ID: MRFR/F-B & N/1305-HCR | 110 Pages | Published By Varsha More on March 2023
The Specialty Oils Market is projected to grow at a 7.8% CAGR from 2021 to 2028 to reach USD 19.8 billion.
The term specialty oils especially refer to the commodity oils that have special dietary and functional properties. They are derived from the sources like palms, coconuts, soybeans, sunflower, rapeseed, peanuts, and olive oils.
In 2021, the estimated value of the specialty oils market is US $12.6 billion, and it is projected to grow at a significant rate of 7.8% to reach the US $19.8 billion by 2026. This number will increase day by day due to the growing demand for bakery, processed food, and nutritious food products. This growing market of specialty oils is helping to raise the living standards of a large segment of the population, especially developing the markets that trigger demand for a variety of edible fats and oils.
During COVID-19, the supply and demands of specialty oils faced stringent measures. The global Specialty Oils Market shifted due to the coronavirus response with an increasing uncertainty regarding the prices of these commodities. Palm Oil, the largest type of globally produced oil, also faced the same impact and has been hit hard by declining demand amid price uncertainty. According to top producers of vegetable oil markets such as Wilmar International and Mahwah Group, in Indonesia and Malaysia, the epidemic has disrupted the palm oil trade and disrupted their production. But the bakeries and confectionery industries noticed an increase in sales as people stocked these products during the lockdown.
Specialty Oils Market by Segmentation:
The main drivers of the specialty oils are algae oil, avocado oil, butter oil, coconut oil, fish oil, flax oil, hemp seed oil, tree nut oil, and sesame seed oil. These oils not only have unique properties that make them desirable in industrial and non-edible applications but also are marketed for their health-promoting properties.
As the saying goes, anything excess is poison. Similarly, excessive consumption of these specialty oils can be harmful to human health as well. They increase the level of low-density lipoproteins and decrease the level of high-density lipoproteins in the blood, which increases the risk of thrombosis. This is due to the PUFA in vegetable oil which oxidizes automatically during food processing, resulting in inflammatory peroxides and hydroperoxides.
The main challenge in this Specialty Oils Market is the gap between the demand and supply of oilseed products, like edible oils, due to their limited availability. India and European countries import large quantities of palm oil from Indonesia and Malaysia, which are the top producers due to their favorable climatic conditions.
For many years the preference for natural products has been growing significantly over synthetic chemicals in the beauty and personal care industry. Particularly in the Asia-Pacific region, the ultimate causes to drive the market for organic cosmetics and personal care products are the millennial population growth, online presence, and internet usage, and increasing per capita income for sustainable and growing awareness of environmentally friendly products. This resulted in an increase in demand for the specialty oils market in recent days.
The continued growth of the specialty oils market is due to its wide range of uses for cosmetic manufacturing and personal care products, as well as its high adaptability for food processing (e.g., extraction), where it can be used as an enhancer or bio-fuel additive.
The specialty oils market is growing at a significant rate. With new innovations in technology, the market is seeing more and more people switching to specialty oils. There are multiple benefits of utilizing higher-quality oils, such as cost reduction, safety, and environmental safety.
While there are some risks associated with the usage of Specialty Oils Market due to the newness of the industry, there is potential for high growth in this market in the future. The concentration process will be done by a specialized company that will be working on a joint venture basis with a food manufacturer or a food product manufacturer.
Specialty Oils Market get benefits from the recent advancement in seed breeding, extraction technology, functionality improvement, and competition in the billion-dollar field. High-oleic / high-omega-9s continue to bring success along the lines of soy, canola, and sunflower oils that originally redefined the edible oil industry a few years ago with the help of conventional breeding practices versus genetic modification. Not only that, material technologists are focusing on extending the shelf life of oils without compromising on clean label conditions.
Specialty oils are applied in various fields of our daily lives. In highly developed and rapidly urbanizing countries, there is a growing focus on the emerging trend of feeding infants with infant formula and infant food lipids, which are primarily imitated based on the composition of mother's milk. To balance the overall fatty acid composition in mother's milk, specialty fats and oils play a crucial role. Not only that, they are used for different edible oils like butter oils, avocado oils, sunflower oils, and many more.
The growing use of fast and processed foods in the North American region is responsible for the region's high Specialty Oils Market share. This region includes highly developed countries such as the United States and Canada with high-income populations. The American diet consists of more than 60% processed fruits which led to the use of specialty oils.
Due to constant competition in the specialty oils market, there is constant progress in their technology for processing foods. The main players with a CAGR of 10.1% in this field are:
To establish a certified coconut oil supply chain, to improve the livelihood of coconut farmers in the Philippines and Indonesia, and to strengthen the company's supplies for coconut oil, BASF (Germany), Cargill, Procter & Gamble (P&G) (US), and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH (Germany) entered in a partnership under the development PPP (Public-Private Partnership), in November 2019.
Cargill and nine other prominent palm oil producers—Bunge Limited, Golden Agri Resources, Musim Mas, Unilever, Wilmar, Nestlé, PepsiCo, Sime Darby Plantation, and Mondelez International— announces a partnership to support and fund the new radar-based forest surveillance system, which will not only help identify deforestation but also help companies improve product chain sustainability on December 2019.
This is a market research report on the specialty oils market. It provides an in-depth analysis of the global market size along with insights into various segments within it.
Based on type, the palm oil segment, based on process, the cold pressed segment, and based on application, the food products segment, holds majority shares in the Global Specialty Oils Market.
Rising awareness among consumers about the health benefits and augmenting demand in pharmaceutical applications, are major tailwinds pushing the growth of the Global Specialty Oils Market.
Asia Pacific holds the largest share in the Global Specialty Oils Market, followed by North America and Europe, respectively.
La Tourangelle (France), Beidahuang Group (China), Roland Food (U.S.), AFRUE (Spain), J-OIL Mills Inc.(Japan), Bunge Limited (U.S.), Corilanga (Italy), Sales Corporation (India), Dr. Adorable (U.S), Naturalist, LLC (Russia), Shiv Silverline Chemical Ltd (India), Cargill (U.S.), Agro International ltd (Bangladesh), BST International (Turkey), and The Savola Group (Saudi Arabia), are some of the top players operating in the Global Specialty Oils Market.
Strategic initiatives such as mergers & acquisitions, collaborations, expansion, and technology/ product launch are some of the growth strategies that players operating in the global specialty oils market adopt to gain a larger competitive advantage.