EDIBLE OILS MARKET ANALYSIS

Edible Oils Market Size and Trends

Global edible oils market is estimated to be valued at USD 233.05 Bn in 2024 and is expected to reach USD 321.43 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 4.7% from 2024 to 2031.

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Global edible oils market growth is driven by rising health consciousness among consumers and inclination towards use of plant-based edible oils like olive, sunflower and peanut oils in food preparations. Consumers are increasingly preferring healthier oil options owing to rising obesity and cardiovascular issues. Moreover, frequent product launches catering to consumer demand for novel flavors and mixes as well as effective marketing campaigns by leading players is driving the market growth. However, price fluctuations of agricultural commodities and availability of substitutes may hamper the market growth during the forecast period.

Rising population and increased consumption

Increasing global population boosts demand for food products. According to latest UN projections IN 2022, the global population is expected to reach around 8.5 billion by 2030 and 9.7 billion by 2050. This surging population will require higher food production. Edible oils serve as an important component in various culinary applications and food products. As populations grows, the consumption of food items containing edible oils is also projected to rise substantially. Developing regions which are experiencing high population growth will witness significantly higher consumption of edible oils. Increasing urbanization and changing lifestyles across major developing economies are also contributing to accelerated edible oils consumption. Since edible oils are widely used in preparing and processing various snack foods, bakery products and ready meals, their consumption will increase with the boom in packaged food retail. Moreover, rising disposable incomes expand consumer bases to include more edible oils in their diets to fulfill nutrition demands. The affluent middle class sections are increasingly incorporating premium variety oils like olive oil in cooking and meals.

There has been a notable shift in consumer preferences towards healthier, natural and sustainable food options. Consumer distrust over genetically modified ingredients and demands for non-GM products open lucrative opportunities for non-GM edible oil producers. Thus, the production of non-GM varieties of major edible oils like soybean, canola and sunflower oils has significantly risen. Organic edible oils tailored for health-conscious customers are gaining widespread popularity. Strict non-GMO and organic certification processes ensure premium pricing for such niche edible oil variants. Meanwhile, specialty oils extracted from exotic fruits and seeds are attracting a massive consumer base. Coconut, avocado and olive oils have emerged as popular superfood ingredients. The alleged health benefits of these oils including cardiovascular support has boosted the customer outreach. Even among developing nations, the affinity for premium imported oils is strengthening with prosperity.