Edible oils like soybean oil, sunflower oil, canola oil, and peanut oil are used extensively in food preparation and cooking. They provide essential fatty acids and fat-soluble vitamins to the human body. Edible oils are widely used in various food applications such as bakery, confectionery products, and ready-to-eat meals. They help improve the taste and texture of food products. The extensive usage of edible oils in the food processing industry has propelled market growth.

The global edible oils Market is estimated to be valued at US$ 230 Billion in 2023 and is expected to exhibit a CAGR of 4.5% over the forecast period 2023.

Market Opportunity:
The opportunity in food processing industry is estimated to witness high growth for the edible oils market. Edible oils play an important role in the food processing industry as they are used in various food products and impart desirable textural and sensorial properties. They are increasingly being used in bakery products such as cakes, biscuits, pastries and breads to enhance taste and extend shelf life. In confectioneries, edible oils prevent products from hardening and sticking. They are also used popularly as frying medium in the food service industry. The expansion of the food processing industry driven by changing lifestyles and growing demand for convenience food has resulted in increased demand for edible oils. The market is expected to gain further traction over the forecast period owing to the opportunity in the food processing applications.

Porter's Analysis
Threat of new entrants: The threat of new entrants in the edible oils market is moderate. The market is fragmented with the presence of many regional players. However, the industry requires high capital to build infrastructure for production and distribution.

Bargaining power of buyers: The bargaining power of buyers in the edible oils market is high. Buyers have many substitutable options available and also have the option to switch between suppliers easily.

Bargaining power of suppliers: The bargaining power of suppliers is moderate. Suppliers of key raw materials like palm oil, soybean oil, sunflower oil etc. have moderate control over prices however regional suppliers have less bargaining power.

Threat of new substitutes: The threat of substitutes is low to moderate. While there are options like butter, margarine etc. available, edible oils still remain the favored and most economical cooking medium.

Competitive rivalry: The rivalry among existing competitors is high. The market is dominated by large multinational players and regional players compete intensely on the basis of pricing and innovation.

SWOT Analysis
Strength: Edible oils are popular cooking mediums and have wide applications in food industries.Availability of key raw materials is an added advantage. Innovation in product portfolio with focus on health & wellness has increased marketability.
Weakness: Market is highly dependent on availability and prices of key agricultural commodities globally which brings volatility. Non-tariff barriers pose challenges in international trade.
Opportunity: Rising health awareness and focus on nutrition is driving demand for healthier variants. Emerging markets offer high growth potential. Product premiumization through innovation presents opportunities.
Threats: Substitutes like butter and margarine pose competition. Strategic actions by key global players could impact regional players. Change in trade policies and regulations globally impact profits.

Key Takeaways
The Global Edible Oils Market Size is expected to witness high growth over the forecast period supported by rising population, urbanization and changing food consumption patterns.

Asia Pacific dominates the global edible oils market currently accounting for over half of the overall market share led by countries like India, China, Indonesia etc. supported by the large production and consumption bases in these countries.

Key players operating in the edible oils market are Adani Wilmar, Archer Daniels Midland, Bunge, Cargill, ITC, Ruchi Soya and Louis Dreyfus.

 

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