Market Trends of Europe Vegetable Oil Industry
This section covers the major market trends shaping the Europe Vegetable Oil Market according to our research experts:
Supportive Policies on Vegetable Oil Usage in the Region
The European Union's consumption of vegetable oil in biofuel is largely driven by the Renewable Energy Directive (RED). This directive, established in 2009, requires 10% of the energy consumption in road and rail transport to be from renewable sources. The European Union Member States (countries) must implement this target with national laws and incentives, such as blending mandates. Among all, palm oil contributes around 20% to the production of biodiesel (fatty acid methyl ester) and renewable diesel (hydrotreated vegetable oil) in the European Union.
The other major feedstocks for producing diesel substitutes are rapeseed, sunflower oil, and soybean oil. The current European Union Common Agricultural Policy (CAP) made some strategies to augment the oilseed and pulse production through greening measures, which will have a direct impact on the vegetable oil market of the region. Thus, the regulatory body is projected to ban many pesticides that are commonly used in the United States. As a result, the domestically produced vegetable oil will gain applications in the food, animal feed, and cosmetics industries by taking hold of consumer trust over the quality of vegetable oil used as an ingredient.
Germany Holds the Largest Market Share
After Canada, Germany is believed to be the largest producer of rapeseed oil across the world. Based on its nutritionally well-balanced composition, rapeseed oil has become one of the most common vegetable oils in Germany and all over Europe. It is used as salad and cooking oil on a large scale and serves as an oil component in margarine, mayonnaise, and dressings. The non-food industry is also interested in rapeseed oil. It is used in energy productions, such as biofuels, and serves as an eco-friendly additive in lubricants. Germany is among one of the largest European markets for olive oil. Total consumption is high and stable. Moreover, the market offers good opportunities for organic olive oil. Most consumption in Germany is for virgin olive oil. This, in turn, boosts the demand for vegetable oil in the country.
