Edible Oils Market

The edible oils market is expected to grow significantly, with a projected value of USD 268.9 billion by 2027, up from USD 212.6 billion in 2022, at a CAGR of 4.8% from 2022 to 2027. In response to increasing rates of non-communicable diseases, global consumers are shifting their purchasing preferences towards edible oils like olive oil, rapeseed oil, soybean oil, and sunflower oil, which are scientifically proven to promote heart health. As a result, the growing demand and consumption of edible oils in households and food services is driving the growth of the global edible oils market.

"The established link between high-fat diets, elevated serum cholesterol levels, and heart disease is driving a shift towards heart-healthy edible oils like olive, rapeseed, soybean, and sunflower oils, increasing demand and growth in the global edible oils market."

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Edible Oils Market Dynamics

Increase in oilseed production

According to an article published in the bulletin of the National Research Center, Egypt, with growing interest in edible oils, the area under oilseeds cultivation has increased by 82%, and the production is increased by approximately over the last three decades. Furthermore, according to Organisation for Economic Co-operation and Development (OECD), 2022, the consumption of vegetable oils is estimated to reach 249 million metric tons, with the food sector accounting for the major share. The above rise in demand for oils is due to the increase in per capita use of edible oils in low and middle-income countries in the Asia Pacific. Therefore, with the increase in the production of oilseeds, the production and supply of edible oils are expected to increase in the future to satiate the growing consumer demand.

Growth in global demand for food

The Food and Agricultural Organization states that the global population has increased exponentially due to the overgrowing population and is projected to increase by 9.7 billion by 2050. Additionally, urbanization is anticipated to increase at a rapid pace, adversely impacting the global food demand. Edible oils are essential food ingredients having varied applications in households, industries and food service. Thus, the growing population, and continuously evolving needs of the consumers fueling the demand for edible oils.

High price volatility for edible oils

The Ukraine conflict has driven agricultural commodity prices to unprecedented high levels. The crisis has caused a sharp increase in the price of edible oils, as well as trade policy reactions globally that has further restricted supplies and driven up costs. . Prices for edible oils have increased by an average of roughly 30%. The most significantly impacted product is sunflower oil, which has increased by more than 40%.  The Black Sea countries are major exporters of sunflower oil which makes up around 13% of the vegetable oils traded on international markets. Thus, the increased prices of edible oils has largely impeded the growth of the global edible oils market.

Increase in trend of microencapsulation technology

The microencapsulation technique is a trending technology is being increasingly adopted by the growing food industry. According to a study by the Federal University of Santa Catarina, Brazil, 2019, oil encapsulation can prevent or decrease oxidation reactions and increase the range of its applications in the food industry. In processed food products, oil encapsulation aids in the retention of flavor, shelf life, anti-oxidation, and storage time of the food products. Due to its benefits in a wide range of food applications, the encapsulation of edible oils is slowly gaining prominence in the food industry, globally, aiding in the expansion of the global edible oils market.

North America: Edible Oils Market Snapshot

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North America has been witnessed to have numerous growth prospects for the edible oils market with a CAGR of 3.27% during the forecast period (2022-2027)

North America is one of the most potential markets for edible oils owing to the growing demand for processed food products influenced by hectic lifestyles and changing eating habits of the region. The number of food processing companies in the North American market is rising at a fast pace. The preferences of modern-day consumers are increasingly inclining toward fast foods, which have very high concentrations of fats and oils. The market in the US is driven by robust demand for soybean oils that are extensively utilized in savory & snacks, convenience foods, and indulgent bakery and confectionery products. The United States is the largest producer and exporter of soybeans. Soybeans account for over 90% of US oilseed production. Companies such as Cargill, Incorporated and Bunge Ltd are giant players in the edible oils market of US. These companies have occupied major market shares through acquisitions, expansions, mergers, significant partnerships, and upscaling their production capacity and efficiency. The future growth trajectory of edible oils in the US hinges on the ability of global giants to develop healthy, versatile, and high sensory profiles of novel edible oils.

Key features of the edible oils market:

The edible oils market is a diverse and growing industry that encompasses a variety of oil types and applications. Some of the key features of this market include:

• Wide range of oil types: The edible oils market includes a wide range of oils, including vegetable oils, animal fats, and specialty oils such as olive oil and coconut oil.
• Increasing demand: With the growing global population and increasing disposable income, the demand for edible oils is on the rise. This is particularly true in developing countries, where rapid urbanization and changes in dietary habits have led to increased consumption of processed foods and cooking oils.
• Health and wellness concerns: Consumers are becoming more health-conscious and are looking for oils that are low in saturated fats and high in unsaturated fats. This has led to increased demand for oils such as olive oil and canola oil, which are perceived as healthier options.
• Competitive market: The edible oils market is highly competitive, with numerous players competing for market share. This has led to price competition and product innovation, with companies introducing new products and formulations to differentiate themselves from competitors.
• Regulatory environment: The production and sale of edible oils is subject to strict regulations and standards, particularly in terms of food safety and labeling. Companies must comply with a range of regulations and standards, which can vary by country or region.

Key Market Players

The key players in edible oils market include Cargill, Incorporated (US); Archer Daniels Midland Company (ADM); Bunge Limited (US); Louis Dreyfus Company (Netherlands); Wilmar International Limited (Singapore); and Adani Wilmar Limited (AWL) (India); Associated British Foods PLC (ABF) (UK); Sime Darby Plantation Berhad (Malaysia); and Borges International Group, S.L.U. (Spain).

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Scope of the Report

This research report categorizes the edible oils market., based on product type, application, and region.

Target Audience

• Edible oils manufacturers
• Edible oils Raw Material Suppliers and Manufacturers
• Edible oils Material Importers and Exporters
• Edible oils Material Traders and Distributors
• Government organizations, research organizations, and consulting firms
• Farmers producing and harvesting oilseeds
• Food processing companies involved in edible oil production
• Agencies involved in providing certifications and licenses such as British Retail Consortium Certification, ISO Certification, and alike.
• Commercial research & development (R&D) institutions and financial institutions
• Academicians and research organizations
• End users

Report Scope:

Edible oils Market:

By Product Type

• Palm Oil
• Soybean Oil
• Sunflower Oil
• Rapeseed Oil
• Olive Oil
• Others

By Packaging Type

• Pouches
• Jars
• Cans
• Bottles
• Others

By End Use:

• Domestic
• Industrial
• Food Service

By Region

• North America
• Europe
• Asia Pacific
• South Americab
• Rest of the World

Recent Developments

• Louis Dreyfus Company Asia Pte. Ltd. (LDC) and Longriver Farms entered into an agreement for the acquisition of Emerald Grain Pty. Ltd. (Emerald Grain) by LDC. This agreement helped LDC to expand further in the Australian market.
• In May 2021, Cargill partnered with Frontline International to create the Kitchen Controller end-to-end automated oil management solution. The cutting-edge solution combined Frontline International's Smart Oil Management equipment expertise and client relationships with Cargill's foodservice experience and knowledge of oil quality to offer foodservice operators an integrated, intelligent approach to oil management.
• In October 2019, Golden Agri-Resources (GAR) partnered on funding and developing a radar-based forest monitoring system with the major palm oil producers and buyers worldwide, including Bunge, Cargill, Mondelez International, Musim Mas, Nestlé, Pepsi, Sime Darby Plantation, Unilever, and Wilmar. This approach was designed to allow companies and other stakeholders to detect deforestation in near-real-time with improved accuracy, allowing them to immediately mobilize follow-up measures on the ground and work to enhance commodity supply chain sustainability.

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