Market Insights

The oilseed production on the global front has been maintained by South America’s processing sector. In 2015, olive oil recorded an 8% volume growth rate, while vegetable and seed oil volume sales declined by 1%. The biggest growth in oilseed production is expected in Brazil, with its share of world market growing to 20.9% in 2024.

Market Dynamics

The primary driving factor of South America’s oils and fats market is its focus towards the biodiesel sector. Argentina is expected to maintain an export-oriented biodiesel industry (about 50% of produced biodiesel). The vegetable oil used to produce biodiesel is expected to reach 2.5 Mt by 2024, i.e. 64% of domestic vegetable oil consumption. A low rate of consumption of oilseed meal results in high amounts of it being exported.

Market Segmentation

The market has been segmented by source type, application type, and geography.

The major market segmentation is on the lines of protein meal production and oilseed production. In contrast to vegetable oil, world production of protein meal is concentrated on soybean meal, which accounts for more than two-thirds of world production. Argentina and Brazil have a significant contribution. For Brazil and Argentina, strong growth in the production of protein meal is expected. Brazil has been expected to contribute to a one-third share of world exports in 2024. Brazil's exports are expected to grow at 2.6% p.a. Argentina has also played a part in the exports. Biodiesel production from fats & oils, along with other chemical and pharmaceutical applications are widespread in countries such as Brazil, Argentina and the U.S.

Regional Analysis

Argentina remains the largest meal exporter because it is the only country among the large oilseed meal producers with a very small consumption base. This low level of consumption is directly tied to the composition of its pasture-based livestock sector, which requires small amounts of protein meal. Brazil is also an important exporter of oilseed meals. The oilseed products market is much more active than the oilseeds market.

Capital Activities

Aarhus Karlshamn (AAK), a Sweden-based edible oils and fats producer, is all set to construct a new specialty and semi-specialty edible oils plant in Jundiai, São Paulo, Brazil.

Cargill has acquired SGS Micro ingredients by its growth strategy in the Parana province. SGS Micro ingredients have a production capacity of 56,000 tons per year in its plant.

Fuji Oil Co., Ltd. announced the establishment of a new company Fuji Oil South America in Campinas, São Paulo, Federative Republic of Brazil.

Key Deliverables in the Study

• Market analysis for the South America oil and fats market, with region-specific assessments and competition analysis.
• Market definition along with the identification of key drivers and restraints.
• The identification of factors instrumental in changing the market scenario, rising prospective opportunities, and identification of key companies that can influence the global market.
• Extensively researched competitive landscape section with profiles of major companies along with their market share.
• Identification and analysis of the macro and micro factors that affect the oil and fats market.
• A comprehensive list of key market players along with the analysis of their current strategic interests and key financial information.
• A wide-ranging knowledge and insight about the major players in the industry and the key strategies adopted by them to sustain and grow in the studied market.
• Insights on the major countries/regions, where this industry is growing and identify the regions that are still untapped.