Global Vegetable Oil Market: Snapshot

Vegetable oils are derived from plant seeds or their parts and have a wide variety of food and non-food applications. Major types of vegetable oils include sunflower oil, rapeseed oil, soybean oil, palm kernel oil, and palm oil. The use of palm oil in cooking and various applications in the food industry is gaining popularity propelled by a number of factors. In the recent years, palm oil as edible oil has increasingly gained traction in several countries of Southeast Asia and various parts of Africa and South America. World over, there is surging demand for palm oil due to its functional properties, such as a viable substitute for trans-fats, and lower cost of production than other commonly used oils such as soybean oil. This bodes well for the growth of the global vegetables oil market. In many parts of the globe, palm oil is preferred in making margarines. The soaring popularity of palm oil as feedstock in manufacturing biofuels is offering a robust impetus to the demand for the oil.

However, owing to surging environmental concerns in various developed regions, particularly in Europe, the market for palm oil is likely witnessed turbulent times ahead. The unregulated production of palm oil in several European countries has led to concerns of deforestation and the noticeable loss of peat lands. Consequently, various advocacy groups in Europe concerned with the carbon footprint opine this to adversely affect the biodiversity. Nevertheless, it is still considered as the most versatile oilseed crop world over.

Vegetable oil is plant or vegetable derived oil that is in liquid state in room temperature. It is a plant extracted triglyceride. Vegetable oils that are solid in room temperature are known as vegetable fats. Primarily, oil is extracted from plant seeds, although they can be derived from other plant or vegetable parts aswell. 

Vegetable oils that are not edible in nature are used in industrial applications, pharmaceuticals, cosmetics, paints and lubricants. The global vegetable oil market is segmented on the basis of type, extraction method, application, and geography. On the basis of type, the global market is segregated into sunflower oil, rapeseed (canola) oil, soybean oil, palm kernel oil, palm oil, and minor vegetable oil. Palm oil held the most dominant market share in 2015 and is forecasted to witness a steady growth rate over the forecast period. This is attributed to its low price among all the variants of vegetable oil and its continued demand from the food sector for use in cooking oil, frying fat, bakery fat, and margarine among others. Its growing application in the form of feedstock in the bio-fuel industry is also a major reason for its continued steady growth. Sunflower oil is experiencing significant growth in this category. This is attributed to its property ofproviding a trans-fat free alternative in the food service industry. On the basis of extraction method, the global vegetable oil market is segregated into mechanical extraction, solvent extraction, hydrogenation, and sparging. Mechanical extraction held the keymarket share in 2015 and is expected to grow at a steady rate over the forecast period. 

Hydrogenation is the most speedilygrowing segment in this category. On the basis of application, the global market for vegetable oil is segregated into food, industrial, and bio diesel. Food application is further segregated into baking & frying processes, salads & cooking oils, fatty ingredients, margarine & other spreads, frozen&processed foods, and others. Industrial application is sub-divided into paints, lubricants, cosmetics, pharmaceuticals, and others. In the biodiesel segment the major application of vegetable oil is in feedstock. 

Major drivers of the global vegetable oil market include increasing use of vegetable oil in the food industry as they provide a trans-fat free alternative. Increasing demand for vegetable oils in the bio fuel industry as feedstock to produce bio fuel is another major driver. Growing health benefits of a few vegetable oils is another major reason triggering the overall market growth of vegetable oil globally. High price volatility of vegetable oils is a restraint that is hindering market growth as it is resulting in lack of working capital required to carry on with the production processes. Palm oil as a reliable substitute to trans-fat in the cooking sector is a promising opportunity for the growth of the vegetable oil market globally.

Geographically, the market is segregated into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America. Asia Pacific was the most dominant market in 2015 and is forecasted to maintain its dominance over the forecast period owing to the growing convenience food sector as a result of urbanization. This in turn increases the demand for palm and kernel oil. North America closely follows Asia Pacific owing to the large size of the food and food service industry which triggers continued demand for vegetable oil.

Major players of the global vegetable oil market include Archer Daniel Midland Company, ACH Foods Company Inc, Cargill Agricola S.A., Bunge North America Inc., Chinatex Corporation, ConAgra Foods Inc., J-Oil Mills Inc., Carapelli Firenzi S.P.A, CHS Inc., and Richardson Oilseed Ltd. among others.

This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.

Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:

  • Customer Experience Maps
  • Insights and Tools based on data-driven research
  • Actionable Results to meet all the business priorities
  • Strategic Frameworks to boost the growth journey

The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.

The following regional segments are covered comprehensively:

  • North America
  • Asia Pacific
  • Europe
  • Latin America
  • The Middle East and Africa

The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.

Below is a snapshot of these quadrants.

1. Customer Experience Map

The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.

2. Insights and Tools

The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.

3. Actionable Results

The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.

4. Strategic Frameworks

The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.

The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:

1. What can be the best investment choices for venturing into new product and service lines?

2. What value propositions should businesses aim at while making new research and development funding?

3. Which regulations will be most helpful for stakeholders to boost their supply chain network?

4. Which regions might see the demand maturing in certain segments in near future?

5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?

6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?

7. Which government regulations might challenge the status of key regional markets?

8. How will the emerging political and economic scenario affect opportunities in key growth areas?

9. What are some of the value-grab opportunities in various segments?

10. What will be the barrier to entry for new players in the market?

Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.

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Vegetable Oil Market

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