Edible Oils Market Dynamics

Increase in oilseed production

According to an article published in the bulletin of the National Research Center, Egypt, with growing interest in edible oils, the area under oilseeds cultivation has increased by 82%, and the production is increased by approximately over the last three decades. Furthermore, according to Organisation for Economic Co-operation and Development (OECD), 2022, the consumption of vegetable oils is estimated to reach 249 million metric tons, with the food sector accounting for the major share. The above rise in demand for oils is due to the increase in per capita use of edible oils in low and middle-income countries in the Asia Pacific. Therefore, with the increase in the production of oilseeds, the production and supply of edible oils are expected to increase in the future to satiate the growing consumer demand.

Growth in global demand for food

The Food and Agricultural Organization states that the global population has increased exponentially due to the overgrowing population and is projected to increase by 9.7 billion by 2050. Additionally, urbanization is anticipated to increase at a rapid pace, adversely impacting the global food demand. Edible oils are essential food ingredients having varied applications in households, industries and food service. Thus, the growing population, and continuously evolving needs of the consumers fueling the demand for edible oils.

High price volatility for edible oils

The Ukraine conflict has driven agricultural commodity prices to unprecedented high levels. The crisis has caused a sharp increase in the price of edible oils, as well as trade policy reactions globally that has further restricted supplies and driven up costs. . Prices for edible oils have increased by an average of roughly 30%. The most significantly impacted product is sunflower oil, which has increased by more than 40%.  The Black Sea countries are major exporters of sunflower oil which makes up around 13% of the vegetable oils traded on international markets. Thus, the increased prices of edible oils has largely impeded the growth of the global edible oils market.

Increase in trend of microencapsulation technology

The microencapsulation technique is a trending technology is being increasingly adopted by the growing food industry. According to a study by the Federal University of Santa Catarina, Brazil, 2019, oil encapsulation can prevent or decrease oxidation reactions and increase the range of its applications in the food industry. In processed food products, oil encapsulation aids in the retention of flavor, shelf life, anti-oxidation, and storage time of the food products. Due to its benefits in a wide range of food applications, the encapsulation of edible oils is slowly gaining prominence in the food industry, globally, aiding in the expansion of the global edible oils market.

Scope of the Report

This research report categorizes the edible oils market., based on product type, application, and region.

Target Audience

• Edible oils manufacturers
• Edible oils Raw Material Suppliers and Manufacturers
• Edible oils Material Importers and Exporters
• Edible oils Material Traders and Distributors
• Government organizations, research organizations, and consulting firms
• Farmers producing and harvesting oilseeds
• Food processing companies involved in edible oil production
• Agencies involved in providing certifications and licenses such as British Retail Consortium Certification, ISO Certification, and alike.
• Commercial research & development (R&D) institutions and financial institutions
• Academicians and research organizations
• End users

Report Scope:

Edible oils Market:

By Product Type

• Palm Oil
• Soybean Oil
• Sunflower Oil
• Rapeseed Oil
• Olive Oil
• Others

By Packaging Type

• Pouches
• Jars
• Cans
• Bottles
• Others

By End Use:

• Domestic
• Industrial
• Food Service

By Region

• North America
• Europe
• Asia Pacific
• South Americab
• Rest of the World

Recent Developments

• Louis Dreyfus Company Asia Pte. Ltd. (LDC) and Longriver Farms entered into an agreement for the acquisition of Emerald Grain Pty. Ltd. (Emerald Grain) by LDC. This agreement helped LDC to expand further in the Australian market.
• In May 2021, Cargill partnered with Frontline International to create the Kitchen Controller end-to-end automated oil management solution. The cutting-edge solution combined Frontline International’s Smart Oil Management equipment expertise and client relationships with Cargill’s foodservice experience and knowledge of oil quality to offer foodservice operators an integrated, intelligent approach to oil management.
• In October 2019, Golden Agri-Resources (GAR) partnered on funding and developing a radar-based forest monitoring system with the major palm oil producers and buyers worldwide, including Bunge, Cargill, Mondelez International, Musim Mas, Nestlé, Pepsi, Sime Darby Plantation, Unilever, and Wilmar. This approach was designed to allow companies and other stakeholders to detect deforestation in near-real-time with improved accuracy, allowing them to immediately mobilize follow-up measures on the ground and work to enhance commodity supply chain sustainability.