May 25, 2024
Soy Oil And Palm Oil Market

Soy Oil and Palm Oil Market Primed for Growth Driven by Increasing Demand for Plant-Derived Oils

The global soy oil and palm oil market plays a pivotal role in meeting the rising demand for edible oils worldwide. Soy oil and palm oil offer various health benefits such as containing vitamin E for boosting immunity and reducing oxidative stress. They are versatile oils ideal for cooking, frying, and baking owing to their high smoke point. Soy oil has a relatively neutral taste making it suitable for various cuisines, while palm oil adds richness and creaminess when used in foods.

The Global soy oil and palm oil market is estimated to be valued at US$ 126402.19 Bn in 2024 and is expected to exhibit a CAGR of 18% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the soy oil and palm oil market are Barambah Organics Pty Ltd., Blue Diamond Growers, Daiya Foods Inc. (Otsuka Pharmaceutical Co. Ltd.), Dean Foods (Dairy Farmers of America), General Mills Inc., Granarolo S.P.A., The Hain Celestial Group Inc., Vitasoy, White Wave Foods (Danone), Danone S.A., Oatly A.B., Forager Project, Coyo Pty Ltd., Chobani Global Holdings, and Kite Hill. The key players are focusing on innovations, expansions, and new product launches to strengthen their market presence.

The global soy oil and palm oil market offers significant growth opportunities such as rising product applications in various industries including food & beverage, personal care, pharmaceuticals, and others. The growing vegan and flexitarian population has increased demand for plant-derived oils.

Geographically, Asia Pacific dominated the global soy oil and palm oil market in 2024 and is expected to continue its dominance over the forecast period. This large-scale production and consumption can be attributed to the massive palm cultivation and large soybean producing countries in the region.

Market drivers

The primary driver accelerating the Soy Oil And Palm Oil Market Growth is the increasing demand from the food industry. Soy oil and palm oil are commonly used oils for cooking, frying, baking, and other food applications owing to their versatile properties and affordable cost. With rising health-consciousness, the demand for plant-based and natural oils without trans-fat is surging significantly.

PEST Analysis

Political: Soy oil and palm oil markets are regulated by various food and environmental regulations set by regulatory bodies. Changes in import and export laws by various governments can impact the production and trade of these oils.

Economic: Global economic conditions influence the demand and prices of soy oil and palm oil. Many food products and cosmetics industries which are major consumers of these oils are affected by economic cycles. Prices of substitute oils also impact these markets.

Social: Consumer preference for healthy and natural food products influences the demand for soy and palm oils. Rising health consciousness and awareness about sustainability issues can shift preferences towards certain types of vegetable oils.

Technological: New technologies for oil extraction help improve yields and reduce costs. Innovation in fat replacement technologies impact the application of soy and palm oils in various end use industries. Advancements in genetically modified crops also affect the supply and cost of these oils.

The geographical regions concentrated in terms of value for soy oil and palm oil markets are Asia Pacific and North America. Asia Pacific region especially countries like Indonesia, Malaysia and China account for a major share of global palm oil production and trade. Whereas countries like United States, Brazil and Argentina are top producers and consumers of soy oil globally.

The fastest growing region for soy oil and palm oil market is expected to be Asia over the forecast period. Rising population, increasing health awareness and thriving food processing industry in Asia Pacific is projected to fuel the demand for soy and palm oils in this region. Countries like India and Southeast Asian nations are likely to be the key drivers of growth in Asian vegetable oil markets in the coming years.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it