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Vegetable Oils Market

Vegetable Oils Market Size, Share, Trends, Forecast Analysis, By Product Type (Palm, Soybean, Canola, Sunflower & Safflower, Other Products), By Processing Method (Mechanical, Hydrogenation, Other Processing Methods), By Application (Food, Industrial) & Region – Global Market Insights 2022 to 2032

Vegetable Oils Market Outlook (2022-2032)

The global vegetable oils market has reached a valuation of US$ 214 billion in 2022 and is likely to climb to US$ 336 billion by 2032-end, expanding at a CAGR of 4.6% through 2032.

Owing to industrial applications, the mechanical and some other extraction processes, such as hydrogenation deodorization and solvent extraction are bolstering growth opportunities in the global market. These methods are helpful to increase the production facilities of manufacturers.

Rapeseed oil is gaining popularity in Europe and some other regional areas due to increasing demand for these products from different end-user industries. For example, in addition to the food industry, they are used in lubricants as well as the mechanical industry, and for the production of oleochemicals. These factors are likely to create demand opportunities for industry products.

Vegetable oil is triglycerides that have been extracted from a lot of vegetable seeds, such as corn and sunflower, soybean, rapeseed, and so on. The oils are used at an increased rate in frying food articles, salad dressing, processed food, and some other traditional food articles. Further, vegetable oils which are Vitamin E enriched are crucial for the development and protection of cells.

Sesame oil, olive oil, and coconut oil are some popular types of oils that are used in personal care products. These oils come in various forms for easy application. Consumers around the world give preference to organic oils for the abovementioned applications.

The growing use of avocado oil due to its nutritional benefits on health and rising demand for canola oil in different snacks due to versatility and affordability are predicted to contribute to sales of industry products. Moreover, the launching of healthy soybean oil by industry players is also likely to propel novel opportunities for industry players.

Biofuel, personal care, pharmaceutical, and food industries are some popular end-users that are contributing to the overall growth of the global market of vegetable oils. Among these, personal care industries that use oils for the production of perfumes, shampoos, and some others are bolstering sales opportunities in the industry.

The presence of some supportive policies in different nations is also likely to boost growth opportunities in the market. RED (Renewable Energy Directive) and some other regulatory agencies provide assistance to support the production of vegetable oils in assorted industries. Moreover, the rising investment by industry players to renovate the production facilities is also predicted to drive novel growth avenues in the industry.

Report Attributes

Details

Vegetable Oils Market Size (2022)

US$ 214 Billion

Estimated Market Value (2032)

US$ 336 Billion

Anticipated Growth Rate of Global Market (2022-2032)

4.6% CAGR

Projected CAGR of Palm Segment (2032)

5.3%

Estimated CAGR of Soybean Segment (2032)

4.6%

Key Companies Profiled

  • Bunge Limited
  • Incorporated
  • Cargill
  • Wilmar International Ltd.
  • Louis Dreyfus Company BV

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Why are Sales Opportunities in the Vegetable Oils Market Increasing?

“Rising Inclination to Experiment in Food Industry”

Rising urbanization and growing disposable income of people are likely to impact growth avenues in the industry of vegetable oils. There is a constant change in trends of the global population as they are inclined to experiment in the food industry. Professionals are experimenting to cook new dishes with the use of different cuisines and food items.

Further, the increasing use of vegetable oil across the culinary sector and mechanical industries for instance cosmetics and lubricants, and personal care are likely to bolster sales opportunities in the global market.

There is a significant change in the economic condition of urban areas and developed countries around the world. In these areas, the population of working people is comparatively higher in numbers and they get less time for the preparation of food at home owing to their busy schedules. So, the rising demand for instant food and processed food is likely to present lucrative opportunities in the global market.

The expansion of facilities and advancements in the industry owing to favorable economic conditions are serving as vital factors to propel sales opportunities for vegetable oils. These oils are further converted into energy and biofuels that are utilized in different mechanical industries. Thus, based on these factors, the sales opportunities in the global market are predicted to increase.

“Advancements Making Vegetable Oils More Suitable for Several End-user Industries”

In recent years, numerous advancements are taking place in the industry of vegetable oils. These innovations make these products more suitable for different consumers and end-user industries. For instance, the manufacturers serving in the industry are making alterations to the genetic information related to oilseed crops.

Further, the production of canola oil which is a rich source of Alpha-linolenic acid finds applications in fuel, feed, and food. Vegans are using canola oil at an increased rate which is likely to provide assistance in generating novel sales opportunities in the global market.

“Fortification of Vegetable Oil with Vitamins and Other Nutrients”

The nutritional value of oils increases with the process of adding some micronutrients. As per the data provided by FSSAI (Food Safety and Standards Authority of India), the use of fortified oil is helpful for individuals to meet around 25-30% of their recommended dietary intake for vitamin D and A. Fortification with both these vitamins serves as an effective strategy to combat micronutrient malnutrition as both vitamins are fat-soluble.

The rising trend of low-fat and fitness leads to inadequate intake of micronutrients that are fat-soluble so with the oil fortification people can get a sufficient amount of the abovementioned vitamins through food.

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Which Aspects are Likely to Restrict Demand Growth for Vegetable Oils?

“Harmful Substances in Refined Vegetable Oils”

The food industry uses refined vegetable oil at an increased rate. These oils possess some harmful components and ingredients. Further, the standards that are imposed on the industry of food are higher in some nations thus put a direct impact on the overall growth of the market of vegetable oils.

The unavailability of effective regulatory standards and laws across the production facility on the global market is likely to impede the growth opportunities in the market. The health-related concerns and toxicity of vegetable oil owing to higher consumption of these oils and fats are anticipated to curtail growth opportunities in the industry.

“Rising Cases of Adulteration Being Witnessed”

The waste that is generated in the industry of food along with the degradation of the quality of the used oil is serving as the pivotal challenges that are faced by the players in the market of vegetable oils.

Adulteration, counterfeiting activities, and deception are some noticeable challenges that are occurring on regular basis in the global market. Adulteration of cooking oil further leads to a myriad of diseases, cancer, intense destruction of the gall bladder, loss of eyesight, dropsy, and many more. Thus, these harmful health hazards that are caused because of counterfeiting practices across the industry are predicted to restrict growth opportunities in the global market in the years to come.

Vegetable oils market forecast by Fact.MR

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What Business Opportunities Can New Market Entrants Explore?

“Start-ups Can Focus on Research to Produce Organic Vegetable Oils”

The increasing per capita income of people from emerging economies around the world is bolstering sales opportunities for vegetable oils. The consumption of oils is likely to see noticeable growth in the forecasted period. This rapid growth in consumption capacities is attributed to increasing trade activities and the expansion of oilseed cultivation.

The new entrants in the industry are taking efforts to produce organic or natural vegetable oils that are not refined and generate minimum waste.

For instance,

  • Zero Acre Farms is a company that was founded in the year 2020. The company is based in San Mateo, California, and is focused on fats, sustainable, and healthy oils. The company aims to end the dependency of the food industry on destructive vegetable oils. It has developed a novel type of cooking oil that is generated by microbes while using the fermentation process.

Which Regional Market Generates Huge Demand for Vegetable Oils?

“Prominent Agricultural Industry in Asia Pacific”

Out of other regional areas, the Asia Pacific is holding a leading position in the global market due to its significant position across the agricultural industry. Further, various cuisines are easily available in the regional market. The region also has a variety of food habits and cultures.

Growing requirement for healthy oils because of varied food cultures is bolstering growth opportunities in the regional market. In addition, economic conditions and a growing population have increased the use of palm oil and soybean oil.

Rising demand from industrial plants, for instance, food & beverages, personal care products, pharmaceuticals, and other biofuel and biodiesel plants which are completely reliant on the production of organic vegetable oil are boosting growth opportunities in the regional market.

Similarly, the demand across North America and Europe is owing to the presence of various personal care products, food & beverages, and pharmaceuticals industries that are further bolstering sales opportunities for vegetable oils in the regional markets. The market from Italy and Spain is providing lucrative opportunities due to the extensive use of olive oils by consumers.

Country-wise Insights

How is the U.S. Creating New Sales Avenues for Vegetable Oil Suppliers?

“Rising Popularity of Fast Food in U.S. Driving Consumption of Vegetable Oils

Increasing popularity of fast food along with changes in customer lifestyles towards convenient foods is estimated to bolster the demand for vegetable oils in the United States. The food processing & food service industries will be key contributors to the demand for vegetable oil in the country over the coming years

Which Other Countries Will See High Consumption of Vegetable Oil?

“Europe & Asia Pacific to Account for Substantial Revenue Streams

Other noticeable geographic markets are Canada and Japan, and these two markets are likely to progress at CAGRs of 3.4% and 3%, respectively through 2032.

Within Europe, the market in Germany is anticipated to expand at a CAGR of 2.5% during the forecast period. Further, led by countries such as South Korea, India, and Australia, the regional market of Asia Pacific is anticipated to grow at a significant speed over the decade.

Category-wise Insights

Which Type of Vegetable Oil Dominates the Global Market?

“Growing Use of Palm Oil across the World”

Based on product, the market has been bifurcated into palm, soybean, canola, sunflower & safflower, and other products. Among these product types, palm oil holds a prominent share in the global market owing to its increased application to prepare different foods, biofuels, and industrial chemicals.

The palm oil and soybean oil market segments are estimated to progress at CAGRs of 5.3% and 4.6%, respectively.

Why is Application of Vegetable Oil Surging in Food Products?

“Rising Use of Different Oils for Cooking Purposes

Based on application, the market is divided into food, industrial, and biofuel. Among these segments, vegetable oils are used at an increased rate in different food products. Be it routine household cooking or restaurant food, oils play a pivotal role.

Different types of vegetable oils, for instance, olive oil, coconut oil, and others are used by consumers around the world. Oils are used to fry different food articles, processed food, salad dressing, and some other traditional food items. In addition, vegetable oils with vitamin E also find application to develop and protect cells.

Competitive Landscape

Key manufacturers of vegetable oils are taking initiatives to generate novel growth opportunities with the adoption of many strategies, including mergers & acquisitions, collaboration, partnerships, novel product launches, portfolio expansion, and many more.

For instance,

  • Cargill Incorporation, in 2021, acquired an edible oil refinery that is situated in Nellore, India. The company has invested around US$ 35 million to increase its production capacity of the company.
  • Bunge Loders Croklaan, in 2021, expanded its fats and oils portfolio to match the organic demand in the European region and offer a scalable and steady supply of organic oils and fats that include coconut, shea, palm, soy, rapeseed, and sunflower.

Key manufacturers operating in the global vegetable oils market include Bunge Limited, Incorporated, Cargill, Wilmar International Ltd., and Louis Dreyfus Company BV.

Segmentation of Vegetable Oils Industry Research

  • By Product:

    • Palm
    • Soybean
    • Canola
    • Sunflower & Safflower
    • Other Products
  • By Processing Method:

    • Mechanical
    • Hydrogenation
    • Other Processing Methods
  • By Application:

    • Food
    • Industrial
    • Biofuel
  • By Region:

    • North America
    • Europe
    • Asia Pacific
    • Latin America
    • Middle East & Africa

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The global vegetable oils market is valued at US$ 214 billion in 2022.

Worldwide demand for vegetable oils is expected to increase at a CAGR of 4.6% through 2032.

The vegetable oils industry is anticipated to reach a valuation of US$ 336 billion by the end of 2032.

The palm segment is estimated to progress at a CAGR of 5.3% during the forecast period from 2022 to 2032.

The soybean segment is likely to expand at a CAGR of 4.6% through 2032.

Key suppliers of vegetable oils include Bunge Limited, Incorporated, Cargill, Wilmar International Ltd., and Louis Dreyfus Company BV.

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