Soy Oil And Palm Oil Market Is Estimated To Witness High Growth Owing To Opportunity Of Increasing Demand Of Plant Derived Cooking Oils

Soy oil and palm oil are the two most widely consumed plant derived cooking oils globally. Soy oil is obtained by pressing soybean seeds and is a rich source of polyunsaturated fatty acids. Palm oil is extracted from the mesocarp of the fruit of oil palm tree and contains saturated fats. Both soy oil and palm oil have good stability during cooking applications and impart desirable flavor and texture to cuisine. The increasing health consciousness among consumers regarding negative effects of trans-fat and desire to switch to healthier plant-based oils have fuelled the demand for soy oil and palm oil in food industry.

The global Soy Oil And Palm Oil Market is estimated to be valued at US$ 109724.12 Mn in 2023 and is expected to exhibit a CAGR of 6.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:
The rising adoption of vegan and flexitarian diets among health conscious consumers worldwide presents significant opportunity for soy oil and palm oil market. According to recent surveys, nearly 10% of the global population claims to follow vegan or vegetarian diet mainly due to environmental and ethical reasons. With no animal fats or dairy products, vegan cuisine heavily relies on plant derived cooking oils for variety of recipes. This growing vegan trend has led to consistent increase in demand for soy oil and palm oil from food processors catering to vegan population. Major food companies are launching new product lines prepared with soy oil and palm oil to tap into this vast consumer base. If the trend sustains, it can propel the demand for soy oil and palm oil at accelerated pace over the forecast period.

Porter's Analysis

Threat of new entrants: The threat is moderate as the market is witnessing steady growth with established players. However, high capital requirements act as a barrier for new players.

Bargaining power of buyers: The bargaining power of buyers is high given the presence of multiple buyers. Buyers can negotiate for better prices and demand quality products.

Bargaining power of suppliers: The bargaining power of suppliers is moderate as there are numerous suppliers for raw materials. However, suppliers still hold influence over prices of soybean and palm fruits.

Threat of new substitutes: The threat is low as soy oil and palm oil have unique properties and are widely used in food applications with no close substitutes.

Competitive rivalry: The competition is high among existing players to gain market share through product innovations, regional expansions, and marketing strategies.

SWOT Analysis

Strengths: Wide applications in food industry. Abundant availability of raw materials. Established production and supply chain infrastructure.

Weaknesses: Price fluctuations of raw materials impact profits. Concerns over environment and health implications of palm oil production.

Opportunities: Increasing demand for cheaper vegetable oils especially in emerging markets. Development of new applications and value-added products.

Threats: Rising health concerns related to trans fats can impact demand. Stringent regulations over sustainability and deforestation.

Key Takeaways

The Global Soy Oil And Palm Oil Market is expected to witness high growth over the forecast period supported by growing demand from food applications. The global Soy Oil And Palm Oil Market is estimated to be valued at US$ 109724.12 Mn in 2023 and is expected to exhibit a CAGR of 6.2% over the forecast period 2023 to 2030.

Asia Pacific dominates the global market with countries like Malaysia, Indonesia and India contributing significantly due to abundant availability of oil palm trees and large production volumes. The region is forecast to maintain its lead in the coming years as demand rises from growing population.

Key players operating in the soy oil and palm oil market are Cargill, Inc., PT Astra Agro Lestari Tbk, Wilmar International Ltd, Malaysian Soy oil & palm oil Council (MPOC), Carotino Sdn Bhd, Yee Lee Corporation Bhd, IOI Corporation Berhad, Archer Daniels Midland Company, Dow DuPont Inc., and Guangxi Long'an Ruifeng Industrial & Trading Co., Ltd. These players focus on expanding production capacities and capabilities through strategic acquisitions and collaborations to gain market share.

For more insights, read- https://www.dailyprbulletin.com/increasing-demand-for-healthy-and-plant-based-edible-oils-size