Edible Oils Market Driven by Rising Demand for Functional and...

Edible Oils Market Driven by Rising Demand for Functional and Fortified Food Products

Veröffentlicht 2024-01-03 10:20:01

Edible oils play a vital role in food processing and cooking applications. They are derived from various sources such as soybean, palm, sunflower, canola, and olive and contain essential fatty acids and vitamins required for normal growth and development. Edible oils are widely used in the production of bakery items, confectionery products, snacks and processed foods, and for everyday household cooking purposes. The industry is witnessing a surge in demand for non-GMO and organic edible oil variants due to rising health consciousness among people. Functional edible oils fortified with vitamins, antioxidants, and other nutrients are also gaining traction to meet consumer demand for healthy and nutritious food options.

The global edible oils market is estimated to be valued at US$ 124.38 Bn in 2023 and is expected to exhibit a CAGR of 8.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics
Rising demand for functional and fortified food products is estimated to drive the global edible oils market size over the forecast period. Consumers are increasingly opting for edible oil products with added health benefits to meet their nutritional requirements. Market players are catering to this demand through launches of edible oils fortified with vitamins A, D, E and omega fatty acids. For instance, Adani Wilmar Ltd. offers Fortune Healthy Heart edible sunflower oil fortified with Vitamin E and omega fatty acids, targeted at improving cardiovascular health.

Another key driver of the market is shifting consumer preference towards non-GMO and organic edible oil variants due to growing health consciousness. Organic edible oils such as olive and canola oils high in monounsaturated fats and antioxidants are witnessing increasing sales globally. Product launches in tune with clean label trends will further support market growth over the forecast period.

SWOT Analysis
Strength: Edible oils provide essential nutrients like vitamins, minerals, and fatty acids that are important for a healthy diet. They help boost immunity and promote heart health when consumed in moderate amounts. Soybean, sunflower, and canola oils are considered healthier options due to their high monounsaturated and polyunsaturated fatty acid content. Consumer awareness regarding the health benefits of edible oils is driving greater demand.
Weakness: Price volatility in agricultural commodities can impact the cost of edible oils. Adverse weather conditions and geopolitical issues affecting major oilseed producing regions may cause supply constraints. Some edible oils like palm oil have received criticism over sustainability and environmental concerns related to deforestation.
Opportunity: Growth in food processing and ready-to-eat meal industries is spurring higher volumes of edible oil sales for use as ingredients in various food formulations. The expanding organic and non-GMO food trends present an opportunity for producers of organic and identity preserved edible oils. Rising incomes in developing nations are facilitating higher discretionary spending on premium and specialty edible oils.
Threats: Availability of cheaper and readily available substitutes like butter and lard poses a threat. Stringent food safety and quality standards across countries increases compliance costs. Development of viable alternative plant-based oil technologies could disrupt existing market shares over the long run.

Key Takeaways
The global edible oils market is expected to witness high growth over the forecast period of 2023 to 2030. The market size for 2024 is estimated to reach US$ 124.38 billion registering a CAGR of 8.7% during the projection years.

Regional analysis:Asia Pacific region currently dominates the global edible oils market with India and China as the major consumers. Availability of ideal agricultural conditions and large cultivation areas has enabled these countries to emerge as the leading producers of edible oils globally. The region's share is estimated to grow further owing to rising health awareness, expanding middle-class population and shifting dietary preferences in Asia Pacific nations.

Key players operating in the edible oils market are Illumina, Inc., Eurofins Scientific, PerkinElmer, Inc., F. Hoffmann-La Roche AG, Natera, Inc., Yourgene Health Plc., Laboratory Corporation of America Holdings (LabCorp), BGI Group, and Quest Diagnostics Incorporated. The players are focused on new product launches, collaborations and mergers to strengthen their market position.