The global vegetable oil market is growing at a CAGR of 3.25% during the forecast period (2019-2024). Availability of a broad range of products and wide application in food and industrial sector are driving the market. Developing markets are gaining attention due to innovation in new flavors and healthy ingredients boost consumption in the coming years. Growing demand for organic, healthy and natural products are also driving the market. The vegetable oil market is expected to expand with qualities such as low-fat, low-cholesterol, and low-calorie in the products. Increasing demand for edible oils in developing countries like China and India, due to improving economies and population growth majorly drives growth in vegetable oil consumption.
Scope of the Report
Global vegetable oil market offers a range of products including palm oil, soybean oil, rapeseed oil (canola), sunflower oil, and other types applicable to confectionery, dairy, bakery, and other industries. The market covers a global level analysis of the major regions such as North America, Europe, Asia-Pacific, South America, and the Middle East and Africa.
Key Market Trends
Increased Demand for Palm Oil in Developed Countries
Attributed to the multi-functional properties of palm oil in food and other industries, the segment remains the highest consumed oil in the world. Moreover, Palm oil is one of the most disbursed vegetable oil in the world. The primary users of palm oil include China, India, Indonesia, and the European Union. India, China, and the European Union do not produce crude palm oil and their demand is entirely met by imports. There is substantial demand for palm oil from various end-user sectors across the world since it costs 20% less than most vegetable oils and is very versatile. In the past few years, palm oil production has amplified significantly, with almost all production growth determined in Malaysia and Indonesia. There is an increase in the demand for biofuel in most of the developed regions, which augmented the demand for palm oil.
Asia-Pacific Emerges as the Fastest Growing Market
Asia-Pacific registers as the fastest growing region across the globe due to huge demand from the food sector, increasing health-conscious consumers, rising population, and changing living standards. Europe is the second largest market due to the trend towards healthier lifestyles and technological developments. The rising affluence of China’s middle-class population is permitting consumers to purchase higher-priced, packaged vegetable oils. Moreover, the ban on the sale of loose oils in some Chinese cities has further stimulated the demand for packaged oils. In addition, the Indonesian government has also imposed new regulations intended at increasing the domestic consumption of biodiesel made from palm oil.
The global vegetable oil market is highly fragmented owing to the prevalence of small manufacturers over the giant players. Some of the key players in the market are Cargill, Incorporated, Kerry Inc., Olam International, and Archer Daniels Midland Company. Global companies are strategically adopting joint ventures and partnering with local players to increase market penetration.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- Report customization as per the client’s requirements
- 3 months of analyst support