Edible Oils and Fats Market Size, Share, Growth Report 2032

Industry Prospective:

The global Edible Oils and Fats market was worth around USD 96.90 billion in 2021 and is estimated to grow to about USD 138.2343836 billion by 2028, with a compound annual growth rate (CAGR) of approximately 6.10 percent over the forecast period. The report analyzes the Edible Oils and Fats market’s drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the Edible Oils and Fats market.

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Global Edible Oils and Fats Market: Overview

In the Global Edible Oils and Fats Market Report, The growing importance of vegetable oils as key functional ingredients that reduce the risk of cardiovascular disorders as well as the possibility of breast cancer is expected to continue to be a positive growth driver. Furthermore, because of its exceptional anti-inflammatory properties, the omega-3 fatty acid is expected to gain popularity as a nutritional constituent in the food industry, prompting the adoption of oil produced from soybean, canola, and flax seeds. Over the last few years, cooking oil manufacturers have increased their investment in the development of low-cholesterol products. Furthermore, changing dietary patterns and a hectic lifestyle among working-class professionals are expected to shift consumer preferences and drive demand for sunflower and coconut oil for cooking. Coconut oil is high in fatty acids, which help to protect against bacteria and other pathogens. Olive oil, on the other hand, is capable of balancing the HDL to LDL cholesterol ratio, ensuring proper blood circulation.

Concerns about the negative effects of trans-fat consumption, such as an increased risk of coronary heart disease, type 2 diabetes, and brain stroke, are expected to promote the use of vegetable oil as a cooking alternative. Furthermore, because of the exceptional aroma of peanut or groundnut oil, edible oils are used as a flavouring agent. The growing number of hotels and restaurant chains from developing countries is expected to increase the utility of edible oils as a result of supportive government policies aimed at improving city infrastructure.

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COVID-19 Impact:

Because of the coronavirus crisis, the supply and demand for fats and oils in the global market have shifted, with increasing price uncertainty. Palm oil, the most common type of oil produced globally, suffered as demand fell around the world, trade was disrupted, and production was hampered. Governments in countries such as India, China, and the United States granted exemptions for the sector to continue operations with limited capacity despite the lockdowns. As production continued, these companies were able to mitigate the significant impact through the continuation of operations.

Edible Oils and Fats Market: Growth Drivers

Driver: Increased food demand helps boost global consumption of vegetable oils.

To produce uniformity in high-quality oil, edible oil products such as palm oil, sunflower oil, soybean oil, and canola oil, among others, are generally purified using various methods such as degumming, neutralizing, bleaching, and deodorizing. Minor components, which are considered impurities, are physically or chemically separated during the purification process. Refined oils are the most common term for high-quality edible oils. Monounsaturated fats are abundant in refined oils. High-quality oils are produced using cutting-edge technology and are regarded as a rich source of nutrition. As a result, their consumption is increasing year after year due to increased application and a growing population.

Restraint: Fat and oil product labeling, and safety concerns

Significant changes in the competitive position of major vegetable oils imply significant cost impacts and potential threats to some food products. The global vegetable oil market is under pressure as a result of various legislations in this environment. Furthermore, due to the use of ambiguous terms such as vegetable fats or vegetable oils, there is a high degree of anonymity in the exact content of the food ingredients. As a result, the exact composition of the ingredient, as well as its role in the overall formulation, are unknown. New regulations requiring the labelling of trans-fatty acid levels in foods are putting pressure on manufacturers to switch to different formulations for producing hydrogenated oils, increasing demand for oils as an alternative to trans-fats.

Report Scope:

Opportunity: Emerging use of fats and oils as trans-fat substitutes

Trans-fats are unsaturated fatty acids that are formed during the hydrogenation of vegetable oils or that are naturally produced in the guts of grazing animals. Trans fat consumption raises the level of low-density lipoprotein cholesterol in the blood. A high LDL cholesterol level in the blood can increase the risk of developing cardiovascular disease. Trans-fats are gradually being replaced by a much healthier substitute, namely unsaturated liquid vegetable oils such as olive, canola, corn, or soy oils, as consumer health consciousness grows.

Challenge: High reliance on imports, resulting in high end-product costs

Due to the scarcity of oilseeds in some domestic markets, there is a significant gap between demand and supply of oilseed processed products such as edible oil. Because of these countries' favorable climatic conditions, India and European countries import a large amount of palm oil from Indonesia and Malaysia, which are the leading producers. Because these countries rely heavily on imports of palm oil and shea butter, respectively, their import costs and end-product prices rise, posing a challenge to the market.

Global Edible Oils and Fats Market: Segmentation

The global Edible Oils and Fats market is segregated based on Type, Application, Form, and Source.

By type, the market is classified into Vegetable Oils, Palm oil, Soybean oil, Sunflower oil, Rapeseed oil, Olive oil, Other oils, Fats, Butter & margarine, Lard, Tallow & grease, and Other fats. This category had a significant share in 2021 and is expected to maintain its dominance throughout the forecast period. The Palm oil segment is expected to grow the fastest in the global market in 2021. Some of the factors that have driven the market for fats and oils include health benefits, ease of availability, and cost-effectiveness. Palm oil has dominated the vegetable oil market because it is widely available and relatively more stable than other oils.

By source, the market is divided into vegetables and animals. Vegetable oils derived from sunflower, rapeseed, soybean, palm, cottonseed, and coconut are widely used in food applications, fueling the market for vegetable-sourced oils. Low-fat, low-cholesterol, and low-calorie content are attributes associated with vegetable oils that are gaining traction in the market. The market for vegetable oils has also been driven by the variety of uses of vegetable oils in food as well as other industries such as oleo-chemical industries, animal feed, and the energy & biomass industries.

Recent Developments

• In May 2021, ADM planned to construct the world's first specialized soybean crusher and refinery in the United States to address rising demand from food, feed, industrial, and biofuel customers, including renewable diesel makers.
• In December 2018, Richardson International has bought Conagra Food Inc.'s Wesson Oil brand, which is a well-known edible oil brand in the United States. Vegetable oils, canola oils, corn oils, and mixed oils are among the products available, which might help Richardson gain a solid presence in the North American market.

Regional Landscape

North America is expected to have a significant rise in the market over the forecast period. This is due to the presence of various oil and fat producers in the region. Furthermore, the introduction of healthy edible oils by manufacturers in order to capitalize on the growing health-consciousness trend is expected to boost regional revenue in the edible oils and fats market.

In 2021, Asia Pacific led the market, accounting for more of the global share. As a result of population growth, rising disposable income, and urbanization in emerging economies such as China, India, and Bangladesh, the segment is expected to grow at an impressive CAGR. Furthermore, the rising popularity of low-calorie oil among the middle-income age groups in the aforementioned economies is expected to have a positive impact on the market.

Global Edible Oils and Fats market Competitive Landscape

Some of the main competitors dominating the global Edible Oils and Fats market include – Associated British Foods PLC (UK), Archer Daniels Midland Company (ADM) (US), Bunge Limited (US), Wilmar International Limited (Singapore), United Plantations Berhad (Malaysia), Unilever PLC (UK), Ajinomoto Co., Inc. (Japan), Mewah International Inc. (Singapore).

 The market is segmented as follows:

By type

• Vegetable Oils
• Palm oil
• Soybean oil
• Sunflower oil
• Rapeseed oil
• Olive oil
• Other oils
• Fats
• Butter & margarine
• Lard
• Tallow & grease
• Other fats

By application

• Food applications
• Bakery & confectionary
• Bakery
• Confectionery
• Processed food
• Snacks & savory
• R.T.E foods/Convenience foods
• Sauces, spreads, and dressings
• Other foods (incl. meat products)
• Industrial applications
• Biodiesel
• Other industrial applications
• Oleochemicals
• Animal feed

By form

• Liquid
• Solid

By source

• Vegetables
• Animals

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of the Middle East & Africa