Global vegetable oils market analysis and insights
The global Vegetable Oils market estimated at 215.4 million metric tons in the year 2022 is now projected to grow at a CAGR of 5.25% and reach 292.7 million metric tons by 2028. This growth is primarily driven by the increasing demand globally, mainly due to factors such as population growth, rising consumer awareness about healthier diets, and the expanding food and beverage industry.
With the growing focus on health and wellness, consumers have been shifting towards healthier alternatives to traditional cooking oils. Vegetable oils are perceived as a healthier option due to their lower saturated fat content and higher levels of unsaturated fats, such as monounsaturated and polyunsaturated fats.
Vegetable oils, particularly soybean and palm oil, are widely used in the production of biodiesel as a renewable energy source. The demand for biodiesel has been increasing due to environmental concerns and efforts to reduce greenhouse gas emissions. Besides food and biodiesel, vegetable oils are used in various industrial applications such as cosmetics, personal care products, pharmaceuticals, and animal feed.
Palm oil, one of the most widely used vegetable oils, has faced environmental and social criticism due to deforestation, habitat destruction, and labor issues associated with its production. Sustainable and certified palm oil initiatives have gained traction to address these concerns.
Vegetable oil prices can be subject to volatility due to factors like weather conditions affecting crop yields, changes in demand, and geopolitical factors impacting production and trade. Regulations on labeling, quality standards, and sustainability certifications have been evolving to meet consumers’ demands for transparency and responsible sourcing.
The vegetable oils market is highly competitive, with several key players operating globally. These players often engage in product innovation and marketing strategies to gain a competitive edge.
Vegetable oils regional market insights
North American vegetable oils market is expected to grow significantly over the forecast period 2022-2028. This growth can be attributed to the increasing awareness of health and wellness among consumers and rise in the number of vegans in the region. United States contributed around 74% of the total North American vegetable oils market. It is estimated to have a market size of 18.22 million metric tons in the year 2022. Among the other noteworthy geographic markets are Canada and Mexico, each forecast to grow at 4.36% and 2.81% respectively over the 2022-2028 period.
Asia Pacific vegetable oils market is anticipated to witness an upsurge owing to the presence of major oilseed producing countries include Indonesia, Malaysia, Thailand and China. China is expected to dominate the Asia-Pacific market and reach a market size of 43.31 million metric tons by 2028.
Within Europe, Germany, France, Italy and the U.K. are the key countries responsible for the significant growth of the regional market. Germany is expected to grow at a fastest CAGR of 4.25% over the forecast period.
Meanwhile, the Middle East & Africa is expected to show limited growth due to the strong presence of under-developed countries in Africa who are still struggling to meet technology standards. However, any growth that the region experiences is expected to come from developing Middle Eastern nations such as Qatar, U.A.E, and Oman due to a similar growth pattern as the Asia Pacific.
Key players
Key players profiled in the report include Abu Dhabi Vegetable Oils Co., Adani Wilmar Ltd., Archer Daniels Midland Company, Areej Vegetable Oils & Derivatives S.A.O.C, Associated British Foods Plc, Borges Agricultural & Industrial Nuts S.A., Bunge Limited, CannOils LLC, Cargill Incorporated, Fuji Oil Group, Golden Agri-Resources Ltd., Kuala Lumpur Kepong Berhad, Louis Dreyfus Company B.V., Mewah International, Inc., Momin Oil Industry, Omani Vegetable Oils & Derivatives Co. LLC, Ruchi Soya Industries Limited and Wilmar International Ltd., among others.
Competitive Landscape
July 14, 2023 – Louis Dreyfus Company (LDC) announced today the expansion of its refining complex in Lampung, Indonesia, as part of the Group’s strategic plans to expand downstream and diversify revenue through value-added products. The development will see the addition of glycerin refining capacity and edible oil packaging capabilities.
April 10, 2023 – Bunge, a global leader in agribusiness, food and ingredients, through its Bunge Loders Croklaan JV with IOI Corporation Berhad, has entered into a definitive asset purchase agreement with Fuji Oil New Orleans, LLC (Fuji Oil) to acquire its newly constructed, port-based refinery located in IMTT’s (International-Matex Tank Terminals) Avondale Terminal, Louisiana. The state-of-the-art facility has multi-oil refining capabilities and will enable Bunge to expand its existing customer base.
Vegetable oils market scope
- By product category
- Rapeseed (canola) oil
- Palm oil
- Palm kernel oil
- Soybean oil
- Sunflower and safflower oil
- Corn oil
- Olive oil
- Others
- By processing method
- Extraction
- Mechanical pressing
- Solvent extraction
- Refining
- Hydrogenation
- Fractionation
- Extraction
- By end-use segment
- Food
- Cooking and frying
- Baking
- Salad dressings and mayonnaise
- Margarine and spreads
- Snack foods
- Confectionary
- Frozen & processed foods
- Bakery
- Others
- Industrial
- Biofuels
- Lubricants
- Hydraulic fluids
- Others
- Cosmetics and personal care products
- Pharmaceuticals
- Animal feed
- Others
- Food
- By distribution channel
- Supermarkets and hypermarkets
- Convenience stores
- Specialty stores
- Online retailers
- By region
- North America
- South America
- Europe
- Asia Pacific
- Middle East and Africa
| Report Attribute | Details |
| No. of Pages | 287 |
| Published | July-2023 |
| Forecast Period | 2022-2028 |
| Estimated Market Size in 2022 | 215.4 million metric tons |
| Forecasted Market Size by 2028 | 292.7 million metric tons |
| CAGR | 5.25% |
| Regions Covered | North America, South America, Europe, Asia Pacific, Middle East and Africa |
| Companies Mentioned | Abu Dhabi Vegetable Oils Co., Adani Wilmar Ltd., Archer Daniels Midland Company, Areej Vegetable Oils & Derivatives S.A.O.C, Associated British Foods Plc, Borges Agricultural & Industrial Nuts S.A., Bunge Limited, CannOils LLC, Cargill Incorporated, Fuji Oil Group, Golden Agri-Resources Ltd., Kuala Lumpur Kepong Berhad, Louis Dreyfus Company B.V., Mewah International, Inc., Momin Oil Industry, Omani Vegetable Oils & Derivatives Co. LLC, Ruchi Soya Industries Limited and Wilmar International Ltd., among others. |
The research report provides a comprehensive review of market trends (Technology, Product and Application analysis), market growth drivers, PEST Analysis (Political, Economic, Social and Technological Analysis) Market growth inhibitors, and strategic industry activities and SWOT Analysis of key players in the market. The report provides market estimates and forecast for geographic markets such as the North America (United States, Canada, Mexico and Rest of North America), South America (Brazil, Argentina Chile Colombia Peru Venezuela Ecuador and Rest of South America), Europe (Germany, France, U.K., Russia, Italy, Spain, Sweden, Netherlands, Poland, Austria, Belgium, Finland, Norway, Switzerland, Denmark, Czech Republic, Portugal and Rest of Europe), Asia-Pacific (China, Japan, South Korea, Taiwan, India, Australia, Indonesia, Philippines, Malaysia and Rest of Asia-Pacific), Middle East (Iran, Turkey, Kuwait, UAE, Israel, Oman, Bahrain, Saudi Arabia, Qatar, Egypt and Rest of Middle East) & Africa.
Research Methodology
