investments — in April 2023, Richardson International announced a USD 220 million investment in its Wesson Oil facility in Memphis, Tennessee, to replace its existing refinery and meet growing global demand for vegetable oil.
Regional Outlook
Geographically, Asia Pacific commands the largest share of the global oilseeds market. China is known to be the largest consumer of oilseeds, with the country consuming 31,863 kilotonnes of oilseeds in 2021 according to the Observatory of Economic Complexity, and its major oilseed crops include soybeans, rapeseed, cottonseed, peanuts, and sunflower seeds.
South America, meanwhile, is poised for rapid expansion. South America is expected to grow at a high CAGR over the forecast period, with Brazil recognized as the largest producer of oilseeds, especially soybean, which has driven significant economic and social development in the country. Strategic consolidation is already underway in the region, as in May 2020, Bunge Limited acquired two soy-crushing plants from Imcopa, strengthening its position as Brazil's largest soybean crusher.
Key Players and Industry Developments
The oilseeds market is shaped by major global agribusiness and chemical companies, including BASF SE, Bayer AG, Corteva Agriscience, Cargill Inc., Syngenta Group, Archer Daniels Midland, Wilmar International, Bunge Ltd., Richardson International, and Australian Oilseeds Investments Pty Ltd.
Recent developments further reflect the sector's momentum. In March 2023, Scoular invested in a Kansas oilseed crush facility for renewable fuels, enabling producers to participate in the booming renewable fuels market. In February 2022, Sucden established a new trading division for grains and oilseeds, operating from Paris and Singapore starting March 2022.
Conclusion
The oilseeds market is set for sustained expansion through 2034, fueled by rising vegetable oil consumption, biotechnology-driven productivity gains, and growing applications across food, biofuel, animal feed, and personal care industries. With soybean and rapeseed segments leading growth and Asia Pacific and South America emerging as critical regional hubs, the industry is well-positioned to meet the world's evolving nutritional and industrial demands in the years ahead.
Source:https://www.fortunebusinessinsights.com/oilseeds-market-107719