by Soy oil and palm oil are vegetable oils extracted from soybean and palm fruit, respectively. They find wide application in food processing industries as they are cost-effective oils and help improve shelf life and texture of finished food products. Soy oil contains healthy fats and vitamins which make it suitable for use in various cooking oils, margarines and mayonnaise. Palm oil has a high smoke point making it suitable for deep frying and as an ingredient in condiments and dressings.
The global Soy Oil And Palm Oil Market is estimated to be valued at US$ 109724.12 Mn in 2023 and is expected to exhibit a CAGR of 6.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The use of soy oil and palm oil is growing in the production of condiments and dressings owing to certain properties of these oils. Soy oil contains healthy polyunsaturated fats that improve the texture and mouthfeel of mayonnaise and dressings. Palm oil has a neutral taste and increases the shelf life of condiments without altering the original taste. The stability and cost-effectiveness of soy oil and palm oil make them suitable for use as the primary ingredients in salad dressings and sauces. Major food industry players are leveraging the functionality of these oils in developing innovative product lines, which is expected to drive the demand over the forecast period.
SWOT Analysis
Strength: Soy oil and palm oil are highly versatile oils that can be used for cooking, baking, and industrial applications like biofuel production. They are also rich in various nutrients.
Weakness: Concerns have been raised about the environmental impact of palm oil cultivation which includes deforestation and destruction of wildlife habitats. There are also health concerns linked to the trans-fat content in some varieties of these oils.
Opportunity: Growing demand for plant-based oils and oil substitutes driven by health and sustainability trends provide opportunities for market expansion. Developing innovative applications in areas like cosmetics and bioplastics also presents new opportunities.
Threats: Price volatility in global vegetable oil markets and changing trade policies pose threats. Climate change may negatively impact crop yields in key producing regions as well.
Key Takeaways
The global Soy Oil And Palm Oil Market Trends is expected to witness high growth driven by increasing demand from the food industry. The food applications segment accounts for the major share currently.
Asia Pacific accounts for more than 80% of global palm oil production led by Indonesia and Malaysia who are the top producers as well as consumers. The region also accounts for a significant share of soy oil production dominated by China, India, and other South Asian countries. Growth in the food processing and personal care industries in Asia drives significant demand growth.
Key players operating in the soy oil and palm oil market include Cargill, Inc., PT Astra Agro Lestari Tbk, Wilmar International Ltd, Malaysian Soy oil & palm oil Council (MPOC), Carotino Sdn Bhd, Yee Lee Corporation Bhd, IOI Corporation Berhad, Archer Daniels Midland Company, Dow DuPont Inc., and Guangxi Long’an Ruifeng Industrial & Trading Co., Ltd. The industry is consolidated with the top few players accounting for a major share of the global production and trade volumes. Players are focusing on capacity expansion, mergers and acquisitions for future growth.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
