The global vegetable oil market is growing at a considerable CAGR of 6.0% during the forecast period. Increasing use in making biofuels, rising per capita income in emerging countries are two of the prime factors affecting and driving the market. Additionally, the growing focus on advancements in technology for the manufacturing process of oil along with rising adoption in various industries, are also estimated to be the key factors that are contributing significantly towards the growth of the market. However, government regulation is the major factor constraint that is hindering the growth of the global vegetable oil market. 

Moreover, the emerging focus on the consumption of plant-based food products containing cooking oils of high quality that are being demanded is also one of the key factors that are creating opportunities in the market. New product launches in the market are likely to drive the growth of the global vegetable oil market. For instance, in February 2021, one of the providers in specialty oils and fats solutions for the food industry named Bunge Ltd. had expanded its organic portfolio in Europe. In the region, the company will offer its organic oils and fats, ranging from sunflower, rapeseed, and soy to palm, shea, and coconut supply. 

Impact of COVID-19 Pandemic on the Global Vegetable Oil Market

The global vegetable oil market is hardly hit by the COVID-19 pandemic since December 2019. The COVID-19 pandemic had brought a lot of disruption across the globe. The demand associated with vegetable oil was also adversely affected due to the shutdown of various manufacturing units across the globe as lockdown restrictions were being imposed. However, the vegetable oil market is likely to recover post relaxation in lockdown restrictions.

Segmental Outlook 

The global vegetable oil market is segmented based on type, packaging type, and end-user. Based on type, the market is segmented into palm oil, soybean oil, rapeseed oil, sunflower oil, and olive oil. Based on packaging type the market is segmented into cans, bottles, and pouches. Further, application the market is segmented into food and industrial.

Global Vegetable Oil Market Share by Packaging Type 2020 (%)

Based on packaging type, the pouches hold a significant share in the market. This is due to providing freshness along with preventing the contents from contamination. Additionally, it can be easily stored anywhere and can also be transported conveniently along with requiring less secondary packaging than rigid packs, which in turn is driving the growth of the pouches in packaging type segments.

Regional Outlooks

The global vegetable oil market is analyzed based on the geographical regions that are contributing significantly towards the growth of the market. Based on the geography, the market is segmented into North America, Europe, Asia-Pacific, and the Rest of the World. North America held a considerable share in the global vegetable oil market. In North America, growing vegetable oils consumption in biofuels production is one of the prime factors affecting the growth of the market in the region. Additionally, the increasing manufacturing of bio-based products along with the existence of a large number of players is some other main factors that are providing support to the growth of the market in the region. Moreover, in Europe growing initiatives in order to promote bio-based products production by European Union (EU) are acting as the prime factor to drive the growth of the market. 

Global Vegetable Oil Market, by Region 2021-2027

Asia-Pacific will have Considerable Growth in the Global Vegetable Oil Market

Asia-Pacific region is expected to witness significant growth opportunities for the market. Availability of raw materials across the region is likely to drive the growth of the regional market. Additionally, key market companies expanding their reach along with initiatives by the government especially in South Korea, China, and India are also impacting the market. Additionally, increasing awareness among the population for the quality vegetable oil is another factor that is also affecting the growth of the market.

Market Player Outlook

Key players of the global vegetable oil market are ACH Food Companies Inc., ADM, Bunge Ltd., Carapelli Firenze S.p.A., and FUJI OIL HOLDINGS INC. To survive in the market, these players adopt different marketing strategies such as product launches and mergers and acquisitions. For instance, in July 2021, Sime Darby Plantation Berhad had done the collaboration with Yayasan Sime Darby for the purpose of launching a campaign that is named ‘Kami Prihatin’ in order to distribute food and essential items to those who are in need.

In July 2018, ADM along with Cargill had entered into a transaction and officially introduced SoyVen their new joint venture for the purpose of providing soybean meal and its oil for customers present in Egypt. SoyVen operates with a crushing capacity of around 6,000 metric tons for the purpose of meeting the growing demand of Egyptians for higher-protein soybean meal and for oil along with decreasing the need for imports. The company will operate its function as an independent entity, in order to strengthen and meet specific customer needs in the growing country market with offices and operations in Cairo and Borg Al-Arab in Egypt, as well as offices in Rolle, Switzerland present.

The Report Covers

    • Market value data analysis of 2020 and forecast to 2027.

    • Annualized market revenues ($ million) for each market segment.

    • Country-wise analysis of major geographical regions.

   • Key companies operating in the global vegetable oil market based on the availability of data, information related to new product launches, and relevant news is also available in the report.

   • Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

    • Analysis of market-entry and market expansion strategies.

    • Competitive strategies by identifying ‘who-stands-where in the market.