Global Vegetable Oil Market Key Insights:
- Market Breakup by Application
- Capacity Addition & Plant Turnarounds
The global vegetable oil market is projected to grow at a CAGR of nearly 1.8% in the forecast period of 2019-2024 to attain a production volume of 224.2 million tonnes. In 2017, the market continued to witness a growth in its production, even after the slow recovery of palm oil production after the 2015 El Niño.
The rising per capita incomes in emerging economies are driving the global market. The consumption of vegetable oil as food is expected to see an annual growth of 1% in the forecast period. The per capita level of food products containing vegetable oil in emerging nations is expected to match those of the developed economies, growing 0.4% annually in the forecast period. This projected growth in its consumption will be fulfilled by the expansion of oilseed cultivation and an increase of imports, especially palm oil, from Indonesia and Malaysia. India, the second largest consumer, just behind China, will witness a higher consumption growth of 3.1% per annum of vegetable oil-based food.
Indonesia and Malaysia are the leading markets and are projected to witness an annual growth of 1.8% and 1.4% respectively in the coming years. Both countries are also the leading exporters of vegetable oil. Majority of the vegetable oil produced by Indonesia and Malaysia are exported with Indonesia exporting almost 70% of its vegetable oil and Malaysia exporting over 80% of its total production. However, the exports from these two significant markets are expected to see a slight decline due to rising domestic demand for use in the food and biofuels sectors. Indonesia and Malaysia will continue to dominate the exports even after the expected decline. Indonesia and Malaysia are followed by Argentina, which also exports over two-thirds of the vegetable oil produced domestically. India, on the other hand, is the leading importer of and is expected to account for more than a quarter of the global imports in the forecast period, with its annual imports growing by 4.7% per annum. Among the production of agricultural commodities, vegetable oil holds the majority of the trade share with 41% and is projected to continue its domination in the coming years.
Properties and Applications
Vegetable oils are obtained from natural sources like seeds, nuts, and fruits. They find expansive applications in sectors ranging from food to household and personal care sectors. They are a rich nutrient source and are used as cooking oil and as an ingredient in margarine, non-dairy creamers, and ice-cream. They are also used as a replacement for animal fats. For non-food applications, vegetable oils are used in the production of soaps, detergents, lubricants, greases, and candles. Biofuel, too, is emerging as a significant application sector.
Some of the end-use sectors include:
North America, Europe, Latin America, Asia Pacific, and Middle East and Africa are the major regions considered in the report.
The increasing use in food applications, especially in emerging countries, aided the global market growth. The global market is being driven by its increasing consumption in emerging economies like China and India. The rise in vegetable oil consumption in these economies is a result of the growing population, changing diets, and higher standards of living. The rising demand for its imports has provided further impetus to the market.
Palm oil is the leading type in the global market and is produced mainly in Indonesia and Malaysia. In Indonesia, palm oil production is expected to witness an annual growth of 1.8% in the forecast period. Additionally, palm oil will see significant growth in countries like Thailand, Columbia, and Nigeria.
The vegetable oil production in the world depends upon the production of perennial tropical oil plants like oil palm and the crush of oilseeds. Indonesia and Malaysia account for over one-third of the total production, with Indonesia as the leading producer globally.
Over half the vegetable oil being produced globally is being derived by the crushing of soybeans and other oilseeds. Its application as a feedstock of biodiesel has tapered down in recent years as compared to the last decade when biofuel policies were being introduced. However, it is still expected to witness an annual growth of 0.3% annually in the coming five years. The decrease use in biodiesel production in the US and European Union is offset by its increasing use in this sector by emerging nations like Argentina.
Argentina exports over 40% of the biodiesel it produces and is expected to use almost three-fourths of its vegetable oil produced domestically as feedstock for biodiesel in the forecast period. In Indonesia and Brazil, too, the growth of vegetable oil application in the biodiesel sector will outpace the food sector. Its application as biodiesel feedstock will account for about 39% of its applications in the forecast period in the European Union.
The report provides a detailed analysis of the following key players in the global market looking into their market share, capacity, and latest developments like mergers and acquisitions, capacity expansions, and plant turnarounds:
- Cargill, Incorporated
- Archer Daniels Midland Company
- Louis Dreyfus Company
- Bunge Limited
- Wilmar International Ltd
The EMR report gives an in-depth insight into the market by providing an analysis of Porter’s five forces and SWOT analysis.