The global edible oil market was valued at $84.7 bn in 2016 and is forecast to grow at a steady CAGR of 5.2% between 2017 and 2024, culminating in 2024 global sales of $126.5 bn.
Industry at a Glance
Increasing health consciousness among consumers coupled with general awareness regarding food contents with trans-fats and cholesterol is expected to drive edible oil market growth over the forecast period. Shift in preference towards healthy & organic cooking oil as a result of rising number of chronic diseases is anticipated to boost demand. Changing food habits along with increasing per capita disposable income is expected to play a key role in uplifting edible oils demand over the next seven years.
Rising fast food popularity in developing countries of Asia Pacific has generated significant demand. Consumer preference towards fried food products coupled with increasing number of food outlets, trucks, and shopping malls has fueled the consumption of fried products. Companies are implementing advanced processing technique including cold pressing. Moreover, new edible oils products being introduced are improved and offer a balanced fatty acid outline. Increasing awareness regarding benefits provided by edible oil products has driven their consumption in the last five years.
“Optimal Price Point (OPP) for Edible Oil Products”
Estimated Average Edible Oil product cost – $ xx globally. However, with improving access and availability of options, OPP and range of acceptable Prices (RAP) are going to change. We at Ameri Research continuously track these prices with our proprietary pricing model.
Olive oil prices are anticipated to remain considerably on the higher side in comparison to other edible oils. Moreover, surplus soybean production in Brazil and Mexico is expected to result in price drop over the forecast period.
Palm oil emerged as the leading product segment in 2016 and accounted for over 40% of the overall volume in 2016. Increasing usage in around half of the processed food products in supermarkets coupled with rising production in countries such as Malaysia and Indonesia is anticipated to bolster product segment growth over the next seven years.
Soybean oil is expected to exhibit high growth over the forecast period owing to its emulsifying ability low-calorie content. It is trans-fat free and contains minor saturated fat, creating it as a favored option over other oils. Strong economic growth coupled with rising soy crop yields is anticipated to further boost demand for soybean oil.
On the basis of end-use, the market has been segmented into retail, food processing, bakery, and food services. Retail was the dominant end-use in 2016 and is expected to continue its dominance over the forecast period. Growing urban population coupled with presence of various channels is anticipated to influence application demand in the near future positively. Upgradation in retail network coupled with increasing olive oil popularity is further expected to drive market growth. Foodservice end-use segment is projected to exhibit an estimated a CAGR of 5.1% over the forecast period, due to abundant availability and low price of palm oil.
In 2016, Asia Pacific was the leading edible oil consumer with demand driven by population expansion coupled with increasing number of food processing units in countries such as China, India, Singapore, South Korea and Thailand. Growing palm oil production in Indonesia and Malaysia is driving regional market growth at a rapid pace.
Europe followed Asia Pacific and accounted for over 25% of the global market revenue in 2016. The regional market is characterized by presence of mature food service, retail sector and bakery sector. Countries such as UK, Spain, Italy, and France are expected to drive demand for edible oils. Latin America and Middle East are also anticipated to grow at steady CAGR over the forecast period.
Growth Drivers & Restraints
Rising population in emerging economies coupled with escalating spending on foodservice industries including restaurants, hotels, outlets, food joints and catering companies are anticipated to fuel edible oil demand over the forecast period. Increasing R& D and innovation to provide healthier and low content fatty acid edible oil is driving market growth. Growing demand for healthy oils such as olive, palm kernel and canola oil is set to provide lucrative opportunities to industry participants in the coming years. Robust palm oil demand in food processing industry is anticipated to remain a key factor driving edible oil market growth. High dependence on imported oil in North America is anticipated to restrict market growth.
Top Players & Company Share
Major players operating the global edible oil market include The Adani Wilmar Ltd., Bunge Limited, Archer Daniels Midland Company, Cargill Inc., Associated British Food (Ach), Borges Mediterranean Group, Adams Group, Ruchi Soya Industries Ltd, Olympic Oils Limited, Beiahuang Group, and ConAgra Foods Inc.
- Edible Oil Market by Product (Volume, Tons; Revenue, USD Million)
- Palm Oil
- Soybean Oil
- Rapeseed Oil
- Sunflower Oil
- Peanut Oil
- Edible Oil Market by End-Use (Volume, Tons; Revenue, USD Million)
- Food Service
- Food Processing
- Edible Oil Market by Region (Volume, Tons; Revenue, USD Million)
- North America
- Asia Pacific
- Latin America
- Middle East & Africa (MEA)
- Saudi Arabia
- North America