Australia Cooking Oil Market Trends, Size, Share and Industry Report

Australia Cooking Oil Market Outlook

The Australia cooking oil market size is projected to grow at a compound annual growth rate (CAGR) of 4.7% from 2025 to 2034. This growth is driven by the increasing demand for cooking oils due to the rising consumption of processed and packaged food, increasing health consciousness, and the expanding foodservice industry. Additionally, the growing trend towards healthier, plant-based cooking oils and a shift towards more sustainable production practices are contributing to the overall market growth.

As Australians become more aware of the health benefits of different oils, the demand for healthier options, such as olive oil, canola oil, and sunflower oil, is on the rise. At the same time, palm oil, soy oil, and peanut oil remain popular choices in various culinary applications. The market is also benefiting from the increasing availability of cooking oils through modern retail channels, including supermarkets, hypermarkets, and online platforms.

Australia Cooking Oil Market Trends

Several key trends are shaping the Australian cooking oil market, driven by consumer preferences for healthier, more sustainable options, as well as technological advancements in production.

Health-Conscious Consumers Driving Demand for Healthier Oils: With growing awareness of the health risks associated with trans fats and excessive saturated fat intake, Australian consumers are becoming more conscious of their cooking oil choices. This trend is driving the demand for healthier cooking oils, such as olive oil, sunflower oil, and canola oil, which are lower in saturated fats and higher in unsaturated fats. The demand for oils with omega-3 fatty acids, antioxidants, and anti-inflammatory properties is increasing as more consumers prioritize heart health and overall well-being.
Sustainability and Ethical Sourcing: As with many other sectors, sustainability has become a key consideration in the cooking oil market. Consumers are increasingly looking for oils that are sourced ethically, with a growing demand for oils that are certified organic, non-GMO, or produced using sustainable farming practices. Olive oil, in particular, is gaining traction due to its health benefits and sustainable production processes. The market is expected to see more companies offering eco-friendly and ethically sourced oils to meet this growing consumer preference.
Growth of Plant-Based Oils: As the plant-based food movement continues to rise, so does the demand for plant-based cooking oils. Oils such as olive oil, rapeseed oil (canola), and sunflower oil are being chosen for their plant-based origins, as consumers seek plant-based products to support their healthy and environmentally conscious lifestyles. This shift is expected to further propel the growth of plant-based oils in the Australian cooking oil market.

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Australia Cooking Oil Market Growth

The Australian cooking oil market is expected to grow at a CAGR of 4.7% from 2025 to 2034. This growth is driven by several factors, including the increasing demand for healthier oils, the expansion of the foodservice industry, and the growing popularity of plant-based oils. The market's expansion is also supported by the rise of e-commerce and the increasing availability of cooking oils through modern retail channels.

As the health and wellness trend continues to influence consumer preferences, demand for healthier cooking oils, such as olive oil, sunflower oil, and rapeseed oil, is expected to increase. At the same time, the traditional use of palm oil, soy oil, and peanut oil remains significant, particularly in the food manufacturing and snack foods sectors.

Australia Cooking Oil Market Segmentation

The Australian cooking oil market can be segmented by type, application, distribution channel, and region. These segments provide valuable insights into the drivers of demand and help identify key opportunities for growth in the market.

Breakup by Product Type

Palm Oil: Palm oil remains one of the most widely used oils in Australia, particularly for use in processed foods, snacks, and frying. While palm oil has faced criticism for its environmental impact, its low cost and versatile properties continue to make it a popular choice in both the foodservice and packaged food industries. However, the increasing demand for sustainable and ethical sourcing may drive a shift toward more environmentally friendly alternatives.
Soy Oil: Soy oil is widely used in both cooking and food processing. It is a versatile oil that is often used in frying, salad dressings, and margarine. Soy oil is also used as a base in many processed foods. The demand for soy oil is expected to remain steady, particularly in the foodservice and manufacturing sectors, where its affordability and versatility make it a preferred choice.
Sunflower Oil: Sunflower oil is gaining popularity in Australia due to its mild flavor, high smoke point, and health benefits, including its high content of polyunsaturated fats and vitamin E. It is often used in salad dressings, frying, and baking. Sunflower oil is increasingly being chosen by health-conscious consumers, and its demand is expected to continue growing.
Peanut Oil: Peanut oil is used primarily in frying, particularly in Asian and restaurant-style cuisine, due to its high smoking point and nutty flavor. While it is not as widely used as other oils, it remains popular in certain cooking applications. Peanut oil's use in frying is expected to continue, particularly in the foodservice industry.
Olive Oil: Olive oil, particularly extra virgin olive oil, is increasingly popular due to its health benefits, including its high content of monounsaturated fats and antioxidants. Olive oil is also gaining popularity due to its versatile use in cooking, salad dressings, and as a finishing oil. The demand for olive oil is expected to continue growing as consumers seek healthier alternatives to other cooking oils.
Rapeseed Oil: Rapeseed oil, also known as canola oil, is widely used in cooking due to its mild flavor and health benefits. It is low in saturated fat and high in omega-3 fatty acids, making it a popular choice for health-conscious consumers. Canola oil is commonly used in cooking, frying, and baking, and its demand is expected to grow in line with the increasing focus on heart-healthy oils.
Others: Other types of cooking oils, including avocado oil, coconut oil, and flaxseed oil, are gaining popularity in Australia. These oils offer unique health benefits, such as high monounsaturated fats and omega-3 fatty acids, and are expected to see increased demand in the market as consumers seek variety and functional benefits from their cooking oils.

Breakup by Application

Bakery and Confectionery: Cooking oils are widely used in the bakery and confectionery industry for baking, frying, and the production of margarine and fillings. The demand for cooking oils in this segment is expected to grow as the bakery and snack food industries expand. The growing preference for healthier oils in baking and confectionery applications will likely drive the use of oils such as sunflower, olive, and canola oils.
Snack Foods: Snack foods, including chips, crackers, and other fried snacks, rely heavily on cooking oils. The demand for cooking oils in the snack food industry is expected to remain strong, driven by the continued popularity of processed snack foods. The growing demand for healthier and lower-fat snack options may lead to a shift toward oils such as sunflower oil, rapeseed oil, and olive oil.
Salads: Oils such as olive oil, sunflower oil, and canola oil are commonly used in salad dressings and as toppings for salads. With the growing interest in healthy eating and plant-based diets, the demand for oils used in salads is expected to grow. Olive oil, in particular, is favored for its health benefits and flavor profile.
Margarine, Fillings and Spreads: Cooking oils are a key ingredient in the production of margarine, fillings, and spreads. The demand for oils in this segment is expected to remain steady, with an increasing focus on healthier oils and lower-fat alternatives. Oils such as sunflower oil, canola oil, and olive oil are commonly used in the production of these products.
Others: Other applications for cooking oils include use in frying, stir-frying, and food preparation in various culinary settings. Oils are also used in processed food manufacturing and as ingredients in various food products.

Breakup by Distribution Channel

Supermarkets and Hypermarkets: Supermarkets and hypermarkets are the largest distribution channel for cooking oils in Australia, offering a wide range of brands and types of cooking oils. The convenience of one-stop shopping and the ability to compare products make supermarkets and hypermarkets the preferred choice for most consumers.
Convenience Stores: Convenience stores are another important distribution channel for cooking oils, particularly for consumers looking for quick, last-minute purchases. These stores typically offer smaller sizes of cooking oils for households and individuals who need immediate access to cooking supplies.
Online Channels: The rise of online shopping has extended to the cooking oil sector. Consumers increasingly prefer purchasing cooking oils online for the convenience, variety, and competitive pricing. E-commerce platforms are expected to continue growing as a key channel for cooking oil distribution in Australia.
Others: Other distribution channels include direct sales from manufacturers or through specialized stores that focus on health foods and sustainable products. These channels are particularly important for premium, organic, and specialty cooking oils.

Breakup by Region

New South Wales: New South Wales, with its large population and vibrant foodservice industry, is a key market for cooking oils in Australia. The demand for cooking oils is driven by the state's growing food production and consumption.

Victoria: Victoria, home to Melbourne, is another important region for the cooking oil market, particularly due to its emphasis on sustainable and healthy eating trends. The demand for cooking oils is strong in both residential and commercial sectors.
Queensland: Queensland's growing population and tourism industry contribute to the demand for cooking oils. The region's focus on health-conscious eating is driving the adoption of healthier cooking oils.
Australian Capital Territory: The Australian Capital Territory, including Canberra, represents a smaller but significant market for cooking oils, with demand driven by government, residential, and hospitality sectors.
Western Australia: Western Australia, with its mining and industrial sectors, also contributes to the demand for cooking oils, particularly in commercial applications.
Others: Other regions, including Tasmania and Northern Territory, also contribute to the overall demand for cooking oils, though their market share is smaller compared to the major states.

Australia Cooking Oil Market Key Players

Plenty Foods Pty Ltd.: Plenty Foods is a leading supplier of a variety of cooking oils in Australia, offering both conventional and healthy oils such as olive oil and canola oil.
Cobram Estate Olives Limited: Cobram Estate is a major producer of high-quality olive oils in Australia. The company is known for its premium extra virgin olive oil and is a leader in the Australian market for healthy and sustainable cooking oils.
Koala Gold: Koala Gold is a popular Australian brand offering a wide range of cooking oils, including olive oil and sunflower oil. The company emphasizes quality and sustainability in its product offerings.
Grampians Olive Co.: Grampians Olive Co. is a leading supplier of premium olive oils in Australia, known for its high-quality, cold-pressed olive oils.
Alba Edible Oils: Alba Edible Oils is a key player in the Australian cooking oil market, offering a variety of oils such as canola, sunflower, and olive oil.
Others: Other notable players in the market include domestic and international brands offering a diverse range of cooking oils to meet the growing consumer demand for quality and health-conscious options.