The global vegetable oils market size was valued at USD 317,829 million in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 10.56% from 2023 to 2030. Growing awareness regarding the health benefits of vegetable oil is expected to drive growth of the market. Vegetable oils contain antioxidants that fight against free radicals, which can cause cell damage and cancer. They are also rich in phytosterols, which can reduce the risk of heart disease. Compared with animal fats, vegetable oils are considered healthier because they contain more monounsaturated and polyunsaturated fatty acids than saturated fatty acids, which are harmful to the body. They are also a good source of vitamin E and omega-3 fatty acids, which help the body to function properly. Moreover, increasing application of vegetable oil for producing biofuel is again propelling market growth. Soybean oil is used to make biodiesel, a fuel that can be used in diesel vehicles. The oil can be made using a process that is similar to the one used for making petrol and diesel, except that the synthesis of the fatty acids is done in a more environmentally friendly way.
Global Vegetable Oils Market: Regional Insights
Based on geography, the global vegetable oils market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
North America is expected to dominate the global vegetable oil market over the forecast period owing to the high consumption of mayonnaise along with the growing popularity of fast food. Vegetable oil is widely used in the preparation of mayonnaise. The US mayonnaise market was valued at USD 2,165 million in 2022, and it is projected to reach USD 2,546 million by 2030, registering a CAGR of 2.05% during the forecast period.
Europe is also expected to witness fastest growth in the global market owing to the high production of vegetable oil in the region. According to the Coherent Market Insights analysis, the volume of the Spanish oil market stood at 3,257 thousand metric ton in 2022, and it is projected to reach 3,810 thousand metric ton by 2030, registering a CAGR of 1.98% during the forecast period.
Figure 1. Global Vegetable Oils Market Share (%), By Region
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Global Vegetable Oils Market Drivers:
Favorable government policies on usage of vegetable oil across various countries to augment market growth
For instance, EU’s vegetable oil consumption in biofuel has been raised due to the Renewable Energy Directive (RED). This directive, established in 2009, requires 10% of the energy consumption in road and rail transport in 2020 to be from renewable sources. EU Member States (countries) are required to implement this target with national laws and incentives, such as blending mandates. Palm oil contributes around 20% to the production of biodiesel (fatty acid methyl ester) and renewable diesel (hydrotreated vegetable oil) in the EU.
Growing demand from lubricants, paints, and paper application to propel market growth
Vegetable oils are being increasingly used as lubrication in transportation and industrial sector. For example they are used in chain saws, two-stroke engines, hydraulics, open gears, mining, mold releases, farming, and forestry equipment. Moreover, oleochemicals is a common ingredient used to manufacture industrial, household, and institutional cleaning products, such as fabric cleaners and softeners, automotive cleaners, surface cleaners, dishwashing, and care products, and industrial cleaners. A major amount of palm oil production goes into production of oleochemical, making it one of the major applications. Hence, growing industrial application of vegetable oil is expected to foster market growth.
Global Vegetable Oils Market Opportunities:
Advent of new sources and production method owing to the ongoing research and development activities is expected to offer significant growth opportunities. For instance, a research project has been funded by the European Union’s Horizon 2020 research and innovation program, called The COSMOS Horizon 2020 EU. The project aims at reducing dependence of Europe’s oleochemical industry on imported tropical vegetable oils.
Growing popularity of plant-based oil is expected to serve significant growth opportunities in the near future. Plant based oils are often used in baking, and they can be flavored with dried or fresh herbs to create a variety of dishes. They can also be mixed with other oils to form a blended vegetable oil, like olive oil and avocado oil.
Vegetable Oils Market Report Coverage
|Market Size in 2022:
|US$ 317,829 Mn
|Historical Data for:
|2017 to 2021
|2023 to 2030
|Forecast Period 2023 to 2030 CAGR:
|2030 Value Projection:
|US$ 709,541 Mn
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
|Restraints & Challenges:
Global Vegetable Oils Market Trends:
Growing trend of cold press oil
Cold press oil, also known as virgin oil, is the most natural and pure form of extracting oil from seeds like groundnut, sesame, and sunflower without using any heat treatments. The process involves crushing the oil seeds and nuts with steady and moderate pressure at room temperature. The extraction process for cold pressed oil does not involve any high temperature or roasting and thus the oils obtained are rich in valuable unsaturated fatty acids, tocopherols, and phenolic compounds that help stabilize the oil against auto-oxidation and ensure that oil nutrients have not been destroyed during the process.
Increasing focus on production capacity
For instance, in April 2021, Cargill has expanded its US soy processing operations with a $475 million investment to modernize and develop crush facilities in seven states. Currently, the company is present in 22 sites on 12 entities of Mexico with the primary objective to satisfy the country’s food industry requirements.
Global Vegetable Oils Market Restraints:
Growing deforestation due to increasing palm oil production is hampering production of vegetable oil
Palm oil production has been associated with deforestation, especially rainforests, to clear land for palm plantations. This is causing environmental problems, hence hampering the production of palm oil. However, various manufacturer have taken pledge to reduce environmental impact. For instance, Global beauty brands are taking note, such as L’Oréal has pledged to achieve 100% traceability on the palm oil it buys, and Estée Lauder has adopted a no-deforestation policy where palm oil suppliers must prove no trees were felled in their processes.
Concerns associated with the processing of vegetable oils to hinder market growth
Vegetable oil is extremely fragile and can easily be damaged by heat or air, so it is always advised to stored in a cool and dark place with capped tightly to prevent oxygen from causing it to spoil. This factor is expected to hamper the market growth.
Figure 2. Global Vegetable Oils Market Share (%), By Segment
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Global Vegetable Oils Market Segmentation:
The global vegetable oils market report is segmented into type, application, and geography
Based on type, the market is segmented into Palm Oil, Soybean Oil, Rapeseed Oil, Sunflower Oil, Coconut Oil, Peanut Oil, Olive Oil, and Other Types. Out of which, Palm Oil is expected to dominate the global market over the forecast period and this is owing to the fact that they are the most effective crop worldwide in terms of oil production. Nearly one hectare of oil palm crop yields ten times higher oil than any other oilseeds. The palm oil segment of the market studied was valued at USD 59,671 million in 2020. It is expected to reach USD 144,192 million by 2030, registering a CAGR of 11.66% during the forecast period, 2023-2030.
Soybean Oil segment is also expected to witness significant growth in the near future. Soybean oil is a popular choice for most consumers due to its numerous health benefits.
Based on application, the market is segmented into Food, Feed, and Industrial. Out of which, Food is expected to dominate the global market over the forecast period. The most commonly used vegetable oils for cooking are canola oil, sunflower oil, and soybean oil. They are good for frying, sautéing and roasting, as well as adding flavor to soups, sauces and salad dressings.
Industrial segment is also expected to witness significant growth in the near future and this is owing to the growing demand from paints, lubricants, biofuel, and paper application
Global Vegetable Oils Market: Key Developments
In February 2020, Bunge Loders Croklaan launched an oil portfolio for plant-based meats at NPEW ’20 across the globe.
In March 2018, Bunge Limited (“Bunge”) announced it has completed acquisition of a 70% ownership interest in IOI Loders Croklaan (“Loders”) from IOI Corporation Berhad
In March 2019, Sime Darby rebranded its Downstream Division as Sime Darby Oils, with an aim to establish itself as the largest sustainable oils and fats multinational company.
In March 2018, The Sime Darby received 100% Malaysian Sustainable Palm Oil (MSPO) certification for its 124 estates and 33 mills throughout the country, becoming the largest producer of MSPO-certified palm oil.
In October 2019, Sime Darby, along with nine other palm oil industry giants, developed radar monitoring technology to detect deforestation known as Radar Alerts for Detecting Deforestation (RADD).
In October 2019, Sime Darby Plantation Berhad launched ‘Palm Oil Experience Centre’ in Carey Island, Selangor, which is expected to serve the purpose of being an educational hub where visitors can learn more about palm oil and its complete value chain of operations.
In October 2019, In partnership with Conservation International, Sime Darby Plantation entered a partnership for sustainable palm oil, which is likely to further help SDP build a reputation as a leader in sustainability.
In October 2020 Edible Oil Limited, a joint venture between Archer Daniels Midland (ADM) and Princes Limited, invested GBP 23.6 million, upgrading its Erith factory in Kent. The major investment program is expected to increase the site’s production capacity by around 50%.
In September 2019, Archer Daniels Midland Company and Wilmar International Limited upgraded their partnership into Full-Function Joint Venture – Olenex. As a part of agreement, ADM announced to transfer a specialty oils and fats facility and a palm refining plant in Hamburg, Germany - to the new joint venture.
In July 2018, Archer Daniels Midland Company and Cargill successfully completed their transaction and formally launched SoyVenTM, their new joint venture to provide soybean meal and oil for customers in Egypt. SoyVen owns and operates the National Vegetable Oil Company soy crush facility. The plant’s daily crush capacity doubled to 6,000 metric ton to meet the increasing Egyptian demand for higher-protein soybean meal and oil, reducing the need for imports.
Global Vegetable Oils Market: Key Companies Insights
The global vegetable oils market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global 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
*Definition: Vegetable oils are a group of fats that are extracted from plants, seeds and nuts. They are used to help in texture, carry flavor within a dish and assist in cooking food. Common vegetable oils include: Canola, Palm, Corn, Olive, Sunflower, Soybean and Rice Bran oil.
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