Procurement Outlook
Vegetable oils and fats are extracted from a wide range of plant sources. Whilst many seeds and nuts are a source of oils, approximately 30 vegetable oils and fats are commercially available. Vegetable oils are usually edible oils, while non-edible oils derived mainly from petroleum are termed mineral oils. Vegetable fats are mixtures of triglycerides. Soybean oil, rapeseed oil, olive oil, palm oil, rice bran oil, and cocoa butter are some of the major fats used globally. In common usage, vegetable oil refers exclusively to vegetable fats which are liquid at room temperature. Fats can be segmented into three major types: saturated fats, unsaturated fats, and Trans fat.
Demand Outlook
The global vegetable fats and the oil market was valued at ~USD 235 billion in 2020 and it is expected to grow at a CAGR of 4% from 2020 to 2027 due to rising awareness to use healthier alternatives among consumers and favorable policies implemented by many regions to support the production and consumption of vegetable oils. Palm oil is the largest segment in the vegetable oil market. Whereas, butter and margarine have the highest market share in the fat market segment.
Read report summary or request a free sample copy of the report https://www.grandviewresearch.com/pipeline/vegetable-fats-oil-industry-procurement-intelligence-report
Europe dominates the global vegetable fats and oils market with more than 35% market share. However, APAC is expected to witness the fastest growth during the forecast period owing to the presence of two leading palm and palm kernel oil producers like Malaysia and Indonesia, and two major fats & oils consuming countries like China and India.
Demand Outlook
The global production for paraffin was valued at 3.7 million MT in 2020. This demand is expected to increase by a CAGR of 1.6% between 2020 to 2025. OF the 3.7 million MT produced, APAC manufacturers approximately 1.5 million MT. However, this only represents 92% to 95% of the overall demand for paraffin in APAC.
To improve the production capacity to meet the demand of the market, there were planned installations in Vietnam. However, due to the COVID pandemic and the supply chain disruptions, the additional capacity could not be added in time. Moreover, a recent fire accident in an Iranian petroleum plant resulted in a supply shortage of paraffin in the market.
Cost Drivers
Raw material cost is the major cost component of vegetable fats and oil production. Major raw materials are seeds of sunflower, palm kernel, safflower, cotton, sesame, grapeseed, peanut, soybean, almond, etc. It accounted for more than 50% of the overall vegetable fats and oil production cost. Other key cost components include utility costs, machinery cost, and labor cost.
As vegetable fats and oil manufacturers across the world need to depend on a few key raw material suppliers from Asia, many manufacturers started to outsource their manufacturing operations within APAC to reduce logistics and labor costs and increase profitability.
Check out the featured Addon Services offered with Vegetable Fats and Oil Market Procurement Intelligence Report:
About us:
A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of the supply chain which helps in efficient procurement decisions.
Our services include (not limited to):
• Market Intelligence involving - market size and forecast, growth factors, and driving trends
• Price and Cost Intelligence - pricing models adopted for the category, the total cost of ownership
• Supplier Intelligence - rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
• Sourcing / Procurement Intelligence - best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best-suited countries for sourcing to minimize supply chain disruption
Our market/procurement Intelligence reports include in-depth and actionable insights that help clients in understanding the different aspects of the supply chain and take more effective decisions.
Find More information @ https://www.grandviewresearch.com/pipeline
Contact Information:
Sherry James
Corporate Sales Specialist, USA
Grand View Research, Inc.
Phone: 1-415-349-0058
Toll Free: 1-888-202-9519
Email: [email protected]
Web: https://www.grandviewresearch.com
