The vegetable oil market is projected to register a CAGR of 5.64% during the forecast period (2022-2027).
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. Further, various studies have depicted that the demand for vegetable oil was widely rising by 5.5 million in 2021, and it can be predicted to have more demand over the forecast year.
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. Moreover, the utilization of vegetable oil in mechanical industries for making lubricants and oleochemicals, which is a non-food applicant, has a significant share in the global market.
The European Union’s consumption of vegetable oil in biofuel has been largely driven by the Renewable Energy Directive (RED). In Europe, the regulatory agencies declare that few supporting policies, such as the European Union Common Agricultural Policy (CAP) and Renewable Energy Directive (RED), extensively support vegetable oil in assorted industries, consisting of food, animal feed, biofuel, and cosmetics. For instance, 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 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 United States imported biofuels. In several cases, the tax credits were reinstated retroactively. Hence, these are the essential factors that are expected to accelerate the market over the forecast period.
Asia-Pacific is the dominant region for the vegetable oil market across the world, 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 most olive oil from Southern Europe, which is used for cooking and non-food uses.
The global vegetable oil market is a competitive market, and the major strategies adopted by the key players in the market studied include product innovations, partnerships, expansions, and mergers and acquisitions. Sime Darby Plantation Berhad, Wilmar International Limited, Bunge Limited, Golden Agri-Resources, and Archer Daniels Midland Company are some of the prominent players operating in the market studied. The major players in 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.
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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. Further, various studies have depicted that the demand for vegetable oil was widely rising by 5.5 million in 2021, and it can be predicted to have more demand over the forecast year.
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. Moreover, the utilization of vegetable oil in mechanical industries for making lubricants and oleochemicals, which is a non-food applicant, has a significant share in the global market.
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). In Europe, the regulatory agencies declare that few supporting policies, such as the European Union Common Agricultural Policy (CAP) and Renewable Energy Directive (RED), extensively support vegetable oil in assorted industries, consisting of food, animal feed, biofuel, and cosmetics. For instance, 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 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 United States imported biofuels. In several cases, the tax credits were reinstated retroactively. Hence, these are the essential factors that are expected to accelerate the market over the forecast period.
Asia-Pacific Dominates the Vegetable Oil Market
Asia-Pacific is the dominant region for the vegetable oil market across the world, 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 most olive oil from Southern Europe, which is used for cooking and non-food uses.
Competitive Landscape
The global vegetable oil market is a competitive market, and the major strategies adopted by the key players in the market studied include product innovations, partnerships, expansions, and mergers and acquisitions. Sime Darby Plantation Berhad, Wilmar International Limited, Bunge Limited, Golden Agri-Resources, and Archer Daniels Midland Company are some of the prominent players operating in the market studied. The major players in 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.
Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
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Table of Contents
1 INTRODUCTION
4 MARKET DYNAMICS
5 MARKET SEGMENTATION
6 COMPETITIVE LANDSCAPE
Companies Mentioned
A selection of companies mentioned in this report includes:
- Archer Daniels Midland Company
- Sime Darby Plantation Berhad
- Bunge Limited
- Olam International Limited
- Cargill Incorporated
- Golden Agri-Resources
- Kuala Lumpur Kepong Berhad
- Fuji Oil Holding Inc.
- Wilmar International Limited
- PT Astra Agro Lestari Tbk
Methodology
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