Soy oil and palm oil are the two most widely consumed edible vegetable oils globally. Soy oil is favored for its neutral taste and high smoke point making it suitable for frying foods. It is rich in vitamin E and K along with polyunsaturated and monounsaturated fatty acids beneficial for heart health. Palm oil is extracted from the fruit of palm trees and possess a higher saturated fat content compared to other vegetable oils. It serves as an affordable all-purpose cooking oil and is widely used in food production systems. Consumer preference for plant based and healthier edible oils are driving the demand for soy and palm oil. With the expanding global edible oil market, food companies are utilizing these oils for manufacturing varied food products like baked goods, breakfast cereals, dressings, margarines etc.
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 Dynamics
Increasing demand for healthy and plant based edible oils as mentioned in the heading is one of the key drivers propelling the soy oil and palm oil market. With rising health consciousness, consumers are shifting towards vegetable oils that provide heart healthy fats and other nutritional benefits. Soy and palm oil cater to this consumer preference for natural ingredients over chemically processed oils. Another driver is surging applications of these oils across various end use industries. As elaborated in the market overview paragraph, food companies extensively utilize soy and palm oil for manufacturing varied food products which is positively impacting the market growth.
Segment Analysis
The soy oil and palm oil market can be segmented into soybean oil and palm oil. Palm oil currently dominates the market and accounts for over 50% market share due to high production levels in Indonesia and Malaysia. Palm oil sees strong demand for use in food products like peanut butter, crackers and baked goods as well as non-food applications like biodiesel and oleochemicals due to its affordable price as compared to soybean oil.
PEST Analysis
Political: Trade policies of key producing and consuming countries influence demand and prices. Biofuel mandates promote palm oil usage.
Economic: Affordability drives demand. Rising incomes in developing nations boost food product demand. Stable global economy aids trade.
Social: Growing health awareness raises preference for soy and vegetable oils over palm oil due to saturated fat concerns.
Technological: Developments in oil extraction techniques raise yields. Genetic innovations create high-oleic soybean varieties offering stability during deep frying.
Key Takeaways
The Global Soy Oil And Palm Oil Market is expected to witness moderate growth over the forecast period supported by steady gains in food product and oleochemical demand. 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.
Regional analysis comprises:
The Asia Pacific region currently accounts for over 65% of global soy oil and palm oil demand led by Indonesia and Malaysia which produce nearly 90% of global palm oil. Strong domestic consumption of food products like noodles, margarine and snacks containing palm oil, coupled with affordable prices support the market leadership of the Asia Pacific region.
Key players related content comprises:
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. Cargill and Wilmar International are the largest global traders for palm oil and soybean oil respectively.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
