Edible Oils Market Growth Accelerates with Innovation and Sustainability Efforts

/EIN News/ -- Delray Beach, FL, April 02, 2025 (GLOBE NEWSWIRE) -- The global edible oils market is projected to experience steady growth, with market valuation estimated at USD 250.78 billion in 2024 and expected to reach USD 306.92 billion by 2029. This represents a compound annual growth rate (CAGR) of 4.1% from 2024 to 2029. The increasing global population, rising disposable incomes, and changing dietary habits are driving this expansion. Edible oils are extensively used in food processing, industrial applications, and cooking, making them a staple in various industries worldwide.

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Key Market Players and Product Expansion

Several major companies play a pivotal role in the edible oils market, including Wilmar International (Singapore), Cargill Incorporated (US), and Bunge (US). These industry leaders focus on meeting the growing demand for key oil types, such as soybean, palm, sunflower, and olive oils, expanding their global presence across both developed and emerging economies.

This market growth aligns with increasing median incomes globally. According to an October 2023 World Bank report, the average daily median income in the US rose from USD 53.18 in 2013 to USD 66.65 in 2023, a 25% increase. Similarly, Canada, Germany, and the UK saw income growth, with respective averages of USD 56.30, USD 55.68, and USD 46.87. Emerging markets such as China also reflected growth, with a daily median income reaching USD 10.39, signaling an expanding middle class and rising living standards.

Rising Sunflower Oil Demand Amidst High Olive Oil Prices

A key opportunity within the edible oils market is the rising demand for sunflower oil in Spain, primarily driven by increasing olive oil prices. Data from the Asociación Nacional de Industriales Envasadores y Refinadores de Aceites Comestibles (Anierac) indicates that between October 2023 and March 2024, sunflower oil sales surged by 24.5%, whereas olive oil sales declined by 17.5%. The price of olive oil increased by 61% from May 2023 to May 2024 due to reduced production for the second consecutive year. In contrast, sunflower oil prices declined by 35%, making it a more affordable alternative for households.

With consumers seeking cost-effective substitutes, sunflower oil is expected to gain market share, particularly in Spain. If olive oil production remains constrained in 2024/25, sunflower oil producers have a strategic opportunity to solidify their market position and cater to evolving consumer preferences.

European Market Retains Significant Share

European edible oils market maintains a strong presence in the global market, fueled by robust demand across domestic and food service sectors. Key market participants include Associated British Foods plc (UK), BORGES AGRICULTURAL & INDUSTRIAL EDIBLE OILS, S.A.U. (Spain), and Louis Dreyfus Company (Netherlands). These companies are expanding production capacities and adopting innovative solutions to meet growing demand. For example, Borges Agricultural & Industrial Edible Oils, S.A.U. inaugurated a USD 10.8 million seed oil extraction plant in Tárrega, Spain, in December 2021. This investment is part of a broader USD 25 million plan aimed at increasing capacity by 30% while enhancing efficiency and reducing environmental impact.

Ongoing investments in sustainable practices and advanced technology are expected to further bolster the European edible oils market in the coming years.

Sunflower Oil Segment Holds a Prominent Share

Sunflower oil remains a key segment within the edible oils market, extensively used in food, biodiesel, and animal feed industries. Crude sunflower oil has a light amber hue, while the refined variant appears pale yellow, with processing removing its strong flavor and odor. The composition of sunflower oil is influenced by climate, temperature, genetics, and seed position.

According to USDA reports, global sunflower oil production reached 21.72 million metric tons in 2022/23 and increased to 22.13 million metric tons in 2023/24, marking a 2% year-over-year rise. Russia and Ukraine lead production with a combined 31% market share, followed by the European Union (18%), Argentina (7%), and Turkey (3%). The continuous demand for sunflower oil highlights its growing importance in culinary applications and processed foods.

Household Segment Witnessing Substantial Growth

The household segment is emerging as a significant contributor to the edible oils market’s growth, fueled by rising population levels and increasing disposable incomes. With households requiring greater quantities of edible oils for daily consumption, this segment has seen consistent expansion.

Data from the Government of India, Ministry of Commerce & Industry (December 2023), indicates that domestic consumption of edible oilseeds is rising by approximately 10 lakh metric tons per annum. This growth is driven by a growing population and higher disposable incomes, boosting overall demand for edible oils. Additionally, increased production capacity supports this upward trend, ensuring a stable supply to meet escalating household consumption needs.

The global edible oils market is set for steady expansion, driven by population growth, increasing disposable incomes, and shifting consumer preferences. The industry’s key players continue to innovate and expand their production capacities to meet rising global demand. Notably, sunflower oil is positioned for significant growth, especially in markets affected by fluctuating olive oil prices. Additionally, the European edible oils market remains strong, supported by technological advancements and sustainability efforts. With continued investment and evolving market dynamics, the edible oils sector is expected to maintain robust growth through 2029.

Adjacent Markets

• Fats & Oils Market
• Global Vegetable Oil Market

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