2016 - 2026
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The vegetable oil market is projected to register a CAGR of 5.64% during the forecast period (2021 - 2026).
The COVID-19 pandemic has unleashed a series of unprecedented events affecting every industry. However, since the food industry was overburdened with the responsibility of meeting the requirements in the time of emergency, especially during the lockdown period, vegetable oil for food applications was consumed in large quantities, and the market witnessed a surge in demand from the sector.
The market is primarily driven by the robust industrial applications of vegetable oils for the manufacturing of organic industrial products, including cosmetics and toiletries, whose usage has increased globally. Moreover, the consumption of plant-based food products containing only high-quality edible oils/cooking oils has propelled the application of oil in food and beverage products.
Additionally, supporting policies by regulatory bodies like the Renewable Energy Directive (RED) and European Union Common Agricultural Policy (CAP) are also widely supporting the application of vegetable oil in varied industries, including biofuel, food, animal feed, or cosmetics.
Rapeseed oil dominates in the markets like Europe, owing to its abundant production in the regional market and its wide application in the biodiesel, food, and animal feed industries. Germany and France are the leading consumers of rapeseed oil in the regional market.
Scope of the Report
Vegetable oils are oils that are extracted from seeds or, less often, from other parts of fruits; similar to animal fats, vegetable oils are also mixtures of triglycerides. The vegetable oil market has been segmented by type, which includes palm oil, soybean oil, rapeseed oil, sunflower oil, olive oil, and other types. Based on application, the market is segmented into food, feed, and industrial. The study also involves the global-level analysis of the main regions such as North America, Europe, Asia-Pacific, South America, and Middle-East and Africa. For each segment, the market sizing and forecasts have been done on the basis of value (in USD million).
Key Market Trends
Supportive Policies on Vegetable Oil Usage in Various Countries
The European Union’s consumption of vegetable oil in biofuel has been largely driven by the Renewable Energy Directive (RED). This directive, established in 2009, requires 10% of the energy consumption in road and rail transport in 2020 to be from renewable sources. EU Member States (countries) are required to implement this target with national laws and incentives, such as blending mandates.
In India, during November 2017, the taxes on crude and refined palm oil were raised to 30% and 40%, respectively, and in March 2018, to 44% and 54%, respectively. These changes were made to support domestic vegetable oil production. Similarly, in the United States, the Renewable Fuel Standard (RFS) mandates the consumption of increasing volumes of biofuel each year. In addition to the RFS, the United States has provided a tax incentive for biodiesel and renewable diesel consumed in the US imported biofuels. In several cases, the tax credits were reinstated retroactively. Therefore, factors such as these are expected to drive the market studied.
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Asia-Pacific Dominates the Vegetable Oil Market
Asia-Pacific is the dominant region for the vegetable oil market across the globe, and in Asia-Pacific, China holds the largest share of vegetable oil consumption and production. Though the production volume is high, consumption exceeds production, resulting in higher import volumes when compared to export volumes. The Chinese vegetable oil market majorly encompasses palm, soybean, rapeseed, peanut, sunflower, and olive oil. Over the past five years, soybean and palm oil had the largest shares in the Chinese vegetable oil market. Wilmar International Ltd (Yihai Kerry), Cofco Corporation, and Xiwang Food are some of the major edible vegetable oil companies operating in the Chinese and Asian markets. Japan is another major player in the industry. Japan imports the great majority of olive oil from Southern Europe, which is used for cooking and non-food uses.
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The vegetable oil market is a competitive market, and the major strategies adopted by the key players of the market studied include product innovations, partnerships, expansions, and mergers and acquisitions. Wilmar International Limited, Bunge Limited, Golden Agri-Resources, and Sime Darby Plantation Berhad are some of the prominent players operating in the market studied. The major players of the market have a broad geographical presence and extensive product portfolios to cater to numerous consumer demands. This factor assists the companies in maintaining a strong foothold in the market.
In 2021, Bunge Loders Croklaan expanded its oils and fats portfolio to meet the organic demand in Europe, offering a steady and scalable supply of organic oils and fats, including sunflower, rapeseed, soy, palm, shea, and coconut.
In 2019, EFKO Group and VTB Group signed an agreement on the development of infrastructure in the Taman seaport. The agreement includes the creation and further exploitation of objects of the infrastructure for transshipment of grain and meal under 10 million metric ton and 3 million metric ton of vegetable oils in Taman seaport in the Russian Federation.
In 2019, Archer Daniels Midland Company and Wilmar International Limited upgraded their partnership into a full-function joint venture – Olenex. As a part of the agreement, ADM announced to transfer a specialty oils and fats facility and a palm refining plant in Hamburg, Germany, to the new joint venture.
Table of Contents
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
4.2 Market Restraints
4.3 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 By Type
5.1.1 Palm Oil
5.1.2 Soybean Oil
5.1.3 Rapeseed Oil
5.1.4 Sunflower Oil
5.1.5 Olive Oil
5.1.6 Other Types
5.2 By Application
5.3.1 North America
188.8.131.52 United States
184.108.40.206 Rest of North America
220.127.116.11 United Kingdom
18.104.22.168 Rest of Europe
22.214.171.124 Rest of Asia-Pacific
5.3.4 South America
126.96.36.199 Rest of South America
5.3.5 Middle-East and Africa
188.8.131.52 United Arab Emirates
184.108.40.206 South Africa
220.127.116.11 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Most Active Companies
6.2 Most Adopted Strategies
6.3 Market Positioning of Players
6.4 Company Profiles
6.4.1 Archer Daniels Midland Company
6.4.2 Sime Darby Plantation Berhad
6.4.3 Bunge Limited
6.4.4 Olam International Limited
6.4.5 Cargill Incorporated
6.4.6 Golden Agri-Resources
6.4.7 Kuala Lumpur Kepong Berhad
6.4.8 Fuji Oil Holding Inc.
6.4.9 Wilmar International Limited
6.4.10 PT Astra Agro Lestari Tbk
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. IMPACT OF COVID-19 ON THE MARKET
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Frequently Asked Questions
What is the study period of this market?
The Vegetable Oil Market market is studied from 2016 - 2026.
What is the growth rate of Vegetable Oil Market?
The Vegetable Oil Market is growing at a CAGR of 5.64% over the next 5 years.
Which region has highest growth rate in Vegetable Oil Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Vegetable Oil Market?
Asia Pacific holds highest share in 2020.
Who are the key players in Vegetable Oil Market?
- Cargill, Incorporated
- Wilmar International Limited
- Olam International
- Archer Daniels Midland Company
- Bunge Limited
Are the major companies operating in Vegetable Oil Market.