by The vegetable oils Market is estimated to be valued at US$ 351391.74 Mn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Vegetable oils are obtained from seeds, nuts and fruits and have been used as cooking medium for ages. Key vegetable oils include soybean, palm, canola, sunflower and olive oil. They are widely used in food processing industry for baking, frying and flavoring purposes. Vegetable oils provide essential fatty acids and vitamins that are crucial for human health. However, new uses are emerging with vegetable oils being investigated as feedstock for biofuels and biomaterials production.
Market Dynamics:
Growing health consciousness among consumers has positively impacted the demand for vegetable oils. Many vegetable oils like olive oil and canola oil are considered heart-friendly due to presence of monounsaturated and polyunsaturated fatty acids. This is expected to drive their adoption in food applications. Furthermore, advancement in extraction and refining technologies have made vegetable oils available in premium refined grades suitable for diversifying their end-uses. For instance, refined sunflower oil and soybean oil are finding new application in cosmetics and personal care industry. Also, extensive research exploring the possibility of using vegetable oils as feedstock for green fuels and bioplastics is anticipated to open new avenues over the forecast period. However, price volatility of vegetable oil crops due to changing climatic conditions and speculative trading remains a key challenge.
Segment Analysis
The vegetable oils market is dominated by palm oil which accounts for over 30% of the global production. Palm oil has various applications in cooking oils, baked goods, soaps and other daily use products. It is the most widely used vegetable oil due to abundance availability which keeps its prices relatively low. Coconut oil is the second largest segment driven by increasing use in food products and personal care items due to various health benefits.
PEST Analysis
Political: Fluctuations in government policies related to import tariffs and subsidies impact the supply and demand dynamics in key producing and consuming countries.
Economic: Slowdowns in major economies can dampen the overall demand growth rates. Vegetable oil prices are also influenced by speculations in commodities markets.
Social: Changing consumer preferences towards healthier oils with perceived benefits is driving new product innovations. There is also increasing concern about the social and environmental impact of palm oil production.
Technological: Advances in oilseeds breeding and farming techniques are helping improve yields. Investments in extraction and refining technologies ensure high recover rates and quality standards.
Key Takeaways
The Global Vegetable Oils Market Size is expected to witness high growth, exhibiting CAGR of 10% over the forecast period, due to increasing consumption of edible oils for cooking and food processing applications across regions. The Asia Pacific region dominated the global market in 2023, accounting for over 35% of the total share, led by Indonesia, Malaysia, India and China – key producers and consumers of palm, soybean and rapeseed oils. Europe is the second largest market supported by high per capita soybean and rapeseed oil consumption in countries like Germany, UK and Italy for use in food service and retail food products segments.
Key players operating in the vegetable oils market are Archer Daniels Midland Company, Sime Darby Plantation Berhad, Bunge Limited, Olam International Limited, Cargill Incorporated, Golden Agri-Resources, Kuala Lumpur Kepong Berhad, Fuji Oil Holding Inc., Wilmar International Limited, PT Astra Agro Lestari Tbk, and Avril Group. Strategic acquisitions and expansion of production and refining capacities are helping these companies to strengthen market position and integrated supply chain operations across countries and gain higher bargaining power with farmers and customers.
The growing health-conscious population and increasing applications of oils in various industrial and household products are driving new product innovations and diversification into non-edible categories such as biofuels and oleochemicals by market players. However, price volatility owing to changing weather conditions and speculative activities continue to pose challenges.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
