The global Vegetable Oils Market is estimated to be valued at US$ 351391.74 Mn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Vegetable oils such as soybean, corn, palm, and canola oils are major sources of edible oils used across the globe for cooking as well as in food applications such as shortenings, margarines, and non-dairy creamers. Vegetable oils contain healthy fats and vitamins that are necessary for proper nourishment. They also help in lowering bad cholesterol levels which makes them suitable for heart-healthy diets. Vegetable oils are versatile and have a long shelf life which increases their utilization in food services industry.
Market key trends:
One of the key trends in the vegetable oils market is the rising demand for non-GMO and organic vegetable oils. Consumers are increasingly looking for organic and non-GMO vegetable oils due to rising health consciousness. Another major trend is the development of new food-grade vegetable oils through advanced extraction and refining processes. New vegetable oils such as high oleic soybean and canola oils are being developed which have improved stability and nutritional properties. Vegetable oil manufacturers are focusing on new product innovations and developments to cater to evolving consumer demand and interest in healthier oil options. The market is also witnessing increasing adoption of sustainable and traceable cultivation and production practices by vegetable oil players.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is low as the vegetable oils market is dominated by large players with established brand names and global presence. Significant capital investment is required to enter this space.
Bargaining power of buyers: The bargaining power of buyers is moderate since there are many buyers for vegetable oils and brands can easily switch to alternatives. However, buyers have less influence over prices due to the consolidated nature of supply.
Bargaining power of suppliers: The bargaining power of suppliers is low given the large size of buyers and global supply chains. Buyers can source ingredients from different geographies to avoid dependency on any single supplier.
Threat of new substitutes: The threat of new substitutes is moderate as alternatives like olive oil, nut-based oils, and animal fats can replace vegetable oils to some extent based on cost, taste and nutrition preferences. However, widespread recognition and versatility favor incumbent vegetable oils.
Competitive rivalry: Competition is high among the top players due to their global presence across markets. Companies focus on expanding their distribution networks and introducing value-added products to boost market share.
Key Takeaways
The Global Vegetable Oils Market Size is expected to witness high growth, exhibiting CAGR of 10.% over the forecast period, due to increasing demand for cooking oils and emerging applications in industrial and biodiesel sectors. Asia Pacific accounts for the largest share primarily due to growing population, changing food habits and improving living standards in major countries like India and China. The European market is also expanding significantly with health and wellness trends driving olive oil consumption.
Regional analysis Regional analysis – Asia Pacific is the fastest growing region for vegetable oils market led by China and India. China is the largest producer and consumer of vegetable oils worldwide while demand is steadily rising in India with income growth and westernization of diets. North America and Europe are sizable mature markets although per capita consumption is much higher in Europe supported by the prominent role of olive oil in Mediterranean cuisine.
Key players Key players operating in the vegetable oils market are Archer Daniels Midland Company, Sime Darby Plantation Berhad, Bunge Limited, Olam International Limited, Cargill Incorporated, Golden Agri-Resources, Kuala Lumpur Kepong Berhad, Fuji Oil Holding Inc., Wilmar International Limited, PT Astra Agro Lestari Tbk, and Avril Group. Leading companies are focused on expanding their sourcing and product portfolios through strategic acquisitions.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
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