Hydrogenated Vegetable Oil Market Size, Share & Trends Analysis Report By Grade (Unfractionated, Fractionated), By End Use (Food & Beverage, Personal Care & Cosmetics), By Region, And Segment Forecasts, 2025 - 2030

Hydrogenated Vegetable Oil Market Summary

Known for their stability and shelf life, these oils suit diverse industrial uses. Regulatory support for healthier alternatives and technological improvements is further propelling growth. As consumers prioritize health and sustainability, the market is set to expand and adapt accordingly.

The global hydrogenated vegetable oil industry is experiencing robust growth, driven by increasing demand for renewable energy sources and sustainable alternatives to fossil fuels. This growth is further fueled by stringent environmental regulations, government initiatives promoting biofuels, and the transportation sector's shift towards low-emission fuels. Regions like North America and Europe are leading in their adoption due to supportive policies and infrastructure, while the Asia-Pacific region is emerging as a significant market, driven by rising energy demands and sustainability goals. The market's expansion reflects a global commitment to reducing carbon emissions and transitioning towards cleaner energy solutions.

Manufacturers typically offer three commercial grades of hydrogenated vegetable oil. Unfractionatedhydrogenated vegetable oil retains the complete triglyceride profile and is sold as a single-ingredient emollient or bulk fat, valued for its naturally long oxidative stability and broad usability in foods and cosmetics. Fractionated hydrogenated vegetable oil is produced by controlled crystallization to isolate stearin or laurin-rich fractions, creating sharper melting curves that suit confectionery coatings and premium fat systems. The “others” segment covers customised blends and co-processed grades for niche functionality such as BASF’s Cegesoft VP stick-base, which combines hydrogenated vegetable oil with additional plant waxes to deliver tailored texture and stability in decorative cosmetics.

Hydrogenated vegetable oils are utilized in various applications due to their stability and extended shelf life. In the food industry, they are used to enhance texture and shelf life of products like margarine and baked goods. In cosmetics, they serve as emollients in products such as bath items, eye makeup, and skin care formulations. They are employed in the pharmaceutical sector as coating agents for hygroscopic drugs, protecting them from moisture and enhancing stability.

Technological advancements in the extraction and purification of hydrogenated vegetable oils are enhancing their quality and cost-effectiveness. Innovations in processing techniques are improving the taste profile and stability of these oils, making them more attractive to manufacturers and consumers. Furthermore, the development of hydrogenated oils with reduced trans-fat content aligns with health-conscious consumer trends and regulatory requirements.

Market Concentration & Characteristics

The global hydrogenated vegetable oil industry shows moderate to high concentration, with a few multinational players such as AAKAB, Wilmar International Ltd, and Bunge controlling a large share of global production and trade. These companies benefit from vertically integrated operations, access to diverse feedstocks, and established partnerships with end-use industries. Their strong R&D capabilities also allow them to lead in the development of low-trans-fat alternatives and specialty grades tailored to evolving consumer and regulatory demands.

The market is defined by multi-sector versatility, serving food processing, personal care, pharmaceuticals, and increasingly, renewable energy. Price dynamics are closely tied to feedstock volatility, especially for palm, soybean, and sunflower oils. Regulatory trends promoting health-conscious formulations and sustainability targets, particularly in North America and Europe, are reshaping product offerings. Meanwhile, emerging markets in Asia-Pacific and Latin America are witnessing accelerated demand due to industrial growth and urbanization, contributing to a balanced global expansion outlook.

Grade Insights

The unfractionated segment led the market, accounting for the largest revenue share of 45.6% in 2024. This growth is driven by its extensive use in food and personal care, where the natural triglyceride structure offers superior oxidative stability and shelf life. The ability to use these oils without additional processing makes them ideal for bulk fat systems and emollients. Increasing demand for stable, cost-effective trans-fat-free oils in processed foods and cosmetic bases is a major contributor to this segment’s dominance.

Fractionated segment is expected to grow fastest with a CAGR of 7.6% from 2025 - 2030 during the forecast period. The segment is gaining momentum, offering more targeted functionality through controlled crystallization to extract specific fat fractions. These include high-melting-point fats suited for confectionery, cosmetic sticks, and pharmaceutical creams. Demand for application-specific melting points, texture enhancement, and oxidative stability in formulations is fueling growth.

End Use Insights

The food & beverage segment dominated the market with a revenue share of 53.4% in 2024. Hydrogenated vegetable oils are widely used in bakery shortenings, frying fats, and confectionery coatings due to their shelf stability and consistency. Reformulation trends away from trans fats have further increased reliance on fully hydrogenated and interesterified vegetable oils. Regulatory reforms in trans-fat elimination, paired with rising demand for shelf-stable, neutral-flavor oils, are driving the segment’s expansion.

The personal care and cosmetics segment accounted for 22.8% of market revenue in 2024 and is poised for strong growth. Hydrogenated vegetable oil serves as an effective emollient and structuring agent in skin care, lip balm, and solid formulations due to its smooth texture, mildness, and biodegradability. Growing consumer demand for sustainable, plant-based, non-petroleum ingredients in beauty products is accelerating their adoption in this segment.

The others segment includes specialized applications such as pharmaceutical excipients and nutraceutical carriers. Hydrogenated vegetable oil is valued for their chemical inertness, stability, and GRAS (Generally Recognized As Safe) status, which make them ideal for drug formulations and supplement encapsulation. The increasing need for plant-based pharmaceutical carriers is contributing to modest but steady growth in this segment.

Regional Insights

Asia Pacific hydrogenated vegetable oil market dominated the global landscape with a revenue share of 36.2% in 2024. This is attributed to the region's robust food processing industry, increasing demand for sustainable energy sources, and the abundant availability of feedstocks like palm and soybean oils. Countries such as China, India, and members of the ASEAN bloc are witnessing a surge in their production and consumption, driven by both domestic needs and export opportunities. The region's commitment to renewable energy and sustainable practices further propels the market, with governments implementing policies to reduce carbon emissions and promote biofuel usage.

China Hydrogenated Vegetable Oil Market Trends

China's hydrogenated vegetable oil market is experiencing significant growth, fueled by its vast manufacturing sector and a growing emphasis on clean energy. The country's initiatives to reduce carbon emissions and invest in renewable energy sources have bolstered demand. In addition, China's export of used cooking oil (UCO), a primary feedstock for hydrogenated vegetable oil, has seen substantial growth, indicating a robust supply chain for its production. Chinese biodiesel producers are exploring new markets in Asia and alternative biofuels as the European Union imposes anti-dumping tariffs, leading to a shift in focus towards the marine fuel market in China and Singapore, as well as sustainable aviation fuel (SAF) production.

North America Hydrogenated Vegetable Oil Market Trends

The North American hydrogenated vegetable oil market is projected to grow at a CAGR of 7.3% during the forecast period. This growth is primarily driven by the region's focus on reducing greenhouse gas emissions, supportive government policies, and increasing adoption of renewable fuels in transportation. The presence of major producers and technological advancements further supports market expansion. The U.S. market, in particular, is experiencing significant growth due to federal and state-level mandates promoting renewable fuels. Investments in production facilities and collaborations between energy companies and agricultural sectors have strengthened the market. However, challenges such as fluctuations in feedstock availability and policy uncertainties may impact the growth trajectory.

The U.S. Hydrogenated Vegetable Oil Market is witnessing a notable expansion, driven by strategic initiatives to achieve energy independence and sustainability goals. Federal and state-level mandates promoting renewable fuels have led to increased investments in production facilities and collaborations between energy companies and the agricultural sector. However, the market faces challenges, including protests from U.S. farmers against Chinese imports of used cooking oil, which they claim undermine domestic efforts to produce crops for low-carbon fuels.

Europe Hydrogenated Vegetable Oil Market Trends

Europe’s hydrogenated vegetable oil market is experiencing robust growth, propelled by stringent EU decarbonization mandates, increasing biofuel adoption, and supportive regulatory frameworks such as the Renewable Energy Directive (RED II). Key countries, including Germany, France, and the UK, are actively expanding their hydrogenated vegetable oil infrastructure. Despite this progress, the region faces challenges such as high production costs and limited availability of feedstocks like used cooking oil (UCO), which can meet only a fraction of the growing demand. Nonetheless, Europe’s proactive approach to climate goals and strategic investments in renewable energy infrastructure firmly positions it as a global leader in the hydrogenated vegetable oil space. Ongoing government support and technological advancements are expected to further accelerate its adoption across transportation, industrial, and energy sectors.

The Germany hydrogenated vegetable oils market is demonstrating steady and measurable growth, underpinned by rising demand in both industrial and renewable energy sectors. The country’s industrial food sector, known for its high-quality processing standards, is incorporating hydrogenated vegetable oils into a variety of packaged goods, particularly in the baked goods and confectionery segments, due to their superior oxidative stability and extended shelf life. Moreover, Germany’s transition toward greener fuels is driving its use in biofuel blending, which is in line with EU mandates to reduce carbon emissions from transport fuels.

Latin America Hydrogenated Vegetable Oil Market Trends

The hydrogenated vegetable oil market in Latin America is gaining momentum, with growth primarily driven by the region’s rapidly expanding processed food sector and increased consumption of convenience foods. Brazil and Argentina, in particular, are leveraging their agricultural abundance to increase their production for both food-grade applications and renewable fuel use. Brazil, one of the top soybean producers globally, has ramped up domestic capacity to convert vegetable oils into hydrogenated vegetable oil, aligning with national biodiesel mandates. Furthermore, Latin America’s growing awareness around food security, trans fat regulations, and cleaner cooking oil standards is fostering greater adoption of them across the foodservice and retail sectors. Ongoing investments in agri-processing infrastructure and public-private partnerships around biofuel development further reinforce the region’s strategic shift toward plant-based oil derivatives.

Middle East & Africa Hydrogenated Vegetable Oil Market Trends

The hydrogenated vegetable oil market across the Middle East and Africa is also projected to grow. This growth is primarily attributed to the region’s intensifying efforts to reduce dependence on fossil fuels and diversify energy portfolios through renewable alternatives like hydrogenated vegetable oil-based biodiesel. Countries such as the United Arab Emirates and South Africa are piloting renewable fuel initiatives that include hydrogenated vegetable oils, particularly for public transport fleets and industrial energy usage. On the food and personal care front, they are increasingly used as stabilizers and texturizing agents in bakery products, margarines, and skincare formulations, responding to rising demand from urbanized, health-conscious consumers. Despite logistical constraints in domestic refining, the region’s high reliance on imported vegetable oils is being balanced by greater policy emphasis on sustainable production and foreign investments in green energy solutions.

Key Hydrogenated Vegetable Oil Company Insights

Some of the key players operating in the market include ADM (Archer Daniels Midland), Bunge, ABITEC, and others.

• ADM is a global food processing and agricultural commodities company headquartered in Chicago, operating in over 190 countries. It specializes in sourcing, transportation, processing, and distribution of oilseeds, corn, wheat, and other agricultural products. ADM’s portfolio includes plant-based proteins, specialty oils, sweeteners, and nutrition solutions for food, feed, fuel, and industrial uses. The company emphasizes traceability, vertical integration, and sustainability in raw material sourcing and production. ADM’s hydrogenated vegetable oil segment serves key applications in bakery, confectionery, and personal care, offering stable fat systems designed to improve product structure, shelf life, and heat resistance in finished formulations.

AAK AB is one of the emerging market participants in the hydrogenated vegetable oil market industry. 

• AAK AB, based in Malmö, Sweden, develops and supplies plant-based oils and fats for the food, nutrition, and personal care industries. The company operates in over 100 countries, delivering customized fat systems that improve functionality, mouthfeel, and nutritional profiles in end products, confectionery, dairy alternatives, infant nutrition, and cosmetics. AAK’s hydrogenated vegetable oil segment provides consistent, high-stability fats used in bakery creams, coatings, and margarine formulations where controlled crystallization and oxidative stability are critical.

Recent Development

• In April 2025, Bunge partnered with Repsol to develop renewable fuels using hydrogenated vegetable oils. The collaboration focuses on processing camelina and safflower into low-carbon intensity oils, serving as feedstock for hydrotreated vegetable oil production, thereby advancing sustainable energy solutions.

Hydrogenated Vegetable Oil Market Report Scope

Global Hydrogenated Vegetable Oil Market Report Segmentation

This report forecasts volume & revenue growth at a global level and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global hydrogenated vegetable oil market report based on grade, end use, and region:

• Grade Outlook (Volume, Kilotons; Revenue, USD Million; 2018 - 2030)

  • Unfractionated

  • Fractionated

  • Others

• End Use Outlook (Volume, Kilotons; Revenue, USD Million; 2018 - 2030)

  • Food & Beverage

  • Personal Care and Cosmetics

  • Industrial

  • Others

• Region Outlook (Volume, Kilotons; Revenue, USD Million; 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • France

    • UK

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Latin America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Saudi Arabia

    • South Africa