Cooking Oil Market by Type (Palm Oil, Soybean Oil, Rapeseed Oil, Sunflower Oil, and Others), End-user (Residential, Food services, Food Processing, and Others), Distribution Channel (Hypermarket/Supermarket, Retail Stores, Business to Business, and Online Sales Channel), and Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2021–2028

Global Cooking Oil Market Analysis

The global cooking oil market size is predicted to garner $2,56,200 billion in the 2021–2028 timeframe, growing from $1,67,600 billion in 2020, at a healthy CAGR of 5.5%.  

Market Synopsis

Strategic alliances among market players, along with growing penetration of processed foods is expected to accelerate the growth of the cooking oil market.  

However, lack in the production of cooking oil in comparison with incoming demand, is predicted to be a growth-restricting factor for the market.

According to the regional analysis, the Asia-Pacific cooking oil market share is anticipated to grow during the review period due to highest consumption of cooking oil across the region.  

Cooking Oil Overview

Cooking oil is a type of fat such as animal, plant or synthetic fats that are used in cooking, frying, and baking of food. There are wide varieties of cooking oil available across the globe such as vegetable oil, soybean oil, olive oil, pam oil, groundnut oil, palm oil, rapeseed oil, and others.

Impact Analysis of COVID-19 on the Global Cooking Oil Market Trends

Covid-19 impacted cooking oil market in a moderate way. It had a devastating effect on several industries, and the cooking oil market experienced a slow growth during this period. Owing to complete lockdown conditions, resulting in disruptions in distribution networks, edible oil refiners are struggling to sell their finished goods. Also, shutting down of restaurants, hotels, and road-side foods may decrease the demand for cooking oil market globally.

However, several companies are helping the society to recover from the chaotic situation with their strategic plans and steps. For instance, in April 2020, Cargill, American privately held global food corporation announced that they are committed to support 150,000 families across 16 states and 150,000 families, by distributing dry ration kits that contains gemini cooking oil, NatureFresh Acti Lite, NatureFresh Atta along with cooked meals.

Increasing Consumption of Processed Food to Surge the Market Growth

The global cooking oil industry is anticipated to witness a massive growth mainly due to growing trends of processed food and changing food habits. Moreover, increasing urban working culture along with fast-moving lifestyles has led to a limited availability of time for cooking and preparing meals. Therefore, processed foods such as snacks and ready-to-eat products that require frying oil are becoming popular among urban areas, thereby driving the market for cooking oil.

The higher demand for edible oil for processed foods are already leading market players to innovate strategies for sustaining their position in market. For example, in May 2021, Cargill, American privately held global food corporation, announced that they are in partnership with Frontline International, a U.S.-based creator and manufacturer of smart oil management equipment and in collaboration they launched an oil management system, known as “New Kitchen Controller oil management system”. The main aim of this system is to monitor the oil filtration, disposal and automation. Also, this system helps to determine the quality of oil and therefore it will maintain the quality and consistency of fried foods which improve profitability. These types of initiatives from market leaders are also predicted to drive the growth of the market.

To know more about global cooking oil market drivers, get in touch with our analysts here.

Health Issues Related to Higher Consumption of Cooking Oil to Restrain the Market Growth

Cooking oils such as rapeseed oil and over frying oil contain higher level of toxic fatty acids, therefore their high consumption is very harmful to the human body. Also, cooking oils such as soyabean oil can affect digestive system if consumed in high quantity. Therefore, such factors may create a negative impact on the growth of the market during the forecast period.

Growing Trends of Healthy Cooking Oils in the Market to Create Massive Investment Opportunities

The global cooking oil market is growing at a very fast pace due to rising living standards of people, encouraging them to buy best quality products for their diet. People across the globe are opting for healthy oils such as vegetable oil, olive oil, pam oil, avocado oil, and others according to current trends in the market. Moreover, growing trends of cooking oils that have low cholesterol properties and can improve heart condition are expected to boost the growth of the market globally. Therefore, increasing health consciousness and living standards are anticipated to be major growth accelerating factors of the cooking oil, thereby positively affecting the market growth.  

Furthermore, key market players are adopting strategies to stay in competitive market and increase their market shares. For example, Marico Limited, India's leading consumer goods company offers various types of cooking oil such as Saffola Active, which is a type of healthy oil that absorbs lesser fat up to 25% compared to normal cooking oils. In addition to this, it has additional benefits such as it consists of antioxidants and Omega 3, which may further lead to lucrative market opportunities for key players in the upcoming years.

To know more about global cooking oil market opportunities, get in touch with our analysts here.

Source: Research Dive Analysis

The palm oil type sub-segment is predicted to have a dominating market share in the global market. The sub-segment is expected to register a revenue of $93,767.5 billion during the forecast period. Palm oil is one of the largest distributed oils across the globe, due to its lower cost up to 20% lesser than other cooking oils. Moreover, palm oil contains a carotenoid that is known as beta-carotene which can be converted into Vitamin A; therefore, it promotes bone, eyes and immune health. These factors may bolster the growth of the sub-segment during the forecast period.  

The soybean oil sub-segment of the global cooking oil market is projected to have the fastest growth. It is also projected to surpass $77,787.7 billion by 2028, with an increase from $48,656.9 billion in 2020. This growth in the market can be attributed to its health benefits such as it promotes omega-3 fatty acids, healthy skin, and prevents bone loss. Moreover, the U.S Soybean Export Council, in November 2019, announced that between the years 2018-19, approximately more than 62 million tons of soybean oil was produced across the globe. Soybean oil is highly versatile in nature therefore, it is mostly used in different cooking methods. All such elements may increase the demand for soybean oil and further surge the market growth.

Source: Research Dive Analysis

The residential type sub-segment is predicted to have a dominating market share in the global market. The sub-segment is expected to register a revenue of $1,16,859.5 billion during the forecast period. Growing trends of branded cooking oil for cooking and baking are expected to increase the demand for cooking oil in residential use. Moreover, strategies are adopted by market players to stay in competition. For instance, Adani Group, Indian multinational conglomerate, in May 2021, announced that they have launched a mobile application that will help customers to order cooking oils under fortune brand online from their home. This app is available on iOS and Android. These factors may bolster the growth of the sub-segment during the forecast period. 

The food services sub-segment of the global cooking oil market is projected to have the fastest growth. It is also projected to surpass $72,194.5 billion by 2028, with an increase from $45,165.6 billion in 2020. This growth in the market can be attributed to increasing number of fast food joints and restaurants. Moreover, increasing disposable incomes and rising living standards might accelerate the trends of eating outside. All such elements may increase the demand for food services and further surge the market growth.

Source: Research Dive Analysis

The retail stores sub-segment of the global cooking oil market is projected to have the fastest growth and surpass $ 65,186.4 billion by 2028, with an increase from $40,668.6 billion in 2020. This growth in the market can be attributed to rising number of people preferring retail stores such as independent store, wholesalers and brand chains for buying everyday grocery. This is because retail stores offer wide varieties of cooking oils from normal brands to premium brands. Moreover, many of the retail stores offer low-cost or discounts on oils. All such elements may increase the demand for retail stores and further surge the market growth.

The hypermarket/supermarket sub-segment of the global cooking oil market is projected to have the dominant share. It is also projected to surpass $78,115.8 billion by 2028 with an increase from $49,900.6 billion in 2020. Supermarkets provide large number of different types of goods under one roof. Therefore, they offer high volumes with great discounts. All such elements may increase the demand for hypermarket/supermarket and further surge the market growth.

Source: Research Dive Analysis

The Market for Cooking Oil in Asia-Pacific to be the Fastest as well as Dominant Growing

The share of Asia-Pacific cooking oil market size is anticipated to grow at a CAGR of 5.9%, by registering a revenue of $1,27,587.6 billion by 2028. The growth is expected to be a result of high consumption of oil daily, increased production of cooking oil, and higher import volumes compared to export volumes. Moreover, increasing use of cooking oil in processed food, along with health-conscious consumer might increase the demand for healthy cooking oil in the region. Furthermore, majority of the market leaders involved in the global market of cooking oil are continuously implementing various effective business strategies such as product innovations. For instance, Marico Limited, India's leading consumer goods company offers various types of cooking oil such Saffola Gold, it is a type of cooking oil that is very healthy for heart and body. It can improve heart health up to 50%. It has good source of Vitamins A & D and provides good balanced diet. All such elements are expected to eventually foster the Asia-Pacific cooking oil market, in the upcoming years.

Competitive Scenario in the Global Cooking Oil Market

Product launches and mergers & acquisitions are common strategies followed by major market players.

Source: Research Dive Analysis

Some of the leading cooking oil market players are Archer Daniels Midland Company, Sime Darby Plantation, Bunge Limited., Olam International Limited, Kaneka Corporation, Cargill, George Weston Foods Limited, Louis Dreyfus Company, Nutiva, and SIFCA SA

Porter’s Five Forces Analysis for the Global Cooking Oil Market:

• Bargaining Power of Suppliers: Suppliers of cooking oil market are high in number and are larger and more globalized. So, there will be less threat from the suppliers.
  Thus, the bargaining power of suppliers is low.  
• Bargaining Power of Buyers: Buyers demand for healthy cooking oil that can protect heart and obesity. This has increased the pressure on the cooking oil providers to offer the best cooking oil in a cost-effective way. Thus, many suppliers are offering best yet cost –effective cooking oil. This gives the buyers the option to freely choose cooking oil that best fits their preference.
  Thus, the bargaining power of the buyers is high.  
• Threat of New Entrants: Companies entering the cooking oil market are adopting various innovations such as developing cooking oil that are healthy and nutritious.  
  Thus, the threat of the new entrants is moderate.
• Threat of Substitutes: There are different types of cooking oil available for cooking,
  Thus, the threat of substitutes is low.
• Competitive Rivalry in the Market: The competitive rivalry among industry leaders is rather intense, especially between the global players including Cargill, and Adani Wilmar. These companies are launching their value-added services in the international market and strengthening the footprint worldwide.
  Therefore, competitive rivalry in the market is high.