Vegetable oil is a mixture of triglycerides extracted from seeds or parts of fruits or vegetables. This oil is used in food, biodiesel feedstock, pharmaceutical, lubricants, and numerous other industrial applications. Soyabean, cottonseed, palm, corn, and olive are the major sources from where the vegetable oil is extracted. The rise in commercial applications of vegetable oils in the food service and processing industries has created growth avenues for the U.S. vegetable oil market.
During the 20th century, the consumption of vegetable oil increased dramatically with advances and development in oil extraction and processing. Technological innovations such as hydrogenation and interesterification have been used to modify vegetable oils to obtain variable functional properties required for different edible applications. These novel innovations have led to an expansion in the edible oil product portfolio.
Vegetable oils have numerous applications in the food service and food processing industries. The commercial applications in the food industry include the use of vegetable oils for salad & dressing, cooking, industrially produced fried foods, compound coatings, ice cream coatings, fillings & spreads, and substitute for dairy fats. With the popularity of fast food and changes in consumer lifestyle toward more convenient foods, the demand for vegetable oils from the food processing and food service industries has significantly increased. Hence, the ongoing demand has majorly propelled the market growth for vegetable oil in the U.S. Furthermore, an increase in the use of vegetable oils such as olive oil and canola oil, owing to their health benefits, has created growth opportunities for vegetable oil as a substitute for solid fats.
However, changes in either U.S. biodiesel policy or global biodiesel policy can potentially shock oilseed prices depending on which policies change. This makes vegetable oil sources susceptible to high price volatility. Furthermore, the government requires certain certification and labelling legislations with regards to ingredient contents in the oils. It thereby becomes necessary for manufacturers to adhere to these timely regulations. Thus, these factors can potentially hinder the growth of the U.S. vegetable oil market.
On the contrary, manufactures can explore the efficiency and potential of palm oil for food applications, as it exhibits longer shelf life and beneficial health properties such as it reduces oxidative stress and improves skin & hair health. This can be regarded as an opportunity for manufactures to further explore applications for palm oil in the food industry.
According to U.S. vegetable oil market analysis, the market is segmented on the basis of product type and distribution channel. Depending on product type, the market is classified into soyabean oil, palm oil, sunflower oil, olive oil, canola oil, corn oil, and others. On the basis of distribution channel, it is bifurcated into business-to-business (B2B) and business-to-consumers (B2C). The B2B segment is further categorized into food service and food processing. The B2C segment is subsegmented into hypermarket/supermarket, specialty/convenience stores, online channels, and others.
The key players operating in the U.S. vegetable oil market include Archer-Daniels-Midland Company, Associated British Foods, Bunge Limited, Cargill Inc., Deoleo, S.A., J M Smucker Company, Pompeian, Inc., Richardson International Limited, Ventura Foods, LLC, and Wilmar International Limited.
KEY BENEFITS FOR STAKEHOLDERSKEY MARKET SEGMENTS
By Product Type
- Soybean Oil
- Palm Oil
- Sunflower Oil
- Olive Oil
- Canola Oil
- Corn Oil
- Others
By Distribution Channel
- Business to business
- Food service
- Food processing
- Business to consumer
- Hypermarket/Supermarket
- Specialty/Convenience stores
- Online channels
- Others
Table of Contents
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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