The Vegetable Oils Market is estimated to be valued at US$ 351391.74 Mn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Vegetable oils are extracted from various plant sources like soybean, palm, sunflower, rapeseed and others. They are extensively used as cooking oil and provide various health benefits like providing essential fatty acids and lowering cholesterol levels. Growing health awareness among people is increasing the demand for vegetable oils over other saturated oils.
Market key trends:
One of the key trend fuelling the growth of vegetable oils market is rising demand for healthier oils. With increasing diseases linked to consumption of saturated and trans-fatty oils, consumers are looking for healthier alternatives. Vegetable oils are considered healthier due to presence of polyunsaturated and monounsaturated fats which have several health benefits. Palm oil and soybean oil are being widely used as cooking oils owing to their healthier reputation. Their use is increasing in food services and packaged food industries due to rising demand from health conscious consumers. This growing demand for vegetable oils is expected to drive the market growth over the forecast period.
Porter's Analysis
Threat of new entrants: The vegetable oils market requires large capital investment and market presence to operate efficiently given the complex supply chain and established players. This poses significant barrier for new entrants.
Bargaining power of buyers: Buyers in the vegetable oils market have moderate bargaining power given the presence of substitutes and concentration of large buyers. However, differentiated products provided by manufacturers reduce impact of buyer power.
Bargaining power of suppliers: Suppliers of raw materials like oilseeds have moderate to high bargaining power owing to consolidated suppliers and dependence of manufacturers on consistent supply. However, availability of substitutes balances supplier power.
Threat of new substitutes: Emergence of alternative oils presents potential threat, however customer loyalty and difficulty in switching over increases entry barriers for substitutes.
Competitive rivalry: Intense due to market dominance of few global leaders and private label offerings from retailers.
SWOT Analysis
Strength: Wide applications in food industry and growing health-conscious population boosting demand. Capacity expansion allows economies of scale.
Weakness: Vulnerability to climatic changes and supply disruptions. Price fluctuations in global commodity markets affect margins.
Opportunity: Rising incomes in developing nations driving higher consumption. Product innovation and fortification presents new avenues.
Threats: Stringent food regulations. Competition from alternative oils limiting market share.
Key Takeaways
The Global Vegetable Oils Market Size is expected to witness high growth, exhibiting CAGR of 10.% over the forecast period, due to increasing health consciousness among consumers. Consumers are shifting preference towards vegetable oils owing to associated health benefits.
Regional analysis: Asia Pacific dominates the global vegetable oils market and is expected to continue its lead over the forecast period. This can be attributed to growing population, rapid urbanization and rising health awareness in major countries like China and India. Increasing domestic consumption driven by food industry growth complements the market expansion.
Key players: Key players operating in the Vegetable Oils market are Archer Daniels Midland Company, Sime Darby Plantation Berhad, Bunge Limited, Olam International Limited, Cargill Incorporated, Golden Agri-Resources, Kuala Lumpur Kepong Berhad, Fuji Oil Holding Inc., Wilmar International Limited, PT Astra Agro Lestari Tbk, and Avril Group. Major brands are focused on capacity expansion,new product launches and mergers to consolidate their position in the growing market.
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