The 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 from 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Soy oil and palm oil find wide applications in food industry for making products like edible oil, margarine, shortening etc. They are also used in manufacturing of soaps, detergents and personal care products. With growing population and urbanization, demand for nutrition-rich cooking oil and personal care products is on the rise, thereby driving growth of soy oil and palm oil market.
Market Dynamics:
The soy oil and palm oil market is expected to witness significant growth owing to increasing demand for biofuels. Growing focus on reducing carbon emissions has led many countries to adopt biofuel blending targets. Both soy oil and palm oil find extensive usage in producing biodiesel which is a renewable and cleaner alternative to traditional petroleum diesel. According to various studies, biodiesel produced from palm oil coproducts can reduce greenhouse gas emissions up to 80% over traditional petroleum diesel. In addition, increasing health consciousness has boosted popularity of soybean oil for cooking as it contains high quality fats and lower saturated fats compared to other vegetable oils like palm oil. This is positively impacting growth of soy oil market. Furthermore, palm oil is a versatile oil and found application as an emulsifier and thickener in variety of food items like chocolate, cake mixes and confectionery products. Growing processed food industry is thus supporting market expansion of palm oil.
SWOT Analysis
Strength: Soy oil and palm oil have a wide range of uses in various industries such as food and beverage industry, personal care products, and others which drives their demand. They are abundant in production and available at lower prices compared to other vegetable oils. Soy oil and palm oil production helps in economic development and employment generation in major growing regions.
Weakness: Over extraction of palm oil can damage forests and wildlife habitats. Growing soy and palm oil crops requires large tracks of lands which can displace local communities.
Opportunity: Increasing health consciousness among consumers is boosting demand for heart-healthy soy and palm oil. Rising population and income levels in developing countries provide opportunities for higher consumption of soy and palm oil.
Threats: Stringent government regulations to curb deforestation for palm oil plantations can restrict supply. Volatility in global agricultural commodity prices and climate change poses threats to steady soy and palm oil production.
Key Takeaways
The global Soy Oil And Palm Oil market is expected to witness high growth, exhibiting CAGR of 6.2% over the forecast period, due to increasing demand for edible oils worldwide. Soy oil and palm oil are major source of vegetable oil globally and account for over 60% of world's total edible oil consumption.
Asia Pacific dominates the global Soy Oil And Palm Oil market with a share of over 55% in 2023, led by countries like Indonesia, Malaysia, China and India. Indonesia and Malaysia are the highest producers of palm oil in the world. Southeast Asia and South Asia regions provide ideal climatic conditions and abundant feedstock for high palm oil and soy 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. The major players are focusing on expansion in high growth regions through acquisitions, partnerships to tap the market potential. They are also investing in technologies to improve crop yields and make production more sustainable.
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https://www.rapidwebwire.com/soy-oil-and-palm-oil-market-size-share-growth-outlook-2023/
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