Cooking Oil Market

Cooking Oil Market Overview:

The global cooking oil market size reached US$ 193.6 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 288.0 Billion by 2032, exhibiting a growth rate (CAGR) of 4.51% during 2024-2032. There are various factors that are driving the market, which include the rising awareness about health and wellness, changing dietary preferences of individuals, and increasing focus on sustainable sourcing practices and certifications of food products.

Cooking Oil Market Analysis:

• Major Market Drivers: One of the key market drivers include advancements in oil extraction and processing. Moreover, favorable government initiatives are acting as another growth-inducing factor.
• Key Market Trends: The rising awareness about health and wellness and increasing focus on sustainable sourcing practices and certifications of food products are main trends in the market.
• Geographical Trends: Asia Pacific exhibits a clear dominance, accounting for the biggest market share owing to rapid urbanization.
• Competitive Landscape: Numerous major market players in the cooking oil industry are ACH Food Companies Inc. (Associated British Foods plc), American Vegetable Oils Inc., Archer-Daniels-Midland Company, Bunge Limited, Cargill Incorporated, CJ CheilJedang Corp., Fuji oil Holding Inc., Indofood Agri Resources Ltd., J-Oils Mills Inc., Louis Dreyfus Company B.V., Marico Limited, Modi Naturals Ltd., Ottogi Co. Ltd., Wilmar International Limited., among many others.
• Challenges and Opportunities: Price volatility represents a key market challenge. Nonetheless, the rising demand for plant-based and organic food products, coupled with the thriving e-commerce sector, is projected to overcome these challenges and provide market opportunities.
   

Cooking Oil Market Trends:

Rising Awareness About Health and Wellness

As per the research report of the IMARC Group, the global health and wellness market touched US$ 3,670.4 Billion in 2023. Consumers are becoming more aware of how their dietary choices affect their health. This awareness is leading to a shift from traditional oils high in saturated fats towards healthier alternatives. Oils like olive, avocado, and coconut oil are favored because of their higher levels of healthful elements like antioxidants and monounsaturated fats and lower levels of harmful fats. The growing demand for oils that offer specific health benefits like omega-3 enriched oils is offering a favorable cooking oil market outlook. People are consuming cooking oil, which helps to lower inflammation and promote heart health. They are also looking for oils that aligns with dietary recommendations for better cardiovascular health.

Changing Dietary Preferences of Individuals

The escalating demand for cooking oil on account of changing dietary preferences of individuals like ketogenic diets, plant-based diets, and gluten-free diets is supporting the market growth. Plant-based diets may prioritize oils produced from plants such as avocados or nuts, whereas ketogenic diets may favor the consumption of fats like coconut oil and olive oil. Consumers are looking for food options that are minimally processed and free from additives and chemicals, which is contributing to cooking oil demand. In addition, changing dietary preferences drive innovation in the cooking oil market. Companies in the market are launching new products that address the specific dietary requirements. Examples of these products include oils that are safe to use at high temperatures, have a flavor profile that is neutral, or have special health advantages. For instance, on 19 June 2023, researchers at the Institute of Natural Sciences and Mathematics developed blends of vegetable oils with health-benefiting properties. Scientists at SUSU created an ideal oil blend with a well-balanced composition of polyunsaturated fatty acids.

Increasing Focus on Sustainable Sourcing Practices and Certifications

The rising focus on sustainable sourcing practices and certifications is supporting the cooking oil market growth. Consumers are more likely to choose cooking oils that offer transparency about their sourcing practices and supply chain. They are preferring products with clear labeling and information about where the oil comes from, how it was produced, and its environmental impact. Besides this, companies are focusing on catering to these consumer preferences. For example, on 27 October 2023, KTC Edibles, the UK’s largest supplier of edible oils, launched Planet Palm, a new range of certified sustainable, traceable, and responsibly sourced palm oil products for food manufacturers in the UK. It is the latest step in KTC’s ongoing sustainability programme, with KTC aiming to change perceptions about palm oil and encourage consumers to adopt sustainable solutions.

Cooking Oil Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on type, distribution channel, and end user.

Breakup by Type:

• Palm Oil
• Soy Oil
• Sunflower Oil
• Peanut Oil
• Olive Oil
• Rapeseed Oil
• Others
   

Palm oil accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the type. This includes palm oil, soy oil, sunflower oil, peanut oil, olive oil, rapeseed oil, and others. According to the report, palm oil represented the largest segment.

Palm oil is versatile and widely used in various food products including cooking oils, margarine, and processed food items. It is relatively low cost as compared to other oils, making it economically attractive for food manufacturers. It is highly productive per hectare of land, which makes it efficient for large-scale production. This high yield contributes to its dominance in the global market, particularly in regions where land availability and agricultural productivity are key considerations. It also has desirable functional properties for food processing such as a high melting point and stability at high temperatures. Furthermore, top market players are enhancing the palm oil production capacity to increase their cooking oil market revenue. For instance, on 5 June 2023, 3F Oil Palm started oil palm cultivation in Lakhimpur district, Assam, in association with the state government, and aims to cover over 20,000 hectares area in the next five years under a central scheme.

Breakup by Distribution Channel:

• Hypermarket and Supermarket
• Independent Retail Stores
• Business to Business
• Online Sales Channel
   

Hypermarket and supermarket hold the largest share of the industry

A detailed breakup and analysis of the market based on the distribution channel have also been provided in the report. This includes hypermarket and supermarket, independent retail stores, business to business, and online sales channel. According to the report, hypermarket and supermarket account for the largest market share.

To accommodate a wide range of consumer tastes and dietary requirements, hypermarkets and supermarkets provide an extensive assortment of cooking oils. These oils are frequently purchased by individuals along with other grocery items. These stores provide convenient shopping experiences with ample parking, extended operating hours, and the ability to compare brands and prices easily. They also provide cooking oil promotions and discounts, which attract consumers for larger purchases, thereby leading to a positive cooking oil market forecast.

Breakup by End User:

• Residential
• Food Services
• Food Processing
• Others
   

Residential represents the leading market segment 

The report has provided a detailed breakup and analysis of the market based on the end user. This includes residential, food services, food processing, and others. According to the report, residential represents the largest segment.

Cooking oils are essential ingredients used in daily meal preparation in residential applications. There is a rise in the demand for cooking oils for frying, sauteing, baking, and salad dressings. Consumers often maintain a variety of cooking oils at home to suit different culinary needs and preferences. This includes traditional oils like vegetable oil and sunflower oil, as well as healthier options such as olive oil, avocado oil, and specialty oils for specific cooking methods.

Breakup by Region:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Asia Pacific leads the market, accounting for the largest cooking oil market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific represents the largest regional market for cooking oil.

Changing consumer tastes and preferences in the Asia Pacific region are bolstering the market growth. The region's diverse cultures and culinary traditions influence the types of cooking oils consumed. The rising adoption of convenience food items and cooking oils suitable for diverse cooking styles due to rapid urbanization is impelling the market growth in the region. In addition, major manufacturers in the market are focusing on expanding their presence by introducing new farmlands for oil cultivation, which also impacts cooking oil price trends in the market. For example, on 22 May 2024, Dabeeo commenced its latest artificial intelligence (AI) monitoring project of palm oil farms in Indonesia, covering an area that is larger than the South Korean capital of Seoul. The company inked a deal with Tunas Sawa Erma Group, one of Indonesia's major palm oil producers, for the project, spanning across a total of 765 square kilometers. Dabeeo plans to use AI analysis and ultra-high-resolution satellite imagery to reduce the workload required in the current method of palm oil farm monitoring.

Competitive Landscape:

• The cooking oil market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the cooking oil industry include ACH Food Companies Inc. (Associated British Foods plc), American Vegetable Oils Inc., Archer-Daniels-Midland Company, Bunge Limited, Cargill Incorporated, CJ CheilJedang Corp., Fuji oil Holding Inc., Indofood Agri Resources Ltd., J-Oils Mills Inc., Louis Dreyfus Company B.V., Marico Limited, Modi Naturals Ltd., Ottogi Co. Ltd., and Wilmar International Limited.

  (Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

• Top cooking oil companies in the market are focusing on sustainability by implementing responsible sourcing practices. They are engaging in research and development (R&D) efforts that are aimed at improving oil extraction processes, enhancing product quality, and developing innovative cooking oil solutions. They are also opening new facilities that assist in catering to the diverse needs of end users. For example, on 3 February 2023, Olleco announced the construction of a state-of-the-art used cooking oil processing plant in East London at the Stolthaven Terminals facility in Dagenham. The new plant will not only strengthen the company’s ability to serve individuals in the south-east of England, but also create opportunities for collaboration with the new partnership, Olleco Bunge, throughout the EU.

Cooking Oil Market News:

• 15 November 2023: Bunge and Musim Mas Group announced a collaboration to promote the use of sustainable practices among smallholder farmers in Sambas, West Kalimantan, Indonesia. The collaboration aims to train more than 1,000 independent smallholders in the sustainable production of palm oil. The partnership aligns with the Agriculture Sector Roadmap to 1.5 degrees convened by the Tropical Forest Alliance, designed to halt commodity-linked deforestation.
• 30 January 2024: Karnataka-based MK Agrotech, an edible oil and food company and M11 Industries launched oil palm plantation programme in Odisha. The companies have signed a memorandum of understanding (MoU) with the Government of Odisha under the National Mission on Edible Oils–Oil Palm (NMEO-OP).

Cooking Oil Market Report Scope:

Key Questions Answered in This Report:

• How has the global cooking oil market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global market?
• What is the impact of each driver, restraint, and opportunity on the global market?
• What are the key regional markets?
• Which countries represent the most attractive market?
• What is the breakup of the market based on the type?
• Which is the most attractive type in the market?
• What is the breakup of the market based on the distribution channel?
• Which is the most attractive distribution channel in the market?
• What is the breakup of the market based on the end user?
• Which is the most attractive end user in the market?
• What is the competitive structure of the market?
• Who are the key players/companies in the global cooking oil market?

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the cooking oil industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.