Edible Oil Market Growth Driven by Mounting Demand for Palm Oil

The growing incidences of chronic diseases such as obesity and heart diseases are enticing people the adapt oils with omega-3 fatty acids to minimize the risk of such diseases. Edible oils such as polyunsaturated edible oils and monounsaturated edible oils including peanut oil, olive oil, walnut oil, and sunflower oil are used for cooking to avoid chronic diseases and lower cholesterol in human body. For instance, olive oil is a monounsaturated fatty acid which is also used to lower the total cholesterol and low-density lipoprotein cholesterol levels. The major improvements in crop production, extraction of oil, retail sector, and growing economies are driving the growth of the global edible oil market. As per the findings of a newly published market research report by IndustryARC, the global edible oil market size was around $88 to $90 billion as of 2018 and the demand is projected at a compound annual growth rate (CAGR) of around 8% to 10% during the forecast period of 2019 to 2025. The report titled as, “Edible Oil Market - Global Industry Analysis, Market Size, Share, Trends, Analysis, Growth and Forecast (2019 – 2025).”

APAC is the key region which is primed for growth and accounted for the largest share of around 40% to 42% in the edible oil market as of 2018. Palm oil imports in this region were 2,856,431 million tons in 2018, among which the Philippines imports maximum palm oil at about 689,238 million tons. Increasing consumption of palm in China, Indonesia, and India as it is a low-cost form of vegetable oil is propelling the growth of the edible oil market. Advanced innovative techniques for processing oils to offer them at affordable rates are also driving the growth of the edible oil market in APAC region.

The analyst of the report has identified that retail-distribution channels hold the major share in the edible oil market and the demand is estimated to grow at a CAGR of around 6% to 8% during the forecast period of 2019 to 2025. Owing to the factors such as affordability, improved living standard, and changing consumer preference are driving the demand for the edible oils in the retail sector. Growing demand for vegetable oils in cooking will increase the purchase of oils by households, which in turn benefits the retailers. Additionally, adoption of enhanced techniques for processing the edible oil with purity will increase the demand healthier oils in the market.

Some of the key players operating in the edible oil market are Archer Daniels Midland, Fortune, Sihai, Wuhu, Xiyinyin, Weiyi, Kangsheng, Xianggufang, Bunge, Cargill, CHS, and Ingredion.

Edible Oil Co-Products and By-Products Market: Product (Dried Soap Stock, Hard Oil Fatty Acid Distillate, Pure Soft Oil Fatty Acid Distillate, Mixed Soft Oil Fatty Acid Distillate), End-Use (Animal Feed, Soaps & Detergents, Tocopherol, Personal care products) & Region - Forecast (2018- 2023)