Edible oils are derived from plant and marine sources and are widely used for cooking purposes, forming margarine and mayonnaise, baking and also in cosmetics and pharmaceuticals among other uses. Some key edible oil products include soybean oil, sunflower oil, rapeseed oil (canola oil), palm oil and olive oil. These oils provide essential fatty acids, fat-soluble vitamins and aromatic compounds that enhance the taste and aroma of foods. With growing health consciousness, demand for novel edible oils with health benefits like olive and coconut oil is on the rise.
The Global Edible Oils Market is estimated to be valued at US$ 143.29 Mn in 2024 and is expected to exhibit a CAGR of 4.5% over the forecast period 2024 to 2030.
Key Takeaways
Key players operating in the Global Edible Oils Market Demand are AJF Cigars, Boutique Blends Cigars, Fenn Thompson & Co. Royal Cigar Works, Gurkha Cigar Group, Imperial Brands, Joya De Nicaragua, S.A., Scandinavian Tobacco Group, Swedish Match AB, and Swisher.
The key opportunities in the edible oils market include growing demand for non-GMO oils and increasing inclination towards organic and cold-pressed oils owing to their perceived health benefits. Technological advancements have enabled higher yields from crops and extraction of oils through advanced methods like carbon dioxide extraction which produces healthier oils without the use of hexane solvent.
Market drivers
The global edible oils market is driven by the increasing consumption of convenience foods prepared using various edible oils. As more people lead busy lifestyles, demand for packaged food products is rising globally. This necessitates the use of edible oils for frying, sauteing and baking applications in both retail and food service sectors. Further, oilseed crop production is supported by governmental policies aimed at self-sufficiency as well as export promotion, ensuring strong supply of edible oils.
Current challenges in Edible Oils Market
The edible oils market is facing several challenges currently including price volatility of feedstocks, growing health consciousness, and disruptions due to the ongoing Covid-19 pandemic. Raw material prices widely fluctuate depending on various factors like weather conditions, political instability in major producing countries, currency fluctuations etc. This volatility creates uncertainty for producers and consumers. Additionally, consumers are increasingly demanding healthier and natural oil options like olive oil and coconut oil, posing a threat to conventional oils. The pandemic has also negatively impacted demand and supply chains to some extent as various lockdown restrictions affected trade globally. Addressing these challenges through innovation, efficient sourcing strategies and diversification will be crucial for players in this space.
SWOT Analysis
Strength: Wide range of applications in food industry. Essential component in various cuisines globally.
Weakness: Vulnerability to external factors affecting raw material prices. Growing demand for specialized and niche alternatives.
Opportunity: Expanding into emerging markets and value-added product segments. Developing innovative blends catering to evolving tastes.
Threats: Stringent regulations around trans-fat content. Intensifying competition amongst players.
The edible oils market in Asia Pacific currently holds the largest share in terms of value reflecting high consumption in populous countries like India, China and Indonesia. India alone accounts for over 20% of global edible oil consumption attributable to extensive culinary use of oils. North America is expected to grow at a noteworthy rate through 2030 as companies focus on organic, non-GMO and specialty oils to cater to health-conscious consumers in the region.
Europe currently represents the second largest regional market for edible oils. Within Europe, countries like Germany, UK, France and Italy display sizeable demand fueled by extensive food industries and established hospitality sectors. Strong per capita consumption patterns also make Western Europe a crucial export market for players.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
