by Edible oils such as sunflower oil, soybean oil, and canola oil are predominantly used as cooking media across both commercial and residential sectors globally. Edible oils are derived from plants and provide essential nutrients such as vitamin E and vitamin K along with unsaturated fatty acids, especially polyunsaturated and monounsaturated fatty acids. Some popular edible oils include soybean oil, palm oil, rapeseed oil, sunflower oil, and olive oil. Soybean oil accounts for the largest share of the market due to its lower cost and wide availability.
The global edible oils market is estimated to be valued at US$ 240 billion in 2023 and is expected to exhibit a CAGR of 4.5% over the forecast period 2023.
Market Dynamics:
The growth in demand for healthier cooking oils is expected to flourish the edible oils market over the forecast period. Oils such as olive oil and canola oil are gaining more popularity over traditionally used palm oil and soybean oil due to their associated health benefits. Olive oil contains monounsaturated fat that helps reduce bad cholesterol in the body. Moreover, canola oil containing high oleic acid varieties decreases the risk of heart disease and stroke. Furthermore, inclination towards plant-based and non-GMO oils is also surging at a notable rate. Buyers are increasingly demanding sustainable and clean-label edible oils. This rising health-consciousness among consumers is anticipated to drive the global edible oils market during the forecast period. Additionally, increasing disposable income and fast-paced lifestyle leading to higher consumption of packaged snack foods and fried food products is also projected to fuel the demand for edible oils in the coming years.
Segment Analysis
The global edible oils market is dominated by the vegetable oil segment, which holds around 80% share of the overall market. Vegetable oils are widely used for cooking purposes owing to their neutral taste and various health benefits. The popularity and consumption of vegetable oils is increasing across both developing and developed regions. Soybean oil accounts for nearly 25% share of the global vegetable oils market. Soybean oil is widely used as it is more stable during frying and cooking processes as compared to other oils. It also contains healthy fats and vitamins that make it suitable for consumption.
PEST Analysis
Political: Many countries have imposed regulations regarding the production, import, and sales of edible oils to support domestic farmers and industries. Various trade agreements influence the import and export of edible oils globally.
Economic: Countries with a hot climate and large agricultural sectors have emerged as major producers of edible oils globally. The demand and prices of edible oils fluctuate as per the global economy and disposable incomes.
Social: Consumer preference for specific edible oils varies significantly across regions owing to traditional diets and cuisine. Health awareness has boosted the demand for oils with nutritional benefits like olive, canola, and soybean oil.
Technological: Advanced oil extraction techniques and refining processes have enhanced yields and quality. Genetically modified crops aid in increasing crop yields. Automation has boosted production capacities.
Key Takeaways
The Global Edible Oils Market Size is expected to witness high growth over the forecast period aided by rising food demand worldwide.
Asia Pacific currently dominates the edible oils market led by countries like India, China, and Indonesia. The large population and rapidly growing food industry has cemented Asia Pacific’s position as the largest consumer of edible oils. India accounts for nearly 25% of the global edible oils production due to a favorable climate for oilseed cultivation.
Key players operating in the edible oils market are Cargill, Archer Daniels Midland, Beidahuang Group, Bunge, Louis Dreyfus, Wilmar International. Some key players focus on differentiation through organic, non-GMO and natural edible oil varieties. Companies are investing in advanced extraction technologies and expanding production facilities across various countries to better serve global demand. Strategic partnerships are helping companies to strengthen supply chains and distribution networks.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
