Published on : Aug 09, 2016
With increasing concerns over healthy diet, the need for healthy cooking source is also increasing leading to hike in the demand for cooking oil globally. The changing lifestyle of consumers in developing and developed nations is likely to boost the sales of cooking oils and fats as they tilt their focus towards processed foods. Emerging markets such as Indonesia, India, and Argentina are likely to provide manufacturers of cooking oil with lucrative opportunities for the future. As consumers are becoming more aware of the need of fat in their diet for a healthy body, the demand for food products having fat content is also increasing.
Increasing Health Concerns to Drive Demand for Fats and Cooking Oils
With changing lifestyle changes consumers are becoming more aware about the benefits of including healthy cooking oil and fat in their diet. Due to hectic schedule, it becomes difficult to concentrate on daily diet routines and workouts. Inclusion of high quality edible oil provides health benefits such as curbing low cholesterol, heart diseases, obesity, etc. The rising demand for cooking oils and fats in emerging countries due to the increasing consumption of ready-to-drink beverages and processed food and healthy eating habits is expected to bolster the demand for fats and cooking oils.
The demand for fat food products is also likely to increase owing to the benefits they provide to the human body. For instance, fat food products and drinks contain nutrients which are considered essential for the human body growth.
High Raw Material and Manufacturing Cost to Hinder Sales of Cooking Oils and Fats
The extraction process of the raw materials used in the production of cooking oils and fats requires high capital investment. It involves methods such as mechanical extraction, solvent extraction, sparging, and hydrogenation. Due to the high cost of initial set up, new players find it difficult to enter into the market. Thus, expensive raw materials and manufacturing process is likely to hinder the sales of fats and cooking oil globally.
However, alternative options for trans-fats is expected to provide lucrative opportunities to the companies operating in the global cooking oils and fats market.
Asia-Pacific is expected to maintain its lead in the global cooking oils and fats market with a global revenue share of 35% in 2014. The global cooking oils and fats market is projected to grow at a 0.7% CAGR between 2015 and 2021 with a market worth US$59.8 bn in 2014. It is expected to touch a valuation of US$65.2 bn by the end of 2021.