The global market for Vegetable Oils is expected to reach 302.2 million metric tons by the year 2027, trailing a post COVID-19 CAGR of 5.1% over the analysis period 2020 to 2027.Encompassing a wide range of commodities traded actively across the world, oilseeds constitute one of the most dynamic industries in agriculture. The oil produced after crushing the seeds is called vegetable oil, which is mainly used in culinary applications. 'Westernization of diets' which mandates more use of vegetable oils in cuisines, substituting the animal fats, had given a major thrust for the global oilseed industry over the years. Usage of oil for industrial applications is also growing significantly, noteworthy among them being the utilization for biofuel production. South America and the US dominate soybean production globally, while Indonesia and Malaysia are the leading exporters of oil palm. Canola or rapeseed is exported largely by Australia. The US would continue to hold on to its leading position in oilseed production and will be followed by Brazil, China, Argentina, India and EU. On the demand side, China with its insatiable demand for oil owing to its burgeoning population emerged as the most significant consumer of oilseeds, oil and meal, with demand in China currently underpinning oilseed prices globally.

Vegetable oils are used for cooking, baking, sautéing & drizzling food and salads. Unsaturated oils are growing in popularity for their heart healthy benefits. Vegetable oils are trans-fat free & are widely used in the processed foods industry. These oils are also used as a replacement for unhealthy hydrogenated vegetable fats. In addition to health benefits and the growing demand for healthy for you foods, rising demand in the processed foods industry is also due to its good emulsifying ability and neutral flavor. Growth in the post COVID-19 period will continue to be driven by growing consumer interest in healthy, organic, and unprocessed/unrefined vegetable oils; and huge market potential offered by biofuel applications. Low-fat, low-cholesterol and low-calorie vegetable oils are especially poised to benefit against the backdrop of growing consumer focus on health and fitness. Developing markets offer opportunities in the form of greater potential for higher market penetration and growth in per capita consumption, while in the developed markets, innovation in new flavors and healthy ingredients will help spruce up consumption. Other major trends and drivers in the market include growing preference for canola oil in the food service industry; increasing health-consciousness among consumers and the ensuing strong demand for organic vegetable oils; increasing R&D initiatives revolving around trans-fat free soybean oil; surging popularity of olive oil as households shift to phytonutrients rich olive oil based cuisines; expanding applications of palm oil coupled with improvements in sustainable production of palm oil; and emerging non-edible applications such as printing inks, among others.

Asia-Pacific represents the dominant consumer of vegetable oils, worldwide. Large population, urban sprawl, growing demand for biodiesel and other non-food uses such as oleo-chemical usage, and large volumes of palm oil production in Indonesia and Malaysia are key growth drivers in Asian vegetable oils market. Nearly 53% of the world's population lives in Asia and its large population combined with rising income augment the demand for vegetable oils. The Asian vegetable oils market is dominated by palm and soybean oil production which account for a larger share due to the rapid growth in palm tree plantations in Malaysia and Indonesia. Palm, soya and rapeseed oil are widely consumed in Asia. As the second largest producer of oilseeds in global vegetable oils market, Asia dominates in production of palm kernel, cottonseed, copra and groundnut. Except olive oil, the ten oilseeds such as soya, palm, groundnut, rapeseed, cotton, sunflower, corn, sesame, palm kernel, and coconut oil which constitute the majority of global production are produced in significant quantities. China, India and Pakistan are the leading vegetable oil importers. In Indonesia, Malaysia, Thailand and Singapore, vegetable oil consumption comprises of a significant share of bio-diesel and oleo-chemical use. Government mandates drive bio-diesel demand while the trend of substituting petroleum with palm oil to improve biodegradability and sustainability creates demand for oleo-chemical usage. Increase in demand for vegetable oils from both food and industrial end-markets are a healthy sign indicating a sustainable growth for the industry in future. Several large vegetable oil suppliers, especially in developed countries, in order to tighten their grip on raw material procurement, processing and distribution of vegetable oils are resorting to vertical integration of businesses. Large companies focused on acquiring oil seed plantations and increasing raw material production capacity in the upstream, while in the downstream, they emphasized on brand management in order to exercise control on the market. Several companies have also transformed processing plants into multicrushing facilities for achieving scale benefits. Few niche industry players have also refurbished product portfolios incorporating more of high-value and low-volume premium products. The trend of suppliers moving towards specialty products is more pronounced in the European market.