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.
Vegetable oils are derived from oilseed crops like soybean, palm, rapeseed, and sunflower through a mechanical pressing or chemical extraction process. They are widely used in food processing industry for cooking oils, salad dressings, and baked goods. Vegetable oils also find applications in industrial biofuels, lubricants, and functional feedstock. The growing demand for processed and convenience food has boosted the consumption of vegetable oils across the globe.
The vegetable oils market is primarily driven by rapidly growing food industry worldwide. According to the United Nations’ Food and Agricultural Organization (FAO), global food processing industry grew at an annual rate of 3.6% between 2013 and 2020, owing to rapidly changing lifestyles and increasing demand for packaged and ready-to-eat food products. Vegetable oils are extensively used in food processing and food service industries and their demand is directly linked with the growth of these end-use industries. Additionally, rising preference of consumers towards plant-based edible oils over animal fats and butter due to associated health benefits is also augmenting the market growth. However, price volatility of vegetable oil feedstock like soybean and rapeseed owing to changing climate conditions and crop yield could hinder the market expansion.
Strength: The vegetable oils market has strong growth potential as it is driven by increasing health consciousness among consumers. Rapid urbanization is also fueling demand for vegetable oils. Major producers have extensive distribution networks to cater to the growing demand.
Weakness: Price volatility of vegetable oil crops poses serious challenge. Fluctuations in crop yields led by changing weather conditions affect supply and prices. Dependence on few major crops for supply also makes the market vulnerable.
Opportunity: Rising application of vegetable oils in non-edible categories like biofuels and cosmetics opens new avenues. Increasing preference for organic and non-GMO oils presents an opportunity for certified brands. Growing demand for convenience oils in developed markets acts as a driver.
Threats: Rising trade barriers and regulations can disrupt supply chains. Environmental concerns over palm oil cultivation also impact production. Threat from substitute oils poses competition.
The Global Vegetable Oils Market Size is expected to witness high growth, exhibiting CAGR of 10.% over the forecast period, due to increasing health consciousness among consumers. Consumers are shifting preference towards vegetable oils owing to associated health benefits.
Regional analysis: Asia Pacific dominates the global vegetable oils market and is expected to continue its lead over the forecast period. This can be attributed to growing population, rapid urbanization and rising health awareness in major countries like China and India. Increasing domestic consumption driven by food industry growth complements the market expansion.
Key players: 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. Major brands are focused on capacity expansion,new product launches and mergers to consolidate their position in the growing market.