According to the U.S. vegetable oil market report, the market was valued at $98.5 billion in 2019, and is projected to reach $130 billion by 2027, registering a CAGR of 4.9% from 2021 to 2027. The market is expected to exhibit an incremental revenue opportunity of $36.35 billion from 2020 to 2027.
Vegetable oil is a mixture of triglycerides extracted from seeds or parts of fruits or vegetables. This oil is used in food, biodiesel feedstock, pharmaceutical, lubricants, and numerous other industrial applications. Soyabean, cottonseed, palm, corn, and olive are the major sources from where the vegetable oil is extracted.
Vegetable oils have numerous applications in the food service and food processing industries. The commercial applications in the food industry include the use of vegetable oils for salad & dressing, cooking, industrially produced fried foods, compound coatings, ice cream coatings, fillings & spreads, and substitute for dairy fats. With the popularity of fast food and changes in consumer lifestyle toward more convenient foods, the demand for vegetable oils from the food processing and food service industries has significantly increased. Hence, the ongoing demand has majorly propelled the U.S. vegetable oil market growth. Furthermore, increase in use of vegetable oils such as olive oil and canola oil, owing to their health benefits, has created growth opportunities for vegetables oil as a substitute for solid fats. However, changes in either U.S. biodiesel policy or global biodiesel policy can potentially shock oilseed prices depending on which policies change. This makes vegetable oil sources susceptible to high price volatility. Furthermore, the government requires certain certification and labelling legislations with regards to ingredient contents in the oils. It thereby becomes necessary for manufacturers to adhere to these timely regulations. Thus, these factors can potentially hinder the growth of the U.S. vegetable oil market.
Owing to the outbreak of the COVID-19 pandemic, there was a slight negative impact has been witnessed of the pandemic on the oilseeds and U.S. vegetable oil market, majorly due to low export demand. The decline in the commodity values led to a drop in vegetable oil values. As COVID-19 began to spread globally, concerns about soymeal availability caused global oilseed processing margins to spike toward the end of the first quarter of 2020. The lockdown and social distancing norms led to the shutdown of numerous restaurants, thereby resulting in a sharp decrease in demand from the food service industry. On the contrary, restrictions reorientated the food consumption from service sector to in-home, thereby causing a limited effect on the overall consumption of vegetable oil in the U.S.
According to U.S. vegetable oil market analysis, the market is segmented on the basis of product type and distribution channel. Depending on product type, the market is classified into soyabean oil, palm oil, sunflower oil, olive oil, canola oil, corn oil, and others. On the basis of distribution channel, it is bifurcated into business-to-business (B2B) and business-to-consumers (B2C). The B2B segment is further categorized into food service and food processing. The B2C segment is subsegmented into hypermarket/supermarket, specialty/convenience stores, online channels, and others.
By Product Type
The canola oil segment would witness the fastest growth, registering a CAGR of 6.3% during the forecast.
On the basis of product type, the soyabean oil category was the dominant segment in 2019 with 33.1% U.S. vegetable oil market share. This was attributed to the fact soyabean is largely cultivated in the U.S. and the country has the highest per capita consumption of soyabean oil. Furthermore, soyabean oil has a versatile range of food applications and is inexpensive. However, the canola oil segment is anticipated to grow at a faster rate during the forecast period, as canola oil is regarded as one of the best nutritional vegetable oils, owing to its potential to reduce the risk of cardiac diseases when used in place of saturated fats.
On the basis of distribution channel, the B2C segment garnered the maximum share in the U.S. vegetable oil market in 2019. The rise in penetration of online channels has boosted the market growth of vegetable oil through this sector. However, the B2B segment is anticipated to grow at the highest CAGR during the U.S. vegetable oil market forecast period, due to expansion of food retail outlets and increase in away-from-home consumption.
The key players operating in the U.S. vegetable oil market include Archer-Daniels-Midland Company, Associated British Foods, Bunge Limited, Cargill Inc., Deoleo, S.A., J M Smucker Company, Pompeian, Inc., Richardson International Limited, Ventura Foods, LLC, and Wilmar International Limited.
By Distribution Channel
Business to business segment would witness the fastest growth, registering a CAGR of 5.7% during the forecast period.
Key Benefits For Stakeholders
- The report provides a quantitative analysis of the current U.S. vegetable oil market trends, estimations, and dynamics of the market size from 2020 to 2027 to identify the prevailing opportunities.
- Porter’s five forces analysis highlights the potency of buyers and suppliers to enable stakeholders to make profit-oriented business decisions and strengthen their supplier–buyer network.
- In-depth analysis and the U.S. vegetable oil market size and segmentation assist to determine the prevailing opportunities.
- The market player positioning segment facilitates benchmarking and provides a clear understanding of the present position of the market players in the U.S. vegetable oil industry.
U.S. Vegetable Oil Market Report Highlights
| Aspects | Details |
 By Product Type |
|
 By Distribution Channel |
|
 Key Market Players | WILMAR INTERNATIONAL LIMITED, VENTURA FOODS, LLC, ARCHER-DANIELS-MIDLAND COMPANY, BUNGE LIMITED, DEOLEO, S.A., RICHARDSON INTERNATIONAL LIMITED, J. M. SMUCKER COMPANY, ASSOCIATED BRITISH FOODS, POMPEIAN, INC., CARGILL INC. |
Analyst Review
According to the opinion of CXOs of leading companies, the vegetable oil market is expected to grow moderately during the forecast period, owing to various factors such as rise in consumption of vegetable oils instead of trans-fat sources, technological developments in the edible oil sector, and surge in demand from the food processing & food service industries.
The shift in consumer demands toward healthy food ingredient alternatives is expected to offer favorable opportunities for the expansion if the vegetable oil market in the U.S. Furthermore, consumers progressive switch to foods that match their changing needs and desire for more healthier options are expected to increase the consumption of vegetable oil among Americans. Furthermore, vegetable oils have become increasingly acceptable in the food processing industry, especially for use in salads, food dressings, compound coatings, fillings & spreads, and as an alternative to dairy fats. However, price volatility due to trade tensions and environments factors acts as a potential disadvantage for the growth of the vegetable oil market.
The CXOs further added that the edible vegetable oil industry is undergoing considerable transformation, as manufacturers and industries appeal to customer demands, respond to economic changes, comply with the appropriate policies & regulations pertaining to the vegetable oil ingredients & processing and create a market position based on product attributes & the positions held by competing products. In application, these issues have led edible oil agribusinesses to address the health, sustainability and diet preferences that shape customer demands.
The CAGR of the U.S. Vegetable Oil Market during the forecast period is 4.9%.
The U.S. Vegetable Oil Market is anticipated to reach $130 billion in the future.
The U.S. Vegetable Oil Market projected to grow at a CAGR of 4.9% during the forecast period (2021-2027).
The base year calculated in the U.S. Vegetable Oil Market report is 2019.
The key players in the U.S. Vegetable Oil Market include Archer-Daniels-Midland Company, Associated British Foods, Bunge Limited, Cargill Inc., Deoleo, S.A., J M Smucker Company, Pompeian, Inc., Richardson International Limited, Ventura Foods, LLC, and Wilmar International Limited.
The most influencing segment growing in the U.S. Vegetable Oil Market report is canola oil segment.
The key trends in the U.S. Vegetable Oil Market report include technological advancement in the edible oil sector, rise in demand from food service & food processing industry and growing adoption of vegetable oil instead of solid fats.
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