The Australia cooking oil market is set to experience substantial growth in the coming decade, valued at AUD 6.60 billion in 2024. This market is projected to grow at a compound annual growth rate (CAGR) of 4.80% between 2025 and 2034, reaching an estimated AUD 10.55 billion by 2034. This growth is being fueled by various factors, including the extended shelf life of cooking oils, rising consumer demand for eco-friendly production practices, and a growing focus on sustainability. With increasing awareness about health, food waste reduction, and environmental impact, both producers and consumers are shifting towards more sustainable, high-quality cooking oil options.
In this article, we’ll explore the key trends and drivers in the Australian cooking oil market, how sustainability is reshaping the industry, and what lies ahead for the sector.
What is the Cooking Oil Market?
The cooking oil market refers to the production, distribution, and consumption of oils used for cooking, frying, and food preparation. Cooking oils are derived from a variety of plant-based sources, such as sunflower, canola, olive, palm, soybean, and avocado oils, among others. They are essential ingredients in kitchens worldwide and are widely used in commercial food production, restaurants, and households.
In Australia, the cooking oil market is characterized by a diverse range of products that cater to different cooking needs, dietary preferences, and price points. These oils are not only used for cooking but are also key ingredients in processed foods, snacks, and other consumables.
Market Overview: The Growth of the Australia Cooking Oil Industry
In 2024, the Australia cooking oil market is estimated at AUD 6.60 billion. The market’s growth trajectory is set to continue, with a CAGR of 4.80% forecasted from 2025 to 2034. This growth reflects the increasing demand for a variety of cooking oils, driven by factors such as health trends, longer shelf lives, and a rising preference for more sustainable and eco-conscious production methods.
Australia’s robust food culture, combined with a growing awareness of the environmental impact of food production, has fueled a shift toward more responsible sourcing and packaging in the cooking oil industry. The market is evolving to accommodate these demands, with a rising focus on oils that meet both the functional and ethical preferences of Australian consumers.
Key Drivers of Growth in the Australia Cooking Oil Market
1. Extended Shelf Life and Food Waste Reduction
One of the key factors driving growth in the Australian cooking oil market is the extended shelf life of modern cooking oils. The development of oils that stay fresh for longer periods helps reduce food waste, particularly in households and commercial kitchens. Consumers are more conscious than ever about minimizing waste and making the most of their food products. Cooking oils with longer shelf lives contribute to this by ensuring that they remain usable for extended periods, reducing the need for frequent replacements.
Furthermore, cooking oils often play a role in preserving the shelf life of other food products, further contributing to food waste reduction. With increasing consumer interest in reducing food waste, oils that offer longer freshness and usability are becoming increasingly popular.
2. Health and Wellness Trends
In recent years, Australians have become more health-conscious, with a growing preference for oils that offer health benefits. Cooking oils with lower saturated fats, higher unsaturated fats, and beneficial nutrients such as omega-3 fatty acids and antioxidants are seeing increased demand. Oils like olive oil, avocado oil, and canola oil are especially favored for their heart-healthy properties.
Additionally, consumers are seeking oils that cater to various dietary preferences, such as gluten-free, vegan, and non-GMO options. The popularity of these healthier cooking oils is contributing significantly to market growth.
3. Sustainability and Eco-Friendly Production Practices
Sustainability is a growing trend in the global food industry, and the Australian cooking oil market is no exception. Increasingly, consumers are looking for products that are sustainably sourced, produced with minimal environmental impact, and packaged in eco-friendly materials. This includes a preference for organic, non-GMO, and fair-trade cooking oils, which are seen as more ethical and environmentally responsible.
For instance, many brands are shifting to more sustainable practices, such as sourcing palm oil from certified sustainable plantations, reducing plastic packaging, and investing in renewable energy for production processes. The move toward plant-based oils also contributes to sustainability, as these oils tend to have a smaller environmental footprint than animal-based alternatives.
As the demand for eco-conscious products rises, companies are focusing on sustainable farming practices, reducing water usage, and using less energy in production to align with consumer expectations for environmentally friendly products.
4. Growth of Plant-Based and Specialty Oils
Another driver of growth in the Australian cooking oil market is the increasing popularity of plant-based and specialty oils. Oils like avocado oil, hemp oil, and flaxseed oil are gaining traction for their health benefits and unique flavor profiles. These oils are often seen as healthier alternatives to traditional oils due to their higher nutrient content, including essential fatty acids, vitamins, and minerals.
Plant-based oils are also appealing to consumers who are embracing plant-based diets and looking for non-animal alternatives in their cooking. As the demand for specialty oils continues to rise, producers are diversifying their offerings to cater to the growing trend of healthier and more specialized cooking ingredients.
5. Innovative Packaging and Convenience
Convenience and packaging innovation are also contributing to the growth of the Australian cooking oil market. As consumers become more focused on convenience, oils are being offered in packaging formats that make them easier to store, dispense, and use. Options like eco-friendly glass bottles, recyclable containers, and easy-pour spouts are becoming increasingly popular.
Smaller, single-use packaging is also on the rise, catering to consumers looking for portion-controlled options, particularly in busy households or for commercial kitchens. The trend toward innovation in packaging aligns with the growing demand for sustainable and eco-conscious products, with packaging being a critical component of the overall environmental impact.
Key Segments in the Australian Cooking Oil Market
The Australia cooking oil market can be segmented based on the type of oil, including:
Vegetable Oil: Vegetable oils, including sunflower oil, soybean oil, and canola oil, are widely used in Australian kitchens. These oils are versatile, affordable, and commonly used for frying, sautéing, and baking.
Olive Oil: Olive oil is highly popular in Australia, known for its heart-healthy properties, rich flavor, and versatility in cooking. Extra virgin olive oil is particularly favored for its antioxidants and high-quality profile.
Palm Oil: While palm oil has been the subject of sustainability debates, it remains a key player in the cooking oil market due to its high stability at high temperatures. However, growing concerns about deforestation and environmental impact have prompted efforts to source sustainable palm oil.
Specialty Oils: Oils like avocado oil, coconut oil, flaxseed oil, and hemp oil are gaining popularity for their perceived health benefits. These oils often feature higher levels of monounsaturated fats and other beneficial nutrients, making them appealing to health-conscious consumers.
Organic and Non-GMO Oils: With growing demand for organic and non-GMO products, this segment is expected to experience increased growth. Organic oils are produced without synthetic pesticides and fertilizers, making them a preferred choice for environmentally conscious consumers.
Regional Insights: Cooking Oil Consumption Across Australia
Australia’s cooking oil market is primarily concentrated in metropolitan areas such as Sydney, Melbourne, Brisbane, and Perth. These cities have the largest population centers and are home to a wide variety of supermarkets, specialty stores, and restaurants that cater to diverse consumer preferences.
However, the growing trend of healthier and more sustainable products is also reaching regional and rural areas, where consumers are becoming more educated about the environmental and health benefits of plant-based and eco-friendly cooking oils. As a result, regional areas are increasingly adopting healthier oils, contributing to the overall market growth.
Future Outlook: What Lies Ahead for the Australian Cooking Oil Market?
The future of the Australia cooking oil market is promising, with CAGR of 4.80% expected to propel the market to AUD 10.55 billion by 2034. Key factors driving this growth include the continued shift towards healthier cooking oils, increasing demand for eco-friendly production practices, and the reduction of food waste through longer shelf life and better storage.
