Edible Oils Fats Market Size

Edible Oils Fats Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

WORLD MARKET ESTIMATION The world market for edible oil and fats is estimated to be worth $126.66 billion in 2023, and is projected to reach $161.69 billion by 2030, at a CAGR of 4.37% over the forecast period. This growth is based on the rising awareness of consumers about the nutritional and health benefits of vegetable oils and fats, and the growing popularity of vegetarian diets. Also, the market is seeing a shift toward healthier oils, such as olive oil and avocado oil, which are considered more beneficial than traditional oils. There are several other factors driving this upward trend, such as improvements in extraction and refining technology, which enhance the quality and shelf life of edible oils. Also, the growing demand for convenience foods and ready-to-eat meals is boosting the market. In the meantime, the major players, including Cargill, Archer Daniels Midland, and Unilever, are launching new products and entering into strategic alliances to increase their market share. They are also investing in sustainable production and launching new products to meet the demands of health-conscious consumers.

Regional Market Size

Regional Deep Dive

The market for edible oils and fats is characterized by a wide variety of consumption and production methods in different regions. In North America, the market is driven by the growing demand for healthy oils, especially those rich in omega-3 fatty acids, as consumers become more health-conscious. In Europe, strict regulations and a heightened awareness of food quality have led to a strong preference for organic and sustainable oils. In Asia-Pacific, rapid growth is mainly driven by increasing population and urbanization, which leads to an increase in the consumption of edible oils. In the Middle East and Africa (MEA), the trend is towards a mixture of traditional and modern consumption habits, with a rising trend towards palm oil and sunflower oil. In Latin America, the market is growing due to the expansion of the food industry and the growing export of vegetable oils.

North America

• And, of course, the plant-based diet has increased the demand for oil. And California Olive Ranch has expanded its range of products accordingly.
• Regulations such as the Food and Drug Administration’s new labeling requirements for oils are forcing manufacturers to reformulate their products to reduce trans fats, which is having an effect on product offerings.
• Oil extraction methods such as cold pressing are gaining in popularity, and companies such as Spectrum Organic Products are leading the way in supplying high-quality, unrefined oils.

Europe

• Farm to Fork is a European Union strategy for sustainable food systems. This strategy has led to a high demand for organic and locally derived edible oils, with significant consequences for the market.
• The market for edible oils is growing at a rate of 6% per year. The demand for healthy vegetable oils is reflected in the research and development activities of the leading companies such as Unilever and BASF.
• A Mediterranean diet is gaining popularity, with a surge in production and consumption of olive oil in countries such as Italy and Spain.

Asia-Pacific

• The growing number of people living in cities and the growing numbers of people with higher incomes in India and China are driving up the consumption of edible oils, particularly palm oil and soy oil.
• A number of government initiatives, such as the National Edible Oil Mission in India, have increased domestic production and reduced imports.
• With the development of the e-commerce, a greater variety of oils are now available to consumers in the most remote regions.

MEA

• Its low cost and versatility are two of the reasons why palm oil is so popular in the region. The main exporters are Malaysia and Indonesia.
• Culture and cooking methods also influence the demand for certain oils. In some countries sunflower and canola oil are popular for cooking.
• Governments are introducing regulations for edible oils to ensure food safety, which will impact on the market.

Latin America

• In the United States, where the demand for edible oils is growing, the greatest demand is for vegetable oils, especially for soy oil.
• The initiative is gaining ground, and companies like Bunge are investing in sustainable sourcing to meet the local and international demands of the market.
• In the same way, the traditional oil of the country, such as palm oil or coconut oil, is being replaced by a new oil, and the public is more and more interested in the health effects of these oils.

Did You Know?

“In the year 2022, palm oil was consumed in the world in large quantities, and it became the most widely used oil in the world.” — Food and Agriculture Organization (FAO)

Segmental Market Size

The edible oil and fat market is a vital part of the food industry, and is currently experiencing steady growth, driven by the increasing health consciousness among consumers and the shift towards plant-based diets. In addition, the regulatory trend towards reducing trans fats in foodstuffs is expected to drive demand. Also, technological advances in extraction and refining processes are improving product quality and yields, further increasing market interest.

Cargill and Unilever are the main actors in the market, and both companies have a strong innovation and a sustainable development. The main applications are in the preparation of food, in the manufacture of margarine and spreads. The strong growth of this market is due to the increasing demand for clean label and sustainable products. The development of extraction by cold press and the refining of vegetable oils are at the heart of the evolution of the sector, enabling manufacturers to respond to the changing expectations of health-conscious consumers.

Future Outlook

It is estimated that the edible oil and fat market will grow from $125.66 billion to $161.69 billion by 2030, with a CAGR of 4.29%. This growth is based on the increasing awareness of health and nutrition, which will lead to the consumption of healthy fats, such as olive oil, avocado oil, and other vegetable fats. These fats are expected to increase in market penetration, and by 2030 they could reach 30% of the edible oil and fat market, up from about 20% in 2023. This shift is backed by an increasing body of research linking the consumption of unsaturated fats to improved health outcomes, which will also drive the growth of the market.

The main technological advances and government initiatives are also expected to shape the future of the edible oil and fats market. The quality and yield of the oils are improving with the development of extraction and refining methods, while the question of sustainable exploitation is becoming increasingly important to consumers. Government support for biofuels and the development of sustainable agriculture is also likely to have a positive impact on the market, encouraging the use of oils from non-traditional sources. The development of plant-based diets and the rise of so-called 'functional foods' will also be an important driving force for the market. People are looking for oils that not only have a cooking function but also provide health benefits. In the end, the edible oil and fats market will be significantly affected by changing consumer preferences, technological developments and supportive government initiatives.