The global edible oils market is expected to grow with a CAGR of 7.1 percent for the forecast period of 2021-2028, according to independent market research firms.
This substantial growth is because of the increasing popularity of trans-fat-free oils. Globally, people are aware of health these days and would be more inspired to start using vegetable oils that are low on cholesterol, fat and calories. Other factors driving the growth of the bulk edible oil market are substantial improvements in retail networks, a significant increase in crop yields, and the growing economies in different parts of the world. Increasing use of canola oil, olive oil and trans-fat-free soybean oil would also be driving the global edible oil market in the foreseeable future.
Asia Pacific Region is expected to witness the fastest growth in the edible oil market globally. This is because various types of oilseeds are grown and processed in this region.
India is the largest edible oil importer in the world followed by EU and China. India needs approximately 25 million tons of edible oils every year to cater to its domestic requirements. Out of this, around 10 million are produced within the country from primary and secondary sources. The primary sources are soybean, rapeseed, mustard, groundnut, sunflower, safflower, and nifer. The secondary sources are palm oil, coconut, rice bran, cotton seeds and tree-borne oilseeds. The remaining 60 percent are catered through imports.
Recently, the Indian government has launched a special program National Edible Oil Mission-Oil Palm (NEMO-OP) estimated at INR 11,000 crore to ensure that India achieves self-sufficiency in edible oils. The government is working with the vision of using the forex savings from reduced edible oil imports to be spent on motivating farmers to start the cultivation of palm and oilseeds commercially. It is time the country grew from being an importer to being able to export edible oil.
What is edible oil?
This is a fatty liquid extracted physically from several vegetables and also some tissues of animals. Olive oil is the most appreciated amongst edible oils due to the health benefits it offers and also its taste. This category of oil is extracted from olives mechanically at a low temperature. Other examples of edible oil include mustard oil, sunflower oil, groundnut oil, to name a few.
Edible oils come with various health benefits as they contain essential omega 3 nutrients, vitamins and natural antioxidants that are good for the health of consumers. Demand for edible oils is increasing primarily because of this reason. You can visit edible oil online and know more about why organic oils are the new way to stay fit and healthy.
Market – Segmentation
Based on type
- Palm oil
- Canola oil
- Olive oil
- Sunflower oil
- Specialty blended oil
- Corn oil
Based on end-users
- Food processor
- Food service
Based on Geographic locales
- Middle East
- Latin America
- North America
- Asia Pacific
As much as 40 percent of the market share in the global edible oils market is accounted for by South and East Asia. These regions have a high density of multinationals and local manufactures of edible oils.
Market Drivers for Edible Oil Market
- Increase in production of oil owing to high crop yields
- Improvement in living standards of individuals globally
- Change in dietary habits
- Increase in consumer preference for healthy oils
- Growing urbanization supplementing the use of edible oils