The Edible Oils Market is projected to reach USD 268.9 billion by 2027 from USD 212.6 billion by 2022, recording a CAGR of 4.8% from 2022 to 2027. With the increasing population across the world coupled with lifestyle changes, there is a growing consumption of processed foods. Edible oils are one of the main ingredients used in processed foods. Moreover, with the ongoing research and development of novel products, such as confectionery and bakery items, ready-to-eat foods, and fast foods the role of edible oils in increasing the taste has become more significant. The constantly evolving food processing sector is further creating a huge demand for edible oils during the study period.
North America has been witnessed to have numerous growth prospects for the edible oils market with a CAGR of 3.27% during the forecast period (s2022-2027)
North America is one of the most potential markets for edible oils owing to the growing demand for processed food products influenced by hectic lifestyles and changing eating habits of the region. The number of food processing companies in the North American market is rising at a fast pace. The preferences of modern-day consumers are increasingly inclining toward fast foods, which have very high concentrations of fats & oils.
The market in the US is driven by robust demand for soybean oils that are extensively utilized in savory & snacks, convenience foods, and indulgent bakery and confectionery products. The United States is the largest producer and exporter of soybeans. Soybeans account for over 90% of US oilseed production. Companies such as Cargill, Incorporated and Bunge Ltd are giant players in the edible oils market of US. These companies have occupied major market shares through acquisitions, expansions, mergers, significant partnerships, and upscaling their production capacity and efficiency. The future growth trajectory of edible oils in the US hinges on the ability of global giants to develop healthy, versatile, and high sensory profiles of novel edible oils.
Europe is projected to hold the second-largest share in the global edible oils market in 2027
In Europe, rapeseed is a crucial oilseed crop. The continent is a world leader in rapeseed oil production. A study titled, ‘The Rapeseed Potential in Poland and Germany in the Context of Production, Legislation, and Intellectual Property Rights’, published in 2019, highlighted the potential for further rapeseed market development in the European Union (EU) with a focus on Poland (12% of EU production) and Germany (19% of EU production). Increased rapeseed production and cultivation areas are key factors for the expansion. Rapeseed oil is expected to continue to gain market share in Europe owing to investments in research and development (R&D) of the crop, as indicated by the figures for European patent publications and Community Plant Variety Rights.
The key players in edible oils market include Cargill, Incorporated (US); Archer Daniels Midland Company (ADM); Bunge Limited (US); Louis Dreyfus Company (Netherlands); Wilmar International Limited (Singapore); and Adani Wilmar Limited (AWL) (India); Associated British Foods PLC (ABF) (UK); Sime Darby Plantation Berhad (Malaysia); and Borges International Group, S.L.U. (Spain).
