The market for edible oils and fats is projected to expand from US$ 52,920.00 million in 2022 to US$ 78,686.61 million by 2030, reflecting a compound annual growth rate (CAGR) of 5.1% from 2023 to 2030.
There is a growing perception among consumers that plant-based products are healthier compared to traditional options. This increasing health awareness is driving the demand for plant-based and low-fat alternatives. In response, manufacturers are innovating by creating plant-based shortenings and low-fat oils to meet this rising demand. Plant-based shortenings are free from hydrogenation, cholesterol, and trans fats, making them a healthier choice than conventional shortenings. Additionally, the rising incidence of cardiovascular diseases, obesity, and diabetes is expected to further increase the demand for low-fat products, such as low-fat oils, across various sectors including bakery and confectionery, dairy and frozen desserts, and snacks.
The growing concern for animal welfare and environmental sustainability is also contributing to the popularity of plant-based products. According to data from "Veganuary," a nonprofit organization that promotes veganism during January, approximately 5.8 million individuals participated in the "Veganuary Campaign" in 2021. This shift towards veganism is anticipated to drive the demand for plant-based shortenings and low-fat oils across multiple end-use industries, creating significant opportunities in the edible oils and fats market throughout the forecast period.
The edible oils and fats market is categorized by type into oils and fats, with the oils segment expected to capture the largest market share during the forecast period. Vegetable oils can be extracted from various sources including seeds, nuts, fruits, and cereal grains. The most commonly consumed oils include olive, sunflower, palm, canola, coconut, safflower, corn, peanut, cottonseed, palm kernel, and soybean oils. Typically, vegetable oils are utilized in food preparation, with crude oil often added for flavor enhancement. Furthermore, vegetable oils are also used in animal feed production. Sunflower oil, a non-volatile oil derived from sunflower seeds, is widely used in formulations as an emollient in pharmaceutical applications and is rich in vitamin E. It is commonly used for frying snack foods like potato chips and French fries, as well as in the production of mayonnaise and oil-based dressings. Dietary supplements containing sunflower oil have been marketed for treating conditions like eczema. The Food and Agriculture Organization (FAO) projects that sunflower seed oil production will reach 60 million tons by 2050 due to increasing per capita consumption.
Geographically, the edible oils and fats market is divided into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America. In 2022, the Asia Pacific region held the largest market share, while South & Central America emerged as the fastest-growing area. The edible oils and fats market in South & Central America is further segmented into Brazil, Argentina, and the Rest of South & Central America. The snack food industry in this region is thriving, driven by consumer preferences for a variety of snacks, including frozen, savory, fruit, confectionery, and bakery snacks. Edible oils and fats are crucial in this sector, as they impart unique flavors and functionalities in snack manufacturing. For instance, oils serve as frying mediums for deep-fried foods, and vegetable oil-based shortenings are added to pastries to prevent clumping of flour and other ingredients. Consequently, the increasing demand for diverse snacks, along with the benefits associated with edible oils and fats, is propelling the growth of this market segment in the region.
Moreover, the demand for edible oils and fats in industries such as animal nutrition has also risen in the region. According to Oil World, in 2022, China imported approximately 70% of Brazil's soybean oil, primarily for animal protein production. Additionally, the growth of the animal nutrition, pharmaceuticals, and nutraceuticals sectors is driving the need for specialized edible oils and fats. These industries require specific oil types for various applications, including animal feed formulations and pharmaceutical products. As these sectors continue to expand and diversify, the demand for tailored solutions is increasing, further stimulating the growth of the edible oils and fats market in South & Central America.
Key players in the edible oils and fats market include Bunge Ltd, Archer-Daniels-Midland Co., Fuji Oil Co Ltd, Kao Corp, AAK AB, J-Oil Mills Inc, Cargill Inc, Olam Group Ltd, ConnOils LLC, and Louis Dreyfus Co BV. These companies are actively developing a range of products to meet the evolving demands of consumers.
The size of the edible oils and fats market has been determined through a combination of primary and secondary research methods. The research process began with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the market. Additionally, numerous primary interviews were conducted with industry stakeholders to validate the findings and gain deeper analytical insights. Participants in this research included industry experts such as VPs, business development managers, market intelligence managers, national sales managers, and external consultants, including valuation experts, research analysts, and key opinion leaders specializing in the ready-to-eat meals market.