Global Edible Oil Market Outlook, 2028

Market Analysis

Edible oils, the source of essential fatty acids procured from the plant, animal, or synthetic fat, is used in frying, baking, and other types of cooking/food preparation. Edible oil can also be known as “a food material, excluding a dairy item, of whatever source, origin, or composition that is made for consumption by a human in part or complete from fats excluding the milk”. These are also used in various food preparations and flavorings, which do not involve any heat source, such as salad dressings and bread dips. Global customers are shifting their purchasing preferences toward edible oils like olive oil, rapeseed oil, soybean oil, and sunflower oil, which have been scientifically shown to boost heart health, in reaction to rising non-communicable disease rates. As a result, the worldwide edible oils market is expanding due to the rising demand for and consumption of edible oils in homes and food services. The market for edible oils worldwide is expanding due to consumer demand for heart-healthy oils such olive, rapeseed, soybean, and sunflower oils as a result of the known association between high-fat diets, raised serum cholesterol levels, and heart disease. The market is influenced by a number of variables, including population growth, increased disposable incomes, shifting food preferences, and rising health anxieties. Vegetable oils in particular are becoming more popular as people look for healthier substitutes for conventional cooking oils. A greater understanding of the environmental and health advantages of ingesting such products is another factor driving the demand for organic and non-GMO food products, especially edible oils. The market for edible oils is extremely competitive, with many major companies and small-scale producers offering a variety of goods made using edible oils. Government rules and labeling requirements also play a significant impact in the global edible oil market. Several nations have implemented nutritional labeling laws and policies to encourage the production and consumption of healthy oils. Consumers are looking for food goods that are believed to be healthier because health and wellness concerns are on the rise, like cooking oils. This pattern is driving up demand for edible oils that are low in hazardous compounds and high in healthy nutrients. Edible oils are used in a variety of ways by the food and beverage industry for a wide range of purposes. In addition to being used in baking, cosmetics, and personal care products, edible oils are also used for frying, salad dressing, and cooking. The market for edible oils is being stimulated by the rising demand for healthy oil, which is expected to grow in the future years.

According to the research report, “Global Edible Oil Market Outlook, 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. The global edible oil market is experiencing substantial development and expansion potential due to the growing demand for natural, unprocessed, nutritious, and unrefined oil products. The global edible oil market is expanding as a result of the growing public awareness of the advantages of consuming wholesome, unprocessed food products. Additionally, one of the most encouraging growth reasons for the development and expansion of the worldwide edible oil market in the near future is the increasing demand for food products that have less fat, fewer calories, and relatively low cholesterol content. The production of healthy oils is increasing, crop yields are increasing, the global retail network has significantly improved, and the economies of many developing countries around the world are expanding, among other significant growth-promoting trends that are supporting the market's expansion. Similar to this, the growing demand for healthy oils like trans-fat-free soybean oil and canola oil is promoting the growth of the worldwide edible oil market. Additionally, it is projected that rising consumer preference for olive oil will fuel the expansion of the global edible oil market. Edible oils are widely used in cooking, baking, and frying, as well as in the production of margarine, mayonnaise, and other food products. The need for healthful and nutrient-dense foods, expanding knowledge of the advantages of a balanced diet, and the increased acceptance of plant-based diets are some of the major drivers driving the worldwide edible oils market. The industry is also being driven by the rising demand for biofuels and the increased usage of edible oils in food processing. In the upcoming years, the market is anticipated to rise due to technological developments in the manufacturing of edible oils and the creation of sustainable production techniques. As businesses strive to address the rising demand for wholesome and environmentally friendly food products, the worldwide edible oils market is anticipated to expand over the next years. 

Segmentation

The market is growing as a result of rising public health and fitness efforts as well as the expanding use of edible oil in medicinal products. The demand for market players to innovate is being driven by the growing consumer awareness of the health benefits of edible oil. Consumer knowledge of edible oil's many advantages is driving up demand for the substance in the cosmetic and personal care industries. The growth of Internet culture has expanded the accessibility of information about natural treatments for skin diseases and personal care. As a result, customers are using oils that have health benefits, such olive oil and walnut oil, to make their own personal care products. This reason is primarily responsible for the increase in demand for edible oil in its native form. Additionally, this industry is anticipated to benefit from the growing trend toward packaging that maintains environmental sustainability. Instead of using disposable cans, people frequently use reusable spray bottles for vegetable oil. These elements working together are probably going to feed demand for more environmentally friendly packaging and support market expansion. The demand for all kinds of food and beverage items has increased as a result of the growing world population. Almost every country in the world prepares food products using edible oil. This is expected to support the growth of the worldwide edible oil market in the upcoming years, along with a number of other noteworthy variables like the thriving retail sector and the rise in household income levels in a wide variety of developed and emerging economies.

According to the report, the global edible oil market is categorized into several major oil types such as 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 and others (apricot, hazelnut, almond, macadamia, walnut, avocado, grape-seed, cashew, brazil nuts , canola etc). Among them, soybean oil is expected to lead the market by the end of the forecast period with more than 25% market share. Soybean oil is regarded as healthier than many other edible oils since it contains a variety of significant fatty acids. Due to its high Omega 3 and Omega 6 concentration, it is very well-liked. These fatty acids regulate the metabolism of lipids and cholesterol and support the health of arterial veins. Additionally, its high vitamin B content aids in digestion, reducing constipation and ongoing digestive issues. These reasons contribute to the widespread use of refined soybean oil around the globe. Additionally, soybean oil includes vitamin E, an anti-inflammatory component that can improve the health of the skin. Because of this, serums, gels, lotions, and other skin care products frequently contain soybean oil. Furthermore, soybean oil has a mild, neutral flavor that complements virtually every dish that calls for cooking. The market for soybean oils experiences increased demand as a result of this characteristic. Most people can safely consume soybean oil when it is applied topically in recommended doses as an insect repellent and consumed orally in amounts found in food. Pharmaceutical-grade soybean oil is also appropriate for use in intravenous feedings as a nutritional supplement. However, the nutritional profile of cottonseed oil, especially its relatively high levels of saturated fats, has led some consumers to seek healthier alternatives. This has driven interest in other oils like olive oil, canola oil, and sunflower oil, which are often perceived as healthier options. Environmental and sustainability considerations have affected the perception of certain oils. For instance, palm oil has faced scrutiny due to deforestation concerns.

Based on the nature, global market is segmented into conventional and natural types. Among them, conventional segment is projected to acquire lion’s share during the forecast period. The growth of conventional edible oils, such as soybean oil, palm oil, canola oil, sunflower oil, and corn oil is influenced by a combination of factors that impact demand, production, and market dynamics. Conventional edible oils are widely used in the food processing industry for their neutral flavors and high smoke points. They serve as ingredients in baked goods, fried snacks, processed foods, and other convenience items, contributing to their steady demand. Increasing global population and urbanization lead to greater demand for convenience foods and cooking oils, supporting the growth of conventional edible oils. Conventional edible oils are often more affordable compared to some specialty or niche oils, making them accessible to a wider range of consumers. Many traditional cooking methods and cuisines rely on conventional edible oils for frying, sautéing, and other forms of cooking. Conventional oils are known for their stability and longer shelf life, making them suitable for both consumer households and industrial applications. Beyond food, conventional edible oils are used in non-food industries such as biodiesel production, cosmetics, and industrial lubricants. Also, advances in agricultural practices, including improved crop varieties and cultivation techniques leads to higher yields of oil-rich crops like soybeans, sunflowers, and canola, supporting the growth of conventional oils.

Depending upon the end users, food service sector is the fastest growing segment owing to the rising number of restaurants and fast food chains that have led the manufacturers to embrace the blending concept of two or more oils. This helps in achieving high cooking oil smoke points and balanced fatty acid levels. Furthermore, the rise in working population has led to shift consumers toward such outlets for immediate food consumption, which is aiding the growth of this segment. Furthermore, increasing use of vegetable oil filter by these outlets ensures the high food quality of fried food, which attracts more customers and contributes to the segment’s sales growth. Substantial developments in the retail network, rising crop yields, oil production, and expanding economies are some of the key drivers driving the global edible oil market. However, the domestic segment is also expected to witness prominent growth in the market. Consumer preferences for healthier and natural oils, as well as convenience and affordability, drive the segment. Domestic oils are used in a wide range of cooking and baking applications, including frying, roasting, and salad dressings. Furthermore, the global market is segmented into HDPE (Plastic), Pet (Bottles), Pouch, Tin and tetra pack, based on packaging types. Among them, HDPE (High-Density Polyethylene) segment is highly used across the global market. It is a lightweight and cost-effective packaging material. It offers good resistance to moisture and chemicals, ensuring product safety and longevity. Plastic packaging is easily customizable, allowing for various sizes and shapes. HDPE packaging is commonly used for bulk quantities of edible oil, often for commercial and industrial applications. It's preferred for its durability and ability to withstand transportation and handling. However, tetra pack segment is growing rapidly by the end of the forecast period. It offers aseptic packaging, ensuring longer shelf life without preservatives. It's lightweight and eco-friendly, with a lower carbon footprint. Tetra Pak cartons are easy to stack and transport. Tetra Pak is commonly used for specialized applications like cooking oil for restaurants or hotels. It caters to consumers who prioritize convenience and extended shelf life.

The global edible oil market is segmented into offline and online distribution channels. Among them, offline segment is projected to lead the market by 2028. Among the offline category, convenience store, hypermarket/supermarket, direct sales and others are sub-segments that are considered in the report. Convenience stores provide easy access for quick purchases. They cater to consumers seeking smaller quantities or emergency purchases. However, supermarkets and hypermarkets offer a wide variety of edible oil brands and types in one place, allowing consumers to compare and choose. These channels are convenient for consumers looking for household quantities of edible oil. However, direct sales provide an opportunity for consumers to purchase locally produced or artisanal oils. Farmers' markets and direct sales support local economies and provide a connection between producers and consumers. E-commerce offers a vast selection, convenience of home delivery, and the ability to compare prices and reviews. Online sales of edible oil have been growing due to changing consumer preferences and technological advancements. More producers might explore direct-to-consumer models to establish a closer connection with customers. As the food service industry evolves, edible oil suppliers might need to adapt to changing demands and preferences. 

Market Regional Insights

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. Among them, Asia Pacific is the most essential regional segment in the global edible oils market, accounting for a sizable share of the total market. The region's dominance can be attributed to the region's large population and rising disposable income, which has resulted in an increase in demand for edible oils. India and China are major consumers of edible oils, and their growing populations and changing lifestyles have resulted in an increase in demand for edible oils. Increasing consumer interest in foods that are not only tasty but also have health and nutritional benefits is expected to be a major driver of market growth. The rising urbanization in China, India, and Indonesia has led consumers shift toward processed foods. According to 2020 data of United Nations, 90% of future urban population growth will occur in Asia and Africa, which will regulate the eating pattern in the regions. The rapidly expanding distribution network in the region is likely to significantly contribute in the sales. For instance, in May 2021, Adani Wilmar, a joint venture between Adani Group and Singapore-based Wilmar International that offers an extensive array of edible oil products, launched the Fortune online mobile application, which is a one-stop shop for all Fortune products. The app was launched due to customers’ inclination to shop for groceries online, especially since the outbreak of COVID-19. The expansion of e-commerce platforms for online retailing is projected to boost sales growth in the forthcoming years. Based on the countries, India is one of the largest producers and exporters of the edible oil across the continent and the world. The climatic conditions in India favor growing a variety of seeds from which oil can be extracted, they are called oil seeds. The growing population and the varied dietary habits of different and diverse demographics have ensured a thriving market for edible oil industry in the country and in Asia. Statistically, oilseeds in India account for over 5% of the Gross National Product (GNP) and 14% of the country's area accounts for cultivation of crops. Some of the major oilseeds grown are Castor, Groundnut, Linseed, Niger, Rapeseed, Mustard, Safflower, Sesame and Sunflower.