Cooking Oil Market

Global Cooking Oil Market Size (2024 to 2029):

Global Cooking Oil Market was worth US$ 224.70 billion in 2024 and is anticipated to reach the valuation of US$ 283.52 billion by 2029 and is predicted to register a CAGR of 4.76% during 2024-2029.

Cooking oil is a synthetic fat that may be used for frying, baking, cooking, and seasoning. These oils are made up of different fatty acid fractions. Palm, canola, sunflower, soybean, avocado, and other oils have a variety of health benefits and are commonly utilized in food. Strong demand for organic and unsaturated healthier products is driving the industry. Factors driving market expansion include increased usage of avocado oil for its nutritional health benefits, rising demand for canola oil in snacks due to its low price and versatility, and an increase in healthy soybean oil product releases by large companies. Furthermore, the market is likely to benefit from the increasing trend toward packaging in order to maintain the environmental sustainability. People frequently use re-usable vegetable oil spray bottles instead of throwaway cans since they are more environmentally friendly. As a result of these reasons, the need for more eco-friendly packaging is projected to increase, resulting in market growth.

Global Cooking Oil Market Drivers:

Increasing demand of cooking oils in developing economies, the rising global consumption of processed foods is anticipated to contribute significantly to the market's expansion.

Small food outlets, households, and businesses will likely increase their demand for these oils to cook food as a result of consumer preference for packaged and processed foods, which will likely affect the market. Furthermore, rising incomes, combined with urbanization and the rise of the middle class, lead to more diverse diets, resulting in increased demand for processed foods. As per a study by the Organization for Economic Co-operation and Development (OECD) and the Food and Agriculture Organization (FAO), the availability of vegetable oil in least developed countries is estimated to rise by 1.3 percent per year, reaching 9 kg per capita in 2030, up from 8.16 kg in 2021. Furthermore, according to the United States Department of Agriculture (USDA), due to reasons such as tourism and exponential population growth, imports of cooking/edible oil into emerging economies are estimated to increase by 34%, accounting for 79 percent of global import growth. As a result, these variables are projected to fuel market expansion in the approaching years.

Fortification of Cooking oils with nutrients like vitamins and minerals, Micronutrients are added to oil to improve its nutritional value. According to the Food Safety and Standards Authority of India (FSSAI), enriched oil is known to help people to satisfy 25-30% of their daily vitamin A and D requirements. Because vitamins A and D are fat-soluble vitamins, fortification with both is a useful technique for preventing micronutrient deficiency. Since the low-fat and fitness trends cause consumers to buy insufficient amounts of fat-soluble micronutrients, oil enrichment guarantees that they consume enough fat-soluble vitamins through food. With rising consumer awareness, some countries have initiated large-scale efforts to promote the fortification of staple foods, including oils, and 27 countries have already ordered oil fortification under the Food Fortification Initiative. Governments are also recognizing the importance of food fortification and its ability to aid in the achievement of global nutrition goals. For example, the Food Safety and Standards Authority of India (FSSAI) produced a draught in 2021 calling for the compulsory fortification of cooking/edible oil with vitamins A and D, which aid in immunity and the prevention of malnutrition, particularly micronutrient deficiencies.

Global Cooking Oil Market Restraints:

Counterfeiting of cooking oil which impedes market growth, for years, the nutritional integrity of edible oils has been a source of worry. Adulteration of renowned and pricey oil with less expensive oil is rampant, posing a hazard to public health. For example, Indian police seized eight 15-liter tins of counterfeit Fortune soybean oil, a Wilmar International Ltd brand, in March 2021. A total of 119 labels and 481 circular stickers worth USD 4,910 were also seized from the store. In addition, palm oil counterfeiting increased in Nigeria's key open markets in 2020. Despite palm oil's extensive use, the study found that more than 90% of commercialized oil is tainted and inadequately stored. While oil codex criteria are continuously improving in order to improve their efficiency in resolving authenticity issues, rising oil counterfeiting is expected to hinder the global cooking oil market share.

REPORT COVERAGE: 

This research report on the Global Cooking Oil Market has been segmented and sub-segmented based on product type, application, and region. 

Global Cooking Oil Market - By Product Type:

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

In the global market, palm oil is projected to have a dominant position. During the projection period, the sub-segment is expected to generate USD 93.35 billion in sales. Palm oil is one of the most widely used oils in the world, owing to its reduced cost of up to 20% less than other cooking oils. Furthermore, palm oil includes beta-carotene, a carotenoid that may be turned into Vitamin A and hence improves bone, eye, and immunological health. These variables could help the sub-segment grow faster during the projected timeframe.

Global Cooking Oil Market - By Application:

• Food Outlets
• Domestic
• Food Processing

In the global market, the domestic type sub-segment is expected to hold a dominant market share. During the projection period, the sub-segment is expected to generate $1,16,859.5 billion in sales. The demand for cooking oil in domestic use is predicted to rise as branded cooking oil becomes more popular for cooking and baking. Furthermore, market actors use methods to stay competitive. For example, in May 2021, the Adani Group, an Indian global conglomerate, announced the launch of a mobile application that will allow clients to order cooking oils under the Fortune brand online from the comfort of their own homes. These variables could help the sub-segment grow faster during the forecast period.

The fastest-growing category of the global cooking oil market is expected to be food outlets subcategory. By2027, it is expected to have grown to $69,182.5 billion, up from $47,152.6 billion in 2021. The rise in the number of fast-food establishments and restaurants can be ascribed to the market's growth. Additionally, rising disposable incomes and living standards may hasten the trend of eating outside. All of these factors may raise demand for food services and accelerate industry expansion.

Global Cooking Oil Market - By Region: 

The Global Cooking Oil Market Report includes the segmentation of Regions:

• North America,
• Europe,
• Asia Pacific,
• Latin America,
• Middle East
• Africa

By 2027, the size of the Asia-Pacific cooking oil market is expected to increase at a CAGR of 5.7%, generating $1,32,478.6 billion in sales. The rise is predicted to be due to increasing daily oil consumption, greater cooking oil production, and increased import volumes relative to export levels. Furthermore, the rising usage of cooking oil in processed foods, along with a growing number of health-conscious consumers, may drive up the consumption of healthy cooking oil in the region. Furthermore, the majority of the global cooking oil market leaders are constantly applying numerous successful company tactics, such as product developments. Europe is the second largest market, and it has experienced tremendous growth in recent years as a result of consumers' growing health consciousness and desire for organic and label-claimed cooking oils.

The United Kingdom, France, and Germany, among others, import premium sunflower, rapeseed, olive, and other oils that have an adequate quantity of unsaturated fats to enable producers sell these oils based on these features, resulting in a stronger brand positioning and sales growth.

Peanut oil's commercial possibility in Europe is transitioning from a mainstream to a niche market. Because of their health benefits and textural qualities, cold pressed oils, virgin oils, and baking oils have a lot of potential in France. The presence of rules governing the sale of edible oil across the European Union, which ensures that customers have access to high-quality products, has aided in the growth of the industry in the region.

Due to increased demand for various processed and ready-to-serve foods and rising per capita consumption of edible oils, North America is expected to have considerable growth possibilities in the cooking oil market. High per capita income and highly advanced techniques utilized by top players in production boost the industry.

South America is predicted to develop significantly as a result of rising health awareness as a result of rising health-related issues such as high blood hypertension, obesity, and diabetes, which has fueled the demand for antioxidant-rich, mineral-rich, and vitamin-rich oils. Furthermore, the market is expected to be driven by the region's rising palm oil farming and its use in a variety of end-user industries.

KEY MARKET PLAYERS:

The key players in the Global Cooking Oil Market are Adani Wilmar, Cargill Inc., ConAgra Brands, Inc., Archer Daniels Midland Company, Bunge Limited, Olam International Limited, Fuji Oil Holding Inc., IFFCO Group (UAE), Ottogi Co. Ltd. (South Korea), and Associated British Foods Plc (U.K.).

RECENT HAPPENINGS IN THE INDUSTRY:

• In June 2021, to fulfill the growing demand for sustainable and traceable edible palm oil, Cargill Inc. announced plans to develop a new palm oil refinery in Lampung, Indonesia, worth USD 200 million. Due to their ideal climatic conditions, developing economies, and rising populations, the company is eyeing Southeast Asian countries for business expansion.
• In August 2021, The Indian government has established a new national plan to generate palm oil in order to boost agricultural income. With an investment of about USD 1,470.6 million, the National Edible Oil Mission Oil Palm (NMEOOP) intends to attain self-sufficiency in cooking oil. The plan aims to boost palm oil production, reduce dependence on imports, and assist farmers in capitalizing on large markets.