Edible Oils Market Insights: $250B to $306B Growth Forecast
The global edible oils market is projected to grow from USD 250.78 billion in 2024 to USD 306.92 billion by 2029, at a compound annual growth rate (CAGR) of 4.1%. This expansion is driven by a combination of increasing global population, rising disposable incomes, and evolving dietary preferences. The broad applications of edible oils across food processing, industrial uses, baking, and cooking have solidified its position as an essential commodity worldwide.
Drivers of Market Growth
Shift in Production Focus to South America
South America is emerging as a key player in the global soybean market, significantly influencing the edible oils industry. According to the OECD-FAO Agricultural Outlook 2023–2032, global soybean production is projected to grow by 0.9% annually over the next decade, a slowdown compared to the previous decade’s 2.2% growth rate. However, South America, particularly Brazil, is leveraging innovative practices such as double cropping (planting soybeans after maize or wheat) to enhance output. Brazil, the world’s largest soybean producer, is expected to increase production by 0.8% annually, outpacing the US growth rate of 0.6% annually.
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Market Segment Insights
Industrial Applications Dominate Market Share
The industrial sector holds the largest edible oils market share, primarily driven by the food processing industry. Edible oils are indispensable in baking, frying, and producing processed foods due to their ability to enhance texture, flavor, and shelf life.
In Europe, the bakery industry stands as a significant driver for edible oil demand. According to the Applied Human Factors and Ergonomics (AHFE) report, the European bakery market was valued at USD 226 billion in 2020, accounting for 41% of the global market share. Countries like Germany, France, and the UK, where bread and pastries are dietary staples, are at the forefront of bakery production and consumption, spurring demand for essential oils such as palm and sunflower oils.
Asia-Pacific: The Fastest-Growing Region
Between 2024 and 2029, the Asia-Pacific region is expected to experience the fastest growth in the edible oils market. Factors contributing to this growth include:
- A rapidly growing population
- Increasing disposable incomes
- Rising consumer preference for healthy cooking oils
Key players driving this regional growth include Wilmar International Ltd (Singapore), United Plantations Berhad (Malaysia), and the Adani Group (India). Notably, in June 2020, United Plantations Berhad launched NutroOlive, a blend of Extra Virgin Olive Oil and Red Palm Oil. This innovative product is rich in carotenoids, monounsaturated fatty acids, antioxidants, and natural vitamins. NutroOlive’s sustainability certification by the Round Table on Sustainable Palm Oil aligns with consumer demand for health-conscious and eco-friendly edible oils, reflecting the region’s commitment to premium and sustainable products.
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Innovations and Sustainability
The edible oils market is witnessing a surge in innovative products and sustainable practices. Companies are focusing on health benefits and environmental impact, catering to a growing segment of health-conscious consumers. For instance, NutroOlive’s dual-purpose use for frying, baking, and salad dressings represents the kind of innovation that resonates with modern consumers.
Profiles of Key Market Players
Prominent edible oils companies include:
- ADM (US)
- Bunge (US)
- Associated British Foods plc (UK)
- Wilmar International Ltd (Singapore)
- United Plantations Berhad (Malaysia)
- Sime Darby Berhad (Malaysia)
- BORGES AGRICULTURAL & INDUSTRIAL EDIBLE OILS, S.A.U. (Spain)
- Cargill Incorporated (US)
- GrainCorp (Australia)
The global edible oils market is set for robust growth, propelled by technological advancements, regional innovations, and a strong focus on health and sustainability. With dynamic regional trends and key players leading the charge, the industry is well-positioned to meet the evolving demands of consumers worldwide.
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