July 15, 2024
Soy Oil And Palm Oil Market

Soy Oil And Palm Oil Market Driven By Its Wide Usage As Important Edible Oils

Soybean oil and palm oil are widely used as edible cooking oils globally due to their high smoke points and neutral tastes. Soybean oil is extracted from soybeans through mechanical extraction and hydraulic pressing. It is a versatile oil used for salad dressings, mayonnaise, baked goods and deep frying due to its high resistance to oxidation. Palm oil extracted from the fruit of the oil palm trees is another commonly used edible oil. It contains a unique mix of saturated and unsaturated fats and vitamins. Palm oil consumption has grown swiftly in recent years due to economical production costs.

The global Soybean 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 key trends:

One of the key trends driving growth in the soybean oil and palm oil market is the rising demand for plant-based edible oils from the food processing sector. Major food companies are increasingly opting to use soybean oil and palm oil in various packaged food products like snacks, breakfast cereals and frozen meals as they have neutral tastes and provide prolonged shelf life to products. Furthermore, the expanding vegan and vegetarian population has augmented demand for soybean and palm oil which provide protein-rich alternatives to animal fats. This trend is compelling food manufacturers to innovate new product ranges tailored for health-conscious customers and bolster their market shares.

Porter’s Analysis

Threat of new entrants: Low barriers to entry in soy oil and palm oil production. However, established players have strong brand recognition and distribution networks.

Bargaining power of buyers: Large buyers like food manufacturers can negotiate lower prices due to their buying power. However, proprietary blends limit full substitution.

Bargaining power of suppliers: Major suppliers have significant control over prices and supply availability due to their scale and integrated operations.

Threat of new substitutes: Alternatives like canola oil pose competition but none can fully substitute functionality.

Competitive rivalry: Intense competition among leading players to gain market share through expansion, acquisitions and new product development.

Key Takeaways

The global Soy Oil And Palm Oil Market Trends 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.

Southeast Asia and Latin America dominate global palm oil production. Indonesia and Malaysia account for over 80% of global palm oil supply. The Asia Pacific region currently holds the largest share in the soy oil and palm oil market led by countries like Indonesia, Malaysia and China. Indonesia and Malaysia have ideal climatic conditions for oil palm cultivation and together account for over 80% of world’s palm oil production.

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. Wilmar International and Cargill Inc. are the largest players in the palm oil supply chain with integrated operations across growing, processing and merchandising.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it