The global Vegetable Oil Market Size is estimated to be US$ 304.7 Billion in 2023 and is poised to register 2.64% growth over the forecast period from 2023 to 2030.
Key market driving forces including Emerging vegetable oils present niche marketing opportunities, Processed food demand in developing countries supporting wide use of vegetable oils, Strong Market potential for olive oil, Biofuel offers significant growth opportunities across markets, Organic edible oil market offers new growth opportunities are identified among main market dynamics
Vegetable Oil Market Analysis
The vegetable oil market is one of the largest agriculture industries with steady growth forecast over the near to medium term future. Increasing consumer awareness towards healthy oils, preference for new food ingredients and robust demand in developing countries are shaping the market outlook.
The global vegetable market value is characterized by the large volume of trade between countries. Disparities in consumption patterns and production volumes coupled with the impact of weather conditions encourage trade growth across markets. Palm oil, is produced predominantly in the Asian markets of Indonesia and Malaysia and is exported worldwide. Similarly, Soybean oil, produced predominantly in American markets is exported to leading consumers worldwide. Different varieties of olive oil are also being exported to Asian and American markets from Mediterranean countries.
Further, animal feed is also one of the key users of vegetable oil. Driven by the key benefits of using vegetable oil in animal feed and strong growth in livestock consumption, animal feed remains one of the key applications for vegetable oils. Further, industrial uses of vegetable oils including wide adoption in the production of biodiesel present strong market scope for companies operating in the industry. Pharmaceuticals, paints and coatings, cosmetics, and other applications are focusing on widening the applications of vegetable oils.
Market Dynamics
Market Trend- Emerging vegetable oils present niche marketing opportunities
New vegetable oils are being developed worldwide amidst a strong drive toward innovation in the food industry. Niche market opportunities coupled with value-adding propositions are encouraging companies to develop new vegetable oils that improve texture and offer health benefits, extend shelf life, usability across specific foods, and others. Further, products that are for direct consumption such as argan oil, Brazil nut oil, and others are also gaining significant market growth.
Emerging oils such as argan oil, beauty oil, marula oil, moringa oil, cocoa butter equivalents, chia seed oil, and others are likely to gain strong penetration, predominantly in Western European and North American markets.
Market Driver- Processed food demand in developing countries supports the wide use of vegetable oils
Owing to a rapid increase in household disposable incomes in developing countries, the demand for processed and convenience foods is rapidly expanding in these markets. The food manufacturing industry has been growing at high growth rates across developing markets, predominantly in China, India, South East Asia, Mexico, Brazil, Turkey, Argentina, and other growth markets.
The rise in the volume of the working population, the large scope of investments in processed food manufacturing industries, and the increasing consumption of packaged food will support the demand for vegetable oils in these countries.
Reduced time spent on cooking, preference for convenience foods and other driving forces are encouraging companies to market processed foods, which use cottonseed oils, palm oils, sunflower seed oil, soybean oil, peanut oils, and others. Further, growth in demand for innovative and tasty foods will support the demand for a wide variety of vegetable oil types. Oil companies market products in diverse packaging options including drums, tanker trucks, railcars, and others to target large-scale buyers in these markets.
Market Segmentation
The global Vegetable Oil Market is segmented into Types, Applications, and Countries.
palm oil and palm kernel oil dominate the global markets in 2022
Palm oil production is largely concentrated in Indonesia, Malaysia, Thailand, Colombia, Nigeria, and other countries. The production and supply chain is relatively stable for palm oil. It offers versatility and greater flexibility. The average palm oil export price (FOB) in Indonesia stood at around $940/ton in early Q2 2023, according to the International Grains Council. Palm oil vendors offer diverse products including palm olein, palm stearine, blends, and others. Further, a combination of palm oil with other oils such as cottonseed oil, corn oil, canola oil, and others are also marketed widely.
Palm oil is largely used as edible oil for frying, cooking, and other food applications such as consumer retail foods, snacks, and others. It is also used in personal care and cosmetics, animal feed, pharmaceuticals, and biofuel industries. It is semi-solid at room temperature and is resistant to oxidation. It has a long shelf life and is stable at high temperatures.
Palm oil is one of the highest-yielding vegetable oils. According to the US Department of Agriculture, the average yield of palm stood at 3.03 MT/HA. Comparatively, the yield of rapeseed is 0.37 MT/HA, Soy is 0.37 MT/HA and sunflower yield stood at 1.17 MT/HA.
Amid growing concerns about the growth of palm oil including its negative impact of deforestation, and poor working conditions for workers, companies like Cargill, Unilever, and others are emphasizing on sustainable agriculture practices. Governments across the world are also focusing on sourcing sustainable palm oil.
Indonesia, India, China, European Union, Pakistan, Malaysia, and others are the leading consumers of palm oil worldwide. It is also consumed widely in other Asian countries, the US, Russia, and other markets. Over the forecast period, we estimate the dominance of palm oil to continue despite multiple challenges associated with production.
The food industry remains the dominant user of Vegetable Oil during the forecast period
Vegetable oils remain the key ingredients in food chains including bakeries, restaurants, ready-to-eat foods, convenience foods, and others. Oils form an integral part of the cooking process including roasting, frying, marinating, baking, searing, seasoning, and others.
Residential cooking increased, resulting in demand for small packaged sales of soybean, canola, corn, sunflower, and other oils. With recovering market conditions, the demand for large packaged vegetable oils from large food chain players will support the market outlook. Strong demand for processed foods, baked & fried foods, predominantly in developing countries remain the main market drivers.
Vegetable oils are primarily produced from oilseeds, legumes, nuts, and fruits. These are pressed from plants and then refined and processed to produce high-quality oils suitable for human consumption. Of different oil types, palm oil, soybean oil, rapeseed oil, and sunflower seed oil find wide applications in the food industry. Vegetable oils consist of triglycerides and vitamin E. Further, small quantities of free fatty acids, fatty alcohols, phosphatides, sterols, and others are present in vegetable oils.
Asia Pacific dominates the global Vegetable Oil market with over 51% market share
Asia Pacific remains the dominant user of vegetable oils, with over 51.2% market share. The dominant share of the region is largely driven by huge consumption volumes in China, India, Indonesia, Malaysia, and other markets.
China- China is one of the largest vegetable oil consumers worldwide, driven by a huge population base, improved living standards, large demand for processed foods, and significant domestic production of different oil types. Of around 43 million tons of vegetable oil consumption, soybean oil accounts for 43%, followed by rapeseed with a 20% market share. The country also consumes a significant volume of palm oil, peanut oil, sunflower, and other oils. An increasing trend of consuming healthy oils such as sunflower and olive oil is widely observed in Chinese markets.
On the production front, the country produces soybean oil, rapeseed oil, peanut oil, and others. The production varies with the sub-regions in the country with Northeast provinces primarily producing soybean oil and Central and Western regions producing rapeseed oil. The southern provinces typically produce peanut oil driven by suitable climatic conditions, land conditions, consumption culture, and other socioeconomic factors. The country imports almost all the palm oil required, around one-fourth of rapeseed requirements, and around 75% of sunflower oil demand is met through imports.
Increased emphasis on food safety is driving the demand for smaller packages throughout the country. To reduce health risks, bulk volume retail sales of vegetable oils are replaced by smaller healthy oils. The majority of the use for vegetable oils comes in direct form due to local cooking and eating habits. Though Western food habits are rapidly gaining prominence, the conversion of vegetable oils into margarine, or mayonnaise is relatively low.
Segmentation
By Type
By Application
By Region
Key Players
Leading companies profiled in the study include-
Vegetable Oil Market Outlook 2023
1 Market Overview
1.1 Introduction to Vegetable Oil Market
1.2 Scope of the Study
1.3 Research Objective
1.3.1 Key Market Scope and Segments
1.3.2 Players Covered
1.3.3 Years Considered
2 Executive Summary
2.1 2023 Vegetable Oil Industry- Market Statistics
3 Market Dynamics
3.1 Market Drivers
3.2 Market Challenges
3.3 Market Opportunities
3.4 Market Trends
4 Market Factor Analysis
4.1 Porter’s Five Forces
4.2 Market Entropy
4.2.1 Global Vegetable Oil Market Companies with Area Served
4.2.2 Products Offerings Global Vegetable Oil Market
5 COVID-19 Impact Analysis and Outlook Scenarios
5.1.1 Covid-19 Impact Analysis
5.1.2 Post-COVID-19 Scenario- Low Growth Case
5.1.3 Post-COVID-19 Scenario- Reference Growth Case
5.1.4 Post-COVID-19 Scenario- Low Growth Case
6 Global Vegetable Oil Market Trends
6.1 Global Vegetable Oil Revenue (USD Million) and CAGR (%) by Type (2018-2028)
6.2 Global Vegetable Oil Revenue (USD Million) and CAGR (%) by Applications (2018-2028)
6.3 Global Vegetable Oil Revenue (USD Million) and CAGR (%) by Regions (2018-2028)
7 Global Vegetable Oil Market Revenue (USD Million) by Type, and Applications (2018-2022)
7.1 Global Vegetable Oil Revenue (USD Million) by Type (2018-2022)
7.1.1 Global Vegetable Oil Revenue (USD Million), Market Share (%) by Type (2018-2022)
7.2 Global Vegetable Oil Revenue (USD Million) by Applications (2018-2022)
7.2.1 Global Vegetable Oil Revenue (USD Million), Market Share (%) by Applications (2018-2022)
8 Global Vegetable Oil Development Regional Status and Outlook
8.1 Global Vegetable Oil Revenue (USD Million) By Regions (2018-2022)
8.2 North America Vegetable Oil Revenue (USD Million) by Type, and Application (2018-2022)
8.2.1 North America Vegetable Oil Revenue (USD Million) by Country (2018-2022)
8.2.2 North America Vegetable Oil Revenue (USD Million) by Type (2018-2022)
8.2.3 North America Vegetable Oil Revenue (USD Million) by Applications (2018-2022)
8.3 Europe Vegetable Oil Revenue (USD Million), by Type, and Applications (USD Million) (2018-2022)
8.3.1 Europe Vegetable Oil Revenue (USD Million), by Country (2018-2022)
8.3.2 Europe Vegetable Oil Revenue (USD Million) by Type (2018-2022)
8.3.3 Europe Vegetable Oil Revenue (USD Million) by Applications (2018-2022)
8.4 Asia Pacific Vegetable Oil Revenue (USD Million), and Revenue (USD Million) by Type, and Applications (2018-2022)
8.4.1 Asia Pacific Vegetable Oil Revenue (USD Million) by Country (2018-2022)
8.4.2 Asia Pacific Vegetable Oil Revenue (USD Million) by Type (2018-2022)
8.4.3 Asia Pacific Vegetable Oil Revenue (USD Million) by Applications (2018-2022)
8.5 South America Vegetable Oil Revenue (USD Million), by Type, and Applications (2018-2022)
8.5.1 South America Vegetable Oil Revenue (USD Million), by Country (2018-2022)
8.5.2 South America Vegetable Oil Revenue (USD Million) by Type (2018-2022)
8.5.3 South America Vegetable Oil Revenue (USD Million) by Applications (2018-2022)
8.6 Middle East and Africa Vegetable Oil Revenue (USD Million), by Type, Technology, Application, Thickness (2018-2022)
8.6.1 Middle East and Africa Vegetable Oil Revenue (USD Million) by Country (2018-2022)
8.6.2 Middle East and Africa Vegetable Oil Revenue (USD Million) by Type (2018-2022)
8.6.3 Middle East and Africa Vegetable Oil Revenue (USD Million) by Applications (2018-2022)
9 Company Profiles
10 Global Vegetable Oil Market Revenue (USD Million), by Type, and Applications (2023-2028)
10.1 Global Vegetable Oil Revenue (USD Million) and Market Share (%) by Type (2023-2028)
10.1.1 Global Vegetable Oil Revenue (USD Million), and Market Share (%) by Type (2023-2028)
10.2 Global Vegetable Oil Revenue (USD Million) and Market Share (%) by Applications (2023-2028)
10.2.1 Global Vegetable Oil Revenue (USD Million), and Market Share (%) by Applications (2023-2028)
11 Global Vegetable Oil Development Regional Status and Outlook Forecast
11.1 Global Vegetable Oil Revenue (USD Million) By Regions (2023-2028)
11.2 North America Vegetable Oil Revenue (USD Million) by Type, and Applications (2023-2028)
11.2.1 North America Vegetable Oil Revenue (USD) Million by Country (2023-2028)
11.2.2 North America Vegetable Oil Revenue (USD Million), by Type (2023-2028)
11.2.3 North America Vegetable Oil Revenue (USD Million), Market Share (%) by Applications (2023-2028)
11.3 Europe Vegetable Oil Revenue (USD Million), by Type, and Applications (2023-2028)
11.3.1 Europe Vegetable Oil Revenue (USD Million), by Country (2023-2028)
11.3.2 Europe Vegetable Oil Revenue (USD Million), by Type (2023-2028)
11.3.3 Europe Vegetable Oil Revenue (USD Million), by Applications (2023-2028)
11.4 Asia Pacific Vegetable Oil Revenue (USD Million) by Type, and Applications (2023-2028)
11.4.1 Asia Pacific Vegetable Oil Revenue (USD Million), by Country (2023-2028)
11.4.2 Asia Pacific Vegetable Oil Revenue (USD Million), by Type (2023-2028)
11.4.3 Asia Pacific Vegetable Oil Revenue (USD Million), by Applications (2023-2028)
11.5 South America Vegetable Oil Revenue (USD Million), by Type, and Applications (2023-2028)
11.5.1 South America Vegetable Oil Revenue (USD Million), by Country (2023-2028)
11.5.2 South America Vegetable Oil Revenue (USD Million), by Type (2023-2028)
11.5.3 South America Vegetable Oil Revenue (USD Million), by Applications (2023-2028)
11.6 Middle East and Africa Vegetable Oil Revenue (USD Million), by Type, and Applications (2023-2028)
11.6.1 Middle East and Africa Vegetable Oil Revenue (USD Million), by Region (2023-2028)
11.6.2 Middle East and Africa Vegetable Oil Revenue (USD Million), by Type (2023-2028)
11.6.3 Middle East and Africa Vegetable Oil Revenue (USD Million), by Applications (2023-2028)
12 Methodology and Data Sources
12.1 Methodology/Research Approach
12.1.1 Research Programs/Design
12.1.2 Market Size Estimation
12.1.3 Market Breakdown and Data Triangulation
12.2 Data Sources
12.2.1 Secondary Sources
12.2.2 Primary Sources
12.3 Disclaimer
List Of Tables
Table 1 Market Segmentation Analysis
Table 2 Global Vegetable Oil Market Companies with Areas Served
Table 3 Products Offerings Global Vegetable Oil Market
Table 4 Low Growth Scenario Forecasts
Table 5 Reference Case Growth Scenario
Table 6 High Growth Case Scenario
Table 7 Global Vegetable Oil Revenue (USD Million) And CAGR (%) By Type (2018-2028)
Table 8 Global Vegetable Oil Revenue (USD Million) And CAGR (%) By Applications (2018-2028)
Table 9 Global Vegetable Oil Revenue (USD Million) And CAGR (%) By Regions (2018-2028)
Table 10 Global Vegetable Oil Revenue (USD Million) By Type (2018-2022)
Table 11 Global Vegetable Oil Revenue Market Share (%) By Type (2018-2022)
Table 12 Global Vegetable Oil Revenue (USD Million) By Applications (2018-2022)
Table 13 Global Vegetable Oil Revenue Market Share (%) By Applications (2018-2022)
Table 14 Global Vegetable Oil Market Revenue (USD Million) By Regions (2018-2022)
Table 15 Global Vegetable Oil Market Share (%) By Regions (2018-2022)
Table 16 North America Vegetable Oil Revenue (USD Million) By Country (2018-2022)
Table 17 North America Vegetable Oil Revenue (USD Million) By Type (2018-2022)
Table 18 North America Vegetable Oil Revenue (USD Million) By Applications (2018-2022)
Table 19 Europe Vegetable Oil Revenue (USD Million) By Country (2018-2022)
Table 20 Europe Vegetable Oil Revenue (USD Million) By Type (2018-2022)
Table 21 Europe Vegetable Oil Revenue (USD Million) By Applications (2018-2022)
Table 22 Asia Pacific Vegetable Oil Revenue (USD Million) By Country (2018-2022)
Table 23 Asia Pacific Vegetable Oil Revenue (USD Million) By Type (2018-2022)
Table 24 Asia Pacific Vegetable Oil Revenue (USD Million) By Applications (2018-2022)
Table 25 South America Vegetable Oil Revenue (USD Million) By Country (2018-2022)
Table 26 South America Vegetable Oil Revenue (USD Million) By Type (2018-2022)
Table 27 South America Vegetable Oil Revenue (USD Million) By Applications (2018-2022)
Table 28 Middle East and Africa Vegetable Oil Revenue (USD Million) By Region (2018-2022)
Table 29 Middle East and Africa Vegetable Oil Revenue (USD Million) By Type (2018-2022)
Table 30 Middle East and Africa Vegetable Oil Revenue (USD Million) By Applications (2018-2022)
Table 31 Financial Analysis
Table 32 Global Vegetable Oil Revenue (USD Million) By Type (2023-2028)
Table 33 Global Vegetable Oil Revenue Market Share (%) By Type (2023-2028)
Table 34 Global Vegetable Oil Revenue (USD Million) By Applications (2023-2028)
Table 35 Global Vegetable Oil Revenue Market Share (%) By Applications (2023-2028)
Table 36 Global Vegetable Oil Market Revenue (USD Million), And Revenue (USD Million) By Regions (2023-2028)
Table 37 North America Vegetable Oil Revenue (USD)By Country (2023-2028)
Table 38 North America Vegetable Oil Revenue (USD Million) By Type (2023-2028)
Table 39 North America Vegetable Oil Revenue (USD Million) By Applications (2023-2028)
Table 40 Europe Vegetable Oil Revenue (USD Million) By Country (2023-2028)
Table 41 Europe Vegetable Oil Revenue (USD Million) By Type (2023-2028)
Table 42 Europe Vegetable Oil Revenue (USD Million) By Applications (2023-2028)
Table 43 Asia Pacific Vegetable Oil Revenue (USD Million) By Country (2023-2028)
Table 44 Asia Pacific Vegetable Oil Revenue (USD Million) By Type (2023-2028)
Table 45 Asia Pacific Vegetable Oil Revenue (USD Million) By Applications (2023-2028)
Table 46 South America Vegetable Oil Revenue (USD Million) By Country (2023-2028)
Table 47 South America Vegetable Oil Revenue (USD Million) By Type (2023-2028)
Table 48 South America Vegetable Oil Revenue (USD Million) By Applications (2023-2028)
Table 49 Middle East and Africa Vegetable Oil Revenue (USD Million) By Region (2023-2028)
Table 50 Middle East and Africa Vegetable Oil Revenue (USD Million) By Region (2023-2028)
Table 51 Middle East and Africa Vegetable Oil Revenue (USD Million) By Type (2023-2028)
Table 52 Middle East and Africa Vegetable Oil Revenue (USD Million) By Applications (2023-2028)
Table 53 Research Programs/Design for This Report
Table 54 Key Data Information from Secondary Sources
Table 55 Key Data Information from Primary Sources
List Of Figures
Figure 1 Market Scope
Figure 2 Porter’s Five Forces
Figure 3 Global Vegetable Oil Revenue (USD Million) By Type (2018-2022)
Figure 4 Global Vegetable Oil Revenue Market Share (%) By Type (2022)
Figure 5 Global Vegetable Oil Revenue (USD Million) By Applications (2018-2022)
Figure 6 Global Vegetable Oil Revenue Market Share (%) By Applications (2022)
Figure 7 Global Vegetable Oil Market Revenue (USD Million) By Regions (2018-2022)
Figure 8 Global Vegetable Oil Market Share (%) By Regions (2022)
Figure 9 North America Vegetable Oil Revenue (USD Million) By Country (2018-2022)
Figure 10 North America Vegetable Oil Revenue (USD Million) By Type (2018-2022)
Figure 11 North America Vegetable Oil Revenue (USD Million) By Applications (2018-2022)
Figure 12 Europe Vegetable Oil Revenue (USD Million) By Country (2018-2022)
Figure 13 Europe Vegetable Oil Revenue (USD Million) By Type (2018-2022)
Figure 14 Europe Vegetable Oil Revenue (USD Million) By Applications (2018-2022)
Figure 15 Asia Pacific Vegetable Oil Revenue (USD Million) By Country (2018-2022)
Figure 16 Asia Pacific Vegetable Oil Revenue (USD Million) By Type (2018-2022)
Figure 17 Asia Pacific Vegetable Oil Revenue (USD Million) By Applications (2018-2022)
Figure 18 South America Vegetable Oil Revenue (USD Million) By Country (2018-2022)
Figure 19 South America Vegetable Oil Revenue (USD Million) By Type (2018-2022)
Figure 20 South America Vegetable Oil Revenue (USD Million) By Applications (2018-2022)
Figure 21 Middle East and Africa Vegetable Oil Revenue (USD Million) By Region (2018-2022)
Figure 22 Middle East and Africa Vegetable Oil Revenue (USD Million) By Type (2018-2022)
Figure 23 Middle East and Africa Vegetable Oil Revenue (USD Million) By Applications (2018-2022)
Figure 24 Global Vegetable Oil Revenue (USD Million) By Type (2023-2028)
Figure 25 Global Vegetable Oil Revenue Market Share (%) By Type (2028)
Figure 26 Global Vegetable Oil Revenue (USD Million) By Applications (2023-2028)
Figure 27 Global Vegetable Oil Revenue Market Share (%) By Applications (2028)
Figure 28 Global Vegetable Oil Market Revenue (USD Million) By Regions (2023-2028)
Figure 29 North America Vegetable Oil Revenue (USD Million) By Country (2023-2028)
Figure 30 North America Vegetable Oil Revenue (USD Million) By Type (2023-2028)
Figure 31 North America Vegetable Oil Revenue (USD Million) By Applications (2023-2028)
Figure 32 Europe Vegetable Oil Revenue (USD Million) By Country (2023-2028)
Figure 33 Europe Vegetable Oil Revenue (USD Million) By Type (2023-2028)
Figure 34 Europe Vegetable Oil Revenue (USD Million) By Applications (2023-2028)
Figure 35 Asia Pacific Vegetable Oil Revenue (USD Million) By Country (2023-2028)
Figure 36 Asia Pacific Vegetable Oil Revenue (USD Million) By Type (2023-2028)
Figure 37 Asia Pacific Vegetable Oil Revenue (USD Million) By Applications (2023-2028)
Figure 38 South America Vegetable Oil Revenue (USD Million) By Country (2023-2028)
Figure 39 South America Vegetable Oil Revenue (USD Million) By Type (2023-2028)
Figure 40 South America Vegetable Oil Revenue (USD Million) By Applications (2023-2028)
Figure 41 Middle East and Africa Vegetable Oil Revenue (USD Million) By Region (2023-2028)
Figure 42 Middle East and Africa Vegetable Oil Revenue (USD Million) By Region (2023-2028)
Figure 43 Middle East and Africa Vegetable Oil Revenue (USD Million) By Type (2023-2028)
Figure 44 Middle East and Africa Vegetable Oil Revenue (USD Million) By Applications (2023-2028)
Figure 45 Bottom-Up and Top-Down Approaches For This Report
Figure 46 Data Triangulation
The global Vegetable Oil Market Size is estimated to be US$ 304.7 Billion in 2023
The market is poised to register 2.64% growth over the forecast period from 2023 to 2030
Wilmar International Ltd, Olam International, Archer-Daniels-Midland Company, Bunge Limited, Cargill Inc, Golden Agri-Resources Ltd., Sime Darby Plantation Berhad, Fuji Oil Holding Inc., Kuala Lumpur Kepong Berhad, PT Astra Agro Lestari Tbk
Olive oil, the Food industry, and Asia Pacific are the fastest-growing segments in the market.