The Specialty Oils Market is a very dynamic entity, influenced by a myriad of market factors that contribute to its continued growth and activity. One major driver in the market is the increasing consumer knowledge and demand for healthier and premium cooking oils. Changes in consumer lifestyles and food preferences also shape the Specialty Oils Market. Consumers are looking for more gourmet or specialty ingredients since they are now being exposed to a variety of cuisines with different cooking methods. This has made specialty oils an important ingredient in gourmet cooking because they have been known to enhance the flavor profiles of various dishes. So, this shift towards culinary exploration and the quest for distinct flavors gives rise to a need for specialty oils.
Specialty oils specifically refer to commodity oils with distinctive dietary and functional properties, sourced from various origins such as palms, coconuts, soybeans, sunflower, rapeseed, peanuts, and olives. In 2021 itself, it has been suggested that the size of this market stood at $12.6 billion, while it could be expected to grow more rapidly at 7.8%, reaching $19.8 billion by 2026. The other factors driving this market are the increasing interest in natural organic products and the expansion of the food and beverage industry. In addition to organic-based natural ingredients that respond to consumers' desire for cleaner foods with minimal processing, specialty oils meet these demands as well. The increasing numbers of health-conscious consumers have led producers in this segment towards a wider range of specialty oil types like those produced organically. Also worth noting is that organic specialty oils are increasingly becoming common, and industries are complying with sustainability practices.
Also, disposable incomes play another role in significantly affecting specialty oil market economics. They enable customers to buy high-quality food like specialty oils due to increased economic viability among consumers. There are also health trends that cannot go unmentioned when discussing influencing factors on how markets perform; they are often marketed as functional foods, which are beneficial for one's health. The global aspect has a tremendous influence on the Specialty Oils Market, and this is demonstrated by the availability of oils from different regions. Such oils include olive oil from the Mediterranean region, coconut oil from tropical areas, and sesame oil, which are only available in Asia, among others. These variously sourced specialty oils have enabled consumers to explore diverse tastes during cooking, thereby making it possible for the market to keep growing.
The term Specialty Oils especially refer to the commodity oils that have special dietary and functional properties. They are derived from the sources like palms, coconuts, soybeans, sunflower, rapeseed, peanuts, and olive oils.
In 2024, the estimated value of the specialty oils market is US $12.6 billion, and it is projected to grow at a significant rate of 7.8% to reach the US $19.8 billion by 2032. This number will increase day by day due to the growing demand for bakery, processed food, and nutritious food products. This growing market of specialty oils is helping to raise the living standards of a large segment of the population, especially developing the markets that trigger demand for a variety of edible fats and oils.
COVID-19 Analysis
During COVID-19, the supply and demands of specialty oils faced stringent measures. The global Specialty Oils Market shifted due to the coronavirus response with an increasing uncertainty regarding the prices of these commodities. Palm Oil, the largest type of globally produced oil, also faced the same impact and has been hit hard by declining demand amid price uncertainty. According to top producers of vegetable oil markets such as Wilmar International and Mahwah Group, in Indonesia and Malaysia, the epidemic has disrupted the palm oil trade and disrupted their production. But the bakeries and confectionery industries noticed an increase in sales as people stocked these products during the lockdown.
The main drivers of the specialty oils are algae oil, avocado oil, butter oil, coconut oil fish oil, flax oil, hemp seed oil, tree nut oil, and sesame seed oil. These oils not only have unique properties that make them desirable in industrial and non-edible applications but also are marketed for their health-promoting properties.
As the saying goes, anything excess is poison. Similarly, excessive consumption of these specialty oils can be harmful to human health as well. They increase the level of low-density lipoproteins and decrease the level of high-density lipoproteins in the blood, which increases the risk of thrombosis. This is due to the PUFA in vegetable oil which oxidizes automatically during food processing, resulting in inflammatory peroxides and hydroperoxides.
The main challenge in this Specialty Oils Market is the gap between the demand and supply of oilseed products, like edible oils, due to their limited availability. India and European countries import large quantities of palm oil from Indonesia and Malaysia, which are the top producers due to their favorable climatic conditions.
For many years the preference for natural products has been growing significantly over synthetic chemicals in the beauty and personal care industry. Particularly in the Asia-Pacific region, the ultimate causes to drive the market for organic cosmetics and personal care products are the millennial population growth, online presence, and internet usage, and increasing per capita income for sustainable and growing awareness of environmentally friendly products. This resulted in an increase in demand for the specialty oils market in recent days.
Growth Analysis
The continued growth of the specialty oils market is due to its wide range of uses for cosmetic manufacturing and personal care products, as well as its high adaptability for food processing (e.g., extraction), where it can be used as an enhancer or bio-fuel additive.
The specialty oils market is growing at a significant rate. With new innovations in technology, the market is seeing more and more people switching to specialty oils. There are multiple benefits of utilizing higher-quality oils, such as cost reduction, safety, and environmental safety.
While there are some risks associated with the usage of Specialty Oils Market due to the newness of the industry, there is potential for high growth in this market in the future. The concentration process will be done by a specialized company that will be working on a joint venture basis with a food manufacturer or a food product manufacturer.
Segmentations
Technology
Specialty Oils Market get benefits from the recent advancement in seed breeding, extraction technology, functionality improvement, and competition in the billion-dollar field. High-oleic / high-omega-9s continue to bring success along the lines of soy, canola, and sunflower oils that originally redefined the edible oil industry a few years ago with the help of conventional breeding practices versus genetic modification. Not only that, material technologists are focusing on extending the shelf life of oils without compromising on clean label conditions.
Application Areas
Specialty oils are applied in various fields of our daily lives. In highly developed and rapidly urbanizing countries, there is a growing focus on the emerging trend of feeding infants with infant formula and infant food lipids, which are primarily imitated based on the composition of mother's milk. To balance the overall fatty acid composition in mother's milk, specialty fats and oils play a crucial role. Not only that, they are used for different edible oils like butter oils, avocado oils, sunflower oils, and many more.
Regional Analysis
The growing use of fast and processed foods in the North American region is responsible for the region's high Specialty Oils Market share. This region includes highly developed countries such as the United States and Canada with high-income populations. The American diet consists of more than 60% processed fruits which led to the use of specialty oils.
Due to constant competition in the specialty oils market, there is constant progress in their technology for processing foods. The main players with a CAGR of 10.1% in this field are:
Recent Trends
Recent Developments
To establish a certified coconut oil supply chain, to improve the livelihood of coconut farmers in the Philippines and Indonesia, and to strengthen the company's supplies for coconut oil, BASF (Germany), Cargill, Procter & Gamble (P&G) (US), and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH (Germany) entered in a partnership under the development PPP (Public-Private Partnership), in November 2019.
Cargill and nine other prominent palm oil producers—Bunge Limited, Golden Agri Resources, Musim Mas, Unilever, Wilmar, Nestlé, PepsiCo, Sime Darby Plantation, and Mondelez International— announces a partnership to support and fund the new radar-based forest surveillance system, which will not only help identify deforestation but also help companies improve product chain sustainability on December 2019.
Report Outlook
This is a market research report on the specialty oils market. It provides an in-depth analysis of the global market size along with insights into various segments within it.
North America:
Europe
Asia Pacific
South America
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