South America Vegetable Oil Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The South America vegetable oil market is projected to grow at a CAGR of 3.72% during the forecast period (2020 - 2025).

Key Highlights

• South American countries, such as Brazil and Argentina, are the major exporter of peanut oil consisting more than 40% of the market share. Brazil and Venezuela are the leading vegetable oil producing countries in South America.
• Consumers’ increasing concern for health and wellness continues to favor sales of olive oil in the region, which is used as a dressing and as a cooking aid. The rising demand is met by imported olive oil in region. According to ITC trade map data, Brazil imported 79,544 ton for USD 435.2 million of olive oil in 2018, majorly from Portugal, Spain, Argentina, and other global countries
• Sunflower and soybean are the major oils consumed and produced in Argentina. According to the USDA report, in 2018-2019, Argentina produced 3,825 and 7,910 thousand metric ton of sunflower oil and soybean oil, respectively.

Key Market Trends

Increasing Demand for Palm Oil

Countries such as Colombia, Brazil and Ecuador are inclining towards sustainable palm oil production as palm oil tightens its grip on the rest of South America by taking certification from Roundtable on Sustainable Palm Oil. Since palm oil is extensively utilized in the region, more manufacturers are trying to expand their local business and get involved in the overseas trade of palm oil. In 2018, Ecuador became the first country in the region to adopt a jurisdictional approach to sustainable palm oil production in the whole country with an investment of USD 1.2 billion. The approach will aid in the organic and sustainable application in various sectors. The plantation of area of palm oil is also increasing at a significant rate, which is expevetd to boost its application in various end user industries in the upcoming years.

Brazil is the Largest Market

Brazil is one of the prominent producers and exporters of vegetable oil, after the United States. The country was the second leading exporter of soybean oil, which exported 1,414.5 thousand ton of soybean oil to India, China, Bangladesh, and other countries of the global market, in 2018. Furthermore, the innovations in cosmetics applications are paving way to the growing market for vegetable oils in the country. For instance, Cargill introduced a new ingredient category called Ultra Oils, representing a unique level of purity for oils and oil products. The range is developed by combining natural properties of vegetable oils blending it with the company’s exclusive technology and knowledge in lipids. The key players of the Brazilian vegetable oil market include Bunge Limited and Cargill Incorporate.

Competitive Landscape

The most active companies in the South America vegetable oils market are ADM, Bunge Limited, Wilmar International Limited, Cargill Incorporate, among others. The active companies in the market have adopted product innovation as the strategy, due to changing consumer preferences in the region. The major focus of the companies is to offer products with wider application range aiding all feed, food and beverage and industrial sectors, thereby, catering consumers’ preferences efficiently. Moreover, the companies have adopted continuous expansion as their strategy to achieve the competitive advantage in the market and expand their geographical presence and customer base.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support