Edible Oil Market Size
Global Edible Oil Market reached USD 265.2 billion in 2022 and is projected to witness lucrative growth by reaching up to USD 397.8 billion by 2031. The market is expected to exhibit a CAGR of 5.2% during the forecast period 2024-2031. The primary driver for the expansion of the edible oil market is the increasing demand for sunflower oil, groundnut oil, and other cooking oils.
Consumers show strong demand for organic and unsaturated oils which are composed of various fractions of fatty acids, fortified with different nutrients, and some others. Edible oil provides various nutritional health benefits. Edible oil is being used for various applications in food industries. Based on sources there are palm oil, soybean oil, sunflower oil, rapeseed oil, and some others.
The growing popularity of nutritious foods among consumers is fueling the global edible oil market growth during the forecast period 2024-2031. The edible oil market offers clients a wider range of culinary characteristics, which is also healthful. In May 2023, Sunpure, an Indian-based company launched a new product Fantastic 5 which provides five health features such as purity, well-being, quality, care, and honesty.
Market Scope
| Metrics | Details |
| CAGR | 5.2% |
| Size Available for Years | 2022-2031 |
| Forecast Period | 2024-2031 |
| Data Availability | Value (US$) |
| Segments Covered | Source, Process, End User, and Region |
| Regions Covered | North America, Europe, Asia-Pacific, South America, and Middle East & Africa |
| Fastest Growing Region | Asia pacific |
| Largest Region | North America |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights. |
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Market Dynamics
Rising Awareness of Health among Consumers is Estimated to Drive the Edible Oil Market Growth.
Globally, consumers are growing more knowledgeable about health, cardiovascular diseases, and others. Edible oil is one of the most common products which is being used in households and food processing industries. The rising in the production of healthy oils such as soybean oil, canola oil, corn oil, and some others which are free from trans-fats and help in reducing the cholesterol level in the body. This favors in development of the global edible oil market size.
Major rivals are working assiduously to meet this demand by expanding their product offerings and keeping consumers' health in mind. For instance, in May 2023, Deoleo, a U.S based company launched new products Bertolli and Carapelli extra virgin olive oils into the market. These launches are helping in driving the edible oil market growth.
Raising Demand for Organic, Fortified, and Unrefined Oil is Driving the Edible Oil Market Growth.
An increase in health-conscious, fortified, clean-label, organic, and unrefined oils is preferred globally. In addition, they want a greater variety of edible oil items. As a result, manufacturers are producing edible oil products with omega-3 vitamins, nutrients, and vitamins in order to suit the changing desires of consumers, which is driving the edible oil market growth.
According to the Food Safety and Standards Authority of India (FSSAI), fortified oil can help an individual meet 25-30% of the recommended dietary intake for vitamins A and D. In addition Organic oils are perceived to be healthier alternatives due to their lower levels of adulteration and higher nutrient content, including beneficial fatty acids. These factors help in driving the global edible oil market.
Adulteration of Oil Impedes the Edible Oil Market Growth.
Adulterated oils may contain harmful substances such as toxic chemicals, contaminants, or non-edible oils. Consuming such oils can lead to various health problems, including gastrointestinal issues, organ damage, and even long-term health risks. As a result, consumers may tend to choose alternative options, which is affecting overall global edible oil market demand.
Adulteration is illegal in many countries, and regulatory authorities actively enforce laws to stop such practices. There are many acts against adulteration. According to FSSAI 2006 section 59 punishment, ranging from six months to seven years of imprisonment, for adulterators depends on the contravention and the consequences. Thus adulteration of edible oil impedes market growth.
Market Segment Analysis
The global edible oil market is segmented based on source, process, end user, and region.
In the Global Market of Edible Oil, the Sunflower Oil Segment Holds the Largest Market Share.
The global edible oil market has been segmented by source into palm oil, soybean oil, sunflower oil, rapeseed oil, and others. The sunflower oil segment held the largest edible oil market share of 35.8% in 2022 in the edible oil market analysis report. Increasing demand for healthier alternatives for trans fat oils is raising demand for sunflower oil. According to a study published in Oilseeds & Fats Crops and Lipids 2020 Sunflower seed oil is the fourth most popular vegetable oil eaten worldwide.
Other significant factors influencing the growth of the sunflower oil segment such as it is rich in linoleic acid, oleic acid, and other vital components that lower harmful cholesterol levels in the body. Moreover, sunflower oil is being used in various food products such as vegan mayonnaise, cheese, spreads, and some others. This wide usage of sunflower oil can help in increasing the global edible oil market opportunities.
Market Geographical Share
The North America Region Held the Largest Share in Edible Oil Market.
The global edible oil market is segmented into five parts of the world based on geography: North America, South America, Europe, Asia-Pacific, the Middle East, and Africa. The North America edible oil market held the largest market share of 42.6% in 2022 in the edible oil market analysis. The increased demand for fortified oils, changes in lifestyles, food habits, and increasing demand for processed foods are driving market growth in the North American region.
According to the U.S. Department of Agriculture report of 2022, the United States’ largest consumer and producer of soyabean oil, soybean comprises about 90% of U.S. oil seed production. This can be explained by the fact that due to a diverse consumer base for soyabean oil, it is being used by the majority of food processing industries in that region. Growing consumer awareness about the health benefits caused by edible oil is also anticipated to support market expansion in this region.
Edible Oil Key Players
The major global players in the market include Sundrop, Wilmar International, Cargill Inc., Mazola Oils, Unilever, Bunge Ltd., Marico, CONFO Group, Nisshin Olillio, and Adani Group.
COVID-19 Impact on Market
Global Recession/Ukraine-Russia War/COVID-19, and Artificial Intelligence Impact Analysis:
Covid-19 Impact:
The unprecedented COVID-19 pandemic in 2020 profoundly affected the edible oil industry. Covid-19 has had a considerable impact on the phases of the global edible oil supply chain that involve edible oil production, processing, distribution, and consumption as a result of lockdowns and restrictions imposed by various governments.
Everything has changed due to the COVID-19 epidemic. It has influenced practically every industry in the world, whether positively or negatively. The COVID-19 pandemic's effects on world economic conditions have had an influence and could have an impact on interest rates, foreign exchange rates, commodities and energy prices, and the efficient operation of financial and capital markets.
Key Developments
- In June 2021, Cargill Inc. announced its plans to build a new palm oil refinery worth USD 200 million in Lampung, Indonesia to meet the growing demand for sustainable and traceable edible palm oil. The company is eyeing South-East Asian countries for business expansion as they offer opportunities due to their favorable weather conditions, growing economy, and rising population.
- In September 2022, Louis Dreyfus Company Asia Pte. Ltd. (LDC) and Long River Farms entered into an agreement for the acquisition of Emerald Grain Pty. Ltd. (Emerald Grain) by LDC. This agreement helped LDC to expand further in the Australian market.
Why Purchase the Report?
- To visualize the global edible oil market segmentation based on source, process, end user, and region, as well as understand key commercial assets and players.
- Identify commercial opportunities in the market by analyzing trends and co-development.
- Excel data sheet with numerous data points of edible oil market-level with all segments.
- The PDF report consists of a cogently put-together market analysis after exhaustive qualitative interviews and an in-depth market study.
- Product mapping is available as Excel consists of key products of all the major market players.
The global Edible Oil market report would provide approximately 62 tables, 71 figures, and 190 Pages.
