Top 20 Vegetable Oil Producing Countries In The World
This article will shed light on the major vegetable oil-producing countries and their latest production amounts. You can skip our analysis of the vegetable oil industry and read Top 8 Vegetable Oil Producing Countries in the World.
Oils extracted from soybean, palm, canola, sunflower, olive, and coconut plants serve as a cornerstone in the agricultural economies of the top vegetable oil producing countries in the world. Historically, the twin titans of vegetable oil production have been Indonesia and Malaysia due to their dominance in palm oil cultivation. As of the last assessment, Malaysia and Indonesia own 85% of the world's palm oil output. Likewise, China, the US, and Brazil are the leading soybean oil producers.
Currently, Malaysia is the largest exporter of vegetable oils, with the Netherlands and China as its primary importers. According to OEC, Malaysia's vegetable oil exports amounted to $1.63 billion in 2021, and the Netherlands imported vegetable oil valued at $499 million in the same year. Notably, in addition to their obvious culinary uses, vegetable oils are also employed in biodiesel production. According to Precedence Research, the biodiesel market was $36.48 billion in 2022, and 96.4% of its worldwide revenue originated from the vegetable oil feedstock category.
We have previously discussed the 15 Most Consumed Edible Oils in the World; read our article to discover which oils are most in demand.
Companies Focusing on Innovation in the Vegetable Oil Industry
The vegetable oil industry was valued at $212.6 billion in 2022 and is projected to grow at a CAGR of 4.8% between 2022 and 2027, reaching $268.9 billion by 2027. As market dynamics shift, with an increasing emphasis on sustainability and healthier alternatives, companies are consistently innovating to optimize vegetable oil yield. For instance, Archer-Daniels-Midland Company (NYSE:ADM), a titan in the vegetable oil industry, specializes in edible oil sourcing, processing, and distribution. The company leads in vegetable oil innovation and has invested in a biodiesel-focused soybean crushing plant. The soybean plant aims to produce 600 million pounds of refined soybean oil, a portion of which will be utilized as renewable diesel feedstock.
Besides biodiesel, ADM-SIO, a subsidiary of Archer-Daniels-Midland Company (NYSE:ADM), has introduced sustainable personal care solutions derived from hydrogenated vegetable oils. A prevalent texturization agent in personal care products like soaps, lipsticks, and lotions is stearic acid; this agent traditionally comes from the hydrolysis of animal fat. However, a more sustainable method involves using hydrogenated vegetable oils, such as cottonseed, palm, olive, and sunflower oils.
As a result, Archer-Daniels-Midland Company (NYSE:ADM) produces texturization agents from these hydrogenated vegetable oils for use in cosmetics and personal care items, offering a more eco-friendly alternative to those derived from animal fats. Archer-Daniels-Midland Company (NYSE:ADM) is also among the vegan stocks billionaires are loading up on; the company currently has 12 billionaire investors and has invested $300 million to increase its production capacity to meet the rising demand for alternative proteins. As the company foresees a $125 billion market for alternative proteins by 2030, it plans to capitalize on it.
Similarly, Bunge Limited (NYSE:BG) is refining its strategies for oilseed processing and oil extraction efficiency. Bunge Limited (NYSE:BG)'s venture into high-oleic oils is notable, addressing the increasing demand for healthier vegetable oil alternatives. High-oleic vegetable oils, which have a greater percentage of monounsaturated oleic acid than standard oils, possess an extended shelf life and are more cost-effective. The stability and skin-friendly attributes of high-oleic oils also make them a preferred choice for formulations in creams, lotions, and other cosmetic products.
Bunge Limited (NYSE:BG) and Viterra, a Glencore Plc-backed marketer and handler of grains and oilseeds, have recently entered into an agreement to form a combined global agribusiness solutions company. The agreement is based on a cash and stock transaction, and the merger aims to create an innovative agribusiness company to meet the demands of increasingly complex markets.
As the union will increase both companies' market foothold, they plan to better manage seasonal cycles and supply chains. According to Bunge's announcement, Viterra shareholders will receive 65.6 million shares of Bunge stock, with an aggregate value of approximately $6.2 billion, along with $2.0 billion in cash. The terms represent a consideration mix of around 75% Bunge stock and 25% cash. Moreover, as part of the deal, Bunge Limited will assume $9.8 billion of Viterra's debt, which is associated with approximately $9.0 billion of highly liquid, readily marketable inventories.
We have already done a detailed overview of the 12 Biggest Palm Oil Companies In The World; read this insightful piece to know this sector's central entities.
Let’s now move towards the top vegetable oil producing countries.
Top 20 Vegetable Oil Producing Countries In The World
Our Methodology
We identified the countries with the highest vegetable oil output using the Food and Agriculture Organization of the United Nations (UN FAO) database. After shortlisting the top 20 vegetable oil producing countries, we obtained their oil production data for 2020, 2019, and 2018 from the UN FAO. We then averaged these annual production figures to determine these nations' standard vegetable oil yield.
Based on our findings, here are the leading nations in the vegetable oil industry:
20. The Philippines
Average Annual Vegetable Oil Production: 1.35 million tons
The Philippines has vast coconut plantations; naturally, it's a leading producer of coconut oil. In 2020, the country's largest share of vegetable oil production came from coconut oil (almost 0.96 million tons), followed by maize oil. The country's tropical climate and archipelagic geography provide an ideal environment for coconut cultivation. Beyond mere production, the Philippines has also invested in refining, marketing, and research to cement its position in coconut oil exports.
19. Japan
Average Annual Vegetable Oil Production: 1.61 million tons
While Japan is not traditionally recognized as an agricultural powerhouse, it has a specialized niche in vegetable oil production. Canola (rapeseed) and soybean oils are predominant in the country and are deeply rooted in Japanese culinary traditions. Notably, the country employs advanced oil extraction and refining technologies to ensure consistent quality.
18. Colombia
Average Annual Vegetable Oil Production: 1.84 million tons
Colombia's tropical climate and fertile plains are favorable for palm cultivation, and as a result, the country's annual palm oil production is close to 1 million tons. Other top vegetable oils in Colombia are palm kernel oil and soybean oil.
17. Turkey
Average Annual Vegetable Oil Production: 1.937 million tons
Turkey's dominance in the vegetable oil sector comes from its extensive sunflower and olive plantations. The country's diverse climates, ranging from Mediterranean to temperate, allow for the cultivation of various oil crops. The country’s most important vegetable oil is sunflower oil, with a production of over 1 million tons, followed by olive and cottonseed oils. Turkish producers emphasize tradition, especially in olive oil, and combine ancient practices with modern technology to position the country as a quality-driven producer in the global market.
16. Mexico
Average Annual Vegetable Oil Production: 1.96 million tons
Mexico's vegetable oil industry leans heavily on its rich tradition of cultivating soybeans, coconuts, and safflowers. The country has also benefited from its strategic location and a diversified agricultural landscape that allows producers to experiment with new seed varieties. For instance, Mexican producers began growing canola around 2000 and have had success with its yield. Today, a significant share of Mexico’s total vegetable oil output comes from canola.
15. Nigeria
Average Annual Vegetable Oil Production: 2.04 million tons
Nigeria is Africa's top palm oil producer, and the country's palm oil yield currently stands at 1.28 million tons. The Niger Delta region, characterized by its tropical climate, is particularly conducive to oil palm cultivation. Although the vegetable oil industry faced challenges in past decades, recent revitalization efforts by the government and stakeholders are steadily restoring Nigeria's position in the palm oil market. Besides palm oil, the country also boasts a significant yield of groundnut and soybean oil.
14. France
Average Annual Vegetable Oil Production: 2.49 million tons
France's vegetable oil industry thrives on its agricultural landscape; notably, the country's agricultural production value is the highest in the EU. Rapeseed oil production in France amounts to 1.7 million tons, thanks to its vast rapeseed fields. French vegetable oil producers are renowned for maintaining high standards of quality and sustainability. Coupled with strong regulatory frameworks, France has consistently ranked among the top European vegetable oil producers.
13. Spain
Average Annual Vegetable Oil Production: 2.613 million tons
Spain and olive oil are synonymous, as the country ranks first among the countries that produce the best extra virgin olive oil. Also, according to the International Olive Council (IOC), Spain produces 40% of global olive oil. The Iberian Peninsula boasts extensive olive groves and benefits from a Mediterranean climate. Spain's dedication to quality assurance and appellation control guarantees its esteemed position in the global market.
12. Thailand
Average Annual Vegetable Oil Production: 3.61 million tons
Thailand has a strong foothold in the vegetable oil industry because of its vast palm oil and coconut oil production. The country's tropical climate and extensive coastline create an ideal environment for these crops. According to the UN FAO, Thailand’s palm oil production reaches up to 2.6 million tons annually.
11. Germany
Average Annual Vegetable Oil Production: 4.41 million tons
Germany produces close to 3.7 million tons of rapeseed (canola) oil each year, owing to its temperate climate and fertile soils. Moreover, the nation's agricultural infrastructure and emphasis on quality have helped it carve a niche in the global vegetable oil market.
10. Canada
Average Annual Vegetable Oil Production: 4.71 million tons
Canada is a global leader in canola oil production, and the country's current canola oil production stands at 4.4 million tons. While Canada also produces soybean, maize, and linseed oil, their yields are significantly lower than that of canola oil. The country’s impressive canola oil yield can be attributed to its cooler climate.
9. India
Average Annual Vegetable Oil Production: 6.004 million tons
India's agriculture is among the most diverse in the world, a result of its vast expanse. The nation produces significant amounts of cotton, canola, soybean, mustard, and coconut and naturally capitalizes on the oil from these seeds. According to the UN FAO, India’s primary vegetable oils are canola, soybean, and cottonseed oils. Systematic breeding programs have improved the quality of oils produced in the country, emphasizing purity and nutritional content.
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Disclosure: None. Top 20 Vegetable Oil Producing Countries in the World was originally published at Insider Monkey.