The development of edible vegetable oil is related to food security and people’s quality of life. Literature research method was adopted in this research to analyze the policy and economic environments of edible vegetable oil industry, and on this basis, production scale, sales quantity and brand competition of edible vegetable oil were sorted out. According to the production data of edible vegetable oil from 2013 to 2022, the GM (1,1) model was used to forecast the yields of edible vegetable oil in the next five years. The results revealed that the output of edible vegetable oil will decline in the future. There was a super-large market advantage in the domestic market, and the overall development of edible vegetable oil industry will be stable in the future. It is concluded that the edible vegetable oil industry may face market challenges such as consumer demand reduction, demand structure diversification and complex competition of market players in the future. The study suggested that, first, enterprises need to pay attention to the nutrition and health of edible oil products, which could ensure food quality and safety, and meet the needs of consumers for a healthy life. Second, enterprises should carry out product innovation to develop new oil products with high quality as well as lightweight, and create a new consumption scene. Third, by targeting the niche consumer market, actively expanding the market space of edible oil and stabilizing the market scale of small and medium-sized enterprises, could promote the high-quality development of the edible vegetable oil industry.