South & Central America Edible Oils and Fats Market Forecast to 2030 - Regional Analysis - By Type

The South & Central America edible oils and fats market was valued at US$5.25 billion in 2023 and is expected to reach US$7.98 billion by 2030; it is estimated to grow at a CAGR of 6.2% from 2023 to 2030.

Strategic Development Initiatives by Manufacturers Drive South & Central America Edible Oils and Fats Market

Manufacturers of edible fats and oils invest significantly in the expansion of business and production capacity to serve their customer base better and meet their consumer requirements. In 2023, Bunge BG.N agreed to purchase 66% KS's equity stake held by South Korean CJ Cheiljedang Corporation in Brazilian soy crusher CJ Selecta. Its position as a major soy processor and the leading oilseed producer and supplier in the world was strengthened by the acquisition. Also, ADM increased Brazil's soy crushing capacity. To satisfy high local and export demand, the company said that it will increase its crush capacity by 400,000 metric tons annually across three sites. Thus, the business expansion strategies of prominent players drive the edible oils and fats market growth.

South & Central America Edible Oils and Fats Market Overview

The South & Central America edible fats and oils market in South & Central America is segmented into Brazil, Argentina, and the Rest of South & Central America. The snack food sector in the South & central America is booming, owing to the rising consumer preference for different snacking options such as frozen snacks, savory snacks, fruit snacks, confectionery snacks, and bakery snacks. Edible oils and fats play an integral role, as they provide distinctive flavors to food and provide unique and desirable functions in manufacturing snacks. For example, oils are the frying media for deep-fried food, and in pastries, vegetable oil-based shortenings are added to prevent the flour and other ingredients from clumping. Hence, the rising demand for different snacks, and the benefits associated with the edible oils and fats further surging the demand for edible oils and fats in the snacking sector in the region.

Furthermore, the demand for edible oils and fats in the end-use industry such as animal nutrition has seen rise in the region. According to the Oil World, in 2022, China purchased around 70% of the Brazilian soybean oil, mainly for animal protein consumption. Moreover, expanding animal nutrition, pharmaceuticals, and nutraceuticals industries drive the demand for specialized edible oils and fats. These industries require specific types of oils for various applications, such as in animal feed formulations and pharmaceutical formulations. As these sectors grow and diversify, the demand for their unique requirements increases, fueling the South & Central America edible oils and fats market growth.

South & Central America Edible Oils and Fats Market Segmentation

The South & Central America edible oils and fats market is segmented based on type, application, and country.

Based on type, the South & Central America edible oils and fats market is bifurcated into oils and fats. The oils segment held a larger share in 2023 . The fats segment is further subsegmented into butter, margarine, palm oil based shortening, vegetable oil based shortening, and others. The oils segment is further subsegmented into soybean oil, sunflower oil, palm oil, canola oil/rapeseed oil, and others.

By application, the South & Central America edible oils and fats market is segmented into food and beverages, animal nutrition, pharmaceuticals and nutraceuticals . The food and beverages segment held the largest share in 2023. The food and beverages segment is further subsegmented into bakery and confectionery, dairy and frozen desserts, RTE and RTC meals, snacks, and others.

Based on country, the South & Central America edible oils and fats market is segmented into Brazil, Argentina, and the Rest of South & Central America. The Rest of South & Central America dominated the South & Central America edible oils and fats market in 2023.

AAK AB, Archer-Daniels-Midland Co, Bunge Ltd, Cargill Inc, ConnOils LLC, Fuji Oil Co Ltd, Kao Corp, Louis Dreyfus Co BV, and Olam Group Ltd are some of the leading companies operating in the South & Central America edible oils and fats market.