Summary

North America is one of the markets with the greatest potential for edible oils. Due to the region's changing eating habits and rising demand for processed food items, the number of food processing businesses in North America is expanding quickly. Fast food is becoming a more popular option for customers today because of its extremely high fat and oil content. The market is expanding in the North American region as a result of changes in lifestyles, eating habits, and the need for processed goods. Around the world, edible oil has established a substantial presence in the food and beverage industry. Millions of people consume it every day in establishments including cafeterias, hotels, and restaurants. Manufacturers are producing these oils to provide consumers with healthier options. One of the key reasons propelling the growth of the edible oil market is the rise in consumer inclination for nutritional enhancements. The sector has benefited from the development in the trend of living a healthy lifestyle among all age groups changing to a healthy and innovative approach. The prevalence of obesity among the population is rising, which has an additional impact on the market. As people seek out dieticians and nutritionists who offer individualized diet regimens with the goal of losing weight, the market expands. The market's expansion is accelerated by the growing awareness of the value of living a healthy lifestyle. People are being encouraged to use edible oil by the presence of numerous chronic ailments, including diabetes and cardiovascular disorders, among others. The growth of the market is further influenced by the increase in functional food products. Along with a rise in the number of sports and gym aficionados, the industry is also expanding as more customers look for sustainable and healthy eating options. Additionally, the edible oil industry is positively impacted by changes in lifestyle, rising disposable income, and increased consumer knowledge of the advantages of a healthy diet. On the other hand, it is anticipated that the high cost of the products and the limited supply of raw materials will restrain market expansion. The edible oil market is expected to face challenges from the usage of artificial/synthetic ingredients in a variety of applications that pose health risks and from inconsistent regulatory frameworks.

According to the research report, “North America Edible Oil Market Outlook, 2028” published by Bonafide Research, the market was valued at more than USD 38.80 Billion in 2022. The market in North America is fueled by a strong demand for organic health-based products, with rising use of premium cooking and edible oils by customers who are health-conscious as well as expanding demand from a variety of application areas. With the rising popularity of vegan diets, the food business maintained a significant market share. Numerous oils are also utilized as dietary supplements (or "nutraceuticals") due to their nutrient content or alleged therapeutic effects. The main strategies used by North American Edible oil producers include product launches, the adoption of clean labelling, creative packaging techniques, and portfolio expansion. These companies are actively investing in the production of healthy edible oils in order to provide their customers with the goods at reasonable market prices. Edible oils are expected to have a bright future in North America as their use is expected to increase in both food applications and the manufacture of biofuels and other natural and biobased products. The demand for processed and convenient foods like mayonnaise, mustard, potato chips, and French fries is increasing, which is driving the North American vegetable oil market upward. Vegetable oil also has a wide range of health advantages, such as lowering cholesterol levels, preventing cardiovascular illnesses, and enhancing digestion and metabolism. As a source of vitamin E, omega-3 and omega-6 fatty acids, polyunsaturated, monounsaturated, and saturated fats, it also serves as an additional benefit. Seeds, nuts, grains of cereal, and fruits are used to extract vegetable oils or vegetable fats. In the food sector, they are used for baking and cooking, to improve the texture of food products, and as a foundation for flavourings. Additionally, they are a component in the creation of other personal care and cosmetic products such soaps, detergents, skin care items, paint, resin, candles, and perfumes. Numerous industries were negatively impacted by COVID-19. But at this time, the market for edible oils saw a substantial expansion. The majority of the public showed a significant interest in adopting healthy diets during the lockdown that the government imposed to stop the spread of the coronavirus sickness. With the rise in health difficulties, people are using nutritional supplements to boost their immunity. The market will continue to grow in the post-pandemic environment due to the increased emphasis on good health.

The North America Edible Oil market is segmented into three major countries including United States, Canada and Mexico.

The largest market for edible oils is the United States, which in 2022 held around 80.50% of the market share in North America. Due to the growing use of vegetable oils in the manufacturing of biofuel and the exportability of American processed food goods, the market in the United States is growing significantly. The body receives vital nutrients from edible oils, including vitamins A and D. At high temperatures like those used in frying, they also serve as a heat transmission medium. They are frequently employed to make spreads and salad dressings taste better. The production, packaging, and distribution of edible oils in the US are all regulated by the Food and Drug Administration (FDA). However, the pandemic-related disruptions and the significant increase in demand from China and India have driven up the price of cooking oil significantly across the board. Additionally, the impacts of climate change have resulted in long-term supply challenges because of California's almost yearly wildfires. Over the projection period, it is anticipated that labour and transportation costs will rise up, pushing up the price of edible oils and impeding the growth of the market. Trans-fat use in edible products was outlawed by the Food and Drug Administration (FDA) of the United States in June 2015 after it was determined that it is not "generally recognized as safe" (GRS). The FDA allowed food manufacturers three years to change their processes and avoid using trans fats or PHOs in an edible product. While the companies can petition the FDA for special permits to use transfats, no PHOs can be added to edible oils or food products, unless approved by the FDA.

According to a report from the U.S. Department of Agriculture from 2022, soybeans make up nearly 90% of the nation's production of oil seeds and are both its greatest user and producer. This can be explained by the fact that the bulk of food processing industries in that region use soybean oil, which has a wide range of consumers. It is also projected that rising consumer knowledge of the health advantages of edible oil would encourage market expansion in this area. Due to the country's expanding economy, a modest increase in market size is anticipated during the projection period. It is anticipated that the country will have prosperous chances due to its growing population and oil imports from nearby nations like Canada and the United States. The market will continue to grow as long as local companies are actively involved in adopting and innovating the packaging, branding, and labeling of these products. The Rest of North America (RoNA) edible oil market includes Central America, Belize, Costa Rica, Panama, and the Caribbean, British Virgin Islands, Cayman Islands, Cuba, Dominica, Dominican Republic, Jamaica and many more. These countries are grouped together because they share similar economic, social, and cultural characteristics. They also have a relatively high demand for edible oils, due to the increasing population and the growing consumption of processed foods.

By Type, the Soybean oil segment held the highest market share of about more than 25% in 2022.

Soybeans are a major crop in North America, and the United States is the world's largest producer of soybeans. This means that there is a large supply of soybean oil available, which makes it affordable for consumers. Soybean oil has a neutral flavor, which makes it versatile cooking oil that can be used in a variety of dishes. It does not have a strong taste or smell, so it does not overpower the flavor of food. This makes it a good choice for cooking delicate dishes or for frying foods. Soybean oil is a good source of polyunsaturated fats, which are considered to be heart-healthy. Polyunsaturated fats help to lower LDL (bad) cholesterol and raise HDL (good) cholesterol. Soybean oil is also low in saturated fat, which is a type of fat that can raise cholesterol levels. Soybean oil has good frying properties and a high smoke point, making it a good choice for deep frying and other high-heat cooking applications. The smoke point of oil is the temperature at which it starts to break down and smoke. If oil is heated beyond its smoke point, it can release harmful compounds. Soybean oil has a smoke point of 450 degrees Fahrenheit, which is higher than many other cooking oils. The American Soybean Association (ASA) is a trade association that represents the interests of soybean farmers in the United States. ASA members include soybean farmers, soybean processors, and other soybean industry stakeholders. ASA works to promote the use of soybeans and their products, and to advocate for policies that are favorable to the soybean industry. In addition, Cottonseed oil has been used in North America for generations. It has a long history of culinary use and has been a staple in many households and commercial kitchens. Like soybean oil, cottonseed oil has a neutral taste and odor, which makes it suitable for a wide range of culinary applications without altering the natural flavors of dishes. Cottonseed oil has a relatively long shelf life due to its resistance to oxidation and rancidity. This is beneficial for both consumers and manufacturers, reducing the need for frequent oil replacement.

In terms of nature, the market is segmented into conventional and organic. The consumption of conventional edible oils in North America is driven by factors such as availability, versatility, affordability, and cultural significance.

Conventional edible oils, such as canola oil, soybean oil, corn oil, and vegetable oil blends, have been widely available and consumed in North America for decades. This familiarity has led to their continued use in households and commercial kitchens. Conventional oils have a neutral flavor and a high smoke point, making them suitable for a wide range of cooking methods, including frying, sautéing, roasting, and baking. This versatility appeals to consumers who use them in diverse culinary applications. Conventional oils have a neutral flavor and a high smoke point, making them suitable for a wide range of cooking methods, including frying, sautéing, roasting, and baking. This versatility appeals to consumers who use them in diverse culinary applications. Conventional edible oils are widely used by restaurants, fast-food chains, and the foodservice industry due to their affordability and availability in bulk quantities. In addition, organic farming practices prohibit the use of synthetic chemicals. Consumers who choose organic edible oils may do so to reduce their exposure to chemical residues commonly found in conventionally produced oils.

Organic products are subject to strict certification standards, providing consumers with confidence in the authenticity and purity of organic edible oils. Organic edible oils are often associated with premium quality, which can justify their higher price point for consumers who prioritize quality over cost. Parents concerned about their children's health and development may opt for organic edible oils to minimize their exposure to synthetic chemicals during critical stages of growth. There are many different types of organic oils available, each with its own unique properties. Some popular types of organic oils include olive oil, canola oil, avocado oil, and coconut oil. For instance, some popular brands of organic edible oil in North America include Nutiva, Spectrum, and Nature’s Promise, Kirkland Signature, Viva Naturals and more.

Based on end users, the market is segmented into domestic, industrial, and food service. Among them, the domestic segment is expected to have the highest market share.

The majority of edible oil consumption in North America occurs in households, where consumers use cooking oils for various culinary purposes, including frying, sautéing, baking, and salad dressings. Home cooking is a fundamental part of North American food culture. Increasing health-consciousness has led many consumers to prepare meals at home, where they have greater control over ingredient choices. Edible oils are a critical component of home-cooked meals, and consumers often seek oils that align with their health and dietary preferences. Despite the availability of prepared and restaurant meals, home-cooked meals are perceived as healthier and more economical by many consumers. Cooking at home allows individuals to customize their meals and make healthier choices, including the selection of cooking oils. Home cooks often customize their meals to accommodate dietary restrictions, allergies, or specific taste preferences. This level of customization drives demand for various edible oil options.

The North America edible oil market is segmented into offline and online distribution channels. Among them, the offline segment is projected to lead the market by 2028. Among the offline categories, convenience stores, hypermarkets, supermarkets, direct sales, and others are sub-segments that are considered in the report.

Offline distribution channels encompass traditional retail stores, such as supermarkets, grocery stores, convenience stores, and specialty food stores, which have a significant physical presence across North America. Consumers are accustomed to visiting these stores for their everyday shopping needs. Offline stores offer a high level of convenience for consumers. They are easily accessible, and consumers can physically examine products, compare brands, and make purchase decisions based on factors like price, packaging, and product placement. Consumers can interact with products through touch, smell, and visual inspection in physical stores. This sensory experience can influence purchasing decisions, especially for specialty oils with unique flavors or aromas. Grocery shopping is a common ritual for many households, and it often involves visiting physical stores to purchase everyday necessities, including edible oils. Physical stores offer the option to buy edible oils in various package sizes, including bulk quantities, which is appealing to households with higher consumption rates or those looking to save on cost per unit. Consumers often visit physical stores for seasonal shopping needs, such as holiday cooking and grilling seasons, which drive the demand for edible oils. For instance, some popular offline channels for edible oil in North America include Supermarkets/Hypermarket (Walmart, Kroger, Safeway, Albertsons, Trader Joe's, Whole Foods Market, etc.) and Convenience stores (7-Eleven, Circle K, Speedway, Wawa, QuikTrip, etc.)

Based on packaging type, the market is divided into HDPE (plastic), Pet (bottles), Pouch, Tin, and Tetra pack.

HDPE is known for its exceptional durability and resistance to moisture, making it an ideal choice for packaging edible oils. This durability ensures that the packaging can withstand the weight and pressure of the oil without leaking or breaking. HDPE packaging is designed to be leak-proof, preventing any oil seepage or contamination. This feature is crucial to maintain the freshness and quality of the edible oil. HDPE bottles and containers are relatively lightweight, making them easy to handle and transport for both manufacturers and consumers. This lightweight design reduces shipping costs and enhances convenience for consumers. HDPE packaging can be designed to provide protection against UV (ultraviolet) light. This feature is particularly important for edible oils, as exposure to light can lead to oxidation and spoilage. HDPE packaging is cost-effective to produce, which is advantageous for both manufacturers and consumers. This affordability contributes to the widespread use of HDPE in the edible oil market.

Market Dynamics:

Growing Preference for Non-GMO Products

Due to the worrisome rise in health issues, health has become the third most important factor in determining how much food and drink is consumed, after flavour and price. As a result, people are choosing their products more carefully and taking precautionary steps. Consumers who are aware of the numerous certifications and claims made for these products are primarily affected by this. One such movement that has gained enormous popularity throughout the world is non-GMO. Consumers in North America, Europe, South Asia, and Oceania are searching for labels with the non-GMO claim on their goods. Because it is commonly established that product alteration poses risks to human health, there is a growing market for non-GMO goods.

Customers' growing concerns about their health

Consumers in North America today are very concerned about their health. They are adopting organic products like edible oil companies as a consequence, which is anticipated to generate a lot of potential for market expansion. The market is expanding as a result of rising demand for edible oils with low cholesterol, calorie, and fat content. This is explained by the rising incidence of various lifestyle illnesses, including obesity, diabetes, and cardiovascular disease. Therefore, it is anticipated that market growth will be stimulated in the next years by the rising demand for goods like edible oil due to health concerns.

Dietary Practices and Living Standards are changing

In North America the speed of life has accelerated. The population's primary source of health-related problems is this. Customers prefer a healthy home-cooked cuisine in their daily life as a result of rising health and food awareness. This increases the market for edible oils' product demand. The body needs vitamins and minerals for appropriate metabolic function, and edible oils are made from a variety of natural sources.

Recent Developments:

• In October 2022, Wilmar announced that it would be investing $500 million in a new palm oil refinery in Indonesia. This investment is part of Wilmar's strategy to meet the growing demand for palm oil in North America.

• In December 2021, ADM announced that it had acquired the business of Golden Peanut Company. This acquisition gives ADM a leading position in the U.S. peanut processing industry.

• In February 2021, ADM announced plans to construct its first-ever dedicated soybean crusher and refinery in the US to meet the rapidly increasing demand from customers in the food, feed, industrial, and biofuel sectors, including producers of renewable diesel.

• In December 2021, Richardson International acquired the Wesson Oil logo from Conagra Meals Inc., a renowned edible oil brand in the US. Vegetable oils, canola oils, corn oils and mixed oils are among the products being offered by Richardson, helping it gain a firm footing in the North American market.

• In May 2021, Cargill partnered with Frontline International to create the Kitchen Controller end-to-end automated oil management solution. This solution helps foodservice businesses to optimize their oil usage, reduce waste, and improve food safety.

• In October 2021, Bunge announced that it would be investing $100 million in a new soybean processing plant in Indiana. This investment is part of Bunge's strategy to expand its capacity to produce sustainable oils in North America.

• In November 2019, ACH Food Companies acquired Anthony's Goods, a maker of organic cooking oils and baked products. This acquisition has helped ACH to expand its product portfolio and reach new customers.

Key Players Insights:

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, Richardson International Limited, Golden-Agri Resources, CHS Inc, Corteva, Inc.

Considered in this report

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

Aspects covered in this report

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

Countries covered in the report:

• United States
• Canada
• Mexico

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, Brazil nuts, canola etc.)

By Nature

• Conventional
• Organic


By End User

• Domestic
• Industrial
• Food Service

By Distribution channel

• Offline
• Convenience Store
• Hypermarket/Supermarket
• Direct Sales
• Others
• Online

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 organizations 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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