Global Edible Oils Market Size, Share, Opportunities, COVID 19 Impact, And Trends By Product Type (Coconut Oil, Sunflower Oil, Soybean Oil, Groundnut Oil, Mustard Oil, Others), By End-User (Household, Commercial, Industrial), By Distribution Channel (Online, Offline), And By Geography- Forecasts From 2022 To 2027

The global edible oil market is estimated to grow at a CAGR of 3.38% from a market value of US$99.213 billion in 2020 to attain a market value of US$125.178 billion by the end of 2027.

As per the OECD-FAO Agricultural Outlook 2019-2028 figures, per capita, vegetable oil consumption is expected to rise by 0.9% every year. This is lower than the annual growth rate of 2.0% observed between 2009 and 2018. In addition, developing areas of the world are expected to contribute to the growth of the vegetable oil market during the projected period. In China, the consumption of vegetable oil is predicted to be around 30 kg per capita, and in Brazil, it is estimated to be around 24 kg per capita. For developing nations, the per capita consumption of vegetable oil is assumed to reach 27 kg with a growth rate of 0.4% per annum. India is the world's second-biggest user of vegetable oil after China, and it is also the largest importer. The country is projected to maintain the high per capita vegetable oil consumption with a growth rate of 3.1% per annum. It is also expected to reach 15 kg of per capita consumption by the end of 2028.

The substantial growth is attributed to the expanding domestic production in the country and the growth of imports, specifically palm oil from Indonesia and Malaysia.

 The availability of edible oil per capita in the Least Developed Countries (LDCs) is expected to increase by 1.2 per year, reaching 10 kg per capita in 2028. The use of vegetable oil for biodiesel production, on the other hand, will stay constant over the next ten years, despite an 8.5% annual growth rate over the previous ten years when biofuel support programs were first implemented.

The crushing of oilseeds and the development of perennial tropical oil plants, notably palm oil, are critical to worldwide vegetable oil production.

It is noted that global palm oil production has exceeded the production of other edible oils in the last ten years. It is further expected that this production rate is likely to fall during the projection period. Malaysia and Indonesia produce the most palm oil, accounting for more than one-third of total vegetable oil output worldwide. Production is projected to increase by 1.8% per annum over the forecast period in Indonesia, which is very little in comparison to 6.9% per annum in the last decade. The sluggish development is ascribed to the biggest importers of palm oil enforcing tight environmental rules, in addition to sustainable agriculture standards. As a result, the expansion of the palm oil area in Malaysia and Indonesia is expected to decelerate. It is also determined that in order to boost the expansion of palm oil output, certain productivity improvements are necessary, including an increase in replanting efforts in certain locations.

In other regions of the world, palm oil production is projected to grow at a fast pace from a lower base, mainly for utilization in the local and regional markets. For instance, in Thailand the palm oil production is assumed to be around 2.9 Mt by the end of 2028, in Colombia, production is expected to reach 2.0 Mt by the end of 2028, and in Nigeria, production is projected to reach a size of 1.2 Mt. by 2028. At the international level, palm oil supply is estimated to grow at an annual growth rate of 1.8% over the time period 2019-2028 (source: OECD-FAO).

The coronavirus infection outbreak has reduced the working capacity of edible oil refineries by roughly 50%. This is mostly due to a lack of raw supplies, as well as delays in import clearance. The reduction in operational capacity is also linked to lockdown measures, which resulted in the delayed harvesting of certain oilseeds, such as mustard seeds in India. However, with due precautions and in order to satiate the essential need for edible oil for cooking purposes in households, manufacturing units are operating at around 40-50% of their installed capacity at present.

As per the FSSAI, restrictions have been imposed on the reuse of cooking oil in restaurants, hence, this will further augment the product sales with the increase in demand for utilization of fresh oil, further propelling the market growth during the forecast period.

The Food Safety and Standards Authority of India, FSSAI imposed a new rule, with effect from July 2019, for all food business operators consuming over 50 litres of edible oil for frying purposes. The new rule has been brought into action according to Section 16 (5) of the Food Safety and Standards Act, 2006. It is required that all food business operators maintain a record of the repeated utilization of cooking oil and discard the used cooking oil to agencies authorized by the FSSAI. This is because of the fact that the repeated use and frying of cooking oils result in the formation of Total Polar Compound (TPC) which renders the edible oil unfit for human consumption. It has further been assessed that due to reheating, the nutritional and physicochemical properties of edible oils are affected rigorously. Hence, this has raised health concerns due to serious health hazards caused by the usage of reheated edible oil in restaurants.

The government has introduced a new set of laws for monitoring the utilization of cooking oil and has set the maximum permissible limit of TPC in cooking oil at 25%.

Additionally, FSSAI has recruited the Indian Biodiesel Association to create a nationwide eco-system to gather the utilized cooking oil and convert it into bio-diesel. All food service restaurant operators are required to comply with the approved regulations. Also, the FSSAI has designed testing protocols for the testing of cooking oil reuse. In terms of implementing the cooking oil standards, the FSSAI has launched a “Triple E Strategy”. The triple E in the strategy stands for education, empowerment, and ecosystem. Hence, with this, it is expected that the strategy will be helpful in providing education to all the food businesses and consumers regarding the health consequences of reused cooking oil and this will further contribute to collecting the used cooking oil, and directing it toward the efficient production of bio-diesel.

Market Key Developments

• In October 2021, Emami Agrotech, an Emami Group firm that manufactures branded edible oils, spices, and soya chunks, invested around Rs 1,000-1,500 crore over the next three years in order to become one of the leading food corporations.
• In June 2022, Gemini Edibles & Fats India Ltd, the market leader in refined sunflower oil, plans to invest up to Rs 500 crore to extend its footprint in the country's edible oil sector.

Global Edible Oils Market Scope:

Segmentation:

• By Product Type
  • Coconut Oil
  • Sunflower Oil
  • Soybean Oil
  • Groundnut Oil
  • Mustard Oil
  • Others
• By End-User
  • Household
  • Commercial
  • Industrial
• By Distribution Channel
  • Online
  • Offline
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Colombia
    • Peru
    • Others
  • Europe
    • Austria
    • Belgium
    • Bulgaria
    • Czech Republic
    • Denmark
    • Finland
    • France
    • Germany
    • Hungary
    • Ireland
    • Italy
    • Netherlands
    • Poland
    • Portugal
    • Romania
    • Slovakia
    • Slovenia
    • Spain
    • Sweden
    • United Kingdom
  • Middle East and Africa
    • Saudi Arabia
    • Israel
    • UAE
    • Turkey
    • Morocco
    • Ethiopia
    • Algeria
    • Egypt
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Australia
    • Philippines
    • Indonesia
    • Vietnam
    • Malaysia
    • Thailand
    • Singapore