Global Edible Oil Market Future Forecast to 2027- COVID-19 and Russia-Ukraine War Impact Assessment

Overview

Executive Summary 

Scope of the Study
Makreo Research has published a research report titled "Global Edible Oil Market Future Forecast to 2027- COVID-19 and Russia-Ukraine War Impact Assessment". The report delves deeply into various parameters such as market size, segmentation, value chain analysis, and industry cause and effect analysis. The study includes market dynamics that provide an understanding of industry opportunities, driving forces, major challenges impeding growth, and an analysis of future opportunities that may help market players capitalise on untapped business potential in the specific geography.

Market Performance
The Global Edible Oil market was valued more than USD 200 billion in 2021 and it is expected to cross USD ~ billion in next five years registering a CAGR of 10%. Market witnessed a positive growth in 2020 despite the outbreak of the virus, owing to the increasing demand for food. In 2021, the market registered a growth rate of 36% from 2020. The volume for the vegetable oil market stood at 211.71 million metric tons in 2021 and is projected to reach ~ million metric tons by 2022.
Global Economy Performance: The global economy grew by 6.1% as against the projected estimate of 5.9%. The recovery is still gradual due to the uncertainty revolving around covid, the war between Russia and Ukraine and as well as the soaring relationship between the US and China. South Asia remains the region with high GDP growth and is set to increase by 6.6 % in 2022 and by 6.3% in 2023 according to latest South Asian Economic Focus.
COVID-19 Impact: The COVID-19 pandemic left profound impact on the expansion of the vegetable oil Industry. The pandemic caused supply chain disruptions, and disruptions in a variety of businesses, including the food and beverage industry, which had a detrimental effect on market expansion. However, if we look towards the demand side people were prepared to pay for and purchase edible oil because it is a necessary good, the food sector was overburdened by the duty to provide the demand, when necessary, particularly during lockdowns. Vegetable oil demand increased significantly to 5.5 million units in 2021, and it is anticipated to continue growing in the following year.
Impact of Russia-Ukraine War: Vegetable oil is a crucial part of nutritious components; the outbreak of war has affected its availability and production. Due to shortages brought on by the war crisis, the price of these vegetable oils has increased, making it difficult for many people to purchase. Additionally, it has sparked countermeasures from trade and biofuel regulations, raising prices. The oil contains a variety of vitamins and nutrients, including Omega 3, Omega 6, Vitamins A, E, and K, all of which are crucial for a balanced diet. However, the danger of increased food prices has caused some to lose access to vegetable oil.
Indonesia Export Ban: With Indonesia, one of the main exporting countries, imposing a prohibition on the export of crude palm oil, prices skyrocketed. Globally, the Indonesian export prohibition caused food prices to rise, leading to high inflation rates. Furthermore, because 50% of packaged meals and associated products include palm oil, the price increase also affected other end-user businesses. Due to recent shortages in retail stores, India, Pakistan, Bangladesh, and Egypt the top four importers of palm oil had to find substitutes.
 
Market Segmentation
By Application: The Global Edible Oil Market by application is divided into Food and Non-Food. The Food segment dominates the market majorly due to increasing used edible oil in all type of food even in soft drinks, that is brominated vegetable oils. Furthermore, even in Non-Food segment edible oils are highly used like in pharmaceutical particularly olive oil, have a therapeutic role for wounds and burns. Because of its emollient characteristics, it is widely used in dermo-cosmetics for moisturizing and as a component in soothing lotions. 
By Oil Type: The Global Edible Oil Market by Oil type is divided into Palm Oil, Soybean Oil, Rapeseed Oil, Sunflower seed Oil, Palm Kernel Oil, Peanut Oil Cottonseed Oil, Coconut Oil, and Olive Oil. Based on oil type, the Palm oil held the largest market share followed by Soybean Oil, Rapeseed Oil, Sunflower seed Oil and others. Due to widespread use of palm oil in Asian and African countries, palm oil market share is likely to increase rapidly.
By Production: In the past ten years, the production of palm oil has surpassed that of other edible oils on a global scale. Over one-third of the world's vegetable oil is produced globally, with the majority of it concentrated in Malaysia and Indonesia. With a projected production of 59 million tons in 2022, soybean oil will rank as the second most extensively produced edible oil worldwide. The United States, Brazil, Argentina, and China are the top four producers in that order.
By Type: The Global Edible Oil Market by type is divided into Conventional and Organic. Based on type, the Conventional segment held the largest market share of global edible oil market in 2020. It dominates the market majorly due to increasing used edible oil in all type of food and it is traditional method. Moreover, Organic food products are in high demand around the world, and rising acceptance is expected to support market growth in the future years.
Regional Performance: Asia Pacific region holds the major share due to massive demand from the food and other industrial sectors, Asia-Pacific has the highest growth rate in the world, owing to a growing percentage of health-conscious consumers, rising population, and evolving living standards, as well as the expansion of key palm oil-producing nations in the region. 
The European Edible Oil is the second largest market in th world, owing to the rising health consciousness in consumer and increasing demand for edible oils which are organic is driving the market. 

Global Edible Oil Market Structure
By Application
    Food
    Non-Food
By Oil Type
    Palm Oil
    Soybean Oil
    Rapeseed Oil
    Sunflowers Oil
    Palm Kernel Oil
    Peanut Oil
    Cottonseed Oil
    Coconut Oil
    Olive Oil
By Type
    Conventional
    Organic

Companies covered in the Global Edible Oil Market Report