Edible Oils Global Market Report 2024

The edible oils market size has grown steadily in recent years. It will grow from $86.85 billion in 2023 to $89.53 billion in 2024 at a compound annual growth rate (CAGR) of 3.08%. The expansion observed during the historical period can be ascribed to industrialization, the increase in global population, economic progress, political stability, culinary variety, and infrastructure development.

The edible oils market size is expected to see steady growth in the next few years. It will grow to $101.4 billion in 2028 at a compound annual growth rate (CAGR) of 3.2%. The anticipated growth in the forecast period can be credited to renewable energy policies, the rise of health and wellness trends, initiatives addressing climate change, the transition towards plant-based diets, government regulations, and emerging market demands. Key trends expected in the forecast period comprise the integration of technology in agriculture, innovations in extraction technology, advancements in packaging, the emergence of clean label products, and the adoption of sustainable practices.

Edible oils represent fatty liquids procured from plants, animals, or synthetic sources, employed in frying, baking, and culinary preparations. The selection of oil hinges upon variables such as cooking technique, flavor attributes, nutritional factors, and cultural inclinations.

Primary varieties of edible oils encompass palm oil, soybean oil, canola oil, sunflower oil, and additional variants. Palm oil, a vegetable oil variety, is obtained from the fruit of oil palm trees and finds utility in the production of items such as cakes, chocolates, biscuits, margarine, and fried foods. Available in both liquid and solid states, edible oils derive from diverse sources including fruits, vegetables, herbs, spices, and flowers. Furthermore, these oils undergo refinement through varied extraction methodologies such as distillation, carbon dioxide extraction, and cold press extraction.

The surge in food demand is expected to drive the expansion of the edible oils market in the foreseeable future. Food, defined as a substance primarily composed of protein, carbohydrates, fat, and various nutrients, serves as a vital source of energy and sustains crucial bodily processes and development. Edible oils such as olive oil, canola oil, and sunflower oil, renowned for their monounsaturated fats, find extensive use in food preparation, effectively reducing the risk of heart and cardiovascular ailments while promoting healthy cholesterol levels. For example, a September 2023 report published by the United States Department of Agriculture, a U.S. governmental agency, revealed that food expenditures constituted 12.8 percent of total spending by U.S. households in 2022, marking a rise from the 12.4 percent recorded in 2021. Moreover, a global report on the food crisis published by the World Food Programme in 2022 indicated that as many as 205 million individuals could be severely food insecure and urgently require assistance. Consequently, the escalating demand for food acts as a catalyst for the ongoing growth of the edible oils market.

The burgeoning awareness surrounding health and fitness is anticipated to drive the growth of the edible oil market in the coming years. Health and fitness awareness denotes the extent of knowledge, mindfulness, and comprehension individuals, communities, or societies possess regarding the maintenance and enhancement of their physical and mental well-being through healthy lifestyle choices, physical activity, and proper nutrition. This growing awareness prompts consumers to select healthier cooking oils, such as olive oil, avocado oil, or those rich in unsaturated fats, consequently stimulating heightened demand for edible oils associated with heart health and overall wellness. For example, in January 2022, as per a survey report released by Nutrisystem, a U.S.-based provider of weight loss products, among 2,000 participants, 53% of respondents articulated their goal for 2022 as weight loss, with an average target of shedding 14 pounds. Hence, the increasing consciousness regarding health and fitness is propelling the expansion of the edible oil market. 

Product innovation emerges as a prominent trend gaining traction within the edible oils market. Leading companies operating in this sector are directing their efforts towards the development of novel products to sustain their market positioning. For instance, in February 2023, KTC Edibles Ltd., an independent manufacturer and distributor of edible oils based in the UK, introduced certified sustainable hard palm kernel oil (KPKO), a 100% vegetable oil suitable for vegans and low in trans fats. The utilization of HPKO in ice cream and confectionery products is particularly advantageous. KTC HPKO is characterized by a neutral flavor and odor, making it compatible with both dairy-based and vegan products due to its absence of additives, allergens, and genetically modified components. The company's expanding range of premium edible oils and fats now encompasses Certified Sustainable Segregated HPKO, complementing various other offerings within the KTC portfolio, including the UK's initial and exclusive Halal beef dripping and a recently launched premium Italian lard.

Leading companies within the edible oil market are pioneering the development of innovative products like bioengineered edible oils to cater to broader customer bases, drive sales, and enhance revenue streams. Bioengineered edible oils, which are synthetic or modified oils created through genetic engineering techniques utilizing microorganisms, plants, or algae, provide sustainable and customizable alternatives to conventional edible oils. For example, in November 2022, C16 Biosciences, a U.S.-based company specializing in oil and fat production, introduced Palmless, a distinctive bioengineered palm oil generated through fermentation. This groundbreaking product has the potential to revolutionize numerous consumer sectors by eliminating the reliance on environmentally harmful agricultural sourcing in the global south. With Palmless, consumer goods companies can leverage the benefits of palm oil without exacerbating environmental degradation, as it is cultivated through a sustainable fermentation process, thereby offering a socially responsible substitute. 

In April 2023, Groupe Berkem, a chemical company headquartered in Italy, completed the acquisition of Biopress for an undisclosed sum. Through this strategic acquisition, Berkem aims to broaden its portfolio within the 'Health, Beauty, and Nutrition' sector, with a specific focus on the cosmetics and nutraceutical markets. Biopress, based in France, specializes in the production of 100% natural vegetable edible oils and proteins.

Major companies operating in the edible oils market report are Associated British Foods PLC, Archer Daniels Midland Company, Bunge Limited, Wilmar International Limited, United Plantations Berhad, Unilever PLC, Mewah International Inc., Sime Darby Plantation Berhad, Cargill Inc, Richardson International, Kulim Oil, Abu Dhabi Vegetable Oil Co LLC, Parakh Foods and Oils Limited, AarhusKarlshamn, Ingredion, Avril Group, Nisshin Oillio, GrainCorp, Emami Agrotech Limited, China Oil and Foodstuffs Corporation.

Asia-Pacific was the largest region in the edible oils market in 2023. It is expected to be the fastest-growing region in the edible oils market report during the forecast period. The regions covered in the edible oils market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the edible oils market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The edible oils market consists of sales of clove oil, kerosene, olive oil, coconut oil, petroleum edible oils, paraffin, and basil oil. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.