The global edible oils market consists of various edible plant-derived and processed oils that are extensively used in food applications for cooking and consumption purposes. Commonly used edible oils include soybean oil, canola oil, sunflower oil, olive oil, corn oil, palm oil, and others. These oils are rich sources of various nutrients like vitamins, minerals, and unsaturated fatty acids. They are incorporated in various cuisines and dishes to enhance flavor and texture. Increasing health consciousness among consumers has propelled the demand for healthier edible oil options like olive oil and avocado oil in recent years. The diverse applications of edible oils in food processing industries such as confectionaries, savories, bakeries have also boosted their market growth.
The global edible oils Market is estimated to be valued at US$ 143.29 Mn in 2023 and is expected to exhibit a CAGR of 4.5% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
As highlighted in the heading, the increasing applications in food industry is one of the major drivers propelling the global edible oils market. The extensive usage of various edible oils like soybean oil and palm oil in cuisines, food production, and processed snacks has significantly contributed to the market growth over the years. Another driver is the rising health awareness among consumers regarding the benefits of unsaturated edible oils like olive and canola oils. Their high consumption can help reduce cholesterol levels and risks of heart diseases. This changing preference towards healthier oil options is positively impacting the market dynamics.
Segment Analysis
Edible Oils Market is segmented into Vegetable Oils and Animal Oils. Vegetable Oils segment dominates the edible oils market with over 70% share as of 2024. Some of the popular vegetable oils consumed worldwide include palm oil, soybean oil, sunflower oil and canola oil. Among these, palm oil dominates the vegetable oils segment with over 30% market share owing to its wide use in food applications and lower cost of production compared to other oils.
PEST Analysis
Political: Governments across major edible oil importing countries have implemented various tariffs and import restrictions to support local edible oil production. This impacts trade flows.
Economic: Rising incomes have led to increased consumption of edible oils globally. However, high inflation impacts consumer spending power.
Social: Growing health consciousness has increased demand for healthier oil options like olive and canola oils. However, price sensitivity remains high in developing markets.
Technological: Advanced extraction and refining technologies have improved yields and quality. Investments in oilseed cultivation and processing infrastructure have aided production.
Key Takeaways
The Global Edible Oils Market Share is expected to witness high growth over the forecast period of 2024 to 2031 supported by rising population and incomes. The global edible oils Market is estimated to be valued at US$ 143.29 Mn in 2023 and is expected to exhibit a CAGR of 4.5% over the forecast period 2024 to 2031.
The Asia Pacific region dominates with over 50% market share led by India, China and Indonesia. India accounts for nearly 25% of global edible oil consumption owing to a large population base and widespread use of oil in cooking.
Key players operating in the edible oils market 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. AJF Cigars leads the market with over 15% share owing to its diversified product portfolio and global distribution network.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it