Plant-Based Bakery Oils Market Size (2026-2030)

In 2025, the global Plant-Based Bakery Oils Market was estimated at approximately USD 1.23 billion, and it is projected to grow at a CAGR of around 7.3% during 2026–2030, reaching an estimated USD 1.75 billion by 2030.

This market is gaining impetus from the increasing use of vegetable and non-animal-derived oils in bakery products, driven by health-conscious consumers, clean-label trends, and sustainability concerns surrounding conventional tropical oils.

Bakery manufacturers are increasingly replacing hydrogenated fats and animal-derived fats (like butter or lard) with plant-based oils, which offer lower saturated fat, better process stability, and compatibility with vegan and flexitarian bakery formulations. At the same time, growing consumer demand for plant-based bakery products, coupled with expanded retail distribution channels and e-commerce growth, is creating incremental demand for specialized oils that meet functional performance, clean-label claims, and sustainability standards.

Renewable sourcing and certifications (RSPO-certified palm, non-GMO canola, etc.) are also exerting influence as bakery makers respond to supply-chain transparency and environmental concerns. As such, plant-based bakery oils are not only being selected for functionality but increasingly as a brand differentiator in clean-label and plant-based bakery product portfolios.

Key Market Insights

• Bakery manufacturers increasingly favour non-hydrogenated plant-based oils, reducing trans-fat content and responding to reformulation mandates.
• Sunflower oil and rice bran oil are gaining traction due to their neutral taste, high oxidative stability, and suitability for high-temperature baking operations.
• The cakes & pastries segment remains the largest application for plant-based bakery oils, driven by high production volumes and margin pressures.
• Online retail platforms for bakery ingredients and specialty oils are growing at over 15% annually, enabling niche claims (vegan, clean-label) to reach artisan and boutique bakeries.
• Europe leads globally in plant-based bakery oil adoption, supported by strong flexitarian eating habits and clean-label regulations.
•  Innovative ingredient platforms are enabling plant-based fat substitutes that replicate the texture and mouth-feel of animal fats in bakery goods, offering up to 80% less saturated fat while maintaining sensory quality.
• The bakery sector is increasingly placing sustainable sourcing and traceability at the core of ingredient selection, with suppliers offering plant oils and fats certified for low environmental impact and full chain transparency.
• As vegan and flexitarian lifestyles grow, more bakery manufacturers are launching plant-based-friendly products (cookies, breads, pastries) that rely on plant-derived fats and oils instead of traditional butter or animal-derived shortenings. Source
• Ingredient innovation is focusing on functional performance of bakery oils, for example, high-oleic sunflower oil, rice-bran oil blends and speciality oils that withstand high-temperature baking, offer longer shelf-life, and support clean-label claims.

Market Drivers

The growing global shift toward healthier eating habits and ingredient transparency is redefining the bakery industry.

Modern consumers, particularly millennials and Gen Z, are increasingly avoiding bakery products containing saturated fats, trans fats, and hydrogenated oils, due to their links with cardiovascular and metabolic health risks. Instead, they are gravitating toward bakery items labeled as “plant-based,” “vegan,” “non-GMO,” “no hydrogenated fats,” or “cholesterol-free.” This changing preference is compelling bakery manufacturers to reformulate traditional recipes using oils derived from sunflower, canola, rice bran, olive, and soy. These oils are naturally rich in unsaturated fatty acids and omega-3s, offering improved nutritional profiles without compromising texture or flavor. Brands are also highlighting these oils as “clean ingredients,” aligning with consumer expectations for natural, minimally processed foods. In addition, regulatory changes in North America and Europe, including trans-fat bans and stricter nutrition labelling, are accelerating this transition. As a result, plant-based bakery oils are emerging as both a functional and marketing advantage, enabling brands to meet health-conscious consumer demands while maintaining indulgent sensory appeal.

Sustainability has become a core purchasing criterion for both consumers and food manufacturers.

Increasing public concern over deforestation, biodiversity loss, and greenhouse gas emissions, particularly from palm oil cultivation, has intensified scrutiny on bakery ingredient sourcing. In response, leading bakery producers are turning to plant-based oils with verified sustainability credentials, such as RSPO (Roundtable on Sustainable Palm Oil), ISCC (International Sustainability and Carbon Certification), and Rainforest Alliance Certified Oils.This shift is also being reinforced by corporate ESG goals, as large food brands commit to reducing their carbon footprints and ensuring ethical sourcing across their supply chains. Retailers and quick-service restaurants are demanding full traceability, pushing suppliers toward certified and transparent plant oil sourcing. Moreover, consumers increasingly link sustainability with brand trust and product quality. As a result, bakery manufacturers adopting non-palm oil alternatives (like canola, rapeseed, and high-oleic sunflower oil) or sustainably certified palm-based shortenings are gaining competitive advantage. This focus on responsible sourcing not only strengthens brand image but also mitigates regulatory and reputational risks, making sustainability a powerful long-term growth driver for the plant-based bakery oils market.

Market Restraints

Despite strong growth dynamics, challenges remain. Plant-based bakery oils may face higher raw-material cost volatility, especially when sourcing premium or certified sustainable oils (e.g., extra-virgin olive oil, non-GMO canola, RSPO palm). Some replacements also require reformulation and process adaptation, increasing R&D and manufacturing expenses. Additionally, taste and texture consistency remain concerns for bakery makers when switching from deeply familiar butter or hydrogenated fats. In emerging markets, limited awareness of plant-based bakery oil benefits and less developed distribution channels may further restrain rapid adoption.

Market Opportunities

There is a sizeable opportunity for innovation in functional and speciality plant-based bakery oils that cater to advanced bakery applications, such as reduced-oil muffins, clean-label donuts, vegan croissants, and air-baked cookies. Oils optimized for air-fryer ready applications, low-saturated-fat formulations, and premium gourmet bakery niches (olive oil-infused pastries, rice-bran refined shortcrust) offer manufacturers a route to command higher margins and differentiate in crowded markets. Another opportunity lies in regional flavour customisation, where bakery oils are tailored to local taste preferences (such as peri-peri spiced fries in frozen potatoes, bakery context, olive oil Mediterranean pastries, sunflower rich-texture cookies) and private-label bakery manufacturers looking to align oil sourcing with retail branding strategies. E-commerce and D2C ingredient platforms also open access for artisan and small-batch bakers to premium plant-based oils previously reserved for large industrial users.

PLANT-BASED BAKERY OILS MARKET REPORT COVERAGE:

Plant-Based Bakery Oils Market Segmentation

Plant-Based Bakery Oils Market segmentation By Product Type

• Palm-Free Oils
• Canola Oil
• Sunflower Oil
• Rice Bran Oil
• Olive Oil & Other Gourmet Oils

Palm-free bakery oils dominate in regions where sustainability concerns are highest, and many bakery manufacturers are swiftly pivoting away from traditional palm oils due to brand risk. These oils also help maintain baking performance while aligning with clean-label mandates.
Olive oil and gourmet oils are the fastest-growing category in bakery oil types because consumers and premium brands are seeking distinctive taste profiles, premium positioning, and healthier fat profiles. These oils add value to premium bakery lines and artisan products.

Plant-Based Bakery Oils Market segmentation By Application

• Bread & Rolls
• Cakes & Pastries
• Cookies & Biscuits
• Doughnuts & Muffins
• Others

The Cakes & Pastries application dominates because cakes and pastries represent high-volume production lines in bakery plants, requiring oils that deliver consistent texture, shelf life, and cost efficiency. Plant-based bakery oils are heavily used in this segment.

The cookies and biscuits segment is growing the fastest, driven by snack culture, e-commerce impulse purchases, and reformulated plant-based ingredient products. Manufacturers are increasingly replacing traditional fats with plant-based oils to meet vegan and clean-label demands.

Plant-Based Bakery Oils Market segmentation By Distribution Channel

• Supermarkets/Hypermarkets
• Convenience Stores
• Online Retail
• Foodservice

Supermarkets and hypermarkets hold the largest market share in the distribution of plant-based bakery oils. These outlets serve as the primary purchasing channel for both individual consumers and small bakeries, offering easy access to a wide range of brands, pack sizes, and oil blends. Prominent shelf placement, promotional pricing, and brand visibility drive large-volume sales, particularly in urban markets. Retail giants are also expanding their private-label plant-based product lines, featuring sustainable and palm-free bakery oils to attract eco-conscious shoppers. The in-store availability and customer trust associated with well-established supermarket chains make this channel the market leader.

Online retail is the fastest-growing channel, driven by the surge in e-commerce grocery platforms and direct-to-consumer ingredient brands. Home bakers, small food entrepreneurs, and vegan lifestyle consumers increasingly prefer ordering plant-based oils online for convenience and access to niche or premium variants like cold-pressed, non-GMO, or certified organic oils. Subscription-based models and eco-friendly delivery options further enhance the digital retail appeal. The growth of online marketplaces such as Amazon Fresh, Instacart, and specialty vegan stores is reshaping how bakery ingredients are purchased, especially among health-focused and tech-savvy demographics.

Plant-Based Bakery Oils Market segmentation Regional Analysis

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Regionally, Europe leads plant-based bakery oil adoption due to strong clean-label, vegan and flexitarian trends, particularly in Germany, the UK, and Scandinavia. North America follows closely, supported by bakery manufacturing automation, private-label growth, and health-driven consumer shifts. Asia-Pacific is the fastest-growing region, driven by urbanisation, growing bakery chains, and the rise of Western-style pastries. Latin America and the Middle East & Africa are emerging but face infrastructure and supply-chain constraints for speciality oils.

COVID-19 Impact Analysis

The COVID-19 pandemic accelerated demand for plant-based bakery oils as home baking surged, and consumers sought safer, healthier alternatives to processed snacks. Bakery manufacturers pivoted to plant-based reformulation to meet increased at-home consumption and shift toward “better-for-you” bakery items. Supply-chain disruptions and raw-material pricing volatility created short-term challenges, but the long-term focus on plant-based, clean-label ingredients strengthened bakery producers’ commitment to plant-based oils.

Latest Trends & Developments

The plant-based bakery oil market is responding to multiple converging trends. Sustainability continues to dominate, with manufacturers and retailers prioritising oils derived from certified sustainable sources, recycled materials, and fully traceable supply chains. In parallel, there is growing interest in functionality, where bakery oils are developed for specific applications, such as air-fryer-ready pastries, reduced-saturated-fat cookies, and vegan doughnuts. Manufacturers are launching flavoured and coated oils (e.g., olive oil infused with herbs, rice-bran oil with high oxidative stability) to enable new product premiumisation in bakery portfolios. E-commerce and direct-to-consumer platforms are also expanding access to specialty plant-based oils previously limited to industrial buyers. These developments signal that plant-based bakery oils are not just a reformulation tool, but an innovation driver for bakery product differentiation and market growth.

Latest Market News

• March 2024 – Major bakery manufacturer partnered with a plant-oil specialist to launch a palm-free croissant range using sunflower and canola bakery oils.
  This collaboration marks a major step toward palm-free bakery innovation, addressing both environmental and health-conscious consumer trends. The new croissant line maintains the rich texture traditionally achieved with butter or margarine, but substitutes them with a blend of high-oleic sunflower and canola oils. This initiative demonstrates how industrial bakeries can maintain flavor and flakiness while meeting retailer sustainability commitments and consumer demand for “cleaner indulgence.”
• November 2024 – Global retailer announced private-label bakery oil transition to certified sustainable palm-free oil for its own-brand brownies and cookies.
  A major international supermarket chain revealed plans to fully replace palm-derived shortening in its private-label bakery items with certified sustainable plant oil alternatives. This shift reinforces growing corporate alignment with deforestation-free supply chains and transparent ingredient sourcing. The retailer emphasized that consumer loyalty and ESG reporting expectations were key motivators behind this transition, further validating the market’s move toward ethical ingredient procurement.
• January 2025 – Artisan bakery franchise in North America launched a premium olive-oil-based pastry line, citing consumer demand for health-conscious indulgence.
  This launch showcases how plant-based bakery oils are entering the premium artisanal segment. Olive oil-based pastries and desserts appeal to consumers seeking indulgence without guilt, offering heart-healthy fats and rich flavor profiles. The franchise also leveraged “Mediterranean wellness” branding to enhance perceived quality, illustrating how smaller bakery chains can differentiate through plant-based innovation and storytelling around health, taste, and tradition.

Key Players

1. Cargill
2. Archer Daniels Midland Company (ADM)
3. Bunge Limited
4. Wilmar International
5. AAK AB
6. Puratos
7. Oleico GmbH
8. Ventura Foods
9. Benexia Ltd
10. Kerry Group