The Edible Oils Industry is poised to reach USD 268.9 billion by 2027, showcasing a Compound Annual Growth Rate (CAGR) of 4.8% from 2022 to 2027, surpassing its 2022 valuation of USD 212.6 billion. The rising global population, coupled with shifting lifestyle preferences leading to increased consumption of processed foods, is a significant driver of this growth. Edible oils, being a key ingredient in processed foods, play a crucial role in meeting this demand. Additionally, ongoing research and development in creating novel products, including confectionery, bakery items, ready-to-eat foods, and fast foods, underscore the increasing significance of edible oils in enhancing taste. The dynamic evolution of the food processing sector further amplifies the demand for edible oils during the study period.
Soybean Oils: Pacing the Growth
Among the various types of edible oils, the soybean oils segment is anticipated to witness the highest growth, boasting a CAGR of 5.4% between 2022 and 2027. In a landscape marked by escalating food costs and concerns about climate change's impact on the global food supply, soy products emerge as a promising solution. Soybean oil, known for its neutral flavor, serves as a versatile cooking oil with applications in frying, sautéing, baking, and as an ingredient in sauces, dressings, and soups. As consumer awareness of the health benefits of soy increases, the demand for soybean oil is expected to rise. The United States, ranking as the second-largest exporter of soybeans globally, contributes significantly to the production of this crop.
Microencapsulation Technology: Unlocking Opportunities
The adoption of microencapsulation technology is on the rise in the food industry, creating new prospects in the global edible oils market. As per a study by the Federal University of Santa Catarina, Brazil, in 2019, oil encapsulation proves effective in preventing or reducing oxidation reactions, expanding the range of applications in the food industry. This technique aids in retaining flavor, extending shelf life, and enhancing the antioxidation and storage time of processed food products. The increasing recognition of these benefits is gradually elevating the prominence of edible oil encapsulation in the global food industry, thereby driving the expansion of the edible oils market.
European Landscape: Rapeseed's Dominance
Europe is projected to secure the second-largest share in the global edible oils market by 2027, with rapeseed playing a pivotal role in the region's oilseed crop production. The continent leads globally in rapeseed oil production, with a focus on countries like Poland and Germany. Ongoing investments in research and development (R&D) of rapeseed, indicated by European patent publications and Community Plant Variety Rights, position rapeseed oil to continue gaining market share in Europe. Increased production and cultivation areas contribute significantly to the expansion of the rapeseed market in the European Union.
Key Players: Driving Innovation and Growth
Key players shaping the edible oils market include Cargill, Incorporated (US); Archer Daniels Midland Company (ADM); Bunge Limited (US); Louis Dreyfus Company (Netherlands); Wilmar International Limited (Singapore); Adani Wilmar Limited (AWL) (India); Associated British Foods PLC (ABF) (UK); Sime Darby Plantation Berhad (Malaysia); and Borges International Group, S.L.U. (Spain). These industry leaders contribute to innovation and growth, playing a crucial role in the dynamic landscape of the global edible oils market.
