Edible oils are gaining much traction in the food industry for their functional properties. These oils solve a problem that has plagued humanity since its beginning. With that said, edible oils will become more popular over the next decade, and the market size is expected to reach USD 5.76 Billion at a CAGR of 5.6% during the forecast period.
The global cooking oil market is projected to increase at a CAGR of 5.6% during the forecast period (2022-2027). This can be attributed to a number of factors, including the pandemic COVID-19, which led to complete shutdowns throughout Western Europe and the United Kingdom. As a result, restaurants, hotels, and roadside food vendors experienced reduced sales volumes for cooking oil; however, this did not affect the online channel’s sales of the product due to its essential nature.
The global cooking oil market is growing at a rapid pace, with demand fueled by the demand for organic health products, as well as increased consumption of high-quality bulk edible oils and cooking oils. Additionally, refined olive oil and coconut oil are increasingly used in bakery applications—these products provide a bland taste that allows food to maintain its original flavor.
Key Market Trends
Palm Oil emerges as the key market trend for 2022, It is used for frying and added to many foods, including chips and energy bars. Primary users of palm oil include China, India, Indonesia, and the European Union. India and China do not produce crude palm oil; their demand is entirely met by imports.
There is substantial demand for palm oil from various end-user sectors across the world since it costs 20% less than most cooking oils. Moreover, it is highly versatile; in the past few years, there has been an increase in the production of palm oil worldwide, with almost all production going to Malaysia and Indonesia. This increase in supply has been accompanied by an increase in demand for biofuel; this has increased demand for palm oil as well as other vegetable oils such as rapeseed or sunflower oil.
Asia Pacific Has A Significant Market Share
Asia is the largest market for vegetable oil—a major source of cooking oil. Vegetable oils are used to prepare food and are also used as a nutritional supplement. The region has experienced rapid growth in fish oil consumption, due to the large concentration of the aquaculture industry in China, India, Vietnam, and Indonesia. Rising health concerns among consumers have led to increased use of fish oil as a nutritional supplement in developed countries such as Japan and Australia. In particular, olive oil has the highest growth rate due to its health benefits.
Asia-Pacific is an import-oriented region, where China leads in vegetable oil consumption. Although the production volume is high, consumption exceeds production, resulting in higher edible oils import volumes when compared to export volumes. This trend has been driven by the presence of major palm oil-producing nations in the region and growing demand from food industries, attributed to changing living standards and a growing population base. The growing demand for processed foods has also played an important role in increasing edible oil use.
Palm Oil Exports From India
The Indian government has decided to allow the export of palm oil from India. The country is known for its rich and diverse forest areas, which are home to nearly half of all species in the world. It is also a major producer of palm oil, with an annual output of over 20 million tonnes.
The government’s decision comes after years of debate over whether to allow exports or not. The government’s decision follows a report from the National Advisory Council (NAC), which was formed by Prime Minister Narendra Modi in 2014 to advise him on issues related to governance and development.
The NAC recommended that the government should allow the export of palm oil from India as it would help increase employment and generate foreign exchange for India without harming its environment.
However, some environmentalists have expressed concern about the impact of such a move because they believe that there are better alternatives available that don’t involve destroying forests or causing harm to wildlife habitats.
The edible oil market is currently dominated by palm oil, and soybean oil along with n-6 fatty acid, fish oil, and coconut oil. The edible oils market is estimated to reach $210,891 million in 2022 with a moderate CAGR (5.6% over the 2016 – 2022 forecast period). Palm oil is expected to hold the largest share of the edible oils market, followed by soybean oil and canola oil.