The cooking oil market size was valued at $168.4 billion in 2019, and is projected reach $213.1 billion by 2027, registering a CAGR of 5.5% from 2021 to 2027. The palm oil segment led in terms of the cooking oil market share in 2019, and is expected to retain its dominance during the forecast period.
Fortification of cooking oil is an emerging process in order to add on some myriad of micronutrients into the cooking oil to enhance nutritional value of the oil. According to FSSAI, fortification of cooking oil can help an individual to meet 25-30% of the required dietary intake for vitamin D & A. Furthermore, this process of fortification started in India, owing to a major deficiency of vitamins A & D in children. Thus, demand for fortified cooking is driving the global market.
Palm oil which holds the major share in the global cooking oil market is highly impacted by import bans by developed economies of North America and Europe. For instance, U.S. has banned the import of palm oil from the Malaysian company Sime Darby Plantation Berhad. It is the third Malaysian company to be slapped with an import ban over allegations of using forced labor. Similarly, Sri Lanka have imposed ban on import of palm oil and new palm plantations. According to some estimates, Sri Lanka imports about 200 KT of palm oil from Indonesia and Malaysia annually. Such bans and restriction negatively impacts the palm oil industry which in turn hampering the expansion of cooking oil market. In addition, Palm oil cultivation has been associated with deforestation, associated loss of bio diversity and land use change. Over the past 4 decades, palm oil have resulted in 16% and 47% deforestation in Indonesia and Malaysia respectively. Such environmental concerns further dissuades market expansion and results in upward price pressure on other edible oils.
The global cooking oil market is segmented based on product type, distribution channel, and region. Based on product type, the global market is divided into palm oil, soy oil, sunflower oil, peanut oil, olive oil, rapeseed oil, and others. By end user, the market is divided into residential, food services and food processing. By distribution channel, the market is categorized into hypermarket/supermarket, independent retail store, business to business and online sales channel. Region-wise, the global market is studied across North America (U.S., Canada, and Mexico), Europe (UK, Germany, France, Italy, Spain, Russia, and the rest of Europe), Asia-Pacific (China, India, Japan, ASEAN, Australia, and the rest of Asia-Pacific), and LAMEA (Brazil, Saudi Arabia, South Africa, and the rest of LAMEA).
By Product Type
Other oil segment would exhibit the highest CAGR of7.4% during 2021-2027.
On the basis of product type, the global market is categorized into palm oil, soy oil, sunflower oil, peanut oil, olive oil, rapeseed oil, and others. In 2019, palm oil segment accounted for the highest market share owing to its high nutritional value competitive prices however, others segment is likely to be the fastest growing segment during the forecast period.
By End User
Food service segment would exhibit the highest CAGR of 6.2% during 2021-2027.
On the basis of end user, the market is divided into residential, food services and food processing. The residential segment leads in terms of market share and is contributing to almost half of the cooking oil revenue. However, the food services segment is expected to be the fastest growing segment during the forecast period.
By Distribution Channel
Online stores channels segment would exhibit the highest CAGR of 7.4% during 2021-2027.
On the basis of distribution channel, the market is classified into hypermarket/supermarket, independent retail stores, business to business and online sales channels. The hypermarket/supermarket segment is dominating the market. However, the online segment is expected to grow with the highest CAGR during the forecast period.
By Region
Asia Pacific region would exhibit the highest CAGR of 5.9% during 2021-2027.
Some of the major players profiled in the cooking oil market analysis include Archer-Daniels-Midland Company, American vegetable oil, Bunge Limited, Cargill, Fuji oil, Indo Agri, J-Oils, Louis Drayfus Company, Richardsons International and Wilmar International.
COVID-19 impact analysis
- The food service segment of cooking oil market was impacted severely due to the pandemic owing to the closure of hotels and restaurants across the globe in an attempt to prevent the spread of coronavirus.
- Manufacturers are comprehending strategies to revive from the current situation by means of reshaping their sales channels as well as product innovation.
- The duration of the virus outbreak remains a key factor in assessing the overall impact of the pandemic. However, the global cooking oil industry for food service segment is expected to stabilize after 2021.
Key Benefits For Stakeholders
- The report provides an extensive analysis of the current and emerging cooking oil market trends and opportunities.
- The report provides detailed qualitative and quantitative analysis of the current trends and future estimations that help evaluate the prevailing cooking oil market opportunities in the market.
- The cooking oil market forecast is offered along with information related to key drivers, restraints, and opportunities.
- The market analysis is conducted by following key product positioning and monitoring the top competitors within the market framework.
- The report provides extensive qualitative insights on the potential and niche segments or regions exhibiting favorable market growth.
Key Market Segments
By Type
- Palm oil
- Soy oil
- Sunflower oil
- Peanut oil
- Olive oil
- Rapeseed oil
- Others
By Distribution Channel
- Hypermarket/supermarket
- Independent retail store
- Business to business
- Online sales channel
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Russia
- Rest of Europe
- Asia-Pacific
- India
- China
- Japan
- ASEAN
- Australia
- Rest of Asia-Pacific
- LAMEA
- Brazil
- Saudi Arabia
- South Africa
- Rest of LAMEA
Cooking Oil Market Report Highlights
| Aspects | Details |
 By PRODUCT TYPE |
|
 By END USER |
|
 By DISTRIBUTION CHANNEL |
|
 By Region |
|
 Key Market Players | FUJI OIL HOLDING INC, BUNGE LIMITED, INDO AGRI, AMERICAN VEGETABLE OIL INC., RICHARDSON INTERNATIONAL, J-OIL MILLS INC, CARGILL, INCORPORATED, LOUIS DREYFUS COMPANY, ARCHER DANIELS MIDLAND COMPANY, WILMAR INTERNATIONAL |
Analyst Review
Last decade have seen increasing trend of usage of organic cooking oils among the consumers. Furthermore, recent years have also seen introduction of algae cooking oil. Algae oil contains the lowest carbon footprints of all oils. It is resolving many concerns in the industry of food at present, including a high omega-9 profile, sustainability, and low saturated fat. In addition, algae cooking oil can be perfectly used for industrial frying, blending with other cooking oils and pan spraying. With multiple benefits offerings, algae oil to remain in cynosure for upcoming years as well
CXO further added, cooking oil such as corn oil, canola oil and soy oil are the richest nutritional sources of polyunsaturated fats, which helps in reducing the risk of heart disease, lowers bad cholesterol and others. This in turn has increases the consumer demand amongst health conscious consumers.
In addition, engaged players in the industry are paying high attention towards packaging in order to reduce carbon footprint and thus venturing into circular economy. Developed regions are spearing for paradigm shift with developing region to follow the suit soon
The market value of cooking oil in 2019 is $168.4 billion
The forecast period of cooking oil market is from 2021 to 2027.
2019 is the base year for the calculations in the report
Major companies which are holding the market share of cooking oil market are Archer-Daniels-Midland Company, Bunge Limited, and Cargill Corporation.
Food service is the most influencing segment growing in the Cooking Oil Market report.
Palm oil holds the maximum market share in cooking oil market
The company profile has been selected on the basis of prominent players in the market.
The market value of cooking oil market in 2027 is $213.8 billion
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