Edible Oils Fats Market Analysis

Global Edible Oils and Fats Market Overview

Edible Oils and Fats Market Size was valued at USD 120.5 billion in 2022. The Edible Oils and Fats industry is projected to grow from USD 125.66 Billion in 2023 to USD 161.69 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 4.29% during the forecast period (2023 - 2030). An increase in demand in emerging markets like India, Indonesia, and Argentina drives the expansion of the cooking oils and fats market. The demand for processed and convenience meals rises ly due to rising consumer disposable income and a busy lifestyle, which propels market expansion, thus driving the growth of the edible oils and fats. These are just a few of the market drivers that are driving the market.Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Edible Oils and Fats Market Trends

• Growing demand of convenient foods to propel market growth

Shortenings, margarine, confectionery fats, cooking/frying oil, and margarine are the four main conventional uses of palm oil in food goods. Both solid fat products and liquid cooking oils, particularly for purposes in industrial frying, frequently employ palm oil. It offers a wide range of technical qualities used in culinary applications, such as oxidation resistance, which extends the shelf life of finished goods. Due to its 20–22% solid fat content (SFC) at 20°C, which aids in creating fat products with a plastic range, palm oil is ideal for use as a component in shortenings and margarine. It is prone to form small beta-prime crystals, which is advantageous for several applications, particularly in the table and industrial margarine. The functional qualities of palm oil make it a valuable ingredient in food compositions. Palm oil can be combined with tougher fractions like palm stearin in various applications to produce goods with the required consistency without hydrogenation. Common products manufactured using palm oil and palm kernel oil include margarine and spreads, confectionery, non-dairy goods, frying and cooking oils, shortenings, vegetable ghee or vanaspati, and vegetable ghee or vanaspati in mixes with other oils. Thus, this factor is driving the market CAGR.

For stir-fries and desserts, coconut oil has traditionally been a favorite cooking oil in Southeast Asian cuisine. ly, it is being used more and more commonly as a butter alternative in baked products, desserts, and savory cooking methods like frying, sautéing, and roasting. It works well as a vegan alternative to butter. In the kitchen, coconut oil can be used in various dishes, including sauces, salads, marinades, smoothies, and desserts. It can spread (or drizzle) on top of meals, cook, make granola, make a seafood dip, sauté veggies, or fry food.

Moreover, it can be used to make popcorn or as a butter alternative while prepping foods like scrambled eggs and pancakes. The preferred use for coconut oil is baking. It makes baked items richer and more flavorful, resulting in a lighter finished product. Coconut oil is increasingly used in cooking, causing the cooking Oils & Fats Market to expand. Thus, it is anticipated that this aspect will accelerate edible oils and fats market revenue.

Segment Insights

Edible Oils and Fats Type Insights

The Edible Oils and Fats market segmentation, based on type includes, oils, and fats. The oils segment held the majority share in 2022 in the edible oils and fats industry data. The massive use of palm oil in China, India, Indonesia, and the European Union is responsible for this growth. There have been molecular studies on cacao using molecular markers. The broadening use of palm oil across the food industry, with its adaptability and lower price compared to other cooking oils, further fosters the segment's expansion.

Edible Oils and Fats Source Insights

The Edible Oils and Fats market segmentation, based on source, includes plants, and animals. The plants segment dominated the market growth in 2022 and is projected to be the faster-growing segment during the forecast period, 2022-2030. Due to the increased demand for essential vegetable oils like soybean, palm, and others across the food industry and industrial uses, the vegetable oil segment is predicted to develop substantially over the forecast years. Increasing demand for palm oil is expected to help the vegetable segment grow over the predicted years due to its easy availability, low cost, and taste-improving capabilities in creating confectionary goods and baked goods, hence contributing in the growth of the market of edible oils and fats.

Figure 1:  Edible Oils and Fats Market, by Source, 2022 & 2030 (USD Billion)Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Edible Oils and Fats Application Insights

The Edible Oils and Fats market segmentation, based on application includes, bakery & confectionery, convenience foods, sauces, spreads and dressings, HORECA. The bakery & confectionery segment held the majority share in 2022 in the edible oils and fats industry data. This increase is attributable to the increased use of cooking oil in baking processes worldwide. The growing use of palm oil in baking as a lubricant, emulsifier, flavor enhancer, and moisture provider are accelerating the expansion of this market.

Edible Oils and Fats Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. North America Edible Oils and Fats market accounted for USD 55.185 billion in 2022 with a share of around 45.80% and is expected to exhibit a significant CAGR growth during the study period. The area's rising per-capita income and fast-food consumption are the main drivers of this region's growth. Public health organizations have worked hard to promote the consumption of low-calorie and cholesterol-free cooking oils, which well-informed and wealthy consumers use to reduce the effects of aging. The North American Region’s Cooking Oils & Fats Market is expanding due to the rising demand for wholesome, natural, and nutrient-dense food prepared with oils like palm and coconut. New product development, partnerships, partnerships, expansions, mergers, and acquisitions are the main strategies used by the organisations in the market.

Further, the major countries studied in the market report are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3:  EDIBLE OILS AND FATS MARKET SHARE BY REGION 2022 (%)Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Edible Oils and Fats market accounts for the second-largest market share. Until the end of the forecast period, the market for edible oils and fats is expected to rise due to the use of these products in the HORECA sector. It is anticipated that consumers in Spain, Italy, and France will increase their regular consumption of specialty oils from the Mediterranean diet, such as olive oil. Moreover, UK market of Edible Oils and Fats held the largest market share, and the Germany Edible Oils and Fats industry was the fastest growing market in the region.

Asia Pacific Edible Oils and Fats Market is expected to grow at the fastest CAGR from 2022 to 2030. The application of fish oil as a nutritional supplement has skyrocketed in developed nations like Japan and Australia in the Asia-Pacific area due to rising consumer health concerns. The growth of the Asia-Pacific region's cooking oils & fats market is further fueled by the expansion of vegetable oil production and consumption, along with cooking oils such as palm and coconut oil. Further, the China Edible Oils and Fats industry held the largest market share, and the India edible oils and fats industry was the fastest-growing market in the region.

Edible Oils and Fats Key Market Players & Competitive Insights

Major market players are spending a lot of money on R&D to increase their product lines, which will help the Edible Oils and Fats market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, mergers and acquisitions, contractual agreements, increased investments, and collaboration with other organizations. Competitors in the edible oils and fats industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

One of the primary business strategies adopted by manufacturers in the  edible oils and fats industry to benefit clients and expand the market sector is to manufacture locally to reduce operating costs. In recent years, edible oils and fats industry has provided medicine with some of the most significant benefits. The Edible Oils and Fats market major player such as James Richardson & Sons Limited, Wilmar International Ltd., Associated British Foods PLC, Cargill Incorporated.

Founded in Wilmington, Delaware and headquartered in Minnetonka, Minnesota, Cargill, Incorporated is a privately held American multinational food conglomerate. Established in 1865, it had the greatest revenue of any privately held company in the US. The largest animal feed manufacturer in China, New Hope Group, and Cargill formed a joint venture in May 2017 to develop a soybean crush plant. The factory is projected to have a daily processing capacity of 50,000 tonnes of soybeans, generating soymeal and oil.

The second-largest producer of palm oil in Indonesia is Astra Agro Lestari. It belongs to PT Astra International Tbk as a subsidiary. It had substantial land banks under its control, at least in 2004. There are two concessions on peatlands in Riau that are thought to have a combined total of 20,000 hectares. Astra Agro announced in January 2018 that work on a new palm oil mill plant with a 45-ton-per-hour output capacity would start in South Kalimantan in 2019.

Key Companies in the Edible Oils and Fats market includes

• James Richardson & Sons Limited


• Wilmar International Ltd.


• Associated British Foods PLC


• Cargill Incorporated


• Bunge Limited


• United Plantations Berhad


• IFFCO


• AAK AB


• Conagra Brands Inc.

Edible Oils and Fats Industry Developments

November 2021: To increase the capacity of the plant that produces vegetable oil in Malaysia, Cargill invested roughly USD 35 million. Due to the facility's dry palm fractionation capability, specialty fats for spreads, coatings, and chocolate can be produced.

May 2021: ADM built a soybean crushing factory in North Dakota, United States, with an estimated investment of USD 350 million. By 2023, the factory is anticipated to be finished and operating. Plant functions are crushing soybeans, refining oil, and processing soy-related goods.

Edible Oils and Fats Market Segmentation

Edible Oils and Fats Type Outlook (USD Billion, 2018-2030)

• Oils


• Fats

Edible Oils and Fats Source Outlook (USD Billion, 2018-2030)

• Plant


• Animal

Edible Oils and Fats Application Outlook (USD Billion, 2018-2030)

• Bakery & Confectionery


• Convenience Foods


• Sauces


• Spreads and Dressings


• HORECA

Edible Oils and Fats Regional Outlook (USD Billion, 2018-2030)

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America