Global Vegetable Oil Market Overview
The key driver impacting the vegetable oil market is the rapidly growing demand for packaged and processed food, particularly in emerging markets. For instance, as per the Institute of Food Technologists, global sales of packaged foods and drinks reached $2.1 trillion in 2017 and are predictable to augment at a compound annual growth rate (CAGR) of 2.2% through 2022. The Middle Asia Pacific and the East/Africa food sectors are likely to increase in the coming years. Moreover, the growing usage of vegetable oils as lubricants for industrial and transportation applications contributes to vegetable oil's market growth in the coming years.
According to Value Market Research, the global vegetable oil market reached a production volume of over 210 million tons in 2020 and is estimated to grow at a CAGR of about 3% during the forecast period 2021 to 2027.
The rising supportive policies from the government on vegetable oil usage in various countries are estimated to increase market demand in the forecast period. For instance, In India, in November 2017, the taxes on crude and refined palm oil were raised to 30% and 40%, respectively, and in March 2018, to 44% and 54%, respectively. EU's consumption of vegetable oil in biofuel has been mainly determined by the Renewable Energy Directive (RED). It was established in 2009, necessitate 10% of the energy consumption in rail and road transport in 2020 to be from renewable sources. EU Member States (countries) are necessary to employ this target with national laws and incentives, like blending mandates. However, new label requirements & trans-fat levels hindering the growth may hamper the market in the long run. Also, high price volatility & resulting lack of working capital negatively impacts the market. The current industry trends, such as Palm & palm kernel oil as a substitute for trans-fat oil and rising demand from the animal feed industry, are expected to offer new lucrative market opportunities for the key players.
The Vegetable oil market is vast, with many local and global players. The Vegetable oil market is extensive, with many regional and international players. The important market leaders follow several strategies to raise their market status, such as extending product portfolio, acquisitions, expanding product portfolio, contracts, amalgamation, contracts, acquisitions, product upgrades to enlarge their market share across the globe. The significant players studied in the report include Total S.A., BP, Shell, Archer Daniels Midland Co., Bunge North America Inc., Cargill Agricola S.A., United Plantations Berhad, Fuji Oil, Dow In this research report, the Agrosciences LLC, and Savola Group.
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In this research report the vegetable oil market is segmented by type, application, and region.
Analysis by Type:
By type, the report is categorized into palm oil, soybean oil, rapeseed oil, sunflower oil, olive oil, and others. The palm oil segment dominates the type segment with over 30% share in 2020. It is due to the growing adoption of Palm & palm kernel oil as a substitute for trans-fat oil. Also, significant growth in demand for the product from end-use industries is adding growth to the market. Moreover, rising consumer awareness regarding the positive health benefits of palm oil contributes to the massive demand from the palm oil segment in the coming years.
Analysis by Application:
By application, the report is categorized into food, feed, and industrial. The food application segment dominates the application segment with over 40% share in 2020. It is due to the significant growth in demand for the product from the food industries. It is majorly utilized for baking & frying processes, salads & cooking oils, fatty ingredients, margarine & other spreads, frozen processed foods, etc. Moreover, rapidly growing food industries worldwide contribute to the massive market demand for the food application segment in the forecast period.
Analysis by Region:
In the regional outlook of the global Vegetable oil market, the Asia Pacific region dominates globally with a 30% market share in the forecast period. It is due to the growing end-use markets such as biofuels, food processing, and bioplastics. Also, the presence of leading players, growing R&D efforts of European companies to develop vegetable oil technology adds growth to the market. Moreover, the availability of abundant raw material in Southeast Asian markets contributes to tremendous market growth across the Asia Pacific.
Market Segmentation covered in the Report:
By Type
- Palm Oil
- Soybean Oil
- Rapeseed Oil
- Sunflower Oil
- Olive Oil
- Others
By Application
By Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
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