Global Vegetable Oil Market 2024–2033

Reports Description

As per the current market research conducted by CMI Team, the global Vegetable Oil market is expected to record a CAGR of 7% from 2023 to 2032. In 2022, the market size is projected to reach a valuation of USD 245.4 billion. By 2032, the valuation is anticipated to reach USD 360.93 billion.

Vegetable oils are derived from various plants, including seeds, nuts, and fruits, and are known for their rich content of essential nutrients such as vitamins E, A, and B1, as well as omega-3 and omega-6 fatty acids. These oils serve as a versatile and sustainable alternative to animal-based fats and petrochemicals in both food and non-food applications. They find wide usage in the production of bactericides, cosmetics, and pharmaceuticals.

Additionally, vegetable oils offer numerous health benefits, including reduced risk of cardiovascular diseases, improved metabolism and digestion, and lowered cholesterol levels. As a result, they are extensively utilized in the preparation of diverse dishes worldwide.

Vegetable Oil Market – Significant Growth Factors

 The vegetable oil market is witnessing significant growth due to several key factors that are driving its expansion. These growth factors include:

• Increasing consumer awareness of health and wellness: There is a growing awareness among consumers regarding the importance of adopting healthier dietary habits. Vegetable oils are considered a healthier alternative to traditional cooking oils due to their lower levels of saturated fats and higher content of unsaturated fats. The health-conscious consumer trend has led to a rise in the consumption of vegetable oils for cooking purposes, driving market growth.

• Growing demand for plant-based and natural products: The shift towards plant-based diets and the preference for natural ingredients in food and personal care products have fueled the demand for vegetable oils. These oils are derived from plants and are perceived as more natural and sustainable compared to animal-based fats and synthetic oils. As a result, the market is experiencing increased demand from the food, cosmetic, and pharmaceutical industries.

• Expansion of the food industry: The global food industry is expanding, driven by population growth, urbanization, and changing food preferences. Vegetable oils are widely used in food preparation, including frying, baking, and salad dressings, due to their versatility and ability to enhance flavors. The growing demand for processed and convenience foods is positively influencing the vegetable oil market.

• Increasing use of vegetable oils in biodiesel production: The focus on reducing greenhouse gas emissions and promoting sustainable energy sources has led to increased utilization of vegetable oils in biodiesel production. Vegetable oils serve as feedstock for biodiesel, a renewable and cleaner-burning alternative to fossil fuels. The growth of the biodiesel industry is driving the demand for vegetable oils as an important raw material.

• Favorable government policies and initiatives: Government policies promoting the use of renewable resources and sustainable agriculture have created a favorable environment for the vegetable oil market. Subsidies, tax incentives, and regulations supporting the production and use of vegetable oils in various sectors, including biofuels and food processing, have stimulated market growth.
• Expanding applications in non-food sectors: Vegetable oils are finding applications beyond the food industry. They are increasingly used in the manufacturing of personal care products, such as soaps, lotions, and cosmetics, due to their moisturizing and nourishing properties. The rising demand for natural and organic personal care products is driving the growth of vegetable oils in the non-food sector.

Vegetable Oil Market – Mergers and Acquisitions

The vegetable oil market has witnessed several mergers and acquisitions in recent years. These strategic moves have aimed to enhance market presence, expand product portfolios, and capitalize on synergies. Some notable mergers and acquisitions in the vegetable oil market include:

• Archer Daniels Midland (ADM) acquiring Bunge’s oilseed processing facilities: In 2018, ADM completed the acquisition of several oilseed processing facilities from Bunge Limited. This acquisition helped ADM expand its global footprint in the vegetable oil market and strengthen its position in the oilseed processing industry.

• Cargill acquiring the edible oil business of Wipro Consumer Care and Lighting: In 2017, Cargill, a leading player in the vegetable oil market, acquired the edible oil business of Wipro Consumer Care and Lighting. This strategic move allowed Cargill to expand its product portfolio and strengthen its presence in the Indian market.

• Bunge acquiring a 70% ownership interest in IOI Loders Croklaan: In 2017, Bunge Limited acquired a majority stake (70%) in IOI Loders Croklaan, a leading global producer of specialty fats and oils. This acquisition enabled Bunge to enhance its capabilities in value-added products and expand its customer base in the food processing and foodservice industries.

• Wilmar International acquired Goodman Fielder’s edible fats and oils business: In 2014, Wilmar International, one of the largest agribusiness companies, acquired Goodman Fielder’s edible fats and oils business. This acquisition helped Wilmar strengthen its presence in the Asia-Pacific region and expand its product offerings in the vegetable oil market.

• Marico acquiring Sundrop brand from Cargill: In 2012, Marico, an Indian consumer goods company, acquired the popular Sundrop brand from Cargill. This acquisition allowed Marico to enter the branded edible oil segment and expand its presence in the vegetable oil market in India.

These mergers and acquisitions have played a significant role in shaping the competitive landscape of the vegetable oil market. They have facilitated market consolidation, increased market share for the acquiring companies, and allowed for the integration of complementary capabilities and resources. These strategic moves have helped companies strengthen their market positions, access new markets, and offer a wider range of products to meet evolving consumer demands.

COMPARATIVE ANALYSIS OF THE RELATED MARKET

Vegetable Oil Market	Automotive HVAC Market	Electric Truck Market
CAGR 7% (Approx)	CAGR 6.75% (Approx)	3.5% (Approx)
US$ 360.93 billion by 2032	USD 32.10 billion by 2032	USD 27.5 billion by 2032

Vegetable Oil Market – Significant Threats

The vegetable oil market faces several significant threats that can impact its growth and stability. Some of these threats include:

• Health Concerns: One of the primary threats to the vegetable oil market is the increasing awareness and concern regarding the health implications of consuming certain types of vegetable oils. For example, oils high in saturated fats, such as palm oil and coconut oil, have faced criticism due to their potential impact on heart health. This has led to a shift in consumer preferences towards healthier alternatives, such as olive oil or avocado oil.

• Competition from Other Oils: Vegetable oils face stiff competition from other types of oils in the market, including animal-based oils like butter and lard, as well as alternative plant-based oils such as sunflower oil, canola oil, and soybean oil. The availability and affordability of these alternatives can impact the demand for vegetable oils.

• Sustainability Concerns: The vegetable oil industry, particularly the production of palm oil, has faced significant backlash due to environmental and sustainability concerns. Palm oil production has been associated with deforestation, habitat destruction, and biodiversity loss. Increasing consumer awareness about these issues has led to demands for sustainable sourcing and certification, which can pose challenges for the industry.

• Fluctuating Raw Material Prices: The vegetable oil market is heavily influenced by the prices of raw materials, such as oilseeds (e.g., soybeans, rapeseed, and sunflower seeds) and palm fruit. Fluctuations in the prices of these commodities can impact the profitability of vegetable oil producers and influence market dynamics.

• Regulatory Changes: Changes in government regulations and policies can significantly impact the vegetable oil market. For instance, the imposition of import tariffs, export restrictions, or changes in labeling requirements can disrupt trade patterns and affect the competitiveness of vegetable oil products.

• Technological Advances: Technological advancements in the food industry, such as the development of alternative cooking oils or healthier substitutes, can pose a threat to traditional vegetable oils. As consumers become more health-conscious and seek innovative options, the market may need to adapt to changing preferences.

• Volatility in Global Supply Chains: Vegetable oil production relies on complex global supply chains that can be vulnerable to disruptions. Natural disasters, geopolitical conflicts, or trade disputes can impact the production, transportation, and availability of vegetable oils, leading to price fluctuations and supply shortages.

Report Scope

Feature of the Report	Details
Market Size in 2023	USD 256.86 Billion
Projected Market Size in 2032	USD 360.93 Billion
Market Size in 2022	USD 245.4 Billion
CAGR Growth Rate	7% CAGR
Base Year	2023
Forecast Period	2024-2033
Key Segment	By Type, Application, Packaging and Region
Report Coverage	Revenue Estimation and Forecast, Company Profile, Competitive Landscape, Growth Factors and Recent Trends
Regional Scope	North America, Europe, Asia Pacific, Middle East & Africa, and South & Central America
Buying Options	Request tailored purchasing options to fulfil your requirements for research.

Category-Wise Insights

Based on Type:

The global vegetable oil market can be categorized into different types, including Soybean Oil, Rapeseed Oil, Sunflower Oil, Palm Oil, Olive Oil, Corn Oil, Peanut Oil, Coconut Oil, and Others. In 2023, the Palm Oil segment accounted for the largest market share of 7.56%. This can be attributed to the increasing awareness of the health benefits and the relatively low cost of palm oil.

Palm oil, derived from plant seeds, is known to have advantages such as improving vision, protecting against cardiovascular diseases, and promoting hair development, which contributes to its growing demand and market growth.

Looking ahead to the forecast period, the Soybean Oil category is expected to experience the fastest growth rate of 2.09%. This growth is primarily driven by its extensive use in cooking and food preparation. Moreover, the presence of hydrogenation in soybean oil, which helps extend the shelf life of food products, further supports the growth of this segment.

Based on Application:

The global vegetable oil market can be segmented by application into Food Products, Animal Feed, Cosmetics, Pharmaceuticals, Biodiesel, and Others. In 2023, the Food Products segment accounted for a significant share, though the specific percentage is not provided.

The food industry is a major consumer of vegetable oil, utilizing a substantial portion of the total production. Vegetable oil finds extensive usage in various food applications, including cooking, frying, baking, dressings, and sauces.

Apart from the food sector, vegetable oil is also utilized in other industries such as animal feed, cosmetics, pharmaceuticals, biodiesel, and others. These sectors contribute to the overall demand for vegetable oil, albeit to a lesser extent compared to the food industry.

China plays a crucial role in the global consumption of vegetable oil, being one of the major contributors to the total demand. Additionally, Indonesia and China are dominant players in vegetable oil production, accounting for a significant production volume. These countries are expected to maintain their leading positions in the coming years, maintaining their dominance among the producing nations.

Vegetable Oil Market – Regional Analysis

Asia-Pacific:

• Asia-Pacific is a major consumer and producer of vegetable oil, driven by large populations and growing economies.
• Indonesia and China are key players in the production and consumption of vegetable oil in this region.
• China’s growing middle-class population and increasing urbanization contribute to the rising demand for vegetable oil in various applications.
• India is another significant market in this region, with a high consumption of vegetable oil for cooking and food preparation.
• The Asia-Pacific region also experiences significant palm oil production, with Malaysia and Indonesia being major palm oil producers.

Europe:

• Europe is a prominent consumer of vegetable oil, particularly in the form of olive oil.
• Mediterranean countries, such as Spain, Italy, and Greece, are major producers and consumers of olive oil.
• Other European countries also consume significant amounts of vegetable oil for various food and non-food applications.
• The European Union has implemented regulations and initiatives to promote sustainable sourcing and production of vegetable oils.

North America:

• North America has a significant market for vegetable oil, driven by the United States and Canada.
• The United States is a major consumer of soybean oil and other vegetable oils for cooking and food processing.
• The demand for healthier and sustainable oil alternatives has influenced consumer preferences in this region.

Latin America:

• Latin America is a notable producer and exporter of vegetable oil, particularly soybean oil and palm oil.
• Brazil and Argentina are major players in soybean oil production and exports.
• Palm oil production is significant in countries like Colombia and Ecuador.
• Local consumption of vegetable oil also contributes to the regional market.

Middle East and Africa:

• The Middle East and Africa region has a growing demand for vegetable oil due to population growth and increasing food consumption.
• Countries like Egypt, Nigeria, and South Africa are significant markets for vegetable oil.
• Some African countries, such as Côte d’Ivoire and Ghana, are major producers and exporters of palm oil.

List of the prominent players in the Vegetable Oil Market:

• Georgia-Pacific Chemicals LLC (U.S.)
• Kraton Corporation (Netherlands)
• Eagle Imports (U.S.)
• PAG KIMYA SAN. TIC. LTD. STI. (Turkey)
• GrantChem Inc. (U.S.)
• LLC PK “XimProm” (Russia)
• AKAY TIC SAN KOLL STI – YUKSEL AKAYLAR (Turkey)
• Fujian Qina Trading Co. Ltd. (China)
• IBRAHIM WALI MOHAMMAD & CO. (Pakistan)
• C. RUTTEMAN & Co. B.V. (Netherlands)
• MALPLAST INDUSTRIES LIMITED (Kenya)
• Akay Ticaret Ve Sanayi Koll.Sti. (Turkey)
• Matole Ltd (Hungary)
• Finis Vegetable Oil B.V. (Netherlands)
• Bettcher Industries Inc. (U.S.)
• Anko Food Machine Co. Ltd. (Taiwan)
• Heat and Control Inc. (U.S.)
• BAADER (Germany)
• Dover Corporation (U.S.).
• Others

The Vegetable Oil Market is segmented as follows:

By Type

• Soybean Oil
• Rapeseed Oil
• Sunflower Oil
• Palm Oil
• Olive Oil
• Corn oil
• Peanut Oil
• Coconut Oil
• Others

By Application

• Food Products
• Animal Feed
• Cosmetics
• Pharmaceuticals
• Biodiesel
• Others

By Packaging Type

• Cans
• Bottles
• Pouches
• Others

By Region

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America