Cold-Pressed Oil Market

Market Overview

The global cold-pressed oil market size was valued at USD 26.95 billion in 2021 and is projected to reach USD 44.19 billion by 2030 at a CAGR of 5.65% from 2022 to 2030.

 In addition to being one of the mechanical extraction techniques and requiring less energy than other oil extraction methods, cold press extraction is also a mechanical extraction technique. Initially, juices were extracted from vegetables and fruits using this method. Later on, this method was also used to extract oils. This principle is employed to preserve the flavour, aroma, and nutritional value of food. Cold-pressed oils include the seed's natural antioxidants. In addition, it eliminates all negative side effects caused by conventional oil extraction techniques. In addition, it is used to obtain high-quality oils by performing production at low temperatures using the cold press method, which is environmentally friendly. Cold-pressed oil Market is safer than hot-pressed oil and aids in avoiding the negative effects of high temperatures.

Market Dynamics

Drivers for the Global Cold-Pressed Oil Market

• High Nutritional Value Is A Driving Factor

Cold-pressed oils contain the natural antioxidants present in the seed from which they were extracted. Cold-pressed oils are extracted at temperatures below 49 degrees Celsius at room temperature. Cold-pressed oils retain most of their delicate colour and flavour, as well as their nutritional value. Furthermore, cold-pressed oil is devoid of trans fatty acids and cholesterol. In recent years, cold-pressed oil has garnered considerable attention.

In addition, high nutritional value and enhanced flavour contribute significantly to the market's growth. Cold press extraction is one of the mechanical extraction processes that require the least amount of energy in comparison to other oil extraction techniques.

• A Longer Shelf Life and Multiple Usage Drive the Market

Without preservatives, the shelf life of cold-pressed oils ranges between six and nine months. It plays a vital role in Asian cuisine and has a peculiar flavour. This food is rich in polyunsaturated fatty acids. Moreover, vitamin E and phenols, particularly gamma-tocopherol, as well as the lignans sesamin and sesamolin, exhibit a variety of biological actions. Cold-pressed oil is regarded as one of the healthiest cooking and dietary oils due to its numerous health advantages. High demand for cold-pressed oils from a variety of applications, such as personal care, food and beverages, and animal food, is the primary factor driving market expansion.

Restraints for the Global Cold-Pressed Oil Market

• Adulteration Is A Major Hurdle For The Market

The adulteration of Cold-Pressed oils has become a significant obstacle in this market. Not all Cold-Pressed oils are created equal, and some may contain man-made additives. These cold-pressed oils that have been adulterated lack the properties of essential oils and serve only as fragrance products.

Oils that have been adulterated are extremely harmful. They may have multiple side effects and may cause permanent organ damage. However, the prevalence of these adulterated and synthetic products is primarily attributable to the high cost of Cold-Pressed oils. The prevalence of synthetic/adulterated products is due to the fact that adulteration reduces costs and makes the product accessible to the masses.

Opportunities for the Global Cold-Pressed Oil Market

• An Increase In Demand For Natural Ingredients Will Bring In New Opportunities For The Market

In recent years, there has been an increase in the demand for "all-natural ingredients," primarily as a result of a greater understanding of the benefits of natural ingredients and an increase in disposable income, which causes people to spend more money on pricey natural products. This demand is fueled further by the growing health consciousness of the general population, which leads to increased spending on high-quality natural products with long-term effects.

Several manufacturers across all industries are developing new strategies for incorporating natural and healthy ingredients into their formulations in order to maximise the benefits for consumers. The influence of "natural claims" on the purchase of food and beverage products and cosmetics is considerable. Cold-Pressed oils provide an "all-natural" flavour and aroma to a variety of industries, including food & beverage, cosmetics, animal feed, and home care, among others, which creates numerous opportunities in this market.

Regional Analysis

The Asia-Pacific market is anticipated to grow at a rate of 6.4% from 2022 to 2030. In 2021, the Asia-Pacific market will hold a share of over 40.0%. This is because raw materials are readily available, and labour costs are low. China, India, and Indonesia are substantial market contributors. In the Asia-Pacific region, cold-pressed oil is widely used due to its high nutritive value, superior flavour, and aroma. Consequently, the region produced the most revenue in 2021.

Segmental Analysis

This market can be segmented on the basis of products, distribution channels, regions and competitors. With respect to distribution channels, From 2022 to 2030, the hypermarkets and supermarkets' distribution channel is projected to grow at a CAGR of 5.8 per cent. The benefits of hypermarkets and supermarkets include personalised service from the sales staff, immediate returns, and no delivery wait time, among others. The factors that contribute more to the offline segment's revenue generation are the well-developed distribution channels across the globe and the preference of older demographics for in-store purchases over the younger generation.

From 2022 to 2028, the online distribution channel is projected to have the highest CAGR of 6.5%. This is because online selling is so convenient. It decreases consumer search costs, making it simpler to effectively compare prices across a variety of products. Additionally, the online channel enables new distribution technologies that can reduce supply chain and distribution costs. Due to the benefits provided by the online distribution channel, such as time and effort efficiency, lower prices or discounts, greater selection, comparison options, etc., customers are increasingly utilising the online distribution channel, thereby driving market demand.

The palm oil segment dominated the cold-pressed oil market growth with a larger share of over 40.0% in 2021, and it is anticipated to exhibit a higher CAGR of 5.9% between 2022 and 2030. This is due to the numerous health benefits offered to customers, such as a reduction in cholesterol levels, an improvement in brain health, and the growth of skin and hair, among others. Consequently, it is anticipated that the palm oil market segment will contribute significantly to the global market over the forecast period.

5.8 per cent is expected to be the second-fastest CAGR for the soybean oil-based segment between 2022 and 2030. Due to increased demand from the food industry, global soy oil production has increased steadily over the past decade. In industrial applications, such as biodiesel production, the demand for soybean oil is also increasing. Compared to other edible oils such as olive oil, groundnut oil, and coconut oil, soybean oil is relatively more affordable. Consequently, the segment of soybean oil is anticipated to experience substantial growth during the forecast period.

From 2022 to 2030, the CAGR for North America is anticipated to be 6.2%. A rise in health consciousness among the populace, resulting in a healthier lifestyle, is anticipated to accelerate the market's expansion during the forecast period. In addition, people's desire for a clean, pollution-free environment will likely drive the growth of the market in developed regions such as North America during the forecast period.

Recent Developments

• In January 2021, Acacia Communications renounced its $ 2.6 billion merger deal with Cisco Systems. The manufacturer of optical interconnection products has decided to terminate the agreement reached over a year and a half ago after Acacia stated that it had not received approval from the Chinese government's State Administration for market regulation by the deadline. Cisco, for its part, has informed Acacia that it will challenge Acacia's ability to terminate the merger agreement.
• NCR Corporation (NYSE NCR), a leading provider of store-operating retail solutions, announced the acquisition of the top e-commerce retailer Freshop. Adding e-commerce to NCR's primary retail point-of-sale platform will enable retailers, particularly small regional and regional supermarket chains, to rapidly implement "buy" capabilities online and in-store collection 'to directly meet their customers' needs.
• In December of 2018, Marico introduced a line of cold-pressed virgin coconut oils under the brand name "Coco Soul," keeping in mind that a growing number of consumers prefer natural and farm-fresh foods. The new product line includes 100 per cent natural and 100 per cent organic options. Coco Soul originates from farms where the coconuts are hand-harvested and freshly harvested.