Edible oils market is estimated to be valued at USD 233.05 Bn in 2024, exhibiting a CAGR of 4.7% over the forecast period 2024-2031. Rising health consciousness among consumers has increased the demand for healthier cooking oils such as olive oil and rice bran oil. Furthermore, the growth of the foodservice industry is supporting the sales of various edible oils through restaurants and takeaways.
The primary drivers fueling the growth of the global edible oils market are increasing consumer preference for healthy oils and rise in organized food industry. The health benefits associated with certain edible oils such as olive oil and rice bran oil have raised consumer awareness, propelling their demand. Moreover, growth in food chains such as hotels, restaurants and cafes have accelerated the utilization of various edible oils in preparations of various cuisines. Edible oils also find applications in bakery and convenience food products, thus, supporting the market growth.
Increasing Consumer Demand for Healthier Cooking Oils
One of the key drivers for the global edible oils market is increasing consumer demand for healthier cooking oils. Various health issues associated with consumption of saturated and trans fats have made consumers more health conscious. There is a growing preference for oils that are higher in monounsaturated and polyunsaturated fats like olive, canola and soybean oils, which have been linked to various health benefits. Awareness about various diseases, like heart disease that can be prevented with use of healthy oils, is driving consumers to switch to healthier options. Manufacturers are responding to this demand by offering wider varieties of blended and flavored oils tailored for different culinary applications.
Growth of Food Services Industry is Fueling Consumption of Bulk Edible Oils
Another major growth driver is the expansion of the global food services industry including hotels, restaurants and cafeterias. The growth in organized retail and online food delivery has boosted demand for bulk packaging of edible oils. Foodservice establishments require reliable supplies of edible oils in commercial quantities for deep frying and culinary purposes. This boosts demand for bulk packaging formats like containers, drums and flexible pouches. The stable demand from food services is encouraging edible oil producers to invest in infrastructure for efficient bottling and packaging capabilities catering to bulk buyers.
Fluctuating Agricultural Commodity Prices
One key restraint affecting the global edible oils market is fluctuations in prices of important agricultural commodities like palm, soybean and canola from which edible oils are produced. Prices of these commodities depend on various factors including weather conditions, global supplies, trade policies, and others. Any fluctuation in commodity prices leads to a direct impact on costs of edible oil producers.
Rising Health Concerns Regarding Trans Fats and Pesticide Residues
Another challenge is rising health concerns among consumers regarding presence of Tran’s fats and pesticide residues in some edible oil varieties. While regulations are tightening globally, instances of edible oil adulteration or presence of harmful contaminants dent customer trust in the market.
Popularity of Organic and Non-GMO Oils
One key market opportunity is growing popularity of organic and non-GMO edible oil varieties. With health and wellness trends driving food choices, several consumers are willing to pay premium prices for organic oils produced without the use of chemical pesticides and fertilizers. There is significant scope to tap demand from health conscious customers by investing in organic oilseed farming and processing infrastructure. Promoting biodiversity in oilseed varieties can boost organic oil offerings.
Expanding into Asian and African Markets
Emerging economies in Asia Pacific and Africa present lucrative market expansion opportunities. With rising incomes and urbanization, the populations in countries like India, China, Indonesia and various African nations are adopting more oil-centric cuisines.
*Link: https://www.coherentmarketinsights.com/market-insight/edible-oils-market-4973
Key Developments
- In February 2023, Cargill, Incorporated launched Gemini Pureit, a sunflower oil brand, in Karnataka, India
- In 2022, Alfa Laval acquired Desmet, a world leader in edible oil and biofuel processing
- In November 2021, Cargill, Incorporated announced that it would invest USD 35 Mn to acquire and upgrade an edible oil refinery in Nellore, Andhra Pradesh
- In August 2021, The Government of India launched the National Mission for Edible Oils - Oil Palm (NMEO-OP)
Key Players
Archer Daniels Midland Company, Borges International Group, Cargill, Incorporated, Bunge Limited, Associated British Foods PLC, Wilmar International Limited, Louis Dreyfus Company, Aceitera General Deheza S.A., American Vegetable Oils, Inc., United Plantations Berhad, Sime Darby Plantation Berhad, Golden Agri-Resources Ltd., Adani Wilmar Limited , The Nisshin OilliO Group, Ltd., Richardson International Limited, Hebany , GrainCorp, VICENTIN S.A.I.C. , Sunora Foods, Aveno NV , Basso Fedele & Figli Srl, Ajanta Soya Limited
