Edible oils and fats are esters of carboxylic acids and glycerols. Oils are liquid at room temperature while fats are partially solid at room temperature. Oils and fats are used in cooking to improve taste and give good texture. The demand for edible oils and fats is attributed to the growing demand for fried and processed food, increasing number of restaurants and fast food joints, urbanization and increasing population.
The major challenge for edible oil and fat industry is the growing health problems caused by oils and fats such as obesity and cardiovascular diseases. Various innovative cholesterol free, low fat, low calorie oils enriched with vitamins and antioxidants are introduced in the market. These innovative products are increasing the demand of oils and fats in the global market.
Global Edible Oils and Fats -Market Taxonomy
Based on product type, global edible oils and fats is segmented into:
Based on source, global edible oils and fats is segmented into:
Based on Form, global edible oils and fats is segmented into:
Based on Distribution Channel, global edible oils and fats is segmented into:
Various vegetable oils such as soya bean, sunflower, cotton seed, groundnut, coconut oil are commonly used. Edible animal fats utilized are tallow and lard. Oils and fats are extracted using Expeller pressed and cold pressed techniques. In expeller pressed, the pressure and friction results in extraction of oil while in cold-pressed technique low temperatures are used.
Global Edible Oils and Fats Market Outlook
The companies are adopting various organic and inorganic growth strategies to sustain their market positions such as new product launch, geographical expansion, merger and acquisition.
In May 2017, Cargill entered in a joint venture with New Hope Group, China’s largest animal feed makers, to build a soybean crush plant, which is expected to have daily processing capacity of 50,000 tons of soybean to produce soymeal and oil. New Hope Group owned 51% stakes in joint venture and remaining 49% stakes owned by Cargill.
In May 2014, Cargill acquired Turyag, a Turkish fats and oils company, with the aim to expand Cargill’s portfolio with oils and fats in Turkish market. The acquisition included crush and refinery assets, sales and manufacturing organizations, related B2B brands, intellectual property owned by Turyag.
In January 2018, Astra Agro announced construction of a new palm oil mill plant in South Kalimantan with production capacity of 45 tons per hour, which is expected to begin operation in 2019.
For instance, in January 2017, Wilmar Kuantan Edible Oils, a Malaysian edible oils company, subsidiary of Wilmar International acquired Cargill’s edible oil facilities in Malaysia, which included palm oil refinery and oil storage facility. This acquisition helped Wilmar Kuantan Edible Oils to expand its product portfolio in Malaysian market.
In August 2018, Archer Daniels Midland Company purchased certain assets of Brazil-based Algar Agro, including oilseeds processing facilities in Uberlândia in the state of Minas Gerais and Porto Franco in Maranhão. This will enhance the company’s position in important Brazilian bottled oil markets.
The important players in the market for edible oils and fats are Adani Wilmar Ltd., Ruchi Borges Mediterranean Group, Archer Daniels Midland Company, Cargill Inc., American Vegetable Oils, Inc., Beidahuang Group, Fuji Vegetable Oil, Inc., ConAgra Foods Inc., International Foodstuff Company Limited, Ajinomoto Co., Inc., United Plantations Berhad, Associated British Foods plc, CHS Inc., Unilever plc, Bunge Limited, Mother Diary and Wilmar International Limited.