The global edible oils market is poised for substantial growth, projected to reach USD 306.92 billion by 2029 from USD 250.78 billion in 2024, representing a CAGR of 4.1%. This growth is driven by several key factors, including increasing population, rising disposable incomes, and evolving dietary patterns worldwide. As these trends continue, the demand for various oils such as soybean, palm, sunflower, and olive oils is expanding across both developed and emerging markets.
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Key Drivers of Growth
Shift in Production Focus to South America South America is becoming a
critical hub for soybean production, significantly influencing the global edible oils market. Brazil, the world’s largest
soybean producer, is leading this surge with an annual production growth of
0.8%, surpassing the US's 0.6% growth rate. Practices like double
cropping—planting soybeans after maize or wheat—are accelerating South America’s
role in meeting global demand.
Rising Sunflower Oil Demand Sunflower oil is gaining
traction, particularly in Spain, as consumers shift from more expensive olive
oil. With olive oil prices increasing by 61% from May 2023 to May 2024 and a
second consecutive year of reduced production, sunflower oil has become a more
affordable alternative. This has led to a 24.5% increase in sunflower oil
sales, while olive oil sales have declined by 17.5%.
Opportunities in Regional Markets
Europe’s Growing Share Europe holds a significant edible oils market share, driven by strong demand in
both domestic and food service sectors. Companies like Borges Agricultural
& Industrial Edible Oils are investing in expanding production facilities,
exemplified by the inauguration of a USD 10.8 million seed oil extraction plant
in Spain. Such initiatives highlight the region’s commitment to innovation and
sustainable practices.
Sunflower Oil as a Key Segment Sunflower
oil continues to capture attention due to its versatile use in food, biodiesel,
and animal feed industries. With Russia, Ukraine, and the European Union as
major producers, the market for sunflower oil is seeing a steady increase,
reaching 22.13 million metric tons in 2023/2024, a 2% year-on-year growth.
Household Segment Driving Demand
The household segment is a significant driver of edible oils market growth. As disposable incomes rise
and populations expand, household consumption of edible oils continues to grow.
For example, India has witnessed a steady increase in domestic consumption of
edible oilseeds, rising by approximately 10 LMT per annum as demand for daily
consumption continues to soar.
Key Players and Market Dynamics
Leading companies such as Wilmar International, Cargill, and
Bunge are key players shaping the market landscape. These firms are expanding
their operations to meet rising global demand, focusing on innovative solutions
and sustainable production practices.
Overall, the edible oils market is set for robust growth,
driven by shifting consumer preferences, regional production shifts, and
increased demand for affordable, versatile oils like sunflower oil.
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