The edible oils market is estimated to be valued at US$ 124.38 Bn in 2023 and is expected to exhibit a CAGR of 5.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Edible oils are fats extracted from various plant sources such as oil seeds, nuts and fruits. They are commonly used for both cooking and non-food applications. Some of the major product types include soybean oil, palm oil, sunflower oil, rapeseed oil and others. Edible oils are an integral part of the food industry as they are widely used for frying, baking and other culinary applications. Growing health awareness has propelled the demand for healthier oil options over saturated fats.
The edible oils market is expected to grow owing to two key drivers-
Firstly, increasing demand for plant-based oils is expected to drive market growth over the forecast period. Rising health consciousness and awareness about benefits of unsaturated fats over saturated fats has boosted popularity of vegetable oils like soybean, canola and olive oils. Secondly, growth of food industry has augmented the demand for edible oils from the food processing sector. Edible oils serve as an ideal constituent in preparations of bakery & confectionery, savory snacks and packaged food products. They extend shelf life and impart taste in finished food items.
While increased preference for healthier oils and expansion of food & beverage industry will support edible oils market outlook, fluctuating supply of raw materials associated with agricultural commodities and volatility in prices may pose a challenge. However, focus on new product launches, innovations and developing economies present remunerative opportunities.
Strength: Edible oils provide various health benefits. They contain vital nutrients like vitamin E and unsaturated fatty acids. Many oils such as olive oil have gained popularity due to their role in reducing cholesterol levels and heart diseases risk. Increasing health awareness among people has raised demand for premium edible oils.
Weakness: Price volatility of agricultural commodities affects edible oil prices. Edible oils production is dependent on weather conditions which influences crop yields. Health concerns have arisen due to the presence of trans fats in some refined vegetable oils.
Opportunity: Growing focus on healthy diets opens up opportunities. Oils high in monosaturated and polyunsaturated fatty acids are receiving more preference. Product innovation through fortification with nutrients can boost demand. Rising incomes in developing nations will propel spending on premium oils.
Threats: Vegetable oil adulteration is a major issue faced. Unscrupulous producers mix cheap oils to pass them off as premium varieties. Stringent regulations and monitoring is required to curb this practice. Climate change impacts like droughts threaten crops and production levels.
The Global Edible Oils Market Size is expected to witness high growth, exhibiting CAGR of 5.1% over the forecast period, due to increasing health awareness among consumers. People are shifting preference towards oils that provide nutritional benefits. The market size is projected to reach US$ 124.38 Billion by 2023.
Regional analysis: Asia Pacific dominates the global edible oils market, accounting for over 60% share. Growing population and rising disposable incomes in nations such as India and China will sustain demand growth. Per capita edible oil consumption is also rising steadily in Asia driven by changing lifestyles and diets.
Key players operating in edible oils market are Adani Wilmar Ltd., Ruchi Soya Industries Ltd, Associated British Foods plc, Archer Daniels Midland Company, Beidahuang Group, Bunge Limited, Borges Mediterranean Group, Cargill Incorporated, Fuji Vegetable Oil, Inc., Adams Group, American Vegetable Oils, Inc., and Olympic Oils Limited. These companies are focusing on capacity expansions and new product launches catering to health-conscious consumers.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it