June 15, 2024
Global Vegetable Oils Market

Vegetable Oils Market Driven By Rising Popularity Of Plant-Based Diets

Vegetable oils are extracted from various plant sources and are widely used for cooking purposes as well as in food products and cosmetics due to their various health benefits. Sunflower oil, soybean oil, palm oil and canola oil are some of the commonly used vegetable oils. They are excellent sources of vitamin E and unsaturated fatty acids. The rich nutritional profile of vegetable oils makes them suitable alternatives for animal fats and trans-fats. They have lower cholesterol levels and are easier to digest compared to other cooking oils. Growing health consciousness among consumers has increased the demand for vegetable oils.

The global Vegetable Oils Market is estimated to be valued at US$ 351391.74  in 2023 and is expected to exhibit a CAGR of 6.8% over the forecast period, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the major trends witnessed in the vegetable oils market is the rising popularity of plant-based diets. More people are adopting vegetarian, vegan and flexitarian diets due to health and sustainability reasons. This has boosted the demand for vegetable oils which are widely used as substitutes for animal fats in plant-based food products. Manufacturers are innovating and launching new product lines of vegan mayonnaise, vegan butter and plant-based proteins which use vegetable oils. There is also a trend of interesterification and modifications of vegetable oils to enhance their stability and nutrition. Through interesterification, hybrid oils are produced from different vegetable oils to leverage the unique properties and create new product formulations.

Porter’s Analysis
Threat of new entrants: Low capital requirements and existing suppliers strengthen the threat of new entrants. However, existing players have established brand names and distribution networks.

Bargaining power of buyers: Buyers have significant bargaining power due to the availability of substitutes and undifferentiated products. Buyers can negotiate lower prices and demand high quality products.

Bargaining power of suppliers: Major suppliers have moderate bargaining power due to low switching costs. Suppliers of raw materials play a crucial role in competitive pricing and product differentiation.

Threat of new substitutes: Substitute products like palm oil and canola oil pose medium threat. Product innovation and expanded applications can reduce the threat of substitutes.

Competitive rivalry: The global vegetable oils market is highly fragmented with many regional and international players. Intense competition keeps pricing low and forces participants to differentiate products.

Key Takeaways
The Global Vegetable Oils Market Size is expected to witness high growth.

Regional analysis:

North America and Europe are also significant markets driven by demand for non-GMO and premium vegetable oils. Product launches catering to health-conscious consumers will boost sales. Latin America and the Middle East regions offer lucrative opportunities backed by increasing health awareness.

Key players: Key players operating in the Vegetable Oils market are Solvay S.A., Tokuyama Corporation, Occidental Petroleum Corporation, Ward Chemical Ltd., Tata Chemicals Ltd., TETRA Technologies, Inc., Zirax Limited, Weifang Yuze Chemical Co., Ltd., Mey Chern Chemicals Sdn Bhd., Anmol Chemicals Group, TCI Sanmar Chemicals S.A.E., and Weifang Haibin Chemical Co., Ltd. Innovation in processing technologies and introductions of organic and specialty oils will help these companies gain market share.a

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it