01 March 2019, The global Edible Oil Market size is likely to attain momentous growth in future owing to augmented usage of fried foods, increasing disposable income, improved standard of living, and increasing population. Generally obtained from plants, edible oils are among the most widely used ingredients in cooking. Their widespread usage has also been observed in cosmetics, daily biotech goods, as well as in biodiesel production. Palm, corn, olive, canola, sunflower, and specialty blended oils are some of the most commonly used products.

Due to rapid urbanization, a great number of restaurants and fast food joints have been established across the globe. This has resulted in increased popularity of processed foods among consumers and changed their food habits.

Moreover, development in digital technologies and innovation in advanced packaging, processing, and labelling techniques to provide healthier and affordable oils to consumers has contributed significantly towards market growth.Recently, Colavita USA, a prominent olive oil company, launched its Dixon site that supports the processing of 100% extra virgin olive oil and bottles the same for distribution in various domestic and Asian markets.

A shift in consumer preference for healthy and organic products, rising incidence of obesity and other health problems, and growing health consciousness among consumers are likely to have a positive impact on the market. This has, in turn, resulted in introduction of low-cholesterol, low-calorie, and low-fat products.

Moreover, standards to ensure product authenticity have been laid down by the Food and Agricultural Organization (FAO). A research by the Food Navigator, a prominent online news source for the global food industry, states that trans fats increase cholesterol level in the body and can further give rise to heart diseases or diabetes. This has compelled manufacturers to undertake R&D initiatives concerning production of trans-fat free soybean oil.

Increased investments, novel product development, and innovation of new flavors & healthy ingredients, particularly in developed markets, are projected to open new avenues for growth.

However, strict regulations in product applications and growing health problems among consumers are major challenges faced by the market. Furthermore, low production and inability to meet growing demand of the product are estimated to restrain market growth in the coming years.

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Palm oil is likely to account for a prominent share in the forthcoming years as a result of robust demand, particularly in Indonesia and Malaysia, burgeoning applications, and advancements in sustainable production techniques. Soybean, olive, avocado, and coconut oils are anticipated to gain traction in future as they are a rich source of fatty acid, which can lower cholesterol and kill bacteria and other pathogens.

As per food safety regulations, manufacturers of blended oils are required to state the exact blend in terms of percentage for consumers to make an informed selection.Consumption of vegetable oil is anticipated to witness an upsurge in the coming years on account of growing demand from developing nations, booming retail sector, and increase in disposable income.

Food service, retail, and food processors are key end users of the product. The retail sector is expected to emerge highly lucrative over the forecast period due to a strong supply chain and presence of well-established retail outlets. Biodiesel production is an emerging application in the market. The Food Safety and Standards Authority of India (FSSAI) has laid down regulations on used cooking oil to be converted into bio-diesel and used as a feedstock for biodiesel production.

Asia Pacific presents several growth opportunities in the market owing to factors such as improved economic growth, growing population, improving standard of living, and rising product demand. Developing countries such as India and China are contributing significantly to the growth of the region. Moreover, increasing biofuel production in countries such as Indonesia, Malaysia, Thailand, and the Philippines is anticipated to propel growth. Europe is also estimated to emerge as a lucrative region in the market due to technological advancements and healthier lifestyles.

Some of the prominent companies in the edible oil market are Archer Daniels Midland Company; Ach Food Companies Inc.; Bunge Alimentos SA; Beidahuang Group; Ruchi Soya; and Adani Group.

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