Soy Oil And Palm Oil Market Is Estimated To Witness High Growth Owing To Increasing Demand For Edible Oils
Soy oil and palm oil find widespread applications in various food products such as cooking oil, margarine, shortenings and others. They are highly versatile in nature and provide desirable attributes such as high smoke points and long shelf life. Soy oil provides a good source of heart-healthy polyunsaturated and monounsaturated fats, along with essential vitamins and minerals. Palm oil contains vitamin E and carotenes along with a rich red-orange color.
The global soy oil and palm oil market is estimated to be valued at US$ 109724.12 Mn in 2023 and is expected to exhibit a CAGR of 6.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The increasing demand for edible oils remains the key driver fueling the growth of the soy oil and palm oil market over the forecast period. According to the report published by American Soybean Association, the global consumption of edible oils is projected to increase by 1.5% annually through 2028. Soy oil and palm oil are the most widely consumed edible oils across the globe owing to their lower prices as compared to other edible oils. Furthermore, soy oil and palm oil offer various health benefits such as reducing risks of heart disease. According to a study published in the Journal of the American Heart Association in 2019, moderate consumption of soy oil may reduce cardiovascular disease risk by lowering LDL or "bad" cholesterol levels. Such health benefits associated with soy oil and palm oil has further augmented their demand worldwide. The aforementioned factors are anticipated to propel the soy oil and palm oil market growth during the forecast period.
SWOT Analysis
Strength: Soy oil and palm oil are liquid vegetable oils that are widely used in food industry. They have high smoke points making them ideal for frying and cooking purposes. Soy oil contains heart-healthy omega-3 fatty acids and reduce risk of chronic diseases. Palm oil provides benefits of vitamin E, K and carotenes which support immune system.
Weakness: Heavy reliance of palm oil cultivation leads to deforestation affecting environment and biodiversity. Large-scale monoculture planting of oil palms requires more pesticides and fertilizers causing soil degradation. Some studies link palm oil consumption to increased risk of diseases. Fluctuating supply and prices due to weather conditions or geopolitical issues create uncertainty.
Opportunity: Rising health consciousness is shifting demand towards healthier cooking oils like soy and canola oil. Palm oil finds newer applications in personal care and cosmetics industry due to emollient properties supporting skin and hair. New technologies to produce healthier and sustainability sourced versions of soy and palm oil can boost market potential.
Threats: Strict regulations on deforestation may hamper palm oil production volumes. Substitute oils from sunflower, canola and coconut gain traction limiting market growth. Trade disputes and policies perturb imports-exports between major producing and consuming countries.
Key Takeaways
The Global Soy Oil And Palm Oil Market is expected to witness high growth over the forecast period driven by expanding food industry and alternatives to animal fats. The market size is projected to reach US$ 109724.12 Mn by 2030 registering a CAGR of 6.2% annually from 2023 to 2030.
Regional analysis: Asia Pacific accounts for largest share currently owing to high palm oil production led by Indonesia and Malaysia. China and India represent major soy oil consumers attributed to large population and increasing westernization. Southeast Asian countries are recognized as high potential markets and production is rising at faster rate annually exceeding 5%.
Key players: Key players operating in the soy oil and palm oil market are Cargill, Inc., PT Astra Agro Lestari Tbk, Wilmar International Ltd, Malaysian Soy oil & palm oil Council (MPOC), Carotino Sdn Bhd, Yee Lee Corporation Bhd, IOI Corporation Berhad, Archer Daniels Midland Company, Dow DuPont Inc., and Guangxi Long'an Ruifeng Industrial & Trading Co., Ltd. They are focusing on expansion through mergers and acquisitions to strengthen global supply chain and distribution network.
For more insights, read - http://insightfulmarket.weebly.com/blog/the-global-soy-oil-and-palm-oil-market-growth-accelerated-by-expanding-applications-of-soybean-oil-and-palm-oil
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