Asia-Pacific Fats and Oil Market – Growth, Trends, and Forecast (2018 - 2023)
The Asia-Pacific oil and fats market is expected to register a CAGR of 5.3%, during the forecast period (2018–2023), and projected to reach USD 1.7 billion by 2023.
The growing affluence of middle-class in China is allowing consumers to purchase high-priced packaged oils and fats. The ban on loose oils and fats in some Chinese cities has led to growth in the demand for packaged oils.
Vegetable and seed oils are perceived to be healthier and preferred by consumers. Olive oil, in particular, has had the highest growth rate due to its perceived health benefits. Retail sales of olive oil has increased tremendously over the years. The growing consumer preference for health products is expected to boost the market of olive oils.
The primary driver of fats and oils market in the Asia-Pacific region is its use in cooking and food processing. On the production front, Southeast Asian countries, such as Indonesia and Malaysia, lead with an 85% share of the global production. Moreover, rising demand for alternative biodiesel fuel in the transportation sector and increasing overall population worldwide are witnessing the growth opportunity for fats & oils market.
However, increasing health concern, such as heart related disease and obesity owing to excessive consumption of fats & oils rising quality standards, stringent government regulations for food safety and increasing environmental concern may hamper the growth of fats & oils market in near future.
The rising income, purchasing power, rapid growth of the middle-class population, and consumer demand for processed products provide promising prospects for growth and diversification specialty fats & oils sector in the region.
Asia-Pacific oil and fats market has been segmented by source type, application, and geography. Asia-Pacific occupies the largest share in the oil and fats sector in terms of production, as well as consumption. The highest production is that of palm oil and a majority of it is produced in Indonesia and Malaysia.
Asia-Pacific has emerged as a dominant market for fish oil consumption, owing to the huge concentration of the aquaculture industry in China, India, Vietnam, and Indonesia. Moreover, the rising health concerns among consumers have led to the usage of fish oil as nutritional supplement in developed countries, such as Japan and Australia.