Global Vegetable Oils Market to Reach 258.4 Million Metric Tons by the Year 2026

Vegetable oils are derived from fruits, nuts and seeds of different trees and plants and are used in a variety of applications ranging from food, personal care and household to industrial. Applications of vegetable oils expand continuously, providing a major boost for the market. Several vegetable oils are currently in high demand in developing country markets, for both food and non-food applications. In these markets, an increasing population base and growing living standards constitute the chief reasons behind growth. Another major market growth promoting factor is the increasing demand for certain types of vegetable oils from the rapidly growing biofuel industry. Vegetable oils find use in the production of bioethanol, used further in the production of biofuels. Vegetable oils also constitute a major feedstock for the production of bio-lubricants. Increasing regulatory scrutiny on recyclability and disposal of lubricants derived from petrochemicals has been one of the important factors driving demand for bio-lubricants and thereby for vegetable oils. Supportive policies of governments for instance, the RED (Renewable Energy Directive) and CAP (European Union Common Agricultural Policy) among others have also been offering immense support to market growth. The policies have been leading to increased application of the oils in different industries including animal feed, biofuel, food and cosmetics.

Amid the COVID-19 crisis, the global market for Vegetable Oils estimated at 199.1 Million Metric Tons in the year 2020, is projected to reach a revised size of 258.4 Million Metric Tons by 2026, growing at a CAGR of 4.4% over the analysis period. Palm, one of the segments analyzed in the report, is projected to grow at a 5.2% CAGR to reach 101.8 Million Metric Tons by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Soybean segment is readjusted to a revised 4.5% CAGR for the next 7-year period. This segment currently accounts for a 29.6% share of the global Vegetable Oils market. In the developing countries since price remains the key factor influencing purchasing decisions, palm oil is witnessing a significant spurt in demand both because of its cost effectiveness and widespread availability. Rising applications in the processed foods industry due to its good emulsifying ability and neutral flavor are benefitting the market for soybean oil.

The U.S. Market is Estimated at 17.5 Million Metric Tons in 2021, While China is Forecast to Reach 55.1 Million Metric Tons by 2026

The Vegetable Oils market in the U.S. is estimated at 17.5 Million Metric Tons in the year 2021. The country currently accounts for a 8.28% share in the global market. China, the world`s second largest economy, is forecast to reach an estimated market size of 55.1 Million Metric Tons in the year 2026 trailing a CAGR of 5.3% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 2.9% and 3.3% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 2.4% CAGR while Rest of European market (as defined in the study) will reach 57.9 Million Metric Tons by the end of the analysis period. In North America, vegetable oils consumption is high in production of biofuels and also in the manufacture of bio-based products. Consumer awareness about environmental impact of products that are petrochemicals-derived is high in the market. This strengthens demand for vegetable oils. In Europe, rapeseed oil is the most consumed vegetable oil primarily because it is abundantly produced in the region. Rapeseed oil is widely used in food, animal feed and biodiesel industries. 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.

Canola Segment to Reach 38.8 Million Metric Tons by 2026

Oilseed rape (canola) produce high value vegetable oil, have a healthier composition of unsaturated fats, can be grown in crop rotation with corn or wheat and supports environmentally sustainable farming. Although production of Canola seeds is less in the US, consumption is strong. In the global Canola segment, USA, Canada, Japan, China and Europe will drive the 3.4% CAGR estimated for this segment. These regional markets accounting for a combined market size of 22.4 Million Metric Tons in the year 2020 will reach a projected size of 28.2 Million Metric Tons by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach 8.1 Million Metric Tons by the year 2026, while Latin America will expand at a 6% CAGR through the analysis period.