Global Cooking Oils and Fats Market: Increasing Consumption of Processed Food and Beverages to Stimulate Growth, says TMR
With the increasing demand for products with zero trans fats and additional nutritive value, companies in the global cooking oils and fats market are increasingly focusing on product innovations through extensive research and development. To sustain the intense competition and strengthen their global presence, the leading players in the market are turning to ventures and mergers and acquisitions as the key strategies, finds Transparency Market Research (TMR) in a new study.
Some of the key players in the market are Ajinomoto Co. Inc., Associated British Foods plc, Unilever plc, CHS Inc., and Wilmar International Ltd. “Large capital required for the processing of cooking oil, owing in part to the high cost of raw materials, poses a high entry barrier for new entrants,” says TMR’s lead analyst.
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The global cooking oils and fats market was valued at US$59.8 bn in 2014 and is expected to reach US$65.2 bn by 2021, expanding at a CAGR of 0.7% from 2015 to 2021. On the basis of product type, the vegetable oil and seeds segment dominated the market in 2014, representing over 50% of the overall market revenue. This segment is anticipated to flourish owing to strong demand in emerging markets such as India, Argentina, and Indonesia. Moreover, the development of a wide range of products with different tastes, textures, and levels of fat is contributing to the growth of this segment.
Rising Disposable Income to Propel Growth of Asia Pacific Market
Geographically, Asia Pacific was the leading revenue contributor in 2014, accounting for more than 35% of the market. Due to increasing disposable income, growing population, and changing lifestyles, the region is estimated to retain its dominance throughout the forecast period. The Rest of the World cooking oils and fats market is poised to rise at a CAGR of 1.60% during the same period. Shares of the Europe and North America market are expected to decline owing to the increasing consumer awareness regarding health and wellness.
Rising Demand for High-quality Edible Oils to Bolster Growth of Cooking Oils and Fats Market
The increasing demand for high-quality edible oils is propelling the growth of the global cooking oils and fats market. Changing consumer eating habits in developing and developed countries are boosting the demand for high-quality edible oils. Moreover, cooking oils and fats are used in foods and beverages. Dietary fats are vital for humans. Monosaturated and polysaturated fats are helpful in decreasing bad cholesterol levels in the human body. Therefore, the rising consumption of processed foods, bakery products, and ready to drink beverages is fuelling the growth of the market. Other factors driving the market are the rising demand for biodiesel and robust growth of the oleochemical industry.
Increasing Health Concerns Regarding Undue Consumption of Fats and Oils to Hamper Growth Prospects
Rising awareness regarding the negative impact of excessive consumption of fats and oils is one of the key factors restraining the growth of the global cooking oils and fats market. Moreover, the high capital investments in the extraction of raw materials and increasing stringency in regulations governing the labelling and safety standards of fats and oils products are challenging the growth of the market. However, emerging applications of fats and oils as a suitable replacement of trans fats are creating new growth opportunities for the market.
The information presented in this review is based on a Transparency Market Research report, titled,“Cooking Oils and Fats Market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2015-2021.”