According to the new edible oils and fats market analysis by Future Market Insights (FMI), sales of edible oils and fats are estimated to generate a total of USD 121.90 billion in 2023. Between 2023 and 2033, the demand is expected to upsurge at a 6.4% CAGR, according to FMI. By 2033, the edible oils and fats market is anticipated to exceed USD 226.68 billion.
The global edible oils and fats market is a significantly growing industry. Healthy oils, like vegetable and olive oils, are expected to continue to play a positive development driver role due to their growing relevance as essential functional components.
Factors that influence the Market – Market Drivers
Factors that limit the Market – Market Restraints
Market’s Top Opportunities
Key Market Trends
| Attributes | Details |
|---|---|
| Edible Oils and Fats Market Value (2023) | USD 121.90 billion |
| Edible Oils and Fats Market Expected Value (2033) | USD 226.68 billion |
| Edible Oils and Fats Market Projected CAGR (2023 to 2033) | 6.4% |
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Historical Period (2016 to 2022):
| Attributes | Details |
|---|---|
| 2016 | 78.96 billion |
| 2022 | 114.57 billion |
The market experienced significant growth during this period, driven by factors such as increasing demand for healthy and natural food products, rising population, and improving economic conditions in developing countries. The market has seen an increase in the production and consumption of different types of edible oils and fats, such as palm oil, soybean oil, sunflower oil, canola oil, and olive oil, among others. Additionally, the growth of the food and beverage industry and the growing use of edible oils and fats in various non-food applications, such as cosmetics and personal care, have also contributed to the market growth.
Forecast Period (2023 to 2033):
| Attributes | Details |
|---|---|
| 2022 | 114.57 billion |
| 2023 | 121.90 billion |
The future looks promising for the edible oils and fats industry with multiple opportunities for growth and expansion. The trend towards plant-based diets is expected to drive demand for plant-based edible oils and fats, such as olive oil, canola oil, and coconut oil. The food and beverage industry is expected to continue to grow, providing opportunities for market expansion. Additionally, demand for functional food products that offer specific health benefits, such as reducing the risk of heart disease or improving brain function, is expected to increase, providing opportunities for the development of new and improved edible oils and fats products.
By 2033, the vegetable and seed oils segment is predicted to expand at a 6.9% CAGR and reach USD 109.84 billion. The vegetable and seed oils segment dominates the edible oils and fats market due to a combination of factors, including:
Overall, these factors have contributed to the dominance of vegetable and seed oils in the market. However, during the forecast period, the olive oil segment is anticipated to grow significantly in terms of CAGR. The United States, Canada, Japan, China, and Europe are expected to propel the segment's predicted 7% CAGR growth in the olive oil segment.
Olive oil is rich in mono-saturated fatty acids and antioxidants, which have been linked to a reduced risk of heart disease, stroke, and certain types of cancer. Olive oil has long been a staple in the Mediterranean diet and is associated with healthy eating habits and lifestyles. The olive oil industry has heavily marketed and promoted the health benefits of olive oil, contributing to its growing popularity.
The supermarkets & hypermarkets segment dominates the edible oils and fats market. These distribution channels have established supply chains and economies of scale, which allow them to offer products at a competitive price.
The online channels segment is projected to expand significantly in terms of CAGR. E-commerce websites and online grocery stores are also growing in popularity as they provide convenient and easy access to a wide range of products. These platforms often provide rare and special oils that are not available at traditional brick-and-mortar stores. Online retailers often lower their prices due to lower overhead costs, making it easy for consumers to find affordable oils and fats.
Owing to the large production and consumption of soybean oil, the United States is the market leader for edible oils and fats in North America. The United States edible oils and fats market is a large and growing industry, driven by increasing consumer demand for healthy and more versatile food options.
The advantages provided by e-commerce platforms are anticipated to stimulate the domestic market. The need for vegetable oils from the food processing and food service sectors has greatly risen as a result of the increase in the popularity of fast food and shifts in consumer lifestyles towards more convenient foods. Given the increasing demand for healthy oils like olive oil, canola oil, and rapeseed oil in the United States, the industry is developing significantly.
The edible oils and fats industry in the United States has seen an increased focus on sustainability and environment-friendly production methods. The shift towards sustainability is mending the environment, as consumers are increasingly willing to pay more for products that align with their values. Hence, as consumers continue to seek out premium and sustainable food options, the demand for high-quality edible oils and fats is likely to remain strong in the United States.
Owing to the use of edible oils and fats for bakery goods like bread, pastries, and numerous other items in daily diet, Germany dominates the market share in Europe's edible oils and fats industry. The market in Germany is expected to rise to expand at a CAGR of 4.1% during the forecast period.
The market in Germany is characterized by high consumer demand for high-quality and health-conscious products, leading to a focus on product innovation and differentiation. In recent years, there has been a trend toward the use of plant-based oils, as consumers seek healthy and more sustainable options.
One of the key drivers of the Germany edible oils and fats market is the growing demand for functional foods and dietary supplements. Consumers in the country are increasingly looking for products that not only meet their nutritional needs but also offer health benefits such as reducing the risk of chronic diseases. This has led to a rise in demand for plant-based oils.
Another factor that is driving the growth of the market in Germany is the rise of e-commerce. Online sales channels have become increasingly popular in Germany, offering consumers a convenient and accessible way to purchase a wide range of food products, including edible oils and fats. This trend is expected to continue in the coming years, further boosting the market growth in the country.
The edible oils and fats industry in the United Kingdom is a highly competitive and dynamic industry, with a range of products available for consumers. The market has seen a shift towards healthy options in recent years, with consumers becoming increasingly aware of the health impacts of the food they consume. This has led to a rise in demand for oils and fats that are perceived to be healthy, such as olive oil and avocado oil.
One of the key trends in the United Kingdom's edible oils and fats market is the increasing demand for plant-based alternatives to animal-based products. This is driven by a growing interest in vegetarian and vegan diets, as well as health and environmental concerns. As a result, many companies are now offering plant-based oils to meet their demand.
In terms of the distribution of edible oils and fats in the United Kingdom, supermarkets are the leading retail channel, accounting for over 60% of all sales. Online sales are also growing, with many consumers choosing to purchase their oils and fats from online retailers, such as Amazon and Ocado. With a range of products available and strong competition in the market, the edible oils and fats industry in the United Kingdom is poised for continued growth and development during the forecast period.
China is anticipated to reach a projected market size of USD 59.23 billion by 2033, mounting at a CAGR of 9.8% during the forecast period. China's edible oils and fats market has experienced significant growth in recent years due to increasing consumer awareness about health and wellness. The demand for high-quality and healthy oils has been rising, driven by factors such as changing dietary habits, urbanization, and growing disposable income.
In terms of distribution channels, supermarkets, and hypermarkets are the leading channels for the sale of edible oils and fats in China. Online sales of edible oils and fats have also been growing fast lately, driven by the increasing number of consumers shopping online and the convenience of online shopping.
The Government of China has been implementing policies to promote the development of the domestic edible oils and fats industry. For example, the government has been promoting the use of high-quality domestic oilseeds, such as rapeseed and cottonseed, to reduce the dependence on imported oils. Additionally, the government has been providing financial support to oilseed processors to upgrade their technology and improve the quality of their products. Therefore, the government’s support for the domestic edible oils and fats industry is likely to play a significant role in the market’s growth.
India edible oils and fats market is a highly dynamic and significantly growing industry with a strong presence of both domestic and international players. With a population of over 1.4 billion people, the demand for edible oils and fats in India is huge and is expected to continue growing during the forecast period. India is the leading producer and consumer of edible oils in the world, with vegetable oils accounting for a crucial share of the market.
The Government of India has also played a significant role in shaping the edible oils market in India. The government has imposed import duties on various edible oils, which has led to a rise in prices of imported oils and has made domestic oils more competitive. The government has also implemented various policies aimed at promoting the production and consumption of domestically produced oils.
Owing to the high reliance on imports for edible oils, the Department of Agriculture in India initiated a drive to introduce oil seeds in practically all of Kashmir's districts in 2021. In order to lessen its reliance on imports of palm oil, India intended to greatly boost production of the oil in the northeast of the nation the same year. To develop 6,500 square kilometers of the country with palm oil plantations, the government spent over USD 1.5 billion.
The edible oils and fats market is highly competitive, with companies competing on factors such as product differentiation, brand recognition, the scale of operations, distribution channels, innovation, mergers and acquisitions, and globalization. Brands with a strong reputation, extensive distribution networks, and investments in research and development have a competitive advantage. The global market becomes increasingly competitive as companies expand their reach and tap into new markets.
Fuji Vegetable Oil, Inc.
For more than 30 years, Fuji Vegetable Oil, Inc. has produced specialized oils and fats for consumers across the world. Many different items, including premium confectioneries, bakery items, snacks, and packaged meals, are made with fats and oils.
Cargil, Inc.
In the areas of food, financial products, agriculture, industry, and risk management, Cargill Inc. (Cargill) offers goods and services. It handles the marketing, production, and distribution of various food items, including meat, cereals, oilseeds, sugar, cotton, salt, and sugar. In addition, it also provides organic components for food for animals, cosmetics, and bio-industrial goods.
Bunge Limited
Bunge Limited was founded in Bermuda with its headquarters in the United States. It engages in grain trade, food processing, fertilizer production, and exporting soybeans globally. Bunge is the leading processor of oilseeds and a top consumer marketer of bottled vegetable oil worldwide.
The edible oils and fats market size is set to reach USD 121.90 billion in 2023.
Sales of edible oils and fats are estimated to grow at a 6.4% CAGR through 2033.
Vegetable and seed oil is one of the top product types in the edible oils and fats market globally.
Fuji Vegetable Oil, Inc., followed by Cargil, Inc., Bunge Limited, and Ajinomoto Co., Inc., are leading the edible oils and fats market.
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Edible Oils and Fats Market
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