Africa Fats and Oil Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 4.49 % |
| Market Concentration | Low |
Major Players.webp){kind=logo}
*Disclaimer: Major Players sorted in no particular order |
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Africa Fats and Oil Market Analysis
The African fats and oil market size is expected to grow from USD 22.41 billion in 2023 to USD 27.92 billion by 2028, at a CAGR of 4.49% during the forecast period.
- The market is primarily driven by wide applications of oils and fats in the food and beverage industry. Fats and oils are essential raw materials and functional ingredients for several food products such as confectionery, bakery, ice creams, emulsions, sauces, shortenings, and margarine. The increasing consumption of processed food products in the region due to the rising population and inflating income levels propels market growth. Moreover, oils and fats are used to make paints, lubricants, paper, soaps, candles, personal care items, and cosmetic products, thus providing lucrative opportunities for players to expand their market share in the region. In addition, players are focusing on production facility expansion and partnerships with domestic manufacturers as key market penetration strategies.
- For instance, in July 2022, Eni launched its first production of vegetable oils for biorefining in Kenya. Eni completed the construction of the oilseed collection and pressing plant (agri-hub) in Makueni, Kenya, and started production of the first vegetable oils for bio-refineries. The agri-hub installed capacity of 15,000 tons, with an expected output of 2,500 tons in 2022. Besides this, governments of various countries are undertaking initiatives, boosting the demand for fats and oils in the region. For instance, in January 2023, Ethiopia's Ministry of Finance purchased more than 43,37,412 palm cooking oils from the Golden Africa Company in Djibouti to provide the public with edible oils at affordable prices.
Africa Fats and Oil Market Trends
Wide Applications of Oils and Fats in Different End-Use Industries
- The primary factor driving the market growth is the broad applications of oils and fats in various end-use industries. For instance, oils are extensively used in automobile parts, such as two-stroke engines, chainsaws, hydraulics, mold releases, and open gears. According to the National Association of Automobile Manufacturers of South Africa (NAAMSA), the total passenger car sales stood at 32,392 units in September 2022, up from 29,537 units in September 2021, registering a Y-o-Y growth of around 21.3%.
- Therefore, the increasing sales of passenger cars in the region provide lucrative opportunities for manufacturers to expand their market share in producing lubricants for industrial and transportation applications. Besides this, the market is experiencing an accelerating demand from the personal care and cosmetic segment. Oils and fats are used in products such as moisturizers, creams, serums, eye creams, hair oils, and others.
- Moreover, cosmetic manufacturers are launching healthy and natural ingredient-based products to cater to the customers' demand for products with organic products. For instance, in April 2021, a South Africa-based company, Bio Oil, launched skincare oil made with soybean, sunflower, safflower, chia seed, and jojoba seed oil.
Oils Are Currently Consumed More Than Fats
- Among all types of oils, palm oil is currently in high demand. To meet domestic and international demand, there has been an increase in investments in palm oil production in countries such as Nigeria and Ghana. Further, palm oil is often produced locally in many African countries, supporting local economies and providing a stable oil supply. For instance, according to the US Department of Agriculture, palm oil production in Nigeria accounted for 1.4 million metric tons, 1.4 million metric tons, and 1.275 million metric tons in 2022, 2021, and 2020, respectively.
- Moreover, African palm oil producers are leveraging export opportunities in the global market and are expanding their production to meet the demand. For instance, according to the ITC Trade Map Trade statistics for international business development, in 2022, the export value of crude palm oil in South Africa accounted for USD 3.082 million. Such factors provide lucrative growth opportunities for leading players and, in turn, drive the overall market growth.
Africa Fats and Oil Industry Overview
The African fats and oils market is highly competitive due to the presence of global and regional players. Key players dominating the African fats and oils market include Wilmar International Ltd., Archer Daniels Midland Company (ADM), Cargill Incorporated, Bunge Limited, and Olam International. The players adopt market penetration strategies, such as mergers and acquisitions, expansions, product innovations, and partnerships, to boost their brand presence across the region and improve their visibility among end-users.
Africa Fats and Oil Market Leaders
Bunge Limited
Wilmar International Ltd
Archer Daniels Midland Company (ADM)
Cargill Incorporated
Olam International
*Disclaimer: Major Players sorted in no particular order
Africa Fats and Oil Market News
- March 2023: Wilmar International Ltd (WILMAR) initiated the construction of an edible oil plant located in Richards Bay, KwaZulu-Natal, South Africa. This USD 81 million project encompasses the development of a fractionator, a shortening plant, and a packaging facility. Notably, this endeavor commenced in 2020.
- July 2022: Eni introduced the first vegetable oil production facility for biorefining in Kenya. This venture involved the establishment of an oilseed collection and pressing plant, which marked the inception of vegetable oil production for bio-refineries.
- June 2021: WA Group made a substantial investment of USD 114 million in a processing plant aimed at boosting edible oil production in Ethiopia. This strategic investment enabled the company to cease importing edible oils and, instead, focus on refining crude palm oil sourced from other countries, as well as processing locally cultivated oilseeds such as sesame seeds, peanut seeds, niger seeds, soya beans, and haricot beans.
Africa Fats & Oil Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.1.1 Wide Applications of Oils and Fats in Different End-Use Industries
4.1.2 Government Initiatives and Key Players Adopting Innovative Market Expansion Strategies
4.2 Market Restraints
4.2.1 Volatility in Imports and Supply Chain of Oils
4.3 Industry Attractiveness- Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Product Type
5.1.1 Oils
5.1.1.1 Soybean Oil
5.1.1.2 Palm Oil
5.1.1.3 Coconut Oil
5.1.1.4 Olive Oil
5.1.1.5 Canola Oil
5.1.1.6 Sunflower Seed Oil
5.1.1.7 Other Oils
5.1.2 Fats
5.1.2.1 Butter
5.1.2.2 Lard
5.1.2.3 Other Fats
5.2 Application
5.2.1 Foods and Beverages
5.2.1.1 Bakery and Confectionery
5.2.1.2 Dairy Products
5.2.1.3 Snacks and Savories
5.2.2 Animal Feed
5.2.3 Industrial
5.2.3.1 Cosmetics
5.2.3.2 Paints
5.2.3.3 Biofuel
5.2.3.4 Lubricants and Greases
5.3 Geography
5.3.1 Egypt
5.3.2 South Africa
5.3.3 Rest of Africa
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Wilmar International Ltd
6.3.2 Archer Daniels Midland Company (ADM)
6.3.3 Bunge Limited
6.3.4 Fuji Vegetable Oil Inc.
6.3.5 Cargill Incorporated
6.3.6 Olam International
6.3.7 Africa Palm Products (pty) Ltd
6.3.8 CEOCO (Pty) Ltd
6.3.9 Supa Oils
6.3.10 Sime Darby Berhad
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Africa Fats and Oil Industry Segmentation
Oils and fats form a vital part of a healthy diet as they are a source of essential fatty acids and a concentrated energy source in human nutrition. On the other hand, fats and oils can also provide distinctive flavors to food and offer unique and desirable functions during cooking. For example, oils are the frying media for deep-fried food, whereas fats (shortenings) are added to prevent the flour and other ingredients from clumping together when making pastries.
The African fats and oils market is segmented by product type, application, and geography. By product type, the market is segmented into oils and fats. The oils segment is further segmented into soybean, palm, coconut, olive, canola, sunflower seed, and other oils. The fat segment is segmented into butter, lard, and other fats. By application, the market is segmented into food and beverages, animal feed, and industrial. The food and beverages segment is segmented into bakery and confectionery, dairy products, and snacks and savory foods. Industrial is sub-segmented into cosmetics, paints, biofuel, and lubricants and greases. The market is segmented by geography into Egypt, South Africa, and the Rest of Africa.
The market sizing has been done in value terms in USD for all the abovementioned segments.
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Africa Fats & Oil Market Research FAQs
What is the current Africa Fats and Oil Market size?
The Africa Fats and Oil Market is projected to register a CAGR of 4.49% during the forecast period (2024-2029)
Who are the key players in Africa Fats and Oil Market?
Bunge Limited , Wilmar International Ltd, Archer Daniels Midland Company (ADM), Cargill Incorporated and Olam International are the major companies operating in the Africa Fats and Oil Market.
What years does this Africa Fats and Oil Market cover?
The report covers the Africa Fats and Oil Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Africa Fats and Oil Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Africa Fats and Oil Industry Report
Statistics for the 2024 Africa Fats and Oil market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Africa Fats and Oil analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
