ID: MRFR/F-B & N/5501-HCR | 90 Pages | Author: Snehal Singh | June 2023
Vegetable Oil Market is projected to register a CAGR of 6.5 % and reach a value of USD 3,786 million by 2030
Vegetable Oil Market is projected to register a CAGR of 6.5% and reach a value of USD 3,786 million by 2030.
The consumption of vegetable oil includes extraction and processing of the oils from vegetable sources. The mechanical extraction and other extraction processes like solvent extraction, and hydrogenation deodorization due to industrial uses are fueling the overall growth of the vegetable oil market as they increase the production facilities. Rapeseed oil is increasingly gaining momentum across Europe and other regions, because of the demand from varied end-user industries. For instance, other than in the food industry, they have been utilized in the mechanical industry as well as lubricants, and to produce oleochemicals. Such factors are considered the major drivers of vegetable oil market growth.
COVID 19 Analysis
COVID 19 has affected several industries and the key business process and production processes, due to the presence of restrictions imposed by the government. However, the food industry was overburdened due to the increasing demand. The commercial food industry also showcases higher demand for processed food and has propelled the overall growth of the vegetable oil market. The consumption of vegetable oil has increased during the lockdown, where the demand has sharply risen to over 5.5 million for the year 2021. The changing trends of work from home and prolonged lockdown have also changed the attitude of the consumers, towards experimenting with varied food varieties. Such factors have propelled the overall growth of the vegetable oil market during the pandemic.
The demand for biodiesel, animal feed, and the food industry was bolstering the overall growth of the vegetable oil market.
The growing urbanization and increasing disposable income combined with changing trends of a huge population, where a large population of the world is inclined towards experimenting in the food sector is considered as the major drivers of vegetable oil market growth. The increasing utilization of vegetable oil in culinary uses, mechanical industries such as lubricants and cosmetics, and personal care industries are burgeoning the market.
The advancements in the industry and the expansion of the facilities due to the favorable economic condition are some of the major drivers of vegetable oil market growth. They are converted into biofuels and energy that are used in varied mechanical industries. Such factors are considered the major drivers of the market.
The advancements in the industry, which make it more suitable for its end-user industries and consumers, are expected to bolster the overall growth of the vegetable oil market during the forecast period. For instance, the key manufacturers are altering the genetic information of the oilseed crops and producing the canola oil, which is enriched in Alpha-linolenic acid, which has varied applications such as food, feed, and fuel. The increasing consumption of oil by vegans is expected to boost the overall growth of the vegetable oil market during the forecast period.
The increasing economic condition of the developed countries and urban areas where the working professionals are higher in numbers, get less time to prepare home food due to the busy schedule. Therefore, the demand for processed food and instant food are presenting lucrative opportunities for the growth of the vegetable oil market.
Refined vegetable oils are majorly utilized in the food industry, which possesses harmful ingredients and components and the standards imposed on the food industry are higher in some countries and thereby considered major challenges for the overall growth of the vegetable oil market.
The absence of effective regulatory laws and standards at the production facility of the vegetable oil market is expected to impede the overall growth of the market. The toxicity of the vegetable oil and the health-related concerns due to the higher consumption of vegetable oils and fats are expected to hinder the overall growth of the market during the forecast period.
The waste generated in the food industry and the degradation of the quality of used oil are some of the crucial challenges faced by the vegetable oil market.
The counterfeiting activities, adulteration, and deception are some of the major challenges faced by the vegetable oil market, where the adulteration of the cooking oil is leading to a myriad of diseases, intense destruction of the gall bladder, cancer, dropsy, loss of eyesight and much more. The harmful health hazards caused due to counterfeiting practices in the industry are considered the major challenge of the market.
Cumulative Growth Analysis
The vegetable oil market growth is highly influenced by the presence of varied applications and varied diverse end-user industries. However, vegetable oils are intensively used in the food and beverage industries and used in food preparation and flavoring. They are used in bread dips and as salad dressings to enhance the flavors. The development in the food industry and the increasing disposable income across the developed countries are presenting lucrative opportunities for the growth of the vegetable oil market.
The utilization of vegetable oils in the automotive and mechanical industries for lubricants and oleochemicals and other applications other than food are accelerating the overall growth of the vegetable oil market. The Asia-pacific region is dominating in the consumption of vegetable oil which it is leading in both production and consumption as well. Moreover, the demand for soybean and palm oil across China is propelling the overall growth of the market. Similarly, Japan is increasing olive oil from southern parts of Europe for cooking and non-cooking uses, which also supports the vegetable oil market significantly.
Value Chain Analysis
Vegetable oil is triglycerides that are extracted from the vegetable seeds like rapeseeds, soybean, corn and sunflower, and so on. The vegetable oils are intensively utilized in processed food, salad dressing, frying food articles, and other conventional food articles. The vegetable oils that are enriched in Vitamin E that is crucial for cell development, and protection. Therefore, across the globe, the utilization of vegetable oils for several purposes has increased, especially in the food sector which is expected to bolster the vegetable oil market growth. Coconut oil, olive oil, and sesame oil is utilized in personal care products and come in varied forms for easier application. Organic oils are preferred for these applications.
Although vegetable oil serves varied end-user industries like food, pharmaceutical, personal care and biofuel industries are fueling the overall growth of the vegetable oil market. The personal care industries, where the oils are utilized to produce shampoos, perfumes, and significant others are boosting the market. Similarly, the presence of supportive policies across the nations is driving the growth of the market. The Renewable Energy Directive (RED) and other regulatory agencies are supporting vegetable oil production in assorted industries. On the other hand, the increasing investment in the growth of the vegetable oil market and renovating the production facilities are propelling the overall growth of the market. For instance, in the year 2021, Cargill Incorporation had acquired an oil refinery in India and had invested over USD 35 million to develop the facility has significantly increased the oil production and corrected the supply and chain disruption.
Based on Packaging Type
Based on Distribution Channel:
Based on Type
The Asia-pacific region is currently leading in the vegetable oil market share owing to its top position in the agricultural industry, where it also consists of several cuisines and provides varied cultures and food habits. The increasing demand for healthy oils due to the bolstering demand for the varied food culture is propelling the overall growth of the market across the region. Moreover, across the region, the growing population and the economic condition have increased the consumption of soybean oil and palm oil.
On the other hand, the increasing demand from industrial plants like F and B, pharmaceutical, personal care products, and other biodiesel and biofuel plants that are completely reliant on vegetable oils production are propelling the overall growth of the vegetable oil market.
Similarly, the demand across Europe and North America due to the presence of several pharmaceuticals, F and B, and personal care products industries are propelling the market growth in those regions. On the other hand, due to the intensive utilization of Olive oils, the region near Spain and Italy are presenting lucrative opportunities for the growth of the vegetable oil market.
This report has covered:
|Market Size||USD 3,786 Million|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||By Product Type, Packaging Type, Distribution Channel, and Region|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Conagra Brands Inc. (US), The Manischewitz Company (US), Waitrose & Partners (UK), IFFCO (UAE), The J.M. Smucker Co. (US), Unico (Canada), Edible Oils Ltd. (UK), Woolworths Group Limited (Australia), Adani Wilmar Limited (India), and Marico Limited (India)|
|Key Market Opportunities||Demand for processed food and instant food|
|Key Market Drivers||Culinary use for cooking, Growing urbanization|
Culinary uses of cooking and baking is the major driver of the global market for vegetable oil.
Conagra Brands, Inc. (US), The Manischewitz Company (US), Waitrose & Partners (UK), IFFCO (UAE), The J.M. Smucker Co. (US), Unico (Canada), Edible Oils Ltd. (UK), Woolworths Group Limited (Australia), Adani Wilmar Limited (India), and Marico Limited (India) are some of the top players in the global vegetable oil market.
Palm oil can dominate the global vegetable oil industry from 2022 to 2030.
APAC can dominate the global vegetable oil industry till 2030 due to higher living standards and its inclusion in the staple diet of consumers.
Efforts by governments to lower the dependence on palm oil can restrain the global vegetable oil market growth.
Key Questions Answered
Why Choose Market Research Future?