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 Overview:
Soy oil and palm oil are edible oils obtained from soybeans and palm fruit respectively. Soy oil is colorless, tasteless and odorless oil high in polyunsaturated fats. It is widely used in food industry for cooking and frying. Palm oil has a high smoke point and is less expensive than other edible oils, making it popular for cooking. Both soy oil and palm oil have applications in foods like baked goods, margarine and spreads due to their neutral taste.
Market key trends:
One of the key trends in the soy oil and palm oil market is the increasing demand from food processing industry. Soy oil and palm oil find widespread applications in snack foods, fast foods, packaged foods and ready-to-eat meals. Growth in the global convenience food market is driving the consumption of these edible oils. According to IMARC Group, the global convenience food market reached a value of US$ 328 Billion in 2021 and is expected to grow at a CAGR of 5.25% during 2022-2027. Another major trend is the shift towards sustainable palm oil production to address concerns around deforestation. Several companies have adopted sustainable certification programs to ensure traceability of palm oil back to certified growers.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as the soy oil and palm oil market requires high capital investment for cultivation, processing, and refining facilities. However, availability of arable land provides opportunities for new players.
Bargaining power of buyers: The bargaining power of buyers is high due to the availability of substitute oils such as sunflower oil and rapeseed oil. Buyers can exert pressure on price through competition among existing players.
Bargaining power of suppliers: Bargaining power of suppliers is moderate as a few large players dominate cultivation and production. However, suppliers have less negotiating power due to availability of contract farming.
Threat of new substitutes: Threat of substitutes is high as other vegetable oils such as sunflower oil, canola oil, and coconut oil can be used instead of soy oil and palm oil in different applications.
Competitive rivalry: The competitive rivalry in the market is high due to the presence of numerous regional and global players.
Key Takeaways
The Global Soy Oil and Palm Oil Market Size is expected to witness high growth, exhibiting CAGR of 6.2% over the forecast period, due to increasing demand for edible oils across various applications such as food & beverages, personal care products, and others.
Regional analysis: The Asia Pacific region dominates the global soy oil and palm oil market, accounting for around 60% of the overall production. China, India, and Indonesia are the key contributors to the regional market. Southeast Asia is also a fast-growing market for soy oil and palm oil due to increasing consumption of food products.
Key players: 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 account for around 50-60% of total production worldwide.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
