SOY OIL AND PALM OIL MARKET ANALYSIS

Market Challenges And Opportunities

Drivers

Healthy Properties of Soy oil & palm Oil:

Soy oil & palm oil consumption has been associated with several health advantages including enhanced bone health, lowered blood pressure, lowered cholesterol, and a decreased risk of heart disease. The numerous health benefits of soy oil & palm oil are the reasons for its rising popularity. Soy oil & palm oil is rich in Vitamin K, which may support bone health maintenance and this lower the incidence of fractures. Additionally, an animal study discovered that the soy oil & palm oil might stop bone deterioration. This oil is therefore thought to be a suitable cooking oil for cardiac patients. In 2021, according to the American Heart Association, cardiovascular disease diagnosis increased by 26.6% globally in 2022. The deaths attributable to the condition have increased globally by 17% over the past ten years.

Market Restraints

Increasing Availability of Substitute and Alternate Oils to Act as a Key Restraint for Market Growth

The market is highly affected by the availability of various other oilseeds that can be used as an alternative or a substitute for soy oil. Soy oil & palm oil, olive oil, rapeseed oil, sunflower oil, and canola oil are major competitors of this oil. Soy oil & palm oil is the only vegetable oil in the world that is regularly priced at a discounted price, which significantly hampers the growth of the market. Soy oil & palm oil has higher saturated fat content than soy oil & palm, rapeseed, sunflower, and other oils and tends to be solid at room temperature. Soy oil & palm oil is preferred for baked goods with a flaky texture, such as biscuits and pies. Furthermore, growing awareness regarding nutritional and healthy oils such as olive oil among consumers has considerably affected negatively the utilization of this soy oil & palm oil across retail aisles. By proper marketing this restraint can be counterbalance.

Global Soy Oil & Palm Oil Market - Impact of Coronavirus (COVID-19) Pandemic:

The emergence of the COVID-19 pandemic and widespread lockdown measures have had little effect on soy oil & palm production. The consumption of soy oil & palm oil, one of the primary by-products of soy oil & palm processing, has dropped significantly. The pandemic had affected the food service industry. According to the U.S. Department of Agriculture, the demand for soy oil & palm oil for feed and food consumption is still being weakened by COVID-related limitations in China. As a result, soy oil & palm imports for marketing years 2021–2022 and 2022–2023 are reduced to 92 million metric tons and 96.5 million metric tons, respectively. The prediction for soy oil & palm output for marketing years 2022–2023 is significantly lower at 18.1 million metric tons due to reduced yields brought on by extreme heat and drought in minor soy oil & palm-producing regions. The pandemic has had an impact on the demand for soy oil & palm, which is restraining the soy oil & palm oil market.

The consumers have shifted toward being health conscious and are looking for good & healthier foods with nutrients, and soy oil & palm oil products accounts for one of them. So, the increase in the demand during COVID-19 can be witnessed. In the short term, the market demand is expected to show superior growth due to the increase in infections and reduced economic activity. However, the fact cannot be ignored that the spread of COVID-19 led to lockdowns and supply chain disruptions and created problems in supply of products.