Summary

The edible oil industry, an integral component of the global food market, has undergone significant transformation over the years. From traditional methods of extraction to advanced technologies, this industry has adapted to changing consumer preferences, health considerations, and sustainability concerns. The history of edible oils dates back centuries, with various civilizations discovering methods to extract oils from plants and seeds. Initially, oils were extracted through traditional methods such as cold pressing and grinding. These techniques, though labor-intensive, preserved the natural flavor and nutritional value of oils. Olive oil in the Mediterranean region and sesame oil in Asia are prime examples of ancient oils that continue to be celebrated for their health benefits and culinary versatility. In recent decades, changing dietary habits and increased health consciousness have driven consumer preferences towards certain types of edible oils. Oils rich in unsaturated fats, such as olive oil, canola oil, and avocado oil, gained popularity due to their potential cardiovascular benefits. Oils high in saturated fats, like palm oil and coconut oil, have faced scrutiny for their potential negative impact on heart health. Trans fats, once commonly used to enhance the shelf life and stability of foods, came under heavy criticism for their association with cardiovascular diseases. This led to significant efforts to eliminate trans fats from the production processes of edible oils and food products, resulting in a shift towards healthier alternatives.

According to the research report, “Global Edible Oil Market Overview, 2028” published by Bonafide Research, the market is anticipated to cross USD 290 Billion by 2028, increasing from USD 212.63 Billion in 2022. The market is expected to grow with 5.60% CAGR by 2023-28. Sustainability has emerged as a pivotal concern in the edible oil industry. Palm oil, a highly versatile and widely used vegetable oil, faced backlash due to its contribution to deforestation and habitat destruction. As a response, many producers committed to sustainable practices and certifications like RSPO (Roundtable on Sustainable Palm Oil) certification, aiming to minimize environmental impact. Efforts to promote sustainable practices extend beyond palm oil. The push for responsible sourcing, reduced water usage, and minimized carbon footprint has prompted the industry to explore innovative solutions such as precision agriculture, satellite imaging, and IoT (Internet of Things) technology to monitor and optimize cultivation practices. Technological advancements have revolutionized the edible oil industry. Modern extraction methods, including solvent extraction and cold pressing with hydraulic presses, offer higher yields and improved efficiency while preserving nutritional quality. Additionally, the use of machinery and automation has streamlined production processes, ensuring consistency and reducing human error. Biotechnology also plays a role in shaping the industry's landscape. Genetically modified (GM) crops engineered for enhanced oil content or improved resistance to pests and diseases have been introduced, sparking debates surrounding safety, ethics, and environmental impact. Across the globe, edible oils have become intrinsic to the culinary identity of various regions. Olive oil often referred to as "liquid gold," holds a special place in Mediterranean cuisine. Its use in dishes like Greek salads, Italian pasta, and Spanish tapas not only imparts distinct flavors but also connects these cultures to their historical roots.

Similarly, coconut oil is a staple in many tropical regions. It's not only used in cooking but also in religious rituals and traditional medicine. In South Asian cuisines, oils like mustard oil and ghee (clarified butter) are essential for flavor and texture. These oils not only contribute to the taste of the dishes but also carry cultural significance in celebrations and family gatherings. Edible oils often play a significant role in religious and cultural rituals. In various societies, oils are used in religious ceremonies, anointing rituals, and as offerings. In Christianity, olive oil is used for anointing during religious sacraments, while in Hinduism; oil lamps (diyas) hold deep spiritual significance, symbolizing the triumph of light over darkness. The act of sharing meals cooked with specific oils can also carry symbolic meaning. For instance, in African cultures, palm oil is used in communal dishes that bring people together, representing unity and shared experiences. This blending of culinary and cultural symbolism creates a strong sense of belonging and identity. The edible oil industry has been greatly impacted by globalization, leading to the fusion of culinary practices from different parts of the world. As people travel, migrate, and explore new cuisines, they bring back flavors and techniques that influence local food cultures. For instance, the rise of Asian cuisine in Western countries has introduced oils like sesame oil, peanut oil, and coconut oil to new culinary contexts. These oils, once considered exotic, have now become mainstream ingredients in diverse dishes, reflecting the cross-cultural exchange that characterizes our interconnected world. While globalization has introduced new oils and cooking techniques, there is also a concerted effort to preserve traditional practices. Many cultures are keen on maintaining their culinary heritage by using age-old methods of oil extraction, like cold pressing or stone grinding, to retain the authentic flavors and health benefits of the oils. In some cases, traditional practices are being revived and modernized to meet contemporary standards while still respecting cultural authenticity. This blend of tradition and innovation showcases the resilience of cultural practices in the face of changing times.

Edible oils are at the heart of culinary traditions, nutritional considerations, and global commerce. Two prominent players in the edible oil landscape are palm oil and rapeseed oil. These oils have distinctive characteristics, applications, and controversies associated with them. Palm oil, derived from the fruit of oil palm trees, is one of the most versatile and widely used vegetable oils. Its high saturated fat content provides stability, making it suitable for various applications, including cooking, baking, and food processing. It is also used in non-food industries such as cosmetics and biofuel production. However, the palm oil industry has faced significant criticism due to its environmental impact. The expansion of palm oil plantations has contributed to deforestation, habitat destruction, and biodiversity loss in regions like Southeast Asia and Africa. This has raised concerns about the loss of valuable ecosystems, including those inhabited by endangered species like orangutans and tigers. Efforts to address these concerns have led to the establishment of sustainable palm oil certification schemes, but challenges in implementation persist. However, rapeseed oil, also known as canola oil in its modified form, is extracted from the seeds of the rapeseed plant. It gained popularity due to its relatively low saturated fat content and high levels of monounsaturated and polyunsaturated fats, including omega-3 and omega-6 fatty acids. This favorable fatty acid composition contributes to its reputation as heart-healthy oil. Rapeseed oil's neutral flavor and high smoke point make it suitable for various cooking methods, including frying and sautéing. Additionally, its use extends to salad dressings, marinades, and baking. The production of canola oil involves selective breeding to reduce the levels of erucic acid, which was found to be potentially harmful in large quantities.

In recent years, there has been a noticeable shift in consumer preferences towards natural and minimally processed products, and this trend has significantly impacted the edible oil industry. Natural edible oils, often obtained through traditional extraction methods and devoid of chemical additives, have gained popularity due to their perceived health benefits, sustainability, and alignment with clean eating trends. With increasing awareness of the link between diet and health, consumers are seeking oils that provide nutritional value without compromising their well-being. Natural oils, such as cold-pressed olive oil, avocado oil, and coconut oil, are rich in essential nutrients and healthy fats, appealing to those looking for better dietary options. Consumers are scrutinizing product labels more than ever. They are opting for products with fewer and easily recognizable ingredients. Natural edible oils often have shorter ingredient lists, which align with the clean label movement and foster trust among consumers. Environmental consciousness has also influenced the growth of natural edible oils. Many consumers are looking for products that are sustainably sourced and produced. Natural oil extraction methods often have a lower environmental footprint compared to heavily processed alternatives. Based on the end users, industrial end user is expected to reach over USD 70 Billion by 2028. While edible oils are primarily known for their role in cooking and nutrition, they also have a diverse range of industrial applications that play a crucial role in various sectors. These versatile oils serve as essential components in industries such as cosmetics, pharmaceuticals, biofuels, and more. Edible oils find their way into a multitude of cosmetic and personal care products. Their moisturizing and nourishing properties make them valuable ingredients in lotions, creams, balms, and hair care products. Oils like coconut oil, jojoba oil, and argan oil are renowned for their benefits to skin and hair health. They provide hydration, protection, and a natural source of vitamins and antioxidants.

Based on the distribution channel, the growth of online sales channels for the edible oil market has been influenced by several factors, reflecting broader trends in e-commerce and changing consumer behaviors. Online platforms provide consumers with the convenience of ordering edible oils from the comfort of their homes. This eliminates the need to visit physical stores, saving time and effort. E-commerce platforms offer a vast selection of edible oil brands, types, and variants. This enables consumers to explore a broader range of options than they might find in local stores. Online platforms often provide detailed product information, including nutritional content, ingredients, and sourcing details. This transparency appeals to health-conscious consumers seeking specific nutritional attributes. Online shopping allows consumers to read reviews and ratings from other buyers. Positive reviews can boost consumer confidence in trying new brands or products. Consumers can easily compare prices across different online retailers, finding the best deals without the need to physically visit multiple stores. Many online retailers offer subscription services, allowing consumers to receive regular deliveries of their preferred edible oils. This ensures a steady supply and can lead to brand loyalty. The COVID-19 pandemic accelerated the adoption of online shopping across various industries, including food. Lockdowns and safety concerns led many consumers to explore online grocery options, and this behavior is expected to persist. Improvements in digital payment systems and increased online security have contributed to the growth of e-commerce. Consumers now feel more comfortable making online transactions. Also, the proliferation of smartphones has led to a surge in mobile shopping apps. Consumers can shop for edible oils on the go, further enhancing convenience.

Based on the regions, the global edible oil market is segmented into five major regions including North America, Europe, Asia-Pacific, South America and Middle East & Africa. Europe's edible oil industry is a vibrant tapestry woven with a rich history of culinary traditions, evolving health considerations, and a strong commitment to sustainability. From olive oil in the Mediterranean to rapeseed oil in Northern Europe, the continent has a diverse range of edible oils that reflect its cultural diversity and changing consumer preferences. Olive oil stands as an emblem of the Mediterranean diet, celebrated for its health benefits and its integral role in European cuisine. Countries such as Spain, Italy, and Greece are renowned for their high-quality olive oils. The varying grades, from extra virgin to refined, offer a spectrum of flavors and uses, from drizzling over salads to cooking and baking. The health benefits of olive oil, including its monounsaturated fats and antioxidants, have contributed to its widespread adoption in Europe and beyond. The Mediterranean diet, rich in olive oil, has been associated with reduced risks of heart disease and improved overall well-being. Across Europe, health and wellness trends have influenced consumer preferences in the edible oil sector. The rise in health-consciousness has led to an increased demand for oils rich in unsaturated fats, such as olive oil and rapeseed oil, which are considered beneficial for heart health. Consumers are also seeking oils that are minimally processed and free from artificial additives, aligning with clean eating principles.

Covid-19 Impacts

COVID-19 hit the manufacturing stage of the air edible oil industry as the factories were closed globally and the scale of production got affected. The impact of COVID-19 hit massive sales drops in the edible oil industry. During the lockdown, closure of the supermarket and departmental store cause a decline in sales and revenue of the industry. Due to lockdown, disruptions in the distributional channel system from the warehouse to retail. Edible oil is an essential product for daily life, increasing demand for household consumption during lockdown time. The major online players try to provide prominent service essential products in the pandemic outbreak area.

Start-up Scenario

• Bunge Loders Croklaan Company focuses on producing specialty oils and fats for the food industry, with an emphasis on sustainability. They work on developing healthier alternatives for various food applications.

• Mintelipids: Specializing in lipid technology, Mintelipids offers solutions for enhancing the nutritional profile, shelf life, and functionality of oils used in food and beverages.

• Camelina Company España, focused on the cultivation of camelina oilseeds, this startup aims to provide a sustainable and nutritious alternative to traditional edible oils.

• BeyondBrands Company develops and markets Edible Oil products, including a range of cooking oils made from ingredients like avocado, coconut, and olive.

• Basil Extra Virgin Olive Oil startup uses blockchain technology to ensure the traceability and authenticity of its olive oil products, enhancing transparency and trust in the supply chain.

• OliveXpress platform connects olive oil producers directly to consumers, facilitating the distribution of high-quality olive oil products.

• Cho's Kitchen startup produces a range of cold-pressed edible oils using traditional methods and unique ingredients like black sesame, walnut, and pumpkin.

• Specializing in camelina oil, Koliva is dedicated to producing sustainable and health-conscious edible oils.

• Brightseed startup uses artificial intelligence to discover and commercialize natural compounds in plants, potentially leading to new and innovative edible oil products with enhanced health benefits.

Key Companies

Cargill Incorporated, The Archer-Daniels-Midland Company, IOI Corporation Berhad, Olam International, Associated British Foods plc, Ajinomoto Co., Inc , Wilmar International Limited , Borges International Group, Bunge Limited, United Plantations Berhad.

Considered in this report

• Geography: Global
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report

• Global Edible Oil with its value and forecast along with its segments
• Region-wise Edible Oil market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Regions covered in the report

• North America
• Europe
• Asia-Pacific
• South America
• Middle-East & Africa

By Product Type:

• Soybean Oil
• Palm Oil
• Rapeseed Oil
• Mustard Oil
• Sunflower Oil
• Olive Oil
• Ground nut Oil
• Coconut Oil
• Corn Oil
• Rice-bran Oil
• Sesame Oil
• Cottonseed Oil
• Others (Apricot, Hazelnut, Almond, Macadamia, Walnut, Avocado, Grape-Seed, Cashew and Brazil Nuts etc)

By Nature:

• Conventional
• Organic

By End-User:

• Domestic
• Industrial
• Food Service

By Distribution Channel:

• Offline

o Convenience store
o Hypermarket/Supermarket
o Direct Sales
o Others

• Online

By Packaging Type

• HDPE (Plastic)
• Pet (Bottles)
• Pouch
• Tin
• Tetrapak

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations and organisations related to the Edible Oil industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.






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