Global cooking oil market is likely to exhibit a promising growth curve as far as the short-term outlook is considered. The report will uncover the insights into how the market growth will unfold in the next few years.
Rising Demand for Processed Foods with Sustainable Oil Production to Remain Pivotal for Cooking Oil Market Growth
Rising consumption of processed foods is expected to play a vital role in accelerating the cooking oil market growth. Consumer preference towards packaged foods has fuelled the adoption of various cooking oils by end users such as small food chains, restaurants, and households, thus giving an impetus to the market growth. In addition, the demand for vegetable oil worldwide is likely to increase backed by growing sales of processed food products. For instance, according to FAO and OECD, availability of vegetable oils across developed nations is likely to increase by 1.3% each year touching 9 kg per capita by 2030 as compared to 2020 which reflected a 7.96 kg per capita. In addition, manufacturers are mulling upon refining procedures, and cooking oil quality to achieve sustainability. Advanced methods of refining by using new technology are being used to achieve high shelf-life of cooking oils without compromising quality and clean label status. Moreover, issues related to land use are being addressed while producing cooking oils. This factor continues to influence the growth of the cooking oil market on the global front.
Rising Palm Oil Sales to Largely Contribute Toward Value Growth of Cooking Oil Market
The consumption of palm oil has been on an upswing since past few years and is expected to maintain status quo going forward. Main exporters of palm oil include Malaysia and Indonesia while key countries importing palm oil are India, China, Netherlands, Italy, Pakistan, Egypt, Kenya, United States, Russia, Germany, and Belgium among others. According to OEC, in 2020, Malaysia accounted for 31% of the palm oil exports while Indonesia accounted for 52.4% of the exports reflecting an export valuation of US$ 10.6 billion and US$17.9 Bn respectively in the year. Furthermore, sale of palm oil across various end use sectors globally is manly owing to its low pricing as compared to other cooking oil types. In this backdrop, the growing sales and import-export scenario of palm oil is expected to largely contribute towards the revenue growth of the cooking oil market.
Asia Pacific to Emerge Highly Lucrative for Global Cooking Oil Market
Asia Pacific is likely to hold a significant value share in the cooking oil market. Crucial factors that have been propelling the demand for cooking oil in the region include dietary changes, improved standards of living and rising consumption of processed foods. In addition, the sale of vegetable oil in emerging economies such as India and China is expanding significantly on the back of growing awareness regarding benefits of vegetable oil consumption. In this regard, the India vegetable oil market and China’s vegetable oil market have been witnessing momentous growth, in turn pacing potential avenues for the cooking oil market in the region. That said, the scenario for palm oil, soy oil, coconut oil, and olive oil among other vegetable oils is likely to remain optimistic in Asia Pacific.
In addition, the consumption of fish oil is also expected to surge in the region. Mainly backed by a massive concentration and progress of the aquaculture sector in economies such as Indonesia, Vietnam, India, and China, the demand of fish oil is likely to further grow. Also, growing awareness apropos to rising health concerns has triggered the consumption of fish oil and is positioned as a nutritional supplement for consumers. Likewise, olive oil and its virgin forms also gained high traction across Asian countries. Owing to its nutritional advantages such as low fat, antioxidant properties and its use to manage obesity and weight has fuelled its demand and consumption. Albeit a high production volume of olive oil in the region, the demand quotient has been surging leading to additional imports of the product. This scenario is likely to contribute towards the cooking oil market growth. Furthermore, region specific factors such as high consumer base owing to increasing population, stable GDP per capita growth, altering living and eating standards and rise in health conscious consumers continue to drive cooking oil sales thus bolstering growth of the cooking oil market in Asia Pacific.
Cooking Oil Market: Competitive Scenario
Key players in the cooking oil market have been investing in growth strategies such as new product launches, acquisitions, mergers, and collaborations to gain competitive edge. For instance, in January 2020, Hudson Canola Oil was launched by Bunge India. This oil is high in Omega 3, mono-unsaturated fatty acids, and antioxidants such as Vitamin E and can be used for all cooking types. In September 2020, 3F Fuji Foods India was acquired by IFFCO. With this acquisition, IFFCO aims to strengthen its market position in the vegetable oil, emulsified products, and industrial chocolate segments. Likewise, in November 2021, an edible oil refinery in India was acquired by Cargill. The acquisition was mainly aimed to expand the production of edible oil by facility upgradation thus improving the footprint in Southern India alongside strengthening its supply chain and meet rising consumer demand for the product. Same year in June, Cargill also announced its plan to establish a new palm oil production facility in Indonesia to meet rising demand for edible palm oil in the country. Moreover, Cargill is eyeing SEA countries for its business expansion as SEA offers favourable weather and a promising consumer base.
Few of the major players in the cooking oil market include Cargill Inc., Bunge Limited, IFFCO Group, Wilmar International Ltd., Archer Daniels Midland Company, Fuji Oil Company Ltd., Olam International Limited, and Ottogi Co. Ltd.
The Global Cooking Oil Market is Segmented as Below:
By Oil Type
Key Elements Included In The Study: Global Cooking Oil Market
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