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Vegetable Oils Market To Exceed US$ 504 Billion By 2030 Due To Growing Consumer Preference For Plant-Based Foods

Vegetable Oils Market To Exceed US$ 504 Billion By 2030 Due To Growing Consumer Preference For Plant-Based Foods

Vegetable oils are a vital source of unsaturated fatty acids and vitamins. They find wide application in cooking oils, margarine, mayonnaise, baked goods, and various processed food products. Common vegetable oils include soybean, canola, corn, palm, olive, peanut, sunflower, and safflower oils. Among these, palm oil accounts for nearly one-third of global vegetable oil production owing to its higher yield per hectare of land. Vegetable oils provide various health benefits such as lowering LDL cholesterol and reducing the risk of heart disease when consumed in moderate amounts. Growing health consciousness coupled with shifting preference toward plant-based foods have bolstered the demand for vegetable oils across the world.

The Global Vegetable Oils Market is estimated to be valued at US$ 404,803.29 Bn in 2024 and is expected to exhibit a CAGR of 6.8% over the forecast period 2024 to 2030.

Key Takeaways

Key players operating in the vegetable oils market are Solvay S.A., Tokuyama Corporation, Occidental Petroleum Corporation, Ward Chemical Ltd., Tata Chemicals Ltd., TETRA Technologies, Inc., Zirax Limited, Weifang Yuze Chemical Co., Ltd., Mey Chern Chemicals Sdn Bhd., Anmol Chemicals Group, TCI Sanmar Chemicals S.A.E., and Weifang Haibin Chemical Co., Ltd. These players are focusing on capacity expansion and new product launches to meet the growing demand.

The rising demand for plant-based oils from the food industry is a key factor driving market growth. Vegetable oils are widely used in food processing applications such as bakery, confectionery, and savory snacks. Expansion of the fast-food industry in developing nations is further propelling the demand.

Technological advancements aimed at improving oil yields and sustainability are bolstering the vegetable oils market. For instance, advancements in palm oil cultivation and processing techniques have increased palm oil productivity per hectare of land. New extraction methods help reduce environmental footprint and production costs.

Market Trends

Growing demand for non-GMO and organic vegetable oils

There is strong consumer demand for non-GMO and organic vegetable oils due to perceptions regarding their superior quality and healthfulness. Food companies are leveraging this trend by offering products containing non-GMO or organic oils. The availability of specialty non-GMO and organic oils is encouraging healthier food preparation practices.

Rising preference for tropical oils over commodity oils

Tropical oils such as palm, coconut, and palm kernel oil are witnessing increased consumer adoption over traditionally used oils such as soybean and canola oils. They have higher smoking points and stability during food preparation. Moreover, tropical oils have unique compositions offering distinct health advantages. This shift is expected to boost production of tropical oils globally.

Market Opportunities

Increasing scope in biofuels production: Vegetable oils can be potentially converted into biodiesel, providing an opportunity to reduce dependence on fossil fuels. Supportive government policies can further encourage use of vegetable oil-based biofuels.

Expanding applications in oleochemicals: Oleochemicals derived from vegetable oils, such as fatty acids, glycerin, and fatty acid methyl esters, find diverse applications in personal care products, lubricants, surfactants, and others. Further innovations expanding application scope will drive oleochemicals market.

Impact of COVID-19 on Vegetable Oils Market

The COVID-19 pandemic has significantly impacted the growth of the Vegetable Oils Market Demand During the initial months of the pandemic when most countries imposed strict nationwide lockdowns, the production and supply chain of vegetable oils were disrupted. Farmers faced difficulties in farming activities and transporting oilseeds to production facilities. This led to a decline in the production of various vegetable oils such as palm oil, sunflower oil, soybean oil etc.

The demand also decreased sharply as restaurants, cafeterias and food services remained closed for a long period. Many countries also restricted exports of edible oils to ensure domestic availability. This imbalance in supply and demand adversely affected the market. However, with lifting of lockdowns and resumption of economic activities, the production and demand started recovering. The agriculture sector was declared an essential service in most nations allowing farming to continue with safety precautions.

To boost the market, government agencies promoted consumption of healthy oils through awareness campaigns. Producers increased their focus on e-commerce platforms and home deliveries to offset losses from the foodservice sector. Adapting to COVID-appropriate practices helped resume operations smoothly. Going forward, measures towards ensuring uninterrupted farming, logistics and global trade will be important for sustaining the market's post-pandemic growth trajectory.

In terms of geography, Southeast Asia is currently the largest market for vegetable oils globally in terms of value. Countries like Indonesia and Malaysia are the top producers as well as consumers of palm oil. Other key Asian markets include China and India where various types of vegetable oils find widespread use in cooking. North America and Europe also contribute significantly driven by demand for cooking oils and food processing applications.

The fastest growing regional market for vegetable oils is expected to be Africa over the forecast period. With a majority population dependent on agriculture for livelihood, the production of oilseeds is increasing across African nations. Growing health awareness is also driving the consumption of healthier vegetable-based cooking oils replacing tropical oils. Support from international organizations to boost oilseed farming will help realize the continent's production potential.

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