Vegetable Oil Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Vegetable Oil Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The vegetable oil market is projected to register a CAGR of 5.64% during the forecast period (2021 - 2026).

The COVID-19 pandemic has unleashed a series of unprecedented events affecting every industry. However, since the food industry was overburdened with the responsibility of meeting the requirements in the time of emergency, especially during the lockdown period, vegetable oil for food applications was consumed in large quantities, and the market witnessed a surge in demand from the sector.

The market is primarily driven by the robust industrial applications of vegetable oils for the manufacturing of organic industrial products, including cosmetics and toiletries, whose usage has increased globally. Moreover, the consumption of plant-based food products containing only high-quality edible oils/cooking oils has propelled the application of oil in food and beverage products.

Additionally, supporting policies by regulatory bodies like the Renewable Energy Directive (RED) and European Union Common Agricultural Policy (CAP) are also widely supporting the application of vegetable oil in varied industries, including biofuel, food, animal feed, or cosmetics.

Rapeseed oil dominates in the markets like Europe, owing to its abundant production in the regional market and its wide application in the biodiesel, food, and animal feed industries. Germany and France are the leading consumers of rapeseed oil in the regional market.

Key Market TrendsSupportive Policies on Vegetable Oil Usage in Various Countries

The European Union’s consumption of vegetable oil in biofuel has been largely driven by the Renewable Energy Directive (RED). This directive, established in 2009, requires 10% of the energy consumption in road and rail transport in 2020 to be from renewable sources. EU Member States (countries) are required to implement this target with national laws and incentives, such as blending mandates.

In India, during November 2017, the taxes on crude and refined palm oil were raised to 30% and 40%, respectively, and in March 2018, to 44% and 54%, respectively. These changes were made to support domestic vegetable oil production. Similarly, in the United States, the Renewable Fuel Standard (RFS) mandates the consumption of increasing volumes of biofuel each year. In addition to the RFS, the United States has provided a tax incentive for biodiesel and renewable diesel consumed in the US imported biofuels. In several cases, the tax credits were reinstated retroactively. Therefore, factors such as these are expected to drive the market studied.

Asia-Pacific Dominates the Vegetable Oil Market

Asia-Pacific is the dominant region for the vegetable oil market across the globe, and in Asia-Pacific, China holds the largest share of vegetable oil consumption and production. Though the production volume is high, consumption exceeds production, resulting in higher import volumes when compared to export volumes. The Chinese vegetable oil market majorly encompasses palm, soybean, rapeseed, peanut, sunflower, and olive oil. Over the past five years, soybean and palm oil had the largest shares in the Chinese vegetable oil market. Wilmar International Ltd (Yihai Kerry), Cofco Corporation, and Xiwang Food are some of the major edible vegetable oil companies operating in the Chinese and Asian markets. Japan is another major player in the industry. Japan imports the great majority of olive oil from Southern Europe, which is used for cooking and non-food uses.

Competitive Landscape

The vegetable oil market is a competitive market, and the major strategies adopted by the key players of the market studied include product innovations, partnerships, expansions, and mergers and acquisitions. Wilmar International Limited, Bunge Limited, Golden Agri-Resources, and Sime Darby Plantation Berhad are some of the prominent players operating in the market studied. The major players of the market have a broad geographical presence and extensive product portfolios to cater to numerous consumer demands. This factor assists the companies in maintaining a strong foothold in the market.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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