by The edible oils market is estimated to be valued at US$ 124.38 Bn in 2023 and is expected to exhibit a CAGR of 5.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Edible oils are extracted from seeds, nuts and fruit. They serve as an excellent source of nutrition and provide various health benefits. High in unsaturated fats, edible oils are used in cooking as well as in processed foods for flavoring and preserving. The increasing demand for healthy food choices is boosting the market growth.
Market key trends:
One of the major trends driving the edible oils market is the rise in nutritious food products. With growing health consciousness, consumers are demanding functional foods that provide extra nutritional value. Manufacturers are introducing edible oils fortified with vitamins, minerals and other nutrients to cater to this demand. For instance, soybean and canola oils are being enriched with omega-3 fatty acids which are beneficial for cardiovascular health. Advancements in extraction and refining technologies have also improved the stability and shelf life of enriched edible oils. Such innovations are helping companies to expand their product portfolio and attract more health-centric customers.
Porter’s Analysis
Threat of new entrants: The Edible oils market has moderate threat of new entrants due to high capital requirements for production plants and distribution channels. However, increased demand provides opportunities for new private label brands.
Bargaining power of buyers: Buyers have moderate to high bargaining power due to presence of many established brands and private labels. Buyers can negotiate on price and demand value-added services.
Bargaining power of suppliers: Suppliers of key raw materials such as soybean, palm oil, and sunflower have moderate to high bargaining power due to consolidated supply bases globally. Suppliers can influence prices.
Threat of new substitutes: Threat from substitutes is low as oilseeds and fats provide essential nutrients and there are limited substitutes for edible oils. However, new nut-based and seed-based oils present competition.
Competitive rivalry: The edible oils market exhibits high competitive rivalry due to presence of many national and multinational brands. Companies compete on price, product differentiation, promotion, and distribution.
SWOT Analysis
Strengths: Wide applications in food industry. Essential component of human diet. Growing demand from food services and retail segments.
Weaknesses: Fluctuating supply of raw materials impacts margins. Regulatory issues regarding genetically modified crops.
Opportunities: Rising health consciousness favors neutraceutical oils. Growth in emerging nations due to rising incomes.
Threats: Volatility in agriculture commodities market affects raw material prices. Stringent food safety regulations increase compliance costs.
Key Takeaways
The Global Edible Oils Market Growth is expected to witness high, exhibiting CAGR of 5.1% over the forecast period, due to increasing health consciousness. Consumer preference is shifting towards cholesterol-free and plant-based oils.
The Asia Pacific dominates the global edible oil market, accounting for over 50% of the global consumption due to large population and rapid urbanization in major economies such as India and China. The region is expected to maintain its lead over the forecast years. North America and Europe are also sizable markets, though growth is projected to be higher in developing regions.
Key players operating in the edible oils market are Adani Wilmar Ltd., Ruchi Soya Industries Ltd, Associated British Foods plc, Archer Daniels Midland Company, Beidahuang Group, Bunge Limited, Borges Mediterranean Group, Cargill Incorporated, Fuji Vegetable Oil, Inc., Adams Group, American Vegetable Oils, Inc., and Olympic Oils Limited. Major players are focusing on capacity expansion, mergers and acquisitions to increase market share.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
