United States Soybean Oil Market Report by Type, Application, States and Company Analysis 2026-2034

United States Soybean Oil Market Size & Forecast

United States Soybean Oil Market will grow from US$ 29.56 Billion in 2025 to US$ 65.38 Billion by 2034, expanding at a Compound Annual Growth Rate (CAGR) of 9.22% from 2026 to 2034. Market growth is supported by rising demand for edible oils, expanding food processing activities, and increasing consumption of plant-based ingredients. Growing applications in cooking, food manufacturing, animal feed, biodiesel, and industrial products are further strengthening market opportunities across the United States.

What is Soybean Oil and Its Uses & Popularity in the United States

Soybean oil is a vegetable oil extracted from soybeans and is one of the most widely used edible oils in the United States. It has a mild flavor, versatile cooking properties, and is commonly used for frying, baking, sauteing, salad dressings, mayonnaise, margarine, sauces, and processed foods. USDA research notes that soybean oil has historically represented a substantial share of U.S. edible-oil consumption.

Beyond food applications, soybean oil is increasingly important as a feedstock for biodiesel and renewable diesel. It is also used in industrial products such as plastics, coatings, inks, resins, and other bio-based materials. USDA data indicate that soybean oil used for biofuels increased from 5.7 billion pounds in 2015/16 to 12.5 billion pounds in 2022/23, highlighting its growing energy-sector importance. Its widespread availability, established soybean-processing infrastructure, versatility, and expanding renewable-fuel applications continue to support the popularity of soybean oil across the United States.

U.S. Soybean Yield and Acreage

• 2015: Approximately 82 million acres planted; yield remained near 48 bushels per acre.
• 2016: Around 84 million acres planted; yield reached about 52 bushels per acre.
• 2017: Approximately 90 million acres planted; yield was about 49 bushels per acre.
• 2018: Around 89 million acres planted; yield increased to approximately 50 bushels per acre.
• 2019: Approximately 76 million acres planted; yield declined to about 47 bushels per acre.
• 2020: Around 84 million acres planted; yield recovered to approximately 51 bushels per acre.
• 2021: Approximately 87 million acres planted; yield was about 51-52 bushels per acre.
• 2022: Around 87 million acres planted; yield declined slightly to approximately 49 bushels per acre.
• 2023: Approximately 84 million acres planted; yield recovered to about 50 bushels per acre.
• 2024: Around 87 million acres planted; yield was approximately 50-51 bushels per acre.
• Overall trend: U.S. soybean acreage expanded from roughly 77 million acres in 2013 to about 87 million acres in 2024, while yields generally improved from approximately 44 to 50-51 bushels per acre.

Source: USDA Economic Research Service, using data from the USDA National Agricultural Statistics Service, Crop Production Annual Summary.

Growth Drivers of the United States Soybean Oil Market

Expanding Renewable Diesel and Biodiesel Production

The growing use of soybean oil as a feedstock for biomass-based diesel is a major driver of the U.S. soybean oil market. USDA data show that soybean oil used for biofuel production increased from 5.7 billion pounds in 2015/16 to 12.5 billion pounds in 2022/23, accounting for approximately 47% of domestic soybean oil use in 2022/23. USDA projected soybean oil use for biomass-based diesel to reach 13.9 billion pounds in 2025/26, approximately 6% above the revised 2024/25 level. Renewable diesel expansion, state-level clean-fuel policies, and federal incentives are encouraging refiners and fuel producers to secure vegetable-oil feedstocks. This is increasing domestic demand for soybean oil while encouraging investment in soybean crushing capacity. As transportation companies and fuel producers pursue lower-carbon alternatives, soybean oil is expected to remain an important renewable-fuel feedstock.

Rising Domestic Soybean Crushing Capacity

Increasing domestic soybean crushing is strengthening the availability and commercial importance of soybean oil in the United States. USDA's Economic Research Service forecasts U.S. soybean crush at a record 2.49 billion bushels in 2025/26, representing an increase of nearly 3% from the previous year. Crush is expected to account for approximately 57% of U.S. soybean production, compared with about 47% in 2017/18. New processing facilities and capacity expansions in states including North Dakota, Nebraska, Wisconsin, Iowa, Kansas, and Ohio are increasing the ability to process domestically grown soybeans into soybean meal and oil. Greater crushing capacity improves regional access to soybean oil, supports food manufacturers and biofuel producers, and reduces reliance on exporting raw soybeans. Continued investment in processing infrastructure is therefore expected to create additional market opportunities for soybean oil producers and refiners.

Strong U.S. Soybean Production and Multiple End-Use Applications

The United States has a large and established soybean production base that provides an important foundation for soybean oil manufacturing. USDA reports that soybeans account for approximately 90% of U.S. oilseed production, highlighting their importance within the domestic oilseed sector. In 2024/25, U.S. soybean production was approximately 118.84 million metric tons, while U.S. soybean oil production reached around 13.06 million metric tons, making the United States the world's second-largest soybean oil producer after China. Soybean oil benefits from diversified applications across food manufacturing, frying, baking, salad dressings, sauces, industrial products, and renewable fuels. USDA data indicate food use reached 11.6 billion pounds in 2022/23, while other industrial applications represented another 10% of domestic use. This broad application base provides resilience and supports continued demand.

Challenges of the United States Soybean Oil Market

Feedstock Price Volatility and Competition from Alternative Oils

Soybean oil producers face significant pressure from fluctuations in soybean prices and competition from alternative vegetable oils. Canola, sunflower, palm, and other oils can compete with soybean oil in food manufacturing and biofuel applications depending on price, availability, nutritional characteristics, and carbon intensity. USDA reported that U.S. soybean oil prices were elevated as strong biofuel demand increased competition for domestic feedstocks. During 2023/24, the share of biomass-based diesel feedstocks supplied from foreign exporters reached 29%, compared with 13% in 2020/21, reflecting the need to supplement domestic supplies. USDA also projects higher supplies of competing vegetable oils, including palm, sunflowerseed, and rapeseed oil, which contributed to a forecast decline in U.S. soybean oil exports to 1.7 billion pounds in 2025/26. Such price and supply competition can pressure producer margins and affect market stability.

Supply Chain, Trade, and Biofuel Demand Imbalances

The rapid expansion of biofuel demand can create supply imbalances between traditional food applications and energy uses of soybean oil. USDA data show that food use declined from a peak of 16.4 billion pounds in 2002/03 to 11.6 billion pounds in 2022/23, while biofuel use increased substantially during the same period. Strong domestic demand has also reduced the volume available for exports. USDA's Foreign Agricultural Service reported that U.S. soybean oil exports fell sharply after the renewable-diesel expansion, with exports reaching only 152,000 metric tons in 2023, compared with an average of around 1 million metric tons annually during 2010-2019. Additionally, dependence on imported alternative feedstocks exposes processors to international freight costs, exchange-rate movements, trade policies, and supply disruptions. These factors can increase input costs and complicate long-term procurement planning for soybean oil manufacturers.

Soybean Oil Launches in the USA

• Pioneer Plenish High Oleic Enlist E3 Soybeans - 2025: Pioneer introduced new Plenish high-oleic Enlist E3 soybean varieties for the U.S. 2025 season, supporting production of high-oleic soybean oil for cooking and foodservice applications.
• Goodyear EcoReady Tire - 2023: Goodyear launched the EcoReady tire, incorporating soybean oil as part of its sustainable-material formulation.
• Goodyear ElectricDrive 2 - 2024: Goodyear introduced ElectricDrive 2 with up to 50% sustainable materials, including soybean oil, expanding soybean-oil applications beyond food products.
• Goodyear WeatherReady 2 - 2024: The WeatherReady 2 tire was launched with soybean-oil technology, continuing Goodyear's replacement of petroleum-based processing oils.
• DeWALT Bio-Based Bar & Chain Oil - 2024: DeWALT launched a soybean-oil-based biodegradable bar and chain oil nationwide through Home Depot and other U.S. retailers.
• Dynamic Green Products Soy-Based Lubricants - 2026: Dynamic Green Products expanded its portfolio of soy-biobased products, including bar-and-chain oil and greases containing U.S. soybean oil.
• Versa Premier High Oleic Soybean Frying Oil: UniPro launched Versa Premier High Oleic Soybean Frying Oil for U.S. foodservice operators, using Plenish high-oleic soybean oil for improved frying performance.
• Calyno High Oleic Soybean Oil: Calyxt commercially launched Calyno high-oleic soybean oil in the U.S. for foodservice applications including frying, salad dressings, and sauces.
• Biosynthetic Technologies Soy-Based Motor Oil: Biosynthetic Technologies introduced high-performance motor oils formulated with high-oleic soybean oil, including 5W-20 and 5W-30 products for the U.S. market.
• Plenish High Oleic Soybean Oil Foodservice Applications: The expansion of Plenish high-oleic soybean oil has supported new foodservice and food-processing formulations, particularly where longer fry life and reduced saturated fat are valued.

Affordability and Broad Food-Processing Demand Support Conventional Oils in the United States

United States conventional soybean oil market remains a major segment of the edible-oil industry because of its competitive pricing, broad availability, and established use across household and commercial applications. Soybean oil is widely utilized for frying, baking, salad dressings, sauces, snacks, margarine, and other processed foods. USDA data indicate that U.S. soybean oil production reached approximately 13.1 billion pounds in 2022/23, demonstrating the scale of domestic supply. Conventional varieties benefit from extensive soybean cultivation and processing infrastructure, enabling manufacturers to maintain consistent volumes for retailers and foodservice operators. Supermarkets, wholesale clubs, restaurants, and food manufacturers represent important distribution channels. Although organic and specialty oils are attracting health- and sustainability-conscious consumers, conventional soybean oil remains highly competitive because of its cost advantage. Its versatility, scalability, and dependable domestic supply chain are expected to sustain demand across the United States.

Clean-Label Preferences Create Opportunities for Premium Soybean Oil in the United States

United States organic soybean oil market is gaining attention as consumers increasingly seek products associated with organic agriculture, clean labels, and environmentally conscious sourcing. Organic soybean oil is produced from soybeans grown under certified organic farming standards, making certification an important differentiating factor in premium food and ingredient markets. According to the Organic Trade Association, U.S. organic product sales reached approximately US$71.6 billion in 2024, highlighting the significant consumer base for organic products. Organic soybean oil is used in specialty cooking oils, natural-food formulations, sauces, baked products, and other premium food applications. Its higher retail price compared with conventional soybean oil remains a challenge, particularly among price-sensitive households. Nevertheless, natural-food retailers, specialty grocery stores, and premium food brands provide opportunities for expansion. Increasing consumer interest in sustainable agriculture and traceable ingredients is encouraging manufacturers to develop certified organic offerings, supporting gradual growth in this specialized segment.

Foodservice and Household Cooking Sustain Core Demand in the United States

Cooking and frying represent important applications for soybean oil in the United States because of its mild flavor, versatility, and competitive cost. The oil can be used for sauteing, pan-frying, deep-frying, and general food preparation without significantly altering the flavor of prepared foods. Its broad application across households, restaurants, institutional kitchens, and foodservice operations creates a substantial recurring demand base. USDA data show that soybean oil used for food purposes totaled approximately 11.6 billion pounds in 2022/23, underscoring the importance of food applications within the domestic market. Quick-service restaurants and commercial food manufacturers particularly value soybean oil because large volumes can be purchased at competitive prices. Retail sales through supermarkets and warehouse clubs further strengthen household consumption. While canola, sunflower, and other vegetable oils compete in this category, soybean oil benefits from established supply chains and extensive availability. Continued demand for fried and prepared foods is expected to support this application.

United States Functional Performance Supports Use in Commercial Baking

Soybean oil has an established role in the U.S. bakery industry because it contributes moisture, texture, tenderness, and desirable mouthfeel to numerous products. Commercial bakeries use soybean oil in cakes, muffins, cookies, breads, pastries, dough products, and other packaged bakery items. Its relatively neutral flavor allows the characteristic taste of other ingredients to remain prominent, while its liquid form provides processing flexibility. Soybean oil is also attractive to manufacturers because it can be incorporated into formulations at large scale and offers a cost-efficient alternative to certain specialty fats and oils. The continued importance of bakery products in U.S. food manufacturing provides a broad application base. In addition, demand for convenient packaged foods, breakfast products, snacks, and ready-to-eat bakery items creates opportunities for ingredient suppliers. Manufacturers are increasingly developing formulations with reduced saturated fat, plant-based ingredients, and cleaner labels, encouraging innovation in soybean-oil applications. These characteristics are expected to maintain soybean oil's relevance across the U.S. bakery sector.

United States Plant-Based Fat Applications Sustain Industrial Demand

Soybean oil remains an important raw material for producing margarine, shortening, and other specialty fat formulations used in household and commercial food preparation. Its neutral taste, functional properties, and relatively economical cost make it suitable for products requiring consistency, spreadability, texture, and cooking performance. Margarine manufacturers use soybean oil in formulations designed for table spreads, baking, cooking, and foodservice applications, while soybean-oil-based shortening is widely relevant to commercial baking and frying. The U.S. soybean processing industry provides a strong domestic feedstock base for these applications. USDA data show that soybean oil remains one of the country's major vegetable oils and is produced at large scale alongside soybean meal. Demand is also influenced by interest in plant-based alternatives to animal-derived fats and by manufacturers seeking versatile ingredients for large-volume food production. Although changing dietary preferences and competition from canola and other oils present challenges, soybean oil's functionality and established processing infrastructure continue to support its use in margarine and shortening.

Large Foodservice Industry and Health-Conscious Consumers Support California Soybean Oil Demand

California represents an important market for soybean oil, supported by its large consumer base, extensive foodservice industry, and diverse food-processing sector. Restaurants, quick-service establishments, institutional kitchens, and commercial food manufacturers use soybean oil extensively for frying, baking, sauces, dressings, and processed-food production. California is also one of the largest U.S. states by population, providing a substantial consumer market for packaged cooking oils and soybean-oil-based foods. At the same time, strong consumer interest in organic, natural, and plant-based products is creating opportunities for premium and certified organic soybean oil. U.S. organic food sales reached approximately US$71.6 billion in 2024, highlighting the scale of demand for organic products. California's sophisticated food industry also encourages manufacturers to experiment with clean-label, functional, and plant-based formulations. Supermarkets, specialty retailers, restaurants, and food manufacturers therefore provide diverse distribution opportunities. The combination of high food consumption, product innovation, and premium-food preferences is expected to sustain California's soybean oil demand.

New York Urban Consumption and Diverse Food Culture Drive Soybean Oil Applications

New York's soybean oil market is supported by its large urban population, multicultural food culture, and extensive restaurant and food-processing industries. Restaurants, bakeries, cafeterias, and quick-service food outlets use soybean oil for frying, sauteing, baking, and preparing processed foods. The state's dense urban environment also creates strong opportunities for packaged cooking oils sold through supermarkets, grocery stores, convenience retailers, and specialty food shops. In addition to conventional products, demand for organic and premium cooking oils is increasing among consumers seeking natural ingredients and healthier food choices. New York City's highly diverse culinary landscape encourages the use of versatile cooking ingredients that can accommodate different cuisines and preparation methods. Soybean oil's neutral flavor and competitive pricing make it suitable for high-volume commercial kitchens. Meanwhile, food manufacturers use soybean oil in snacks, sauces, dressings, baked goods, and other packaged products. The combination of foodservice demand, retail accessibility, and diverse consumer preferences is expected to maintain New York's position as a significant regional market.

Sustainability and Renewable-Fuel Applications Create New Opportunities in Washington

Washington is an emerging regional market for soybean oil, supported by consumer interest in sustainable foods, natural ingredients, and environmentally conscious products. Demand for organic, non-GMO, and clean-label cooking oils is particularly relevant among health-focused consumers and shoppers using natural-food retailers. Seattle and surrounding communities have a well-developed specialty grocery and cooperative retail environment, creating opportunities for premium soybean oil brands. PCC Community Markets, for example, reported more than 117,000 members and 16 stores in 2024, illustrating the strength of the region's cooperative food-retail ecosystem. Soybean oil is also used by restaurants, bakeries, cafes, institutional kitchens, and food manufacturers for frying, baking, and processed-food applications. Beyond food consumption, renewable fuels provide an additional demand opportunity because soybean oil is an established feedstock for biodiesel and biomass-based diesel. U.S. soybean oil used for biofuel production reached 12.5 billion pounds in 2022/23, demonstrating the importance of this application nationally. Sustainability-focused consumers and expanding renewable-fuel applications can therefore support Washington's soybean oil market.

Market Segmentation

Type

• Organic
• Conventional

Application

• Cooking & Frying
• Margarine & Shortening
• Salad Dressings & Mayonnaise
• Bakery Products
• Non-Food Applications

States

• California
• Texas
• New York
• Florida
• Illinois
• Pennsylvania
• Ohio
• Georgia
• New Jersey
• Washington
• North Carolina
• Massachusetts
• Virginia
• Michigan
• Maryland
• Colorado
• Tennessee
• Indiana
• Arizona
• Minnesota
• Wisconsin
• Missouri
• Connecticut
• South Carolina
• Oregon
• Louisiana
• Alabama
• Kentucky
• Rest of United States

All Key Players have been covered with 5 Viewpoints

• Overviews
• Key Person
• Recent Developments
• SWOT Analysis
• Revenue Analysis

Key Players Analysis

• Archer Daniels Midland Company
• Wilmar International Limited
• AAK AB
• Bunge Global SA
• Cargill, Incorporated
• DuPont
• Unilever PLC
• Associated British Foods