The global edible oils market is a multibillion-dollar industry that supplies various vegetable and nut-based oils that are used extensively in cooking, food processing, and cosmetics industries. Edible oils such as soybean oil, palm oil, sunflower oil, and olive oil are highly versatile ingredients used for frying, sautéing, and baking. They are also incorporated into packaged snacks, baked goods, dressings, and spreads. The increasing awareness about the health benefits of certain edible oils like olive and coconut oil is fueling their demand among health-conscious consumers. In addition, the vegan and free-from trends have boosted the adoption of plant-based oils as alternatives to butter and animal-derived fats. The edible oils industry is innovating to cater to nuanced consumer preferences through taste-enhanced, nutrient-fortified, and sustainable product offerings. The global edible oils market is estimated to be valued at US$ 124.38 Bn in 2023 and is expected to exhibit a CAGR of 8.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The Edible Oils Market size is expected to be flourished by rising demand for healthier cooking options. One key driver influencing the growth is the increasing health consciousness among consumers. As people become more aware about problems with saturated and trans fats, they are replacing butter, margarine and other solid cooking fats with healthier liquid vegetable and nut oils that are high in unsaturated fats like olive oil and avocado oil. This shift towards more nutritious cooking ingredients is spurring the sales of edible oils labeled as heart healthy, low cholesterol, non-GMO, and chemical-free. Another driver expanding the edible oils market size is the oilseed farmers responding to food demand by growing more oil crops. Soybean, sunflower, oil palm, canola, coconut, and olive trees are being cultivated extensively to keep up with the rising need for edible oils globally. This rise in agricultural production ensures adequate supply of different oil types to customers around the world.
Segment Analysis
The global edible oils market is segmented into palm oil, soybean oil, sunflower oil, and other oils. Palm oil dominates the market with over 35% share as it is most widely used for cooking purposes in Asia due to its lower cost as compared to other vegetable oils. It is also favored by the food processing industry due to its higher smoke point.
PEST Analysis
Political: Edible oil imports are subject to regulatory duties and subsidies in many countries. Any changes in international trade policies could impact the prices and supply of edible oils globally.
Economic: Being a kitchen essential, the demand for edible oils is directly linked to the economic growth and disposable income levels. Higher household spending favors the sales of high-value oils such as olive and canola oils.
Social: With growing health consciousness, consumers are shifting towards oils with perceived health benefits. Trends such as oil substitutions and reduction in oil consumption are impacting the sales of certain oil varieties.
Technological: Advancements in oilseeds production and extraction technologies have boosted yields and reduced costs. Technologies such as interesterification are also helping improve the properties of edible oils.
Key Takeaways
The global edible oils market is expected to witness high growth supported by the rising demand for healthy cooking oils and expanding applications in food processing and personal care sectors.
Regional analysis: Asia Pacific dominates the global edible oils market and is expected to exhibit fastest gains during the forecast period supported by larger population base, increasing palm oil consumption in India and food industry growth. China, India, and Indonesia represent some of the largest edible oils markets in the region.
Key players operating in the edible oils market are Illumina, Inc., Eurofins Scientific, PerkinElmer, Inc., F. Hoffmann-La Roche AG, Natera, Inc., Yourgene Health Plc., Laboratory Corporation of America Holdings (LabCorp), BGI Group, and Quest Diagnostics Incorporated. The industry is characterized by presence of few large players and several small & medium enterprises operating regionally. Industry players are increasingly investing in new product development and production capacity expansion to meet the rising global demand.
