Global Organic Edible Oil Market - 2023-2030

Overview

Global Organic Edible Oil Market reached US$ 226.5 billion in 2022 and is expected to reach US$ 314.1 billion by 2030, growing with a CAGR of 4.7% during the forecast period 2023-2030.

Organic edible oils are crafted through processes that sidestep synthetic pesticides and GMOs, resonating with consumers' preferences for purer and more environmentally considerate choices. Changing consumer preferences and rising awareness of health and sustainability are driving remarkable expansion in the organic edible oil market. With a growing emphasis on health and eco-consciousness, there's a notable uptick in the desire for organic edible oils.

Additionally, the market is influenced by trends such as clean labeling, where consumers are increasingly concerned about transparency in labeling and sourcing. As a result, brands that offer organic edible oils with clear and trustworthy labeling tend to perform well. The market's growth is also driven by factors such as the expansion of organic farming practices, advancements in production technologies and a wider distribution network.

The growth of the soybean oil segment, constituting a significant 2/6th share in the organic edible oil market, is propelled by multiple factors. Firstly, rising health consciousness among consumers has increased the demand for organic and healthier cooking alternatives. Moreover, North America's robust hold on a substantial 2/5th market share strengthens the regional market, boosted by growing awareness and accessibility to organic products.

Dynamics

Growing Health Consciousness and the Shift in Consumer Preferences

Organic foods are becoming more popular among health-conscious consumers due to purported benefits such as lesser chemical residue, increased nutritional value and the lack of genetically modified organisms (GMOs). The demand for organic edible oils is increasing drastically as consumer awareness of health and wellness grows. The shift in consumer preference is directly impacting the organic edible oil market share, driving its expansion.

As a result, the organic edible oil market size is projected to witness considerable growth over the forecast period. Manufacturers are capitalizing on this trend by expanding their product portfolios, emphasizing transparency in labeling and adopting sustainable farming practices to meet the escalating demand for organic edible oils.

Sustainable Sourcing and Ethical Production Practices

The organic edible oil market's size are significantly influenced by the rising demand for products sourced sustainably and produced ethically. Consumers are increasingly concerned not only about personal health but also the wider environmental and social impacts of their choices. The respective shift has led to a substantial uptick in the request for organic edible oils made through eco-conscious farming practices, avoiding synthetic pesticides and fertilizers.

Moreover, brands that emphasize transparent sourcing and production methods stand to gain a competitive edge within the organic edible oil market. As consumers align their preferences with ecological and social values, the organic edible oil market is undergoing a transformation that underscores the importance of responsible and conscientious production practices.

Increased Culinary Diversity and A Trend Towards Premiumization of Food Products

The organic edible oil market share is benefiting from the increasing culinary diversity and premiumization trends. As foreign cuisines become more popular and customers become more experimental in their culinary selections. As a result, there is a rising demand for high-quality oils that complement certain foods. Organic edible oils are garnering a substantial share of this demand due to their natural tastes and health advantages.

Furthermore, the premiumization of food products is encouraging consumers to invest in higher priced, premium organic oils, thus contributing to the expansion of the market size. Such trends are prompting manufacturers to innovate in terms of flavor profiles and packaging to cater to diverse culinary preferences.

Rise of E-Commerce and Convenience-Driven Lifestyles

Rise of e-commerce and the convenience-driven lifestyles of consumers are reshaping the organic edible oil market share and size. Online retail platforms provide consumers with easy access to a wide variety of organic edible oils, enabling them to explore and choose products that align with their preferences.

The convenience factor of doorstep delivery and the availability of product information online are driving the growth of organic edible oil sales through e-commerce channels. Consequently, this shift in purchasing behavior is contributing to the market's share expansion. As e-commerce continues to flourish, the organic edible oil market is expected to witness sustained growth in terms of both market size and consumer reach.

Complex Manufacturing Processes, Stringent Certifications and Limited Supply Chain Efficiency

The organic edible oil market size is impacted by limited supply chain efficiency. Unlike conventional edible oils, the production and distribution of organic oils often involve complex processes and stringent certifications. The respective fact can lead to challenges in maintaining consistent supply levels, which directly affects market share.

Moreover, shortages or supply gaps can deter consumers from making organic choices and might push them towards conventional alternatives. Furthermore, these inefficiencies can result in higher prices, making organic edible oils less accessible to a wider consumer base. Addressing supply chain challenges is crucial to unlocking the market's growth potential, allowing it to capture a larger share of the edible oil market.

Price Differential Between Organic and Conventional Oils

The organic edible oil market share and size are constrained by the premium pricing associated with organic products. While consumers are willing to pay extra for the perceived health benefits and sustainable practices, the price differential between organic and conventional oils can be a significant deterrent. The relatively higher production costs, stringent certifications and limited economies of scale often result in organic oils being priced at a premium.

The aforementioned pricing disparity can restrict the market's share expansion, as a segment of price-sensitive consumers may opt for more affordable alternatives. To overcome this restraint, innovative strategies such as cost-effective sourcing, production optimization and consumer education about the long-term benefits of organic choices are essential to drive the market's growth.

Segment Analysis

The global organic edible oil market is segmented based on type, packaging, distribution channel, end-user and region.

Abundant Availability and Versatile Applications

The soybean oil segment is expected to hold a significant market share, driven by the abundant availability of organic soy, covering 74% of Asia Pacific's organic oilseeds area as per the FIBL survey 2022. Rich in Omega-6 fats and polyunsaturated fatty acids, soybean oil contains ample vitamin K for bone health.

With a neutral taste and high smoke point of 450°F, it's versatile for cooking methods like sauteing, baking and frying. Key players are incorporating organic oils due to rising consumer demand. In March 2021, Protein Industries Canada partnered with industry leaders to develop non-GMO and organic soybean protein ingredients and oil, reflecting evolving preferences.

Geographical Penetration

Growing Awareness About the Health Benefits of Organic Products

The organic edible oil market in North America is experiencing remarkable growth, propelled by the escalating consumer consciousness regarding health and wellness. As individuals become more health-conscious, they are opting for organic alternatives, leading to a surge in demand for organic edible oils. The market size of the organic edible oil segment is expanding substantially as consumers shift towards healthier dietary choices.

Organic edible oils including olive oil, coconut oil and avocado oil have gained popularity owing to their supposed health advantages and lack of hazardous pesticides. Consequently, market players are capitalizing on this trend by expanding their organic oil offerings and diversifying product portfolios. Packaged organic foods are prized by U.S. consumers for their premium status, driving higher consumption.

The consumption of organic food has been increasing in the region due to its characteristics. Local organic edible oil producers have utilized strategies like mergers to meet rising demand. For instance, B&G Foods acquired Crisco in 2020, expanding its organic oil offerings. This reflects a broader trend in the market.

Competitive Landscape

The major global players in the market include: Cargill, Incorporated, Bunge Loders Croklaan Group B.V., Catania Spagna, NOW Health Group, Inc., Nutiva Inc., Adams Group, Daabon Japan, La Tourangelle, Chosen Foods LLC. and Spectrum Organic Products, LLC.

COVID-19 Impact Analysis

The COVID-19 pandemic has had a significant impact on the organic edible oil market. The lockdown measures and disruptions in the supply chain have resulted in challenges for both producers and consumers. During the first phase of the pandemic, there was a rise in panic buying and hoarding, resulting in a brief boost in demand for organic edible oils. However, as the epidemic progressed, the market saw a drop in demand due to economic uncertainty and customers' diminished spending power.

The restrictions on movement and closure of restaurants and food service establishments also affected the market. With fewer people dining out, the demand for organic edible oils used in commercial kitchens decreased. Moreover, the disruptions in the supply chain, including transportation and logistics, led to delays and shortages of organic edible oils. The respective fact further impacted on the availability of these products in the market.

Nonetheless, the market is projected to rebound as the situation progressively improves and economies reopen. The increased consumer emphasis on health and well-being, along with a desire for sustainable and organic food alternatives, is expected to fuel demand for organic edible oils in the post-pandemic period.

Russia-Ukraine War Impact

The Russia-Ukraine war has reverberated through the organic edible oil market, causing disruptions across the supply chain. Fluctuating trade routes and geopolitical uncertainties have impacted the sourcing and distribution of organic oils, potentially leading to supply shortages and price volatility. Economic instability arising from the conflict could affect consumer purchasing power, influencing preferences for premium and organic products.

Furthermore, resource reallocation for geopolitical concerns might hinder market growth and innovation. The extent of the impact on the organic edible oil market hinges on the duration and severity of the conflict, as well as global efforts to stabilize the region and restore market equilibrium. Additionally, the conflict's influence on agricultural regions and transportation routes could result in challenges for sourcing organic ingredients, potentially affecting the overall availability of organic edible oils.

By Type

• Palm Oil
• Olive Oil
• Soybean Oil
• Coconut Oil
• Canola Oil
• Sunflower Oil
• Sesame Oil
• Flaxseed Oil
• Other

By Packaging

• Glass Bottles
• Plastic Bottles
• Pouches
• Cans
• Others

By Distribution Channel

• Supermarkets/Hypermarkets
• Specialty Stores
• Convenient Stores
• Online Stores
• Others

By End-User

• Household
• Commercial

By Region

• North America
  • U.S.
  • Canada
  • Mexico

• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe

• South America
  • Brazil
  • Argentina
  • Rest of South America

• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific

• Middle East and Africa

Key Developments

• On June 22, 2022, Pansari Group, a manufacturer and supplier of plastic packaging materials, relaunched Oreal edible oils with updated packaging solutions. The company engages in manufacturing organic edible oils. The new product is cold-pressed and has some significant packaging changes, including virgin food-grade packing material, a larger label for clear health claims and the bottle's mouth has also been widened to facilitate oil pouring.
• On February 18, 2020, QNET, one of Asia's leading direct-selling companies, launched a new product Nutriplus Virgin Coconut Oil (VCO), under their health and wellness product category. The new product is unrefined, cold-pressed and sourced from high-quality organic coconuts. The products have multipurpose uses, including cooking and address many hair and skin problems.
• On March 08, 2022, Bunge Limited, an American agribusiness and food company, partnered with the European Bank for Reconstruction and Development (EBRD) and received a long-term loan from the bank of US$ 50 million. The EBRD and Bunge partnered in sustainability projects to develop certified organic olive production in Turkey and analyze the climate change resilience of the olive supply chain.
• On April 15, 202o, Nutiva, a U.S.-based plant-based organic foods company, launched two new organic liquid coconut oils available in classic and garlic options. The new products are ideal for cooking, sauteing and baking up to 350°F. The new products are USDA Certified Organic and Non-GMO Project Verified liquid oils extracted from fresh organic coconuts.

Why Purchase the Report?

• To visualize the global organic edible oil market segmentation based on type, packaging, distribution channel, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of organic edible oil market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global organic edible oil market report would provide approximately 69 tables, 76 figures and 192 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies