Edible Oils Market Assessment, By Nature [Organic, Conventional], By Product Type [Palm Oil, Soybean Oil, Olive Oil, Avocado Oil, Canola Oil, Sunflower Oil, Others], By Packaging Type [Cans, Bottles, Pouches, Jars, Others], By Application [Seasoning, Fryi

Edible Oils Market Assessment, By Nature [Organic, Conventional], By Product Type [Palm Oil, Soybean Oil, Olive Oil, Avocado Oil, Canola Oil, Sunflower Oil, Others], By Packaging Type [Cans, Bottles, Pouches, Jars, Others], By Application [Seasoning, Frying, Baking, Food Processing, Others], By Region, Opportunities and Forecast, 2017-2031F

Global edible oils market size was valued at USD 236.12 billion in 2023, and is expected to reach USD 331.33 billion in 2031, with a CAGR of 4.18% during the forecast period between 2024 and 2031.

The market is dynamic and growing due to factors such as increasing knowledge concerning health matters, disposable incomes growth, urbanization and changes in eating habits across the globe. Edible oils, essential in cooking and food processing, encompass a wide range of products, including vegetable oils such as soybean, canola, sunflower, and palm oil; olive oil, coconut oil, and specialty oils such as avocado and sesame oil.

Increasing health awareness is further responsible for the increasing demand for edible oils due to growing concerns about lifestyle. Nowadays, buyers want oils that are beneficial for their bodies, such as oils rich in unsaturated fatty acids, omega-3, and omega-6 fats, as well as other vital nutrients. For instance, olive oil has gained popularity due to its proven usefulness in preventing heart diseases developed as a result of cholesterol deposition around the heart. Moreover, the perceived benefits to human health and their versatile use in cooking are the main causes of increasing demand for special oils such as avocado oil.

Another major market driver is the increasing interest in organic and non-GMO products. The need for natural food items is evident by the escalating demand for organic edible oils due to consumers' increased awareness of genetically modified organisms (GMOs) and synthetic chemicals, which may pose health hazards. The trend is especially pronounced in developed regions such as North America and Europe, with higher sensitization to natural and organic commodities.

The edible oils market follows regional dietary preferences and traditional food preparation methods. For instance, palm oil and coconut oil are commonly used in Asia-Pacific owing to their availability and conventional utilization in local cuisines. On the other hand, olive oil and canola oil are very popular in Europe and North America. The regional distinction affects how much these oils are produced and consumed.

The market is influenced significantly by sustainability issues, with particular attention being paid to palm oil due to environmental concerns such as deforestation, loss of wildlife habitats, and increased greenhouse gas emissions. Consequently, there is an ongoing trend in favor of sustainable production of palm oil for which approaches such as the Roundtable on Sustainable Palm Oil (RSPO) Certifications are being increasingly applied. It has been observed that more customers prefer oils which are sourced and produced sustainably as evidenced by the current shift to sustainability. By the end of 2023, Unilever plc had made significant progress in this regard, sustainably sourced 86% of its core palm oil volumes, out of which 72% came from physically certified sources such as RSPO Mass Balance, RSPO Segregated, or equivalent standards independently verified by third parties.

Furthermore, technological advancements and innovation heavily influence the edible oils industry. Enhanced extraction methods, such as cold pressing and supercritical fluid extraction, are being adopted, which helps enhance the quality of oils and output. Additionally, continual studies are being conducted about formulating new oil combinations or fortifications based on personalized diets and preventive health requirements.

Key players in the global market experience intensified competition from large international corporations and local manufacturers while striving for increased market percentages. To gain a larger market share, they concentrate on heavy investments in marketing strategies, brand recognition, and different types of products. Strategic acquisitions and mergers, partnerships, and entering new markets are common approaches to gain a competitive edge.

Consequently, with the rising health and wellness trends, sustainability issues, technological advancements and changing consumer tastes, there is a likelihood of a continuous growth in the market for edible oils. If the market becomes more competitive, the organizations which are able to innovate as well as adapt to new requirements have chances of excelling over their counterparts.

Rising Awareness of Healthier Cooking Oils Contribute to the Demand

Global edible oils market is substantially impacted by changing dietary habits of the consumers. Preference for plant-based and nutrient-rich diets depicting an inclination of the consumers towards healthier eating, propels the market demand for oils such as palm oil, peanut oil, and other specialty oils. Demand for oils which have perceived health benefits, including antioxidants and omega 3 fatty acids, is continuously on the rise.

Growing awareness about the ill-effects of saturated fats and trans fats among the consumers has driven the popularity of oils which have healthier fat profiles. The market is, therefore, experiencing a surge in demand for oils that are in sync with the evolving consumer preferences. Prominent players are diversifying their product offerings to meet this growing health-conscious edible oils demand. In April 2023, Australia-based Plenty Foods introduced an extremely high oleic safflower oil developed from Australian seeds. The oil claimed to have a high concentration of oleic acid, a monounsaturated fatty acid, and is low in saturated fat. It contained 92% oleic acid (omega 9) contrary to 75% in standard safflower oil, which was naturally derived from SHO safflower seeds approved by Go Resources.

Focus on Sustainability Encourages Eco-friendly Oil Production

Environmental concerns related to sustainability influence the global edible oils market to a great extent. Loss of biodiversity, carbon emissions associated with the oil production process, and deforestation lead consumers to seek sustainably sourced products, including oil. One of the world’s leading certification authorities, Bureau Veritas, provides a Roundtable on Sustainable Palm Oil Certificate to ensure that palm oil is sourced, keeping all the sustainable factors aligned. Such certifications drive manufacturers towards adopting eco-friendly practices and gaining consumers' trust.

Moreover, consumers feel responsible towards the environment while choosing the products with such certifications. Hence, transparency, traceability, and eco-friendly initiatives addressing and negating the environmental impact of oil products are driving the growth of the global edible oils market.

In March 2023, Chevron Corp. partnered with Corteva Inc. and Bunge Ltd. to create renewable fuels from rapeseed crops. They took advantage of opportunities in the renewable fuels market by introducing distinctive winter Canola hybrids that yield plant-based oil with a lower carbon footprint.

Expansion of Food and Beverage Sector Constant Product Innovations

With increased globalization, there is a growing appreciation for diverse cuisines and flavors across the globe. Different cuisines often require specific cooking oils for a genuine taste and texture. For instance, Asian cuisines frequently use oils such as, sesame oil, peanut oil, and coconut oil, while Mediterranean cuisines favor olive oil. The demand for these oils is driven by the popularity of international cuisine in food and beverage industry. For instance, according to the U.S. Department of Commerce, Bureau of the Census, the data from 2021 shows that food and beverage plants made up 16.8% of total sales and 15.4% of all employees in manufacturing in the United States, out of which grain and oilseeds contributed 10.4% of sales. Additionally, the rising trend of urbanization and busy lifestyles has led to an increased consumption of processed and convenience foods. These foods often require edible oils as key ingredients for flavor, texture, and preservation. As consumers seek convenient meal solutions, the demand for edible oils used in processed and convenience foods continues to grow.

Innovations in Oil Extraction Technologies

Advances in oil extraction technologies are enhancing efficiency, yield, and quality in the global edible oils market. Innovations such as cold-pressing techniques, solvent extraction methods, and genetic engineering of oilseed crops are optimizing production processes and reducing production costs. Techniques such as identifying quantitative trait loci (QTLs) for oil content, molecular markers associated with fatty acid composition, and important functional genes for metabolic engineering have resulted in higher yields of oil crops. Despite challenges such as the negative correlation between yield and quality traits, advancements in understanding the genetic control of oil content and quality offer promising prospects for future improvements in oil crops. These technological advancements drive growth by improving supply chain efficiency and expanding the range of available oils in the consumer market.

Asia-Pacific Emerging as a Larger Market for Edible Oils

Asia-Pacific is undoubtedly emerging as a strong force in the global edible oils market. With an ever-increasing population rate, rapid economic growth leading to urbanization, and evolving dietary preferences of consumers, the region is experiencing a growing demand for edible oils. Many prominent players are focusing on expansion by tapping into countries such as China and India. The demand for healthier oil options in Asia-Pacific is growing frequently.

Therefore, the expansion of businesses in the region is poised for significant growth in the future with multiple opportunities due to diverse culinary traditions. Asia-Pacific is a dynamic as well as promising market for edible oils with a blend of both modern and traditional influences. In March 2023, Certified Origins (CO) introduced its certified Extra Virgin Olive Oil (EVOO) with Roman origin protection in China.

Future Market Scenario (2024 – 2031F)

Consumers' increasing focus on health and wellness will continue to play a pivotal role in shaping the edible oils market. Oils rich in unsaturated fats, omega-3, and omega-6 fatty acids, and other health-promoting nutrients will see heightened demand.

Sustainability is expected to become the center of the theme in the global edible oils market. The growing awareness of environmental issues, such as deforestation and habitat destruction linked to palm oil production, will drive demand for sustainably sourced and produced oils.

Advancements in extraction and processing technologies will enhance the quality and yield of edible oils. Additionally, biotechnology is expected to contribute to the development of new oil varieties with enhanced health benefits.

Key Players Landscape and Outlook

Global edible oils market is considered to have a competitive landscape with multiple players, who produce, distribute, and drive innovation on a global scale. The prominent players are dominating the market by using their superior supply chains, latest processing methods, and established brand names. The outlook for global edible oils market is robust, with sustained growth expected over the coming years. Factors such as rising health consciousness, increasing demand for organic and non-GMO products, and the push towards sustainability are likely to shape the industry's future. Companies are focusing on expanding their product offerings to include healthier and more sustainable options, such as high-oleic oils and certified sustainable palm oil. Technological advancements in extraction and processing, coupled with strategic mergers and acquisitions, are expected to enhance production efficiency and market reach. In September 2023, Sime Darby Berhad (SD Plantation) and Godrej Agrovet Ltd. (GAVL) formed a strategic partnership to enhance India's vegetable oil production. SD Plantation will supply high-quality oil palm seeds to GAVL's business unit and explore potential collaborations including setting up of an advanced seed production unit in India.

As consumer preferences continue to evolve, companies that can innovate and align with these trends are well-positioned to capture significant market share and drive market growth.

For instance, in May 2022, the France-based biodiesel and vegetable oil group Avril increased the number of sunflower seeds it crushes and the amount of sunflower oil it produces. Increasing the independence of sunflower oil and oilseed meal was one of the project's main objectives.