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Global Vegetable Oil Market to Grow at a CAGR of 3% between 2020-2025

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"According to a new report by EMR titled, ‘Global Vegetable Oil Market and Forecast 2020-2025’, the global vegetable oil market is expected to grow at a CAGR of 3% between 2020-2025 to reach a production volume of 248 million metric tons by 2025."

The global vegetable oil market is dominated by Indonesia and Malaysia. The two countries are the largest producers and exporters of vegetable. They are expected to witness moderate growth in the forecast period. China and India, on the other hand, are the leading consumers of vegetable oil with food applications of vegetable oil in India projected to see an annual growth of 3.1% in the coming years. In India, the demand for vegetable oil surpasses the domestic production, and thus, the country is dependent on imports to meet the rising local demand. India is the largest importer of the oil, and the imports are expected to grow annually by 4.7% in the coming years. Currently, the country’s imports account for over 25% of the global imports of the agricultural commodity.

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Indonesia and Malaysia along with Argentina, another leading market, export a significant proportion of their vegetable oil production. However, the exports from these countries are projected to witness a decline in the coming years due to a decrease in exports to the US and the EU along with an increase in domestic applications. The biodiesel sector is especially expected to contribute to the rise in the domestic demand in major markets with governments mandating the use of diesel with a biodiesel blend. While in Indonesia, diesel used by cars, railways, and power plants are required to be blended with 20% of domestically produced biofuel since 2018, Malaysia is in the process of switching to diesel blended with 10% palm biofuel since late 2018. In Argentina too, diesel is now blended with 10% biodiesel for agriculture and on-road applications, and producers of biodiesel are demanding that the percentage be increased to 12%. With vegetable oil being the primary feedstock for biodiesel, the increasing domestic use in major markets will aid the industry growth in the forecast period. The rising local use of vegetable oil might also aid in balancing the projected reductions in exports from EU amidst concerns about deforestation. Biofuel application for vegetable oil is expected to grow by 0.3% per annum in the forecast period driven by rising demand from emerging economies.

Market Analysis by Types, Applications, and Regions:

  • The types of vegetable oil available in the market are palm oil, soybean oil, canola oil, sunflower oil, and coconut oil, among others.
  • Vegetable oil finds its application in food, industrial, and biofuel sectors, among others.
  • North America, Europe, Asia Pacific, Latin America, and Middle East and Africa are the major regional markets for vegetable oil.

Key Findings of the Report:

  • The vegetable oil market is being driven by its rising applications in the food sector in emerging nations. 
  • The rise in population, change in diets and a higher standard of living is driving the market in economies like India and China.
  • The yield of perennial tropical oil plants like oil palm and the crush of oilseeds affects the global vegetable oil output.
  • Palm oil is the leading vegetable oil and Indonesia and Malaysia account for the majority of its production.
  • Indonesian palm oil output will witness a growth of 1.8% per annum in the coming years. 
  • Thailand, Colombia, and Nigeria are the other significant emerging markets for palm oil.

Key Offerings of the Report:

  • The EMR report gives a detailed analysis of the historical (2015-2019) and forecast (2020-2025) consumption and production of vegetable oil. 
  • The report also presents the consumption and production of the types of vegetable oil for the periods (2015-2019) and (2020-2025).
  • It also provides an in-depth insight into the regional production and consumption along with the price trends of vegetable oil for the historical (2015-2019) and future (2020-2025) periods. 
  • An analysis of the global trade data is given within the report for the year 2019, looking into the value and volume of major exporting and importing countries.

Cargill, Incorporated, Archer Daniels Midland Company, Louis Dreyfus Company, Bunge Limited, and Wilmar International Ltd, among others, are the key players in the global vegetable oil market as identified by the EMR report. The report offers a detailed look into their market share, capacity, and latest developments like capacity expansions, mergers and acquisitions, and plant turnarounds.

About Us:

EMR is a leading business intelligence firm, providing custom and syndicated market reports along with consultancy services for our clients. We serve a wide client base ranging from Fortune 1000 companies to small and medium enterprises. Our reports cover over 100 industries across established and emerging markets researched by our skilled analysts who track the latest economic, demographic, trade and market data globally.

At EMR, we tailor our approach according to our clients’ needs and preferences, providing them with valuable, actionable and up-to-date insights into the market, thus, helping them realize their optimum growth potential. We offer market intelligence across a range of industry verticals which include Pharmaceuticals, Food and Beverage, Technology, Retail, Chemical and Materials, Energy and Mining, Packaging and Agriculture.

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"Global Vegetable Oil Market: By Type: Palm Oil, Soybean Oil, Canola Oil, Sunflower Oil, Coconut Oil; By End USe; By Region: North America, Europe, Asia Pacific, Latin America, Middle East and Africa; Historical Production and Consumption (2015-2019); Production and Consumption Forecast (2020-2025); Competitive Landscape and Supplier Analysis"

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