Edible oils are fatty liquids that are widely used in the preparation of food and are derived from various vegetable sources. Edible oils possess various health benefits due to its nutritious constitute. For example, an omega-3 fatty acid present in the edible oil offers anti-inflammatory properties which reduce the risk of various chronic diseases.
The global edible oils market is estimated to be valued at US$ 112.6 Billion in 2021 and is expected to exhibit a CAGR of 5.1 % over the forecast period (2021-2028).
Asia Pacific region held dominant position in the global edible oils market in 2020, accounting for 41.91% share in terms of value, followed by Europe and North America, respectively.
Figure 1. Global Edible Oils Market Value (US$ Bn), by Region, 202 0
The growing demand for organic edible oil due to rising health concerns among consumers is driving the market growth of edible oil. Increasing demand for edible oils with low calories, cholesterol, and fat content is propelling market growth. This is attributed to the growing prevalence of various lifestyle disorders such as diabetes, obesity, and cardiovascular disease. Thus, the growing demand for organic edible oil is projected to foster market growth in the near future.
Increasing consumption and demand for edible oil especially across the APAC region is escalating the market growth. According to the Coherent Market Insights analysis, growth of the edible oil market in APAC is significantly driven by demand rising from markets in India and China due to increasing per capita consumption of edible oils in both countries, which collectively account for over 40% of total global edible oils consumption. Also, an increase in the population in this region is again driving the consumption of edible oils.
Emerging industrial application of corn oil is projected to provide lucrative market opportunities in the near future. High production of corn oil is increasing its use in biofuels plants and the animal feed industry. According to the Coherent Market Insights analysis, corn oil demand will increase and its industrial usage will continue to drive revenue growth of the corn oil markets in various regions. Thus, the growing demand for corn oil is across industrial applications will favor the market growth of edible oil.
Growing demand for economical healthy oils is driving demand for canola oil. This is expected to bring new market opportunities. For example, canola oil is a cheaper and healthier alternative to olive oil, owing to its lowest fat content (6%) among all other type of edible oils, and is also rich in omega 3, 6, and 9. Such health benefits offered by canola oil has increased imports of canola oil across developing regions. Growing demand for economical healthy oils is supporting market growth.
Edible Oils Market Report Coverage
|Base Year:||2020||Market Size in 2021:||US$ 112.6 Bn|
|Historical Data for:||2017 to 2020||Forecast Period:||2021 to 2028|
|Forecast Period 2021 to 2028 CAGR:||5.1%||2028 Value Projection:||US$ 159.4 Bn|
Adani Wilmar Ltd., Ruchi Soya Industries Ltd, Associated British Foods plc, Archer Daniels Midland Company, Beidahuang Group, Bunge Limited, Borges Mediterranean Group, Cargill Incorporated, Fuji Vegetable Oil, Inc., Adams Group, American Vegetable Oils, Inc., and Olympic Oils Limited
|Restraints & Challenges:||
Capacity expansion by key manufacturers in order to cater to growing demand around the globe is one of the emerging trends in the market. For instance, in August 2019, Emami Agrotech plans to invest Rs 700 cr capex to expand edible oil capacity. The company's edible oil capacity would be 10,000 tons per day from 6000 tons per day, after the expansion. Therefore, increasing capacity expansion of the edible by the key manufacturer will favor the market growth over the forecast period.
The expanding foodservice industry is promoting the growth of the edible oils market. It is one of the key consumer of edible oils and is on a high growth path due to the increasing demand for food around the globe and the rise in the agriculture industry. Also, the expansion of the retail industry across developed as well as developing countries is increasing the sale of edible oil. Moreover, increasing shelf space for specialty blended oils and olive oil in retail industry across developed countries is again fostering market growth.
Figure 2. Global Edible Oils Market Share, By Type, 2020
Key Takeaways of the Graph:
Evolving consumer preference while choosing edible oils has forced major companies to opt for competitive positioning in order to sustain in the market. Moreover, this also leads to severe cost impacts. This factor is expected to hinder the market growth of edible oil.
Growing changes and additions to food safety policies across various countries are compelling manufacturers to adopt these changes in the manufacturing processes in order to remain compliant with the new food safety regulations. This may lead to various complications in the production process and can increase the overall cost, thereby hindering the market growth.
U.S. Regulations: In June 2015, The Food and Drug Administration, USA (FDA) ruled that trans-fat is not "generally recognized as safe" and prohibited its use in edible products. The FDA allowed food manufacturers three years to change their processes and avoid using trans fats or PHOs in an edible product. While the companies can petition the FDA for special permits to use transfats, no PHOs can be added to edible oils or food products, unless approved by the FDA.
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