Edible oils are one of the most essential food commodities consumed globally. They are largely consumed in various culinary applications due to their nutritional profile and ability to enhance the taste and aroma of food. Palm oil, soybean oil, and canola oil are some of the most commonly consumed edible oils across various regions. Edible oils offer various health benefits due to the presence of vital vitamins and unsaturated fatty acids. They help lower LDL cholesterol levels and reduce the risk of heart disease.

The global edible oils market is estimated to be valued at US$ 143.29 Mn in 2023 and is expected to exhibit a CAGR of 4.5% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:
Expanding applications of edible oils in the food processing industry presents a key growth opportunity. Edible oils find extensive applications as ingredients in various packaged food products like bakery goods, confectionery items, breakfast cereals etc. They help improve texture and shelf life of packaged foods. Growth of the fast moving consumer goods industry and rising demand for convenience foods have been driving the use of edible oils in food formulations. Expanding portfolio of product offerings from major food companies focusing on health and wellness is expected to boost demand for edible oils with desired attributes in coming years.

Porter’s Analysis
Threat of new entrants: The edible oils market has high capital requirements in processing and packaging of edible oils. Established brands have strong loyalty increasing differentiation among consumers.
Bargaining power of buyers: Large retail chains negotiate lower prices from suppliers due to high volume purchases. However, presence of many small local manufacturers balances this bargaining power.
Bargaining power of suppliers: Major suppliers have cost advantages due to economies of scale in sourcing oilseeds and grains. However, alternatives eg palm and soybean balance supplier power.
Threat of new substitutes: Alternative oils like olive, canola and products with trans fats pose substitution threats. Functional beverages with low calories are also substitutes.
Competitive rivalry: Market dominated by large multinationals competing on branding, innovation, and wide product range. Intense price competition exists.

SWOT Analysis
Strength: Wide availability of raw materials and price stability. Established brands with loyal customer base.
Weakness: Lower margins due to commoditized nature and intense competition. Vulnerability to climate change affecting crops.
Opportunity: Growth in food processing and restaurant industry boosting away-from-home consumption. Innovation in healthy oils catering to specific needs.
Threats: Stringent regulations on trans fats and labelling. Rising health consciousness increases demand for alternatives.

Key Takeaways

The Global Edible Oils Market Share is estimated to be valued at US$ 143.29 Mn in 2023 and is expected to exhibit a CAGR of 4.5% over the forecast period 2024 to 2031.

The global edible oils market is expected to witness high growth driven by increasing population, income levels and changing diets especially in Asia Pacific region. The Asia Pacific region dominated nearly half of the global edible oils market in 2024 led by India, China and Indonesia being the major producers and consumers of oils.

Key players operating in the edible oils market are AJF Cigars, Boutique Blends Cigars, Fenn Thompson & Co. Royal Cigar Works, Gurkha Cigar Group, Imperial Brands, Joya De Nicaragua, S.A., Scandinavian Tobacco Group, Swedish Match AB, and Swisher. Regional analysis for fastest growing region comprises South East Asian countries like Indonesia, Malaysia, Thailand etc are expected to be the fastest growing regional market led by increase in per capita incomes, urbanization and growth in food processing and food service industries. Key players operating in the edible oils market include large multinationals focusing on volume sales through branding and product differentiation while small regional manufacturers focus on niche areas and private labels.

For more insights, Read- https://www.marketwebjournal.com/edible-oils-market-growth-market-size-share-analysis/

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