The global vegetable oil market is forecast to be valued at US$81.0 billion by the end of 2012 as consumption totals 151 million metric tonnes. By 2017, the consumption of vegetable oils globally is forecast to total 171 million metric tonnes mainly driven by the increased demand from the food sector, especially in Asia-Pacific region and also the biofuels policy coupled with biodiesel feedstock requirements.
The increased demand for vegetable oils for biodiesel is having a major impact on the capacity to supply the increased demand within the food chain, subsequently hiking prices for vegetable oil and other foodstuffs. The European Union have reacted to the pressure biodiesel is placing on the availability of land and availability of vegetable oil with the food chain, capping the percentage of biodiesel to 5% of food biofuels. At the current time the biodiesel output is 4.5% of food-based biofuels.
Food represents the major consumption sector for vegetable oils with the biofuel sector boosted by the biodiesel feedstock requirements; a sector which is expected to expand rapidly over the next few years.
The US and European biofuel policies are placing increasing pressure on the availability of soybean and rapeseed globally and as a result, there is a gradual shift towards palm and palm kernel oils and other vegetable oils such as sunflower. The more recent shift towards palm and palm kernel oils is resulting in many of the Asian companies building up their share in the global vegetable oil market.
During the period 2012 to 2017, the global vegetable market is forecast to increase at a CAGR of 2.5% with revenues to total US$81.0 billion.
For more information on the global vegetable oil market, see the latest research: Global Vegetable Oil Market
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