The global plant-based oils market size was valued at USD 41.58 billion in 2020 and is expected to grow at a CAGR of 12.6% during forecast period. The demand for plant-based oils has increased owing to their use in food processing and cooking. Some plant-based oils available in the industry include sunflower oil, palm oil, soybean oil, rapeseed oil, and coconut oil, among others. Coconut oil is used in various products such as processed food, food supplements, baked goods, and premium health snacks. It is also increasingly being utilized in the cosmetics industry for the development of soaps, lipsticks, lip balms, moisturizers, and hair conditioning agents. Growing occurrences of health disorders, increasing awareness regarding healthy eating habits, and rise in health and fitness consciousness has increased the market demand for plant-based oils such as olive oil, rice-bran oil, and canola oil.
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The factors driving the growth of the plant-based oil market include increasing use in food products, growth in the food processing industry, and rising consumption of convenience food. The rise in population coupled with rising consumer awareness regarding health and wellness has increased the demand for oils with health benefits. The global plant-based oils industry is fuelled by the economic growth in countries such as China, India, and Japan, rising disposable income, and changing lifestyles of consumers.
Growing market demand from the industrial sector for biodiesel, coatings, adhesives, and lubricants has boosted the market growth of plant-based oil. Additionally, new product launches and acquisitions by leading players in the market and a significant rise in investments for research and development are factors expected to offer growth opportunities during the forecast period.
The addition of plant-based oil in animal feed for improved energy and digestion has accelerated the growth of the market of plant-based oils. Plant-based oils are incorporated in animal feed owing to their nutritional and biological health benefits for livestock. These oils result in enhanced health, increased absorption of essential vitamins, improved stamina, and greater digestive enzyme production in livestock.
Growing meat consumption, increasing livestock industrialization, and the rising need for nutritious feed drive the growth of this segment. Another application of plant-based oils gaining popularity is cosmetics. Synthetic cosmetic products are gradually being replaced by natural and organic ingredients-based products. Lifestyle changes of consumers, growing awareness regarding skincare, and increasing inclination towards the use of natural ingredients support the growth of this segment.
The COVID-19 outbreak has negatively impacted the plant-based oils industry owing to disruption of supply chain, lack of raw materials, operational challenges, transportation delays, travel restrictions. Manufacturing activities have also been halted due to various government regulations across the globe. The industrial sector has been severely affected by the pandemic and has experienced reduced market demand and workforce impairment. Restrictions on imports of goods to curb the spread of the virus has further contributed to restricting the market growth of plant-based oils.
The market is primarily segmented on the basis of source, application, and region.
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On the basis of plant-based oils source, the market is segmented into sunflower oils, palm oil, cottonseed oil, soybean oil, rapeseed oil, coconut oil, and others. There has been a high demand for soybean oil owing to its health benefits. Soybean oil comprises polyunsaturated fatty acids, which are associated with reduced risk of heart diseases, lower cholesterol, and regulation of bone metabolism. The significant factors driving the growth of this plant-based oils segment include increasing occurrence of lifestyle diseases, growing incidences of obesity, rising awareness regarding health benefits of soybean oil.
The application segment has been divided into food and beverages, animal feed, biofuel, industrial, and others. Increasing the use of plant-based oils in manufacturing food products such as ready-to-eat meals, confectionery, and baked goods supports market growth. Increasing health awareness and growing consciousness regarding nutrition has increased the consumption of olive oil and canola oil among others.
Asia Pacific dominated the global plant-based oils market in 2020. Increasing demand for convenience food, supportive government regulations, and growing population are some factors attributed to the growth in this region. The presence of leading market players in the region, increasing disposable income, and changing lifestyles have increased the demand for plant-based oils. Increasing application in animal feed and growing awareness regarding biofuel are expected to offer growth opportunities during the forecast period.
The leading players in the plant-based oils market include ACH Food Companies, Inc., Ag Processing Inc a cooperative, Archer Daniels Midland Company, Bunge Limited, Cargill Incorporated, Darby Plantation Berhad, FUJI OIL ASIA PTE. LTD., Golden Agri-Resources, Kuala Lumpur Kepong Berhad, PT Astra Agro Lestari Tbk, Riceland Foods, Sime Olam International Limited, Viterra Inc., Westmill foods, Wilmar International Limited. These players are expanding their presence across various geographies and entering new markets in developing regions to expand their customer base and strengthen presence in the market. The companies are also introducing new innovative products in the market to cater to the growing consumer demands.
Market size value in 2020
USD 41.58 billion
Revenue forecast in 2028
USD 92.87 billion
12.6% from 2021 - 2028
2016 - 2019
2021 - 2028
Revenue in USD billion and CAGR from 2021 to 2028
By Source, By Application, By Region
North America, Europe, Asia Pacific, Latin America, Middle East & Africa
ACH Food Companies, Inc., Ag Processing Inc a cooperative, Archer Daniels Midland Company, Bunge Limited, Cargill Incorporated, Darby Plantation Berhad, FUJI OIL ASIA PTE. LTD., Golden Agri-Resources, Kuala Lumpur Kepong Berhad, PT Astra Agro Lestari Tbk, Riceland Foods, Sime Olam International Limited, Viterra Inc., Westmill foods, Wilmar International Limited.