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Liquid Gold Reimagined: Tracing the evolution, production, applications, and health impacts of edible oils across continents and cultures, the global edible oil market is anticipated to cross USD 290 Billion by 2028.
Sep, 30
2023

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Liquid Gold Reimagined: Tracing the evolution, production, applications, and health impacts of edible oils across continents and cultures, the global edible oil market is anticipated to cross USD 290 Billion by 2028.

 

In a world where culinary experiences are as diverse as the cultures they stem from, the edible oil industry emerges as a hidden protagonist, enriching dishes and diets across the globe. Beyond its utilitarian role as a cooking medium, edible oils encapsulate a tale of innovation, tradition, and adaptation. As modern technology interlaces with time-honored practices, the industry's journey is a flavorful fusion of old and new. Yet, it's not just about taste; it's a nutritional odyssey where essential fatty acids dance in harmony with vitamins, nourishing both body and palate. However, as the world saut?s towards sustainability, questions of responsible sourcing, ecological impact, and health consciousness take center stage. The edible oil industry stands at a crossroads, where taste meets technology, and conscious consumption converges with culinary artistry. Join us in unraveling the sizzling narrative of an industry that's more than just a cooking ingredient – it's a key ingredient shaping cultures, health trends, and the future of food. Steeped in the annals of culinary evolution, edible oils are more than mere mediums for frying and saut?ing. They're carriers of culture, encapsulating the taste preferences, techniques, and customs of generations past. Consider the golden hues of extra virgin olive oil, a liquid embodiment of Mediterranean heritage, or the nutty fragrance of sesame oil, a cornerstone of Asian cuisines. As globalization ushers in a new era of culinary fusion, these oils stand as cultural ambassadors, infusing dishes with a sense of place and memory. Yet, this industry is far from tethered to the past. With the advent of modern technology, the extraction and refinement of edible oils have undergone remarkable transformations. From traditional cold-pressing to cutting-edge solvent extraction, these methods are the alchemy that turns seeds, nuts, fruits, and even animal fats into the elixirs that grace our plates. But progress comes with its challenges. The very efficiency that modern techniques offer also raises questions about environmental impact, as land use, water consumption, and chemical usage come under scrutiny. The push for sustainable practices has led to a renaissance of sorts, with a growing emphasis on organic farming, agroforestry, and biodiversity preservation.

According to the research report, “Global Edible Oil Market Research Report, 2028” published by Bonafide Research, the market is anticipated to cross USD 290 Billion by 2028, increasing from USD 212.63 Billion in 2022. The market is expected to grow with 5.60% CAGR by 2023-28. In a world increasingly conscious of health and nutrition, edible oils play a pivotal role. They're not just a source of energy-dense calories; they're carriers of essential fatty acids, vitamins, and antioxidants that underpin our well-being. Olive oil's monounsaturated fats, coconut oil's medium-chain triglycerides, and flaxseed oil's omega-3 fatty acids are not just nutritional buzzwords – they're the building blocks of diets designed for longevity and vitality. As the culinary curtain rises on a new era, the edible oil industry stands at a crossroads of flavor, function, and responsibility. The growth of the cooking oils and fats market is being driven by an increase in demand in developing nations like India, Indonesia, and Argentina. Because of increased consumer disposable income and a busy lifestyle, there is an increase in the demand for processed and convenience foods, which fuels market expansion and increases demand for edible oils and fats. Just a handful of the major drivers that are influencing the market are listed above. Consumers all across the world are shifting their purchase patterns toward edible oils that have been scientifically shown to boost heart health, such as olive oil, rapeseed oil, soybean oil, and sunflower oil, in response to the rising prevalence of non-communicable diseases. As a consequence, rising demand for and usage of edible oils in households and food services is driving growth in the global edible oils market.

Based on the region, the Asia-Pacific region is a major player in the global edible oil market. Countries like India, China, and Indonesia are among the largest consumers and importers of edible oils. Palm oil is major edible oil consumed in this region, especially in India and Indonesia. It is used for cooking, as well as in the food processing industry. Soybean oil is also popular in countries like China, due to its versatility and relatively neutral flavor. India is one of the largest consumers of edible oils globally. It heavily relies on imports to meet domestic demand. Palm oil and soybean oil are the most widely consumed oils due to their affordability and versatility. China's growing middle class and changing dietary habits have led to increased consumption of edible oils. Soybean oil is the dominant choice for cooking and food processing. On the other hand, soybean oil is dominant edible oil in North America, particularly in the United States. It's used in various food products and as cooking oil. Canola oil is another major player in the region due to the popularity of rapeseed cultivation. Soybean oil is the most widely used cooking oil in the US. It's found in a variety of processed foods and is also a common ingredient in industrial applications. As a major producer of canola, Canada is a significant player in the canola oil market.

Europe has a diverse edible oil market with preferences varying from region to region. Olive oil is a major player in Southern European countries like Spain, Italy, and Greece. Rapeseed (canola) oil is widely consumed in Northern Europe, particularly in countries like Germany and the United Kingdom. Sunflower oil also has a significant presence in the European market. However, countries like Argentina and Brazil are major producers and exporters of soybean oil in South America region. The region's growing agricultural industry contributes to its prominence in the global market. These countries are among the largest exporters of soybean oil. Soybean cultivation is a key driver of their economies. While a significant consumer of vegetable oils, traditional culinary practices also involve the use of lard. Palm oil and sunflower oil are commonly used in the Middle East and North Africa for cooking and frying. Olive oil is highly valued in countries like Tunisia, Morocco, and parts of the Middle East. Olive oil is a cultural staple and holds significant economic importance in these countries. Palm oil and sunflower oil are commonly used for frying and cooking due to their affordability and availability.

Based on the product types, soybean segment is dominating the market in 2022 with highest revenue generation. Soybean oil is rich in polyunsaturated fats, including omega-3 and omega-6 fatty acids. It also contains vitamin E and phytosterols, which have been associated with various health benefits. Its neutral flavor and high smoke point make it suitable for a wide range of culinary applications, including frying, baking, and salad dressings. As the global population continues to grow and urbanize, demand for processed and convenience foods has risen. Soybean oil is a commonly used ingredient in many processed foods, including snacks, baked goods, and spreads. Soybean cultivation is economically viable due to its relatively high yields compared to other oilseed crops. This makes it an attractive option for both farmers and agribusinesses. Soybean meal, a byproduct of soybean oil extraction, is a valuable protein source used in animal feed, especially for livestock and poultry. As meat consumption has increased globally, so has the demand for soybean meal, indirectly boosting soybean oil production. In recent years, there has been growing interest in using vegetable oils, including soybean oil, as feedstock for biodiesel production. This has created an additional demand stream for soybean oil. Soybean oil is also used in various industrial applications beyond food, such as in the manufacturing of paints, coatings, and bio-based plastics. Research and development efforts have led to improvements in soybean crop yields and oil extraction methods. Government policies and agricultural initiatives have also played a role in promoting soybean cultivation and oil production.

Based on the nature, global market is segmented into conventional and natural types. Among them, conventional segment is projected to acquire lion’s share during the forecast period. The growth of conventional edible oils, such as soybean oil, palm oil, canola oil, sunflower oil, and corn oil is influenced by a combination of factors that impact demand, production, and market dynamics. Conventional edible oils are widely used in the food processing industry for their neutral flavors and high smoke points. They serve as ingredients in baked goods, fried snacks, processed foods, and other convenience items, contributing to their steady demand. Increasing global population and urbanization lead to greater demand for convenience foods and cooking oils, supporting the growth of conventional edible oils. Conventional edible oils are often more affordable compared to some specialty or niche oils, making them accessible to a wider range of consumers. Many traditional cooking methods and cuisines rely on conventional edible oils for frying, saut?ing, and other forms of cooking. Conventional oils are known for their stability and longer shelf life, making them suitable for both consumer households and industrial applications. Beyond food, conventional edible oils are used in non-food industries such as biodiesel production, cosmetics, and industrial lubricants. Also, advances in agricultural practices, including improved crop varieties and cultivation techniques leads to higher yields of oil-rich crops like soybeans, sunflowers, and canola, supporting the growth of conventional oils.

The global population has been steadily increasing, leading to higher demand for essential commodities like edible oils. As more people enter the middle class and adopt modern lifestyles, the demand for edible oils as a dietary staple and ingredient in processed foods grows. As countries develop economically, dietary patterns tend to shift. People tend to consume more processed and convenience foods that often require the use of edible oils. This is particularly evident in urban areas where fast food and packaged snacks have become common. Edible oils are integral to various cuisines around the world. Different cultures have their own preferred oils for cooking, flavoring, and traditional dishes. This contributes to sustained demand for specific types of oils in different regions. As more people move to urban areas, the demand for convenience foods increases. These foods often rely on edible oils for flavor and cooking, driving up domestic consumption. Beyond household consumption, edible oils are used extensively in the food processing industry for products like baked goods, snacks, sauces, and dressings. This industrial demand further drives domestic consumption. As economies grow and incomes rise, consumers tend to diversify their diets and seek out higher-quality foods. This includes using more edible oils in cooking and food preparation. Some countries prioritize self-sufficiency in staple foods, including edible oils, to enhance food security and reduce dependence on imports. This can lead to higher domestic consumption as governments encourage the production and consumption of locally produced oils. In many cultures, edible oils hold cultural and traditional significance. They're not only used for cooking but are also symbolic in religious rituals, celebrations, and social gatherings.

The growth of online sales channels for the edible oil market has been influenced by several factors, reflecting broader trends in e-commerce and changing consumer behaviors. Online platforms provide consumers with the convenience of ordering edible oils from the comfort of their homes. This eliminates the need to visit physical stores, saving time and effort. E-commerce platforms offer a vast selection of edible oil brands, types, and variants. This enables consumers to explore a broader range of options than they might find in local stores. Online platforms often provide detailed product information, including nutritional content, ingredients, and sourcing details. This transparency appeals to health-conscious consumers seeking specific nutritional attributes. Online shopping allows consumers to read reviews and ratings from other buyers. Positive reviews can boost consumer confidence in trying new brands or products. Consumers can easily compare prices across different online retailers, finding the best deals without the need to physically visit multiple stores. Many online retailers offer subscription services, allowing consumers to receive regular deliveries of their preferred edible oils. This ensures a steady supply and can lead to brand loyalty. The COVID-19 pandemic accelerated the adoption of online shopping across various industries, including food. Lockdowns and safety concerns led many consumers to explore online grocery options, and this behavior is expected to persist. Improvements in digital payment systems and increased online security have contributed to the growth of e-commerce. Consumers now feel more comfortable making online transactions. Also, the proliferation of smartphones has led to a surge in mobile shopping apps. Consumers can shop for edible oils on the go, further enhancing convenience.

Governments around the world provide support to the edible oil industry in a variety of ways. Governments often provide subsidies to farmers who grow oilseeds. This can help to reduce the cost of production and make edible oils more affordable for consumers. Governments also provide tax breaks to oilseed processors and edible oil manufacturers. This can help to reduce the cost of doing business and make edible oils more competitive in the marketplace. Governments often fund research and development projects aimed at improving the production and processing of edible oils. This can help to increase the yield of oilseeds, improve the efficiency of processing, and develop new products. Governments can also use trade policies to support the edible oil industry. For example, they may impose tariffs on imported edible oils to make domestic products more competitive. In some countries, such as India and Indonesia, the government provides significant support to the industry. In other countries, such as the United States and the European Union, the level of government support is more limited. By reducing the cost of production and making edible oils more affordable for consumers, government support can boost demand for edible oils. This can lead to higher prices for edible oils and increased profits for producers and processors.

Trade shows and exhibitions:
• Food Ingredients Europe (FIE): FIE is a leading global event for food and beverage professionals. It features a wide range of ingredients, including edible oils, and provides a platform for networking and learning about industry trends.
• Anuga: Anuga is one of the largest food and beverage trade shows in the world, covering a comprehensive range of products, including edible oils. It takes place in Cologne, Germany.
• Gulfood: Gulfood is the largest food and hospitality trade show in the Middle East, attracting exhibitors and attendees from the edible oil industry and related sectors.
• Oil China: This international exhibition in China focuses on vegetable oils and oilseed processing, providing insights into the Chinese and Asian edible oil markets.
• AOCS Annual Meeting & Expo: The American Oil Chemists' Society (AOCS) hosts this event, which covers the latest developments in the science and technology of oils, fats, and related materials.
• International Palm Oil Congress (PIPOC): PIPOC is a major event for the palm oil industry, bringing together experts, policymakers, and stakeholders to discuss the latest trends and challenges in the sector.
• Agro & Poultry Africa: This trade show, held in various African countries, covers agriculture, poultry, and related industries, including edible oils and feed.
• Oilseed & Grain Trade Summit: This event focuses on the global oilseed, edible oil, and feed grain markets. It offers networking opportunities and discussions on industry trends and challenges.
• International Food and Beverage Exhibition (SIAL): SIAL is a global food and beverage trade show that features a wide range of products, including edible oils, and attracts participants from around the world.
• Indo Livestock Expo & Forum: While mainly focusing on livestock and feed industries, this event often includes discussions and exhibitions related to edible oils used in feed and animal nutrition.
• World Edible Oil Summit: This summit gathers professionals from the edible oil industry to discuss trends, challenges, and opportunities in the sector.
• IndoAgri Expo & Forum: Held in Indonesia, this event covers various aspects of agriculture, including palm oil and other edible oils.
• Vitafoods Europe: While primarily focused on health and nutrition, Vitafoods Europe often includes ingredients such as functional edible oils used in dietary supplements and functional foods.