Saudi Arabia Vegetable Oil Market

Saudi Arabia Vegetable Oil Market Overview:

The Saudi Arabia vegetable oil market size reached USD 2.52 Billion in 2024. Looking forward, the market is projected to reach USD 4.41 Billion by 2033, exhibiting a growth rate (CAGR) of 5.73% during 2025-2033. The market is driven by widespread household and institutional demand supported by diverse culinary traditions and rising health awareness. Domestic refining capabilities backed by strong import infrastructure ensure supply continuity and brand competitiveness. Expanding industrial applications in food processing, personal care, and renewable fuels are further augmenting the Saudi Arabia vegetable oil market share.

Saudi Arabia Vegetable Oil Market Trends:

High Household Consumption and Dietary Integration

In Saudi Arabia, vegetable oil plays a central role in traditional and modern cooking practices, underpinning everyday meals from kabsa and samboosa to fried chicken and sweets. Sunflower, corn, soybean, and palm oils are widely used for deep frying, sautéing, and baking in both homes and commercial kitchens. With a young population, high caloric intake, and a growing foodservice sector, demand for vegetable oil remains steady across socio-economic groups. Branded oils dominate modern trade, while bulk sales cater to institutional buyers such as restaurants and catering companies. Health awareness campaigns and rising rates of lifestyle-related diseases have influenced some consumers to transition from generic palm oil to sunflower and canola, which are perceived as lighter and healthier. Food preparation trends influenced by global cuisines, such as Mediterranean, Korean, and Japanese, also introduce new oil preferences. E-commerce channels and hypermarkets have expanded product variety, offering cold-pressed and non-GMO options. Cooking oil remains a pantry staple across rural and urban settings, supported by strong household expenditure on food. This widespread usage across demographics and culinary formats continues to serve as a reliable engine of Saudi Arabia vegetable oil market growth.

Reliance on Imports and Expanding Refining Capabilities

Saudi Arabia’s arid climate limits the cultivation of oilseeds, necessitating high reliance on imported crude and refined vegetable oils. The Kingdom primarily imports palm oil from Southeast Asia and soybean and sunflower oil from South America and Eastern Europe. To reduce import costs and enhance supply security, domestic players have invested in port-based refining and bottling plants, particularly in Jeddah and Dammam. Companies like Savola Group and United Food Industries play a pivotal role in refining imported crude oil and distributing packaged edible oils under widely recognized retail brands. These firms manage supply chains from international procurement to domestic market penetration. Vision 2030’s industrial localization goals have led to infrastructure investments and regulatory reforms that support food processing and agri-industrial expansion. Moreover, Saudi Food and Drug Authority (SFDA) oversight ensures standardized quality, traceability, and labeling in the edible oil category. National initiatives such as the Food Security Strategy also seek to stabilize essential commodity supply chains, including vegetable oil. These developments have made Saudi Arabia more self-sufficient in processing while maintaining flexibility in global sourcing, reinforcing resilience in the overall market structure.

Industrial Applications in Foodservice, Cosmetics, and Bio Derivatives

Beyond home kitchens, vegetable oil is widely consumed by Saudi Arabia’s growing foodservice and food manufacturing sectors. Fast food outlets, cafeterias, and hotel kitchens require large volumes of high-stability frying oil to meet daily operational demands. In parallel, food manufacturers incorporate vegetable oils into margarine, mayonnaise, snacks, and processed meat products. These industrial uses support volume demand and create avenues for product innovation, including trans-fat-free and antioxidant-fortified oils. Outside of the food sector, the cosmetics and personal care industry uses vegetable oils—especially coconut, sunflower, and argan—as emollients in creams, lotions, and hair oils, aligning with rising demand for halal-certified and natural formulations. Additionally, there is growing interest in utilizing used cooking oil (UCO) for biodiesel blending and industrial lubricants, although commercial implementation is still emerging. The convergence of food, cosmetic, and renewable fuel industries around vegetable oil derivatives is gradually expanding downstream applications. These diversified end-uses offer steady industrial demand beyond household consumption, enhancing the oil’s long-term strategic value in line with national goals of economic diversification and reduced dependence on imports of finished goods.

Saudi Arabia Vegetable Oil Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2025-2033. Our report has categorized the market based on oil type and application.

Oil Type Insights:

• Palm Oil
• Soybean Oil
• Sunflower Oil
• Canola Oil
• Coconut Oil
• Palm Kernel Oil

The report has provided a detailed breakup and analysis of the market based on the oil type. This includes palm oil, soybean oil, sunflower oil, canola oil, coconut oil, and palm kernel oil.

Application Insights:

• Food Industry
• Biofuels
• Others

The report has provided a detailed breakup and analysis of the market based on the application. This includes food industry, biofuels, and others.

Regional Insights:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

The report has also provided a comprehensive analysis of all major regional markets. This includes Northern and Central Region, Western Region, Eastern Region, and Southern Region.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Saudi Arabia Vegetable Oil Market Report Coverage:

Key Questions Answered in This Report:

• How has the Saudi Arabia vegetable oil market performed so far and how will it perform in the coming years?
• What is the breakup of the Saudi Arabia vegetable oil market on the basis of oil type?
• What is the breakup of the Saudi Arabia vegetable oil market on the basis of application?
• What is the breakup of the Saudi Arabia vegetable oil market on the basis of region?
• What are the various stages in the value chain of the Saudi Arabia vegetable oil market? 
• What are the key driving factors and challenges in the Saudi Arabia vegetable oil market?
• What is the structure of the Saudi Arabia vegetable oil market and who are the key players?
• What is the degree of competition in the Saudi Arabia vegetable oil market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Saudi Arabia vegetable oil market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Saudi Arabia vegetable oil market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Saudi Arabia vegetable oil industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.