Cooking Oil Market to Partake Significant Development By 2028
The global cooking oil market size is estimated to be valued at $2,56,200 billion by 2028, surging from $1,67,600 billion in 2020, at a noteworthy CAGR of 5.5%.
COVID-19 Impact on Cooking Oil Market
During the pandemic, the cooking oil market is experiencing a low growth as food safety has become one of the biggest concerns among consumers to reduce the possibilities of getting infected by the virus. This has led to the shutdown of restaurants and food stalls, negatively impacting the growth of the market.
Furthermore, certain key vendors operating in cooking oil market, such as Marico Ltd, India's leading consumer goods company, in July 2020 announced that they have experienced higher growth rate of 16% on their saffola oil as it is considered as healthy oil. All such factors are predicted to positively impact the global cooking oil market trends amid the pandemic.
Due to the COVID-19 pandemic, people are stuck at homes with limited sources of food. Therefore, most of them are spending more time on cooking. These factors are anticipated to create lucrative investment opportunities in the market during the forecast period.
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Global Cooking Oil Market Analysis
The enormous growth of the global cooking oil market is mainly attributed to increasing demand for organic, low fat, and low cholesterol food products. Therefore, increasing demand for high-quality cooking oils such as olive oil and pam oil for various applications such as food, confectionery, candies, and others is expected to drive the global market for cooking oil. Moreover, manufacturers are focusing on cooking/edible oils that are highly nutritious and contain less fatty matter. All such elements across the world, might fuel the cooking oil market growth.
There are side effects of consuming higher level of frying oil such as vegetable oil used in restaurants; it increases cholesterol, diabetes, and obesity. Such key issues may create a negative impact on the market during the forecast period.
The increasing adoption of eating outside and penetration of processed food that are ready-to-eat due to urbanization are expected to foster the global market growth. Moreover, rising number of health-conscious consumers and higher living standards are expected to raise the demand for healthy oils such as organic oils.
Furthermore, companies that are involved in the global cooking oil market are following effective strategies and launching innovative products to grow in the market. For instance, Nutiva, US based food industry, in April 2020 announced that they have launched two new types of organic liquid coconut oils. This coconut oil is the replacement of traditional cooking oil such as canola, olive, and others. It is fully organic and certified with U.S. Department of Agriculture for cooking, baking and sautéing. Such type of advancements may lead to lucrative market opportunities in the market in the upcoming years.
Global Cooking Oil Market, Segmentation
The global cooking oil market is segmented based on type, end-user, distribution channel, and region.
Type:
The type segment is further classified into palm oil, soybean oil, rapeseed oil, sunflower oil, and others. Among these, the palm oil type sub-segment is anticipated to have the dominant growth and surpass $93,767.5 billion by 2028, with an increase from $59,753.9 billion in 2020.
The market growth can be attributed to its low cost and its increased applications in food, biofuel, personal care, and cosmetics. Moreover, higher import and export demands of palm oil in Asian countries may create a positive impact on the sub-segment throughout the forecast period.
End-user:
The end-user sub-segment is further classified into residential, food services, food processing, and others. Among these, the food services type sub-segment is anticipated to have the fastest growth and surpass $72,194.5 billion by 2028, with an increase from $45,165.6 billion in 2020.
The market growth can be attributed to high use of cooking and vegetable oil by restaurants, hotels, and food producers. Moreover, rising trends of using healthy oils such as olive oil and pam oil along with the trend of dining outside may create a positive impact on the sub-segment throughout the forecast period.
Distribution Channel:
The distribution channel segment is further divided into hypermarket/supermarket, retail stores, business to business, and online sales channel. The retail stores sub-segment is anticipated to have fastest growth in the global market and register a revenue of $65,186.4 billion during the analysis timeframe.
This growth can be attributed to discounts and home deliveries offered by retail stores shopkeepers. Also, retail stores are more convenient for people as they can be found in every corner of the streets. All these elements may aid in the generation of a higher revenue for the market.
Region:
The cooking oil market share for the Asia-Pacific region is projected to witness rapid growth. This market generated a revenue of $80,699.4 billion in 2020 and is further projected to reach up to $1, 27,587.6 billion by 2028.
The demand for cooking oil is surging in the region specifically due to factors like increasing use of palm oil in food across the region. Moreover, the strong presence of leading cooking or edible oil providers and manufacturers might be one of the key factors for the growth of market in the region. For instance, Marico Ltd, India's leading consumer goods company, announced in June 2021 that they are planning to launch cooking oils that will boost up the immunity of the body. All such factors are anticipated to boost the market in the Asia-Pacific region.
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Key Players in the Global Cooking Oil Market
Some of the leading global cooking oil market players are
- Archer Daniels Midland Company,
- Sime Darby Plantation,
- Bunge Limited.,
- Olam International Limited,
- Kaneka Corporation,
- Cargill,
- George Weston Foods Limited,
- Louis Dreyfus Company,
- Nutiva and
- SIFCA SA
Along with the company profiles of the key players in the market, the report includes the Porter’s five forces model that gives deep insights into the competitive environment of the market.