Global Edible Oils and Fats Market - 2023-2030

Overview

Global Edible Oils and Fats Market reached US$ 469.5 billion in 2022 and is expected to reach US$ 824.8 billion by 2030, growing with a CAGR of 7.3% during the forecast period 2023-2030.

The market's dynamism is essentially connected to global dietary preferences. The broad range of culinary practices and dietary habits across regions profoundly influences the consumption patterns of different edible oils and fats. For example, olive oil is an integral component of Mediterranean cuisine, while palm oil holds a prominent place in Asian culinary traditions. The increasing awareness of health and nutrition has prompted a shift in consumer inclinations.

As more individuals migrate to urban settings, there is a transition from traditional home-cooked meals to more convenient and processed food options. This transformation propels the consumption of edible oils in foodservice establishments and packaged food products. Economic growth and the concurrent rise in disposable incomes, especially in emerging economies, have induced alterations in dietary choices.

Similarly, Asia-Pacific dominates the edible oils and fats market, capturing the largest market share of over 1/3rd. the Asia-Pacific region's appetite for edible oils and fats is propelled by population growth, culinary preferences, the burgeoning food industry, health-conscious choices, and economic prosperity. The diverse culinary traditions and evolving consumer tastes position the region as a pivotal market for edible oils, with continued growth on the horizon, rendering it a focal point for industry manufacturers and suppliers.

Dynamics

Health and Nutrition Awareness

Health-conscious consumers are increasingly engaging in meticulous examination of nutritional labels on food products. They are on the lookout for oils and fats that bear labels indicating they are "low in saturated fats," "trans fat-free," and "high in unsaturated fats." The increased scrutiny of labels has urged manufacturers to provide more transparent and comprehensive nutritional information.

The nutritional qualities of edible fats and oils are now the basis for consumers' more informed decisions, which increases demand for healthier options. According to the Food Safety and Standards Authority of India (FSSAI), starting in January 2022, content of trans-fat in all food items must be less than 2%. This kind of support from various governments is pushing manufacturers to produce trans-fat-free edible oils and fats.

The well-established health hazards associated with trans fats have led consumers to actively seek products that steer clear of these harmful substances. This aversion to trans fats has prompted a significant shift away from partially hydrogenated oils, with consumers and the food industry alike favoring oils with healthier fat compositions. Specialty oils like hemp oil and walnut kernel oil are growing more popular, which is reflective of a trend in the food industry favoring greater variety and nutritious options.

Food Industry Expansion

The expanding food industry, driven by population growth and evolving dietary preferences, necessitates higher levels of food production. This increased demand for food products corresponds to an elevated need for edible oils and fats, which are fundamental ingredients in numerous food processing applications. As the food industry expands, there is a concurrent surge in the requirement for edible oils and fats.

Edible oils and fats are essential for a wide range of applications, including frying, baking, sauteing, and as components in processed foods, thereby stimulating market growth. The creation of new food products and the reformulation of existing ones drive the demand for specific types of edible oils and fats. For instance, specialty oils may be needed to infuse unique flavors into gourmet products, while healthier oil alternatives may be sought to align with consumer demands for nutritious foods.

The worldwide nature of the food industry means there is an ongoing need for edible oils and fats as ingredients and preservatives. This fosters market growth as demand extends across regions and countries. Manufacturers are incorporating healthier oils into their organic products, contributing to market expansion.

In February 2023, Gemini Pureit was launched in Karnataka, as announced by Cargill, reaffirming its aim to diversify its edible oils range and go as far south as possible. Customers will be able to purchase the Gemini PureitTM brand in stores in the four Southern states of Andhra Pradesh, Telangana, Karnataka, and Tamil Nadu. The Gemini brand has been around for 40 years, and among 12 other sunflower oil brands in India, Consumer Voice has selected Gemini Sunflower Oil as having the highest quality in the nation.

Fluctuating Costs of Raw Materials

The global edible oil and fats market is significantly influenced by the availability and pricing of essential raw materials, particularly oilseeds like soybeans, palm fruits, and sunflower seeds. These raw material prices can undergo substantial fluctuations due to variables such as weather conditions, crop diseases, and worldwide supply and demand dynamics.

The unpredictability of raw material costs can lead to unstable and often elevated production expenses for manufacturers of edible oils and fats. These increased expenditures can be transferred to consumers through higher product prices. Price volatility poses challenges for manufacturers when it comes to production planning, financial forecasting, and maintaining pricing stability. This, in turn, can affect the affordability of edible oils for consumers and result in reduced profit margins for producers.

Sustainability and Environmental Aspects

Sustainability has emerged as a pivotal factor in the edible oil and fats sector. The production of specific edible oils, notably palm oil, has been linked to activities like deforestation, habitat degradation, and adverse environmental consequences. Pressure from consumers and regulatory bodies for sustainability and eco-friendly practices has led to the establishment of sustainability certifications and guidelines, often demanding and costly to implement.

Adhering to the sustainability criteria entails substantial investments and changes in production methods. The transition toward sustainable practices and adherence to environmental standards can heighten production expenditures and affect supply chains. Companies that do not adapt to these environmental considerations may face challenges in accessing certain markets or encounter damage to their reputation.

Segment Analysis

The global edible oils and fats market is segmented based on type, Nature, distribution channel, application, end-user and region.

Edible Oils Fuel Surge in Edible oils and fats Market

The edible oils segment held 54.1% of the global market share. The expanding global population inherently drives the demand for edible oils. On November 15, 2022, a total of eight billion individuals lived on the globe. The World's population is expected to exceed 8.5 billion people in 2030, 9.7 billion in 2050, and 10.4 billion in 2100, according to the United Nations' 2022 forecasts.

Varied culinary traditions and cultural preferences dictate the choice of edible oils for cooking. For instance, Mediterranean cuisine prominently features olive oil, while Asian culinary practices often utilize palm oil, emphasizing the impact of regional dietary choices. The Food and Agriculture Organization (FAO) of the United Nations supplies data that demonstrates the distinctive consumption patterns of specific edible oils in different countries, underscoring the significance of regional dietary preferences.

Urbanization leads to shifts in dietary habits as more individuals migrate to urban centers and embrace convenience-oriented and processed foods. These processed foods, along with dishes prepared in restaurants, frequently incorporate edible oils as ingredients, thereby elevating the demand. Global urbanization data from reputable sources like the World Bank indicates a global urbanization rate of approximately 55% in 2021. This trend underscores the mounting urban population, which tends to opt for processed and restaurant foods utilizing edible oils.

Geographical Penetration

Growing Population and Urbanization in Asia-Pacific

The Asia-Pacific edible oils and fats market held the largest market share of 38.3% in 2022 in the edible oils and fats market analysis. The region, with its numerous countries, is home to a continuously growing population. This demographic expansion directly shifts into an escalating demand for various commodities, including edible fats and oils.

According to data from the United Nations, the Asia-Pacific region is poised to represent an estimated 60% of the global population in 2022, and this trend is expected to persist in the foreseeable future. Traditional home-cooked dinners are rapidly giving way to more manufactured food options as the region's urbanization continues to rise.

The region's food manufacturing industry is growing at a rapid pace. Processed foods, snacks, and fast-food establishments prominently feature edible oils and fats as fundamental ingredients in their products. In collaboration with the escalating demand for edible oils, there is a heightened consciousness regarding health and nutrition. Consumers are actively seeking healthier cooking oil alternatives, particularly those with lower trans fats and saturated fats.

Competitive Landscape

The major global players in the market include ADM, Wilmar International, Cargill, Incorporated, Bunge Limited, Louis Dreyfus Company B.V., IOI Group, Sime Darby Plantation, United Plantations Berhad, Gemini Edibles & Fats India Limited and AAK AB.

COVID-19 Impact Analysis

The COVID-19 pandemic sent shockwaves through global supply chains, including those of raw materials essential for edible oil production, such as soybeans and palm fruits. Movement restrictions and labor shortages further complicated the production process. With lockdowns and restrictions in place, more individuals turned to home cooking, resulting in an increased demand for cooking oils.

Notably, olive oil witnessed a surge in demand as more people embraced culinary endeavors at home. Health-conscious consumers displayed a preference for healthier cooking oils during the pandemic. Oils with lower saturated fats and those rich in unsaturated fats, like olive oil and avocado oil, gained popularity.

Economic difficulties arising from the pandemic had implications for consumer purchasing power. Some consumers may have opted for more cost-effective edible oils or reduced their consumption. The pandemic gave rise to labor shortages and disruptions within production facilities, thereby impacting the manufacturing and packaging of edible oils.

Russia-Ukraine War Impact Analysis

Ukraine stands as a significant producer and exporter of sunflower oil, a vital constituent in the edible oil market. The conflict in Ukraine has given rise to disruptions in the supply chain, thereby affecting the global availability and pricing of sunflower oil. This has prompted several nations to explore alternative sources of edible oils. Due to these supply disruptions, the prices of sunflower oil and other edible oils have witnessed upward pressure.

The Russia-Ukraine conflict has led to shifts in the dynamics of global trade as countries aim to diversify their origins of edible oils. This can impact established trade relationships and introduce heightened competition among suppliers. The edible oil sector plays a pivotal role in the food industry. Any disruption in the supply of edible oils can affect food production, potentially leading to scarcities or necessitating the use of substitutes, which can influence the taste and quality of food products.

By Type

• Edible Oils

Soyabean Oil

Sunflower Oil

Olive Oil

Coconut Oil

Palm Oil

Others

• Edible Fats

Cocoa Butter Replacer

Cocoa Butter Substitute

Filling Fats

Milk - Fat Replacers

Spread Fat

Others

By Nature

• Organic
• Conventional

By Distribution channel

• Supermarkets/Hypermarkets
• Specialty Stores
• Convenience Stores
• E-Commerce
• Others

By Application

• Snack Products
• Dressings and Sauces
• Chocolates and Confectionery
• Cooking and Culinary
• Others

By End-User

• Food and Beverages
• Nutraceuticals
• Cosmetics and Personal Care
• Others

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

• In March 2023, Cargill and CUBIQ FOODS collaborated on innovative fat technology to speed up customer innovation of plant-based foods. With the help of this strategic alliance, Cargill will have access to CUBIQ's cutting-edge technology to assist clients in creating plant-based substitute foods that offer advantages over conventional goods made with animal fats or tropical oils.
• In March 2023, Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF), a prominent cooperative, launched a fixed-price retail pack of refined cottonseed oil for $100, upending the selling of edible oils. The 'Janmay brand of edible oils is marketed by Amul marketer GCMMF in six different variations.
• In March 2023, the food company Cargill, which has its US headquarters, announced the launch of Gemini Pureit in Karnataka, further demonstrating its commitment to expanding its line of edible oils to South India. Consumers in the four Southern states of Andhra Pradesh, Telangana, Karnataka, and Tamil Nadu will have access to the Gemini Pureit brand through retailers.

Why Purchase the Report?

• To visualize the global edible oils and fats market segmentation based on type, nature, distribution channel, application, 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 edible oils and fats market-level with all segments.
• The 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 Edible oils and fats Market Report would provide approximately 69 tables, 73 figures and 212 Pages.

Target Audience 2023

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