by Edible oils are liquid fats derived from plant sources and used in food preparation and cooking. Key edible oils include soybean oil, canola oil, sunflower oil, palm oil, coconut oil, and olive oil. These oils provide calories and essential fatty acids to the human diet. Edible oils are a good source of unsaturated fats like monounsaturated and polyunsaturated fats which are considered heart healthy when consumed in moderation. There has been a rise in demand for edible oils owing to health benefits associated with plant-based unsaturated fats. People are shifting preferences towards more nutritious edible oil options as a growing health-conscious consumer base seeks food products that support overall well-being. The global Edible Oils Market is estimated to be valued at US$ 124.38 Bn in 2023 and is expected to exhibit a CAGR of 8.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends witnessed in the edible oils market size is the growing demand for non-GMO and organic edible oils. Customers are increasingly aware of food safety and processing methods used to produce edible oils. They prefer oils sourced from non-GMO crops and produced without the involvement of hexane, a by-product of fossil fuels used in the conventional oil extraction process. Non-GMO and organic oils are perceived as more nutritious and environment-friendly alternatives. Leading edible oil brands have launched non-GMO and organic product lines catering to this demand for clean-label edible oils. The market share of non-GMO and organic edible oils has been rising steadily over the past few years and this segment is expected to register strong gains over the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the edible oils market is moderate. Significant capital investment is required to enter the market and compete with existing big players.
Bargaining power of buyers: The bargaining power of buyers in the edible oils market is high. Buyers have a variety of edible oil brands to choose from.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. While the supply of raw materials is concentrated, suppliers still depend on buyers for selling their products.
Threat of new substitutes: The threat of new substitutes is moderate. Some substitute products include plant-based oils and dairy-based spreads, but they cannot completely replace edible oils.
Competitive rivalry: Competition in the edible oils market is high among the existing players. Companies compete based on product quality, innovation, pricing and brand promotions.
Key Takeaways
The global edible oils market is expected to witness high growth.
Regional Analysis: The Asia Pacific region currently dominates the edible oils market with the highest production and consumption. Factors such as increasing population, rising incomes and changing lifestyles have been driving the demand for edible oils in Asia Pacific.
Key players operating in the edible oils market include Illumina, Inc., Eurofins Scientific, PerkinElmer, Inc., F. Hoffmann-La Roche AG, Natera, Inc., Yourgene Health Plc., Laboratory Corporation of America Holdings (LabCorp), BGI Group, and Quest Diagnostics Incorporated. These players are focusing on new product launches and acquisitions to gain a competitive advantage in the market.
