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Edible Oil & Fats Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global edible oil and fats products market was valued at USD 118.4 billion in 2022 and is projected to expand at a CAGR of 4.5% from 2023 to 2030. Edible oils and fats are essential components of healthy diets, as they provide essential fatty acids, vitamins, and energy. Increasing health consciousness among people and growing awareness about the health benefits of edible oils and fats have resulted in consumers shifting from traditional oils to healthier alternatives. Furthermore, the development of innovative and functional edible oils is expected to drive the market.
The growing demand for plant-based oil products such as soybean, sunflower, and canola oil is propelling the market growth. This is largely due to the increasing health consciousness among consumers, who are opting for healthier alternatives like these products. In addition, the growing demand for products with a low-fat content, such as olive oil and coconut oil, is also driving the market growth.
The increasing demand for convenience foods and changing dietary habits are major factors driving the market growth. The growing demand for on-the-go foods has resulted in a shift in the consumption pattern of consumers. This has led to an increase in the demand for edible oil and fats-based convenience foods. Additionally, the growing demand for ready-to-eat snacks and frozen foods is also driving the market growth.
The rising prevalence of chronic diseases and the growing awareness of health benefits associated with the consumption of edible oils and fats is propelling the market growth. The rising health concerns among people have resulted in an increasing demand for healthier cooking oils. The growing number of health-conscious consumers has also led to an increase in the demand for edible oil and fats fortified with essential nutrients.
The rising demand for organic edible oils is also driving the market growth. The increasing health awareness among consumers has led to an increase in the demand for organic edible oils. Furthermore, the increasing number of health-conscious consumers willing to pay for premium organic edible oil and fat products is fueling the market growth.
Product Insights
The cooking oil segment is expected to account for the largest share of the edible oil
and fats market in 2022. The growing demand for packaged edible oil and fats products, driven by rising health consciousness among the population, is expected to drive the growth of the segment. In addition, the growing popularity of ready-to-eat food products, such as snacks, fried and baked goods, is driving the demand for edible oil and fats products. According to a report published by The Guardian, in December 2019, the sale of ready-to-eat snacks such as crisps and nuts has increased by 6% in the last five years.
The butter segment is expected to expand at the fastest CAGR of 8.3% over the forecast period. Increasing demand for butter products, such as clarified butter and ghee, due to their health benefits, is driving the growth of the segment. In addition, the growing popularity of butter-based snacks, such as cookies and cakes, is also driving the growth of the segment. According to an article published by the International Dairy Journal, in October 2019, clarified butter and ghee are gaining popularity among consumers due to their health benefits and enhanced flavor.
Distribution Channel Insights
The supermarkets and hypermarkets segment accounted for the largest market share of around 35.5% in 2022. The growth of the segment is mainly driven by the rising consumer inclination towards supermarkets & hypermarkets as a primary source to purchase edible oil & fats products. According to a survey by Deloitte in 2021, 84% of customers prefer to buy edible oil & fats products from supermarkets & hypermarkets due to their wide variety of products and easy availability.
The online segment is anticipated to expand at the highest CAGR of 11.3% over the forecast period. The growth of the online segment is mainly driven by the rising penetration of smartphones and internet connectivity. Consumers are increasingly shifting towards online stores due to the ease of shopping and variety of options available. Additionally, the increasing demand for food delivery services and the rising number of online stores offering edible oil & fats products are expected to fuel the growth of the online segment.
Type Insights
The vegetable oil segment accounted for the largest revenue share of 81.5% in the year 2022. The growing demand for edible oils with high nutritional values, such as olive oil and canola oil, is driving the market. Moreover, the rising health consciousness among consumers is fuelling the demand for vegetable oils, as they are considered healthier than animal fats. Furthermore, the increased consumption of convenience foods, such as ready-to-eat snacks and fast foods, is driving the demand for vegetable oils. The presence of preservatives, such as antioxidants, in vegetable oils helps maintain their shelf life and freshness, thereby increasing their demand.
The animal fats segment is anticipated to expand at the highest CAGR of 3.2% over the forecast period. Animal fats, such as lard and tallow, are used as spreads and are also available in the form of solid blocks for baking. The increasing demand for animal fats for cooking and baking is driving the market. Furthermore, the growing demand for animal fats for use in cosmetics and personal care products is propelling the market.
Regional Insights
Europe is expected to be the fastest-growing regional market for edible oil & fats products. This is due to the presence of a large number of edible oil & fat manufacturers in the region. For instance, in January 2021, AAK, a leading global producer of specialty vegetable oils and fats, opened its new production facility in Denmark. Moreover, the increasing health consciousness among consumers has led to a shift in preference towards healthier edible oil & fats options such as avocado, sunflower, and almond oil.
Asia Pacific is expected to be the second-fastest growing regional market, due to the rising population and increasing disposable incomes in the region. Moreover, the presence of a large number of edible oil & fats manufacturers in countries such as India, China, and Japan is expected to drive the growth of the market in the region. For instance, in February 2021, Kaleesuwari Refinery, an edible oil & fats manufacturer, expanded its production facility in India with the installation of a new refining line.
Financial Projections
In this part of the edible oil & fats products business plan we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your edible oil & fats products business. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main sources of revenue for an edible oil & fats products business come from sales of oil, fats, and related products. These could include different types of seed oils, nut oils, margarine, and shortening. Other sources of income could include export sales and contract manufacturing.
Projecting Expenses
In this section, all the regular expenses related to keeping the edible oil & fats products business running will be described. The list of operating expenses includes raw material costs, packaging and labeling materials, wages, maintenance and repairs, utilities, insurance policies, advertising, and others.
Key companies & market share insights
Some of the key companies operating in the edible oil & fats market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:
– In October 2022, Bunge Ltd. launched a new range of sunflower oil under the brand name Bunge Gold.
– In June 2022, Cargill Inc. launched a range of organic peanut butters in different flavors.
– In August 2022, Archer Daniels Midland launched a range of edible oil and fats products under the brand name Nature’s Choice.
Some of the prominent players in the edible oil & fats market include:
– Bunge Ltd.
– Cargill Inc.
– Archer Daniels Midland
– Wilmar International Limited
– Associated British Foods plc
– Ajinomoto Co., Inc.
– Nisshin OilliO Group Ltd.
– Unilever PLC
– ConAgra Brands, Inc.
– The J.M. Smucker Company
Global Edible Oil & Fats Market Segmentation
This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global edible oil & fats products market based on product, distribution channel, type, and region:
1. Product Outlook (Revenue, USD Million, 2017 – 2030)
– Soybean Oil
– Sunflower Oil
– Canola Oil
– Olive Oil
– Palm Oil
– Others
2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
– Supermarkets & Hypermarkets
– Online
– Others
3. Type Outlook (Revenue, USD Million, 2017 – 2030)
– Refined
– Unrefined
4. Regional Outlook (Revenue, USD Million, 2017 – 2030)
– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa
Frequently Asked Questions
[Q]: What are the Key Drivers of the Edible Oil & Fats Market?
[A]: The key drivers of the edible oil & fats market are increasing health awareness, changing consumer preferences towards healthier food items, rising disposable income, and increasing demand for convenience foods. The increasing demand for organic and natural edible oils is also driving market growth.
[Q]: What are the Major Challenges Facing the Edible Oil & Fats Market?
[A]: The major challenges facing the edible oil & fats market include the rising cost of production and the over-exploitation of resources. The fluctuating prices of raw materials, such as soybean or palm oil, and the threat of substitutes, such as butter and margarine, are also major challenges.
[Q]: Which Region has the Highest Market share of Edible Oil & Fats?
[A]: Asia-Pacific holds the highest market share of edible oil & fats, followed by Europe and North America. The primary reasons for the large share of Asia-Pacific in the market are the high population, rising disposable income, and increasing health awareness in the region.
[Q]: Who are the Key Players in the Edible Oil & Fats Market?
[A]: Some of the key players in the edible oil & fats market are Archer Daniels Midland Co., Cargill, Inc., Bunge Limited, Wilmar International Ltd., and Adani Wilmar Ltd.
Research Methodology
Impact Analytix employs a comprehensive and iterative research methodology focused on minimizing deviance in order to provide the most accurate estimates and forecasts possible. The company utilizes a combination of bottom-up and top-down approaches for segmenting and estimating quantitative aspects of the market. In Addition, a recurring theme prevalent across all our research reports is data triangulation which looks market from three different perspectives. Critical elements of the methodology employed for all our studies include:
Preliminary data mining
Raw market data is obtained and collated on a broad front. Data is continuously filtered to ensure that only validated and authenticated sources are considered. In addition, data is also mined from a host of reports in our repository, as well as a number of reputed paid databases. For a comprehensive understanding of the market, it is essential to understand the complete value chain and in order to facilitate this; we collect data from raw material suppliers, distributors as well as buyers.
Technical issues and trends are obtained from surveys, technical symposia, and trade journals. Technical data is also gathered from an intellectual property perspective, focusing on white space and freedom of movement. Industry dynamics with respect to drivers, restraints, and pricing trends are also gathered. As a result, the material developed contains a wide range of original data that is then further cross-validated and authenticated with published sources.
Statistical model
Our market estimates and forecasts are derived through simulation models. A unique model is created and customized for each study. Gathered information for market dynamics, technology landscape, application development, and pricing trends are fed into the model and analyzed simultaneously. These factors are studied on a comparative basis, and their impact over the forecast period is quantified with the help of correlation, regression, and time series analysis. Market forecasting is performed via a combination of economic tools, technological analysis, industry experience, and domain expertise.
Econometric models are generally used for short-term forecasting, while technological market models are used for long-term forecasting. These are based on an amalgamation of the technology landscape, regulatory frameworks, economic outlook, and business principles. A bottom-up approach to market estimation is preferred, with key regional markets analyzed as separate entities and integration of data to obtain global estimates. This is critical for a deep understanding of the industry as well as ensuring minimal errors. Some of the parameters considered for forecasting include:
Market drivers and restraints, along with their current and expected impact
Raw material scenario and supply v/s price trends
Regulatory scenario and expected developments
Current capacity and expected capacity additions up to 2030
We assign weights to these parameters and quantify their market impact using weighted average analysis, to derive an expected market growth rate.
Primary validation
This is the final step in estimating and forecasting our reports. Exhaustive primary interviews are conducted, face to face as well as over the phone to validate our findings and assumptions used to obtain them. Interviewees are approached from leading companies across the value chain including suppliers, technology providers, domain experts, and buyers so as to ensure a holistic and unbiased picture of the market. These interviews are conducted across the globe, with language barriers overcome with the aid of local staff and interpreters. Primary interviews not only help in data validation but also provide critical insights into the market, current business scenario, and future expectations and enhance the quality of our reports. All our estimates and forecast are verified through exhaustive primary research with Key Industry Participants (KIPs) which typically include:
Market-leading companies
Raw material suppliers
Product distributors
Buyers
The key objectives of primary research are as follows:
To validate our data in terms of accuracy and acceptability
To gain an insight into the current market and future expectations
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