Vegetable Oils Market Is Driven By Growing Food Industry |...

Vegetable Oils Market Is Driven By Growing Food Industry

Posté 2024-02-21 13:15:08

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Large paragraph: Vegetable oils are obtained from plant sources and widely used in food processing and cooking purposes. The commonly used vegetable oils include soybean oil, canola oil, palm oil, sunflower oil, and olive oil. Vegetable oils are preferred for cooking as they have a high smoke point and do not get oxidized easily at high temperatures. They provide various health benefits such as lowering risk of heart diseases due to presence of unsaturated fatty acids. Vegetable oils also serve as an alternative to animal fats. Growing vegan population and health awareness has fueled the demand for vegetable oils across the world. The Global Vegetable Oils Market is estimated to be valued at US$ 404803.29 Bn in 2024 and is expected to exhibit a CAGR of 6.8% over the forecast period 2024 to 2030.

Key Takeaways

Key players: Key players operating in the vegetable oils market are Solvay S.A., Tokuyama Corporation, Occidental Petroleum Corporation, Ward Chemical Ltd., Tata Chemicals Ltd., TETRA Technologies, Inc., Zirax Limited, Weifang Yuze Chemical Co., Ltd., Mey Chern Chemicals Sdn Bhd., Anmol Chemicals Group, TCI Sanmar Chemicals S.A.E., and Weifang Haibin Chemical Co., Ltd. These players are focusing on new product launches and expansions to cater to the growing demand.

Growing demand: The global demand for vegetable oils is increasing rapidly mainly due to the expanding food industries. Vegetable oils find wide application in food processing, bakery, dressings and sauces. Growing consumption of packaged and prepared foods is driving the vegetable oils market.

Global expansion: Key vegetable oil producers are expanding their global footprint to leverage business opportunities. Companies are investing in production facilities, collaborations and mergers & acquisitions to strengthen their position and cater to international demand. Southeast Asia, South America and Eastern Europe are witnessing significant investments by market players.

Market drivers

Population growth is one of the major drivers of the vegetable oils market. The global population reached around 7.9 billion in 2020 and is expected to grow over 8 billion by 2030. With rising population, the demand for food products is surging tremendously thereby increasing the need for vegetable oils in food processing industries. Moreover, growing health awareness among consumers has boosted the demand for vegetable oils low in saturated fat and rich in unsaturated fat, providing an impetus to the market.

The current geopolitical situation is impacting the growth of the vegetable oils market in several ways. With rising tensions between major economies and regional conflicts continuing in various parts of the world, international trade has become complex. Disruptions in global supply chains and fluctuations in commodity prices directly influence vegetable oil producers and consumers. The conflict in Ukraine is a prime example, creating stress on sunflower oil supplies globally. Therefore, vegetable oil companies must carefully choose sourcing locations, diversify supply bases, and implement risk management strategies to mitigate exposure to geopolitical developments. Forward planning and flexibility will be crucial for navigating volatility in coming years.

In terms of value, the Vegetable Oils Market Demand is concentrated most heavily in Asia Pacific and North America currently. As of 2024, the Asia Pacific region accounted for over 40% of the global market value due to large production and consumption volumes in populous countries like India and China. North America represented approximately 25% share attributed to well established markets in the US and Canada. However, the fastest regional growth over the forecast period until 2030 is anticipated within Central and South America. Countries like Brazil, Argentina and Colombia are ideal for vegetable oil cultivation and witnessing rising incomes and demand from population segments. With supportive government policies and investments, Central and South America offers substantial scope for exponential market expansion.

The current geopolitical climate presents challenges for vegetable oil producers and traders globally. Disruptions to major trade flows from conflicts threaten supply security and price stability on which the industry depends. Nevertheless, certain geographical regions offer relative insulation or new opportunities. Asia Pacific remains core to current market concentration but Central and South America displays most promise as the fastest growing regional market for vegetable oils through 2030 given favorable local conditions. Continuous assessment of risks and diversification strategies will help industry players navigate short term difficulty and capitalize on long term potential across various locations.