Oil & Fat Production in the UK - Market Size, Industry Analysis, Trends and Forecasts (2025-2029)

Oil & Fat Production in the UK industry analysis

Health-consciousness and sustainability have established themselves as increasingly critical pillars shaping the European Vegetable and Animal Oil and Fat Production industry. Oil and fat processors have been challenged with adapting to EU regulations favouring sustainable farming and production practices. Consumers' swelling health consciousness has also influenced product development and diversification. These shifts, coupled with sticky inflation, have curbed oil and fat sales. Over the five years through 2025, revenue is expected to climb at a compound annual rate of 6%, including a projected slump of 1.4% in 2025, to reach €112.4 billion. Unprecedented growth was achieved over the two years through 2022, propelled by record-high prices for staples like palm, rapeseed and sunflower oils amid global supply chain bottlenecks and the fallout from Russia’s invasion of Ukraine. Established producers, particularly those vertically integrated, like ADM, Wilmar and Cargill, seized on these market conditions to boost profit, despite only modest changes in production volumes.

Trends and Insights

• Biodiesel imports are curbing demand from the biofuel market. Swelling imports from China are shaking up Europe’s oil and fat processors as they grapple with volatile demand from this major market.
• Palm oil's versatility is a massive selling point. It's used across various industries, from food to cosmetics, pumping up profits for oil and fat producers.
• There are many small and medium-sized oil and fat producers in Europe. The industry isn’t dominated by any large companies, fostering a competitive and varied market.