Cutthroat competition among prominent players characterizes the global market for cooking oils and fats. Leading companies in the market, uncovers a report by Transparency Market Research, have resorted to mergers and acquisitions, joint ventures, and partnerships to gain competitive advantage over their rivals. They have also invested in extensive research and development to come up with new, better products to entice the rising ranks of discerning consumers who prefer products with zero trans fats and additional nutritive value.
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Some of the big names operating in the global market for cooking oils and fats are Ajinomoto Co. Inc, Wilmar International Ltd, Unilever plc, Associated British Foods plc, and CHS Inc.The market is expected to attain a value of US$65.2 bn by 2021 by expanding at a sluggish pace, predicts the TMR report. It also forecasts the volume to reach 22,333.1 kg mn by 2021.
Europe to Pare its Market Share due to Rising Health Concerns
The global market for cooking oils and fats can be divided on the basis of product type into olive oil, vegetable oil and seeds, butter, spreadable oil and fats, margarine, and cooking fats. Among them, the vegetable oil and seeds segment has been grossing maximum revenue and has almost half the share in the market.This is because of the growing awareness about its benefits among consumers. Low-fat, low-cholesterol, and low-calorie vegetable oil are particularly enjoying a soaring popularity.
Geographically, the global cooking oils and fats market can be divided into Asia Pacific, North America, Europe, and the Rest of the World. Asia Pacific, powered by China, Indonesia, India, Japan, and Malaysia, accounts for a dominant share in the market. The percentage share was about 35% of the total market in 2014. Europe is another leading market, but going forward it would likely trim its market share due to rising concerns about health among consumers. Demand from various emerging economies in the Rest of the World is also slated to be robust due to the rising disposable income and changing lifestyle.
Economic Growth Drives Demand
At the forefront of driving demand in the global market for cooking oils and fats is the swift pace economic growth across the world, especially in emerging economies in the Asia Pacific and South America. Economic growth has led to rising disposable incomes, which in turn, has filliped demand for cooking oil and fats. Another factor majorly contributing to the market is the raft of processed foods and ready-to-drink beverages that are seeing quick uptake on account of the busy lifestyle of people.
Countries such as India, Indonesia, and Argentina, for example, with a burgeoning urban population, are increasingly digging into processed foods, thereby propelling demand for cooking oils and fats.
Further, awareness among consumers about the quality of edible oils and the health benefits of consuming oils and fats in moderate proportions is also aiding the global cooking oils and fats market.
Negative Impact on Health Deters Uptake
A major challenge to the global cooking oils and fats market is the acute awareness of its negative impact on health. Intake of trans fats beyond acceptable limits, for instance, ups the level of cholesterol in the body, which in turn makes one susceptible to heart diseases, cancer, and type 2 diabetes. Processed foods, namely pizzas, doughnuts, burgers, and French fries that are loaded with trans fats and can negatively impact the health if eaten frequently. “High raw material prices also pose a challenge to the growth of the market. This inhibits new players from entering the cooking oils and fats market due to the high initial outlay,” informs the lead analyst of TMR report.
This review is based on the findings of a TMR report titled “Cooking Oils and Fats (Product Type - Vegetable Oil and Seeds, Spreadable Oils and Fats, Butter, Margarine, Olive Oil, and Cooking Fats) - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2015–2021.”
Global Cooking Oils and Fats Market, by Product Type
- Vegetable and Seed Oil
- Spreadable Oils and Fats
- Olive Oil
- Cooking Fats
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