Asia-Pacific Edible Oil Market Outlook, 2028

Asia-Pacific Edible Oil Market Outlook, 2028

The Asia-Pacific region, with its dynamic and diverse culinary landscape, is where the art of cooking finds its finest expression. Here, the edible oil industry, with its roots deeply embedded in tradition and innovation, thrives amidst a tapestry of cultures and flavors. As a pivotal player in the global edible oil market, the Asia-Pacific region presents a compelling narrative of culinary heritage, modern dietary preferences, and the pursuit of health-conscious choices. The Asia-Pacific region, a crucible of cultures and traditions, has cultivated a rich culinary heritage spanning millennia. The Asia-Pacific edible oil market, one of the largest and most dynamic in the world, is a reflection of this extraordinary tapestry, where diverse cooking oils and ancient traditions coexist with the demands of a modern and health-conscious society. One of the defining characteristics of the Asia-Pacific edible oil market is its unparalleled diversity. In a world increasingly conscious of health and sustainability, the Asia-Pacific edible oil market navigates the delicate balance between tradition and modernity. The industry has responded to the demand for healthier options by offering oils rich in unsaturated fats, such as olive oil and canola oil, which have gained favour for their potential cardiovascular benefits. The Asia-Pacific edible oil market is a testament to the region's culinary diversity, innovation, and commitment to meeting the evolving needs of its consumers. With a fusion of tradition and modernity, the industry continues to enrich the gastronomic heritage of nations, offering a tantalising array of edible oils that cater to the discerning palates of millions. Economic growth in the Asia-Pacific region has led to increased disposable incomes for many consumers. This has translated into a greater willingness to purchase and consume a wider variety of edible oils. While traditional oils like palm oil and coconut oil remain popular, there is also a growing awareness of health and nutrition. Consumers are increasingly seeking oils that are perceived as healthier, such as olive oil and canola oil, contributing to their consumption. Some countries in the region are major producers of edible oils, and their products are in demand not only domestically but also internationally. This export demand drives increased production and consumption.

According to the research report ""Asia-Pacific Edible Oil Market Outlook, 2028,"" published by Bonafide Research, the Asia-Pacific edible oil market is expected to grow at a 6.07% CAGR by 2023–28. The urbanisation rate in Asia and the Pacific is rising, which is leading to an increase in the demand for edible oils in urban areas. The Asia-Pacific region is home to the world's largest population, and the population is expected to continue to grow in the coming years. This will further lead to an increase in the demand for edible oils. The disposable income of people in Asia and the Pacific is rising, which is leading to an increase in the demand for processed foods that use edible oils. The Asia-Pacific region is a popular tourist destination, and tourists often dine out and try local cuisines, contributing to the consumption of edible oils. Many countries in the region produce unique specialty oils. For instance, Japan is renowned for its high-quality sesame oil, while India produces fragrant mustard oil. The fusion of traditional and international cuisines is a growing trend in Asia and the Pacific. This has led to the use of a wider range of edible oils to create innovative dishes. Edible oils often hold cultural significance in the region, playing a role in traditional rituals and ceremonies.

India has historically been a significant player in the global edible oil market. India is one of the most populous countries in the world, with a vast and diverse population that consumes a substantial amount of edible oil. Edible oil is a staple in Indian cuisine, used for cooking, frying, and various culinary applications. India's rich culinary heritage includes a wide range of regional cuisines, each with its own cooking techniques and preferences for different types of edible oils. This diversity drives the demand for a variety of oils, including mustard oil, sunflower oil, groundnut oil, and palm oil, among others. India is a significant producer of oilseeds like soybeans, groundnuts, sunflower, and mustard. These oilseeds serve as the primary raw materials for edible oil production. The country's agricultural sector supports a steady supply of oilseeds. The Indian government has historically supported the edible oil industry through policies aimed at ensuring food security and self-sufficiency in edible oil production. These policies have included incentives for oilseed cultivation and milling. India has a well-developed infrastructure for the production, processing, and distribution of edible oils. This infrastructure helps to ensure the availability of edible oils at competitive prices. Indonesia and Malaysia are among the world's largest producers of palm oil, a versatile and widely used edible oil. Their abundant palm oil production contributes significantly to the global edible oil market. Furthermore, countries like Thailand and Malaysia have thriving food processing industries that rely on edible oils as ingredients for products such as snacks, fried foods, and packaged goods. This drives the demand for edible oils.

Based on the product types, there are soybean oil, palm oil, rapeseed oil, mustard oil, sunflower oil, olive oil, groundnut oil, coconut oil, corn oil, rice bran oil, sesame oil, cottonseed oil, and others (apricot, hazelnut, almond, macadamia, walnut, avocado, grape seed, cashew, Brazil nuts, canola, etc.). Among them, soybean oil is the leading market. Soybeans are widely cultivated in the Asia-Pacific region, particularly in countries like China, India, and Indonesia. This abundant local supply ensures a steady source of soybeans for oil production. Soybean oil is perceived as a healthier option compared to some other cooking oils. It is low in saturated fats and contains a high percentage of polyunsaturated fats, particularly omega-6 fatty acids. This health-conscious trend has contributed to its popularity. In countries like India, the monsoon season has a significant impact on the production and consumption of edible oils. The sowing and harvesting of oilseeds, such as soybeans and groundnuts, are closely tied to the monsoon cycle. This can lead to fluctuations in the availability of locally produced oils. Furthermore, festivals play a crucial role in many Asian cultures, and they often involve the preparation of special dishes that require cooking oil. For example, during Diwali in India, there is increased demand for edible oils as families prepare sweets and snacks. Similarly, the Lunar New Year in various Asian countries sees a surge in cooking oil sales. As well, the demand for edible oil tends to decrease during the summer months as people eat more light and refreshing foods. However, the demand for edible oil can still be high in countries where people celebrate festivals during the summer, such as Ramadan in Indonesia and Malaysia. China is the largest producer of soybeans, and it is also the largest producer of soybean oil. In 2020, China produced 17,024 thousand metric tonnes of soybean oil.

The end user segment includes domestic, industrial, and food service; among them, domestic leads the market. The Asia-Pacific region is home to a significant portion of the world's population, with countries like China and India having the largest populations. This large population base translates into a substantial domestic market for edible oils. Many countries in the Asia-Pacific region have strong culinary traditions that involve cooking at home. Cooking is a significant part of daily life, and households rely on edible oils as essential ingredients for preparing a wide variety of traditional dishes. The region's diverse culinary landscape includes a wide range of cooking styles and techniques. Different cuisines and cooking methods often require specific types of edible oils, leading to high consumption by domestic consumers. Many households in the region prefer to have a steady supply of edible oils at home, ensuring food security in case of market fluctuations or disruptions in the supply chain. Furthermore, the food service industry will grow at the highest CAGR rate because urbanisation is accompanied by changing lifestyles. People living in cities often have busy schedules, and dining out or ordering food is convenient. This trend is particularly pronounced among young professionals and urban families. The proliferation of smartphones and digital platforms has transformed the food service industry. Mobile apps for food delivery, online reservations, and restaurant discovery have made it easier for consumers to access food service options, driving increased demand. In many urban areas, the corporate culture encourages dining out or ordering food for office lunches and meetings, driving demand for food service options.

Based on the nature types, which include conventional and organic, conventional edible oils like soybean oil, sunflower oil, palm oil, and canola oil have been an integral part of the culinary traditions in many Asian countries for decades. These oils are preferred due to their neutral flavours and versatility in various cooking techniques. Consumers in the Asia-Pacific region are generally more familiar with conventional edible oils because these oils have been widely used in traditional recipes. The familiarity with these oils makes consumers more comfortable using them in their everyday cooking. Conventional oils often hold cultural significance in many Asian cuisines and are used in traditional dishes that have been passed down through generations. Conventional oils are widely available in supermarkets and grocery stores throughout the region. They are easily accessible to consumers, ensuring a steady demand. Conventional oils like soybean and palm oil are produced on a large scale in the region, ensuring a consistent and stable supply. This production scale often results in competitive pricing. Conventional oils often hold cultural significance in many Asian cuisines and are used in traditional dishes that have been passed down through generations. Furthermore, conventional edible oil brands are more well-known than natural edible oil brands. This is because they have been in the market for longer and have had more time to build brand awareness. Natural edible oil brands, on the other hand, may be newer to the market and may not have as much brand awareness.

Distribution channels include offline and online; among them, offline leads the market; furthermore, offline includes convenience stores, hypermarkets, supermarkets, direct sales, and others. In Asia Pacific, the convenience store has the highest market share. Rapid urbanisation and changing lifestyles have led to increased demand for convenience foods and products, including edible oils. Many consumers, especially those in urban areas, prefer quick and easy access to essential cooking ingredients. Convenience stores often stock smaller-sized packaging options, which are appealing to consumers who have limited storage space or who prefer to purchase smaller quantities of edible oils for immediate use. Convenience stores typically offer a variety of edible oil brands and types, ensuring that consumers have options that suit their preferences. Furthermore, the online market will grow at the highest growth rate. The Asia-Pacific region has witnessed significant growth in internet penetration, with a rising number of consumers gaining access to the internet and smartphones. This has facilitated online shopping and made it more convenient for consumers to purchase edible oils online. Online platforms typically offer a vast selection of edible oil brands, types, and sizes. Consumers have the opportunity to explore a broader range of options than they might find in physical stores. E-commerce marketplaces and dedicated grocery shopping apps have gained popularity, making it even easier for consumers to access edible oils and other groceries online.

Recent Development:

• In April 2023, Adani Wilmar partnered with Swiggy, a food delivery platform in India, to deliver edible oils to customers. This partnership is expected to help Adani Wilmar reach a wider customer base and boost its sales.

• In July 2023, Wilmar International, a Singapore-based company, announced that it would acquire a majority stake in a palm oil company in Indonesia. The acquisition is expected to help Wilmar increase its palm oil production and supply.

• In May 2023, Cargill announced that it would invest $100 million in a new edible oil refinery in India. The refinery is expected to be operational by 2025 and will have a capacity of 1 million tons per year.

• In June 2023, ITC, an Indian conglomerate, announced that it would launch a new range of edible oils under its Sundrop brand. The new oils will be fortified with vitamins and minerals.

• July 9th, 2020; Amul has entered the edible oils business with the launch of Janmay brand in Gujarat and hopes to provide remunerative prices to oilseed farmers, the company said in a statement.

Companies mentioned in this report:

Cargill, Incorporated, The Archer-Daniels-Midland Company, IOI Corporation Berhad, Olam International, Associated British Foods plc, Ajinomoto Co., Inc, Wilmar International Limited, Borges International Group, Bunge Limited, United Plantations Berhad, Marico Limited, Golden-Agri Resources, CHS Inc, Corteva, Inc., Agro Tech Foods Ltd and Mahesh Edible Oil Industries Limited.

Considered in this report

• Geography: Asia-Pacific
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report

• Asia-Pacific Edible Oil with its value and forecast along with its segments
• Country-wise Edible Oil market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Countries covered in the report:

• China
• Japan
• India
• Australia
• South Korea

By Product Type:

• Soybean Oil
• Palm Oil
• Rapeseed Oil
• Mustard Oil
• Sunflower Oil
• Olive Oil
• Ground nut Oil
• Coconut Oil
• Corn Oil
• Rice bran Oil
• Sesame Oil
• Cottonseed Oil
• Others (apricot, hazelnut, almond, macadamia, walnut, avocado, grape seed, cashew, brazil nuts, canola etc)

By Nature:

• Conventional
• Organic

By End-User:

• Domestic
• Industrial
• Food Service

By Distribution Channel:

• Offline
• Convenience store
• Hypermarket/Supermarket
• Direct Sales
• Others
• Online

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations and organizations related to the Gems & Jewelry industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.

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