Nov 26, 2018
Asia Pacific Cooking Oil Market Witnessing Proliferation of Refined Variants
by Team Fact.MR
Demand for cooking oil in Asia Pacific continues to remain strong, however, transformations are underway. Rising disposable income has led to the emergence of a strong middle class, which is ramping up demand for refine and premium cooking oil. The impact of health and wellness trend is palpable in the cooking oil market in APAC, forcing players to diversify their product offerings. Cooking oil demand in APAC is likely to grow at nearly 5% y-o-y in 2018, resulting into volumes of over 86,000 tons.
A summary of the report on cooking oil market is available upon request.
The dietary habits of consumers in APAC have witnessed significant transformation in the last decade or so. The impact of western dietary habits is palpable on the cooking oil demand in APAC, with many existing and new players launching low-fat products in the market. Although these gains have been prominently noticed by cooking oil manufacturers, average consumption of premium cooking oil products per consumer is still on the lower side.
The gains in the premium cooking oil products in Asia Pacific are currently limited to tier I cities and urban centers. However, outside of these urban centers, demand is limited, and traditional oils, which are high in fats and cholesterol are still widely used. Key players are focusing on penetrating these suburban centers to strengthen their position in the market.
China and India are among the two leading markets for cooking oils in Asia Pacific. The demand for cooking oil in China has witnessed a consistent increase since the ban on bulk edible oils. Demand for peanut oil, olive oil, and vegetable oil continues to be healthy in China, as a rapidly increasing middle class ramps up demand for premium products.
Although the outlook on cooking oil demand in China remains positive, challenges prevail. Stringency in regulations pertaining to production and consumption, growing urbanization, and fluctuating price trends are among the key factors that can emerge as challenges for cooking oil demand in Asia Pacific.
According to the study, along with China, India is another lucrative market for cooking oil in Asia Pacific. The demand for cooking oil in India has traditionally remain high, owing to the culinary preferences of consumers. According to the study, palm oil is one of the top-selling variants of cooking oil in Asia Pacific, with total demand likely to surpass 20,000 tons in 2018.
As is the case in China, demand for premium cooking oils in India is also limited to urban centers. These centers are comprised of a demographic that has high disposable income and are aware of the role of oil in cardiovascular health. According to research, demand for monounsaturated and polyunsaturated fatty acids has witnessed a spike in consumption over the past decade or so.
Outside of China and India, the other key markets for cooking oil in Asia Pacific are the Philippines, Vietnam, Indonesia, and Malaysia. The growing emphasis on crop processing, and stringency in food safety regulatory regulations are among the key factors responsible for growing sales of cooking oils in Asia Pacific.
The demand for cooking oil in these countries is driven by growing adoption in a range of end-use industries, especially bakery, confectionary, and snacks. The growing demand from these end-use industries is likely to provide an impetus to the cooking oil market in the region.
Overall, the prospects of cooking oil market in Asia Pacific remain bullish, and it is highly likely that manufacturers will be focusing on expanding their market share in these markets. Companies will also be looking forward to launch new products at affordable prices in these markets.