Global Vegetable Oil Market Worth USD 790.87 Billion by 2031 | CAGR of 7.86%

Introduction

Vegetable oils are made from various plants' fruits, seeds, and nuts. One of the crucial nutrients they provide is omega-3 and omega-6 fatty acids and vitamins E, A, and B1. In place of petrochemicals and animal-based fats, they are frequently employed in both food and non-food applications. They produce medicines, cosmetics, and bactericides, for example. The health advantages of vegetable oils include lowering cholesterol levels, reducing the risk of cardiovascular diseases, and enhancing metabolism and digestion, making them a common ingredient in food preparation worldwide.

Market Dynamics

Favorable Vegetable Oil Use Policies in Different Countries Drive the Global Market

The E.U.'s use of vegetable oil for biofuel has been significantly influenced by the Renewable Energy Directive (RED). By 2020, 10% of the energy used for rail and road transportation must come from renewable sources, according to this 2009 directive. National laws and incentives from E.U. Member States, such as blending mandates, are necessary to achieve this goal (countries). Palm oil produces about 20% of the biodiesel (fatty acid methyl ester) and renewable diesel (hydrotreated vegetable oil) sold in the E.U. Animal fats and rapeseed are the other feedstocks used to create diesel substitutes.

Rapeseed is used to make cooking oil. The RED includes sustainability criteria for all biofuel feedstocks to prevent the direct conversion of wetlands, grasslands, and forests with a high level of biological diversity to the production of biofuels. By these standards, biofuels also must cut greenhouse gas (GHG) emissions by at least 50% compared to diesel and gasoline and by 70% by 2021, excluding emissions resulting from changes in land use. The amount of soybean oil used in the U.S. biofuel industry has steadily increased due to the RFS, biodiesel tax credits, and renewable diesel tax credits. It is anticipated that this trend will continue for some time.

Moral and Cruelty-Free Alternatives Creates Tremendous Opportunities

Players are pleading with consumers not to use cosmetics containing palm oil to save the threatened orangutans. Bloomtown was the first company in the U.K. to be recognized as a palm oil-free cosmetics manufacturer. Oil from the fruit of the oil palm tree, primarily cultivated in Africa, Asia, and North and South America, is used to make various goods, including food, cleaning supplies, and fuel.

Regional Analysis

Asia-Pacific is the highest revenue contributor and is anticipated to expand at a CAGR of 11.18% during the forecast period. The rising middle class in China has increased consumer access to more expensive, packaged vegetable oils. Additionally, some Chinese cities have banned the sale of loose oils, which has raised the demand for packaged oils. The Asia-Pacific region with the highest rates of vegetable oil production and consumption is China. There is a lot of production, but there is also a lot of consumption, so there are more imports than exports. China is a country that places imports first. Olive oil, palm oil, soybean oil, rapeseed oil, peanut oil, sunflower oil, and soybean oil are China's most popular vegetable oils. Over the previous five years, soy and palm were the two vegetable oils with the most significant market shares in China.

Europe is anticipated to grow at a CAGR of 8.93% during the forecast period. Vegetable oil sales in Germany are expected to rise. Consumer preference for animal fats is declining due to the perception that plant-based oils are superior. Due to its nutritionally balanced makeup, rapeseed oil has emerged as one of the most well-liked vegetable oils in Germany and throughout Europe. It is frequently used in margarine, mayonnaise, dressing, cooking oil, and salad dressing. The non-food industry is interested in learning more about rapeseed oil. It is an environmentally friendly lubricant additive to produce energy, such as biofuels. Germany is one of the biggest markets for olive oil in Europe. Oil is used extensively and consistently in society.

Additionally, there are numerous markets where organic olive oil can be sold. Virgin olive oil is widely used in Germany. Germany is a sizable and growing premium oil market, despite having a lower per capita consumption of olive oil than other Mediterranean countries. Olive oil is regularly used in cooking by German consumers. Professional producers and exporters in developing nations are provided opportunities by emphasizing quality and traceability.

Key Highlights

• The global vegetable oil market was valued at USD 317,829 million in 2022. It is expected to reach USD 790,878.03 million by 2031, growing at a CAGR of 7.86% during the forecast period (2023–2031).
• Based on type, the global vegetable oil market is bifurcated into palm oil, soybean oil, rapeseed oil, sunflower oil, peanut oil, coconut oil, and olive oil. The palm oil segment is the highest contributor to the market and is expected to grow at a CAGR of 11.76% during the forecast period.
• Based on application, the global vegetable oil market is bifurcated into food, feed, and industrial. The food segment is the highest contributor to the market and is expected to grow at a CAGR of 10.57% during the forecast period.
• Asia-Pacific is the most significant revenue contributor and is expected to grow at a CAGR of 11.18% during the forecast period.

Competitive Players

1. Archer Daniels Midland Company
2. Sime Darby Plantation Berhad
3. Bunge Limited
4. Olam International Limited
5. Cargill Incorporated
6. Golden Agri-Resources
7. Kuala Lumpur Kepong Berhad
8. Fuji Oil Holding Inc.
9. Wilmar International Limited
10. PT Astra Agro Lestari Tbk
11. Avril Group.

Recent Developments

• August 2022- Indian Vegetable Oil Producers' Association inked MOU with Malaysian Palm Oil Council.
• November 2022- Bunge and BZ Group announced their strategic alliance. By the terms of the agreement, Bunge buys out 49% of BZ Group while the Beuzelin family retains 51% of the company's shares. The transaction is pending regulatory approval and the usual closing conditions.

Segmentation

1. By Type
   1. Palm Oil
   2. Soybean Oil
   3. Rapeseed Oil
   4. Sunflower Oil
   5. Peanut Oil
   6. Coconut Oil
   7. Olive Oil
2. By Application
   1. Food
   2. Feed
   3. Industrial