Plant-Based Oils for Bakery Market Size (2024 –2030)

The Global Plant-Based Oils for Bakery Market is valued at USD 10.82 Billion in 2023 and is projected to reach a market size of USD 23.62 Billion by 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 11.80%.

Synthetic fats derived from plants are used in baking, sautéing, and frying to cook and flavor food. Because of the differences in their fatty acid composition, these oils—which come from a variety of sources including palm, canola, sunflower, soybean, and avocado—offer health benefits. The market is expanding due to the growing demand for unsaturated and organic oils, particularly with the introduction of new, healthier soybean oil products and the growing appeal of avocado oil due to its many health advantages. Furthermore, the industry is seeing new opportunities as a result of the move toward environmentally friendly packaging, such as reusable vegetable oil spray bottles in place of disposable cans. These developments are anticipated to increase consumer demand and grow the market for environmentally friendly packaging options.

Key Market Insights:

Palm oil and its derivatives account for approximately 40% of the plant-based bakery oils market share, due to its versatility, cost-effectiveness, and functional properties in baking applications.

The industrial bakeries segment constitutes around 55% of the demand for plant-based bakery oils, reflecting the large-scale production of baked goods and the need for consistent, high-performance ingredients.

In terms of product type, liquid oils represent about 60% of the market share for plant-based bakery oils, attributed to their ease of use, better-mixing properties, and ability to create softer textures in baked goods.

The adoption of specialty plant-based oils, such as those derived from nuts, seeds, and exotic fruits, is growing at a rate of approximately 12% annually, driven by consumer demand for unique flavors, nutritional benefits, and clean-label products in the bakery sector.

Global Plant-Based Oils for Bakery Market Drivers:

The global market for plant-based oils for bakeries is expanding due to rising demand for packaged bakery goods in developing nations.

The market for plant-based cooking oil is predicted to grow dramatically as processed food consumption rises. The need for more oils in homes, restaurants, and small food chains to prepare food will increase as consumers choose packaged and processed foods, which will propel market expansion. The growing middle class, urbanization, and income inequality cause people to eat a wider range of diets, which raises the demand for processed foods. The Food and Agriculture Organization (FAO) and the Organization for Economic Co-operation and Development (OECD) predict that the availability of vegetable oil in the least developed nations will increase by 1.3% annually, from 7.96 kg per person in 2022 to 9 kg per person in 2030. Furthermore, the U.S. Department of Agriculture (USDA) projects that factors like tourism and population growth will cause a 34% increase in cooking oil imports into emerging nations. 79% of the increase in cooking oil imports worldwide will come from these imports. It is therefore anticipated that these factors will propel market growth in the upcoming years.

Adding vitamins and other minerals to cooking oil to promote the growth of the global plant-based oil market for bakeries.

Oil gains more nutritional value when micronutrients are added. The Food Safety and Standards Authority of India (FSSAI) states that enriched oil can assist individuals in obtaining 25–30% of the daily recommended allowance of vitamins A and D. Fortifying oil is an effective way to address micronutrient deficiencies because these vitamins are fat-soluble. Diets that emphasize fitness and low fat have resulted in inadequate intake of fat-soluble vitamins. People who use fortified oil in their diet are guaranteed adequate intake of these vital vitamins. Many nations have started significant initiatives to promote the fortification of staple foods, including oils, as consumer awareness of the issue grows. There are already 27 countries that have requested oil fortification as part of the Food Fortification Initiative. Governments are also giving food fortification priority because it can contribute to the achievement of global nutrition goals.

Plant-Based Oils for Bakery Market Challenges and Restraints:

Maintaining oil quality and the sustainability of the oil refining process present new challenges for manufacturers. The development and application of sophisticated refining technologies are required to address these issues. The goal of research and development is to use conventional farming practices to produce high-quality canola, sunflower, and soybean oils. Researchers are also trying to figure out how to keep these oils' clean label status while extending their shelf life. Geneticists and plant scientists are working to boost oilseed crop productivity in order to address sustainability and land use issues. Purdue University researchers, for instance, have found genetic features in soybeans that increase oil content. Additionally, they have discovered a connection between oil production and a genetic characteristic required for pod flowering. These developments in extraction technologies and functional enhancements are current trends that are anticipated to open up new market opportunities for cooking oil.

Plant-Based Oils for Bakery Market Opportunities:

Because people want higher-quality foods in their diets and their living standards are rising, the global market for cooking oil is expanding quickly. Globally, it appears that people are choosing healthier oils such as avocado, vegetable, olive, and palm oils. Global market expansion is also anticipated to be fueled by the growing demand for cooking oils that are low in cholesterol and can enhance heart health. As a result, it is anticipated that rising living standards and greater health consciousness will be important growth factors for cooking oil, substantially impacting the market's expansion.

PLANT-BASED OILS FOR BAKERY MARKET REPORT COVERAGE:

Global Plant-Based Oils for Bakery Market Segmentation: By Type

• Soyoil

• Rapeseed/Canola Oil

• Palm Oil

• Sunflower Oil

• Corn Oil

• Peanut Oil

• Olive Oil

• Others

Because it can be used for baking, frying, and roasting and has a high smoke point, soy oil is widely used. Its low-calorie count, minimal saturated fat content, and lack of trans fat make it a great option for homes and restaurants. It is also highly refined and rich in omega-3 fatty acids. Production of soy oil increases along with demand and soy crop yields. Because it is present in roughly 50% of packaged foods in Asian and African nations, palm oil is predicted to grow rapidly. It is stable at high temperatures, semi-solid at room temperature, and resistant to oxidation. Because it has no color and no smell, palm oil is a very useful ingredient. Because huge volumes of oil can be produced from small land areas, it is also effective for manufacturers. Because of its high smoke point, mild flavor, and smooth texture, canola oil is expected to grow significantly. It is reasonably priced and useful for baking healthful foods both at home and in commercial settings. The health advantages of canola oil, like its low LDL cholesterol and content of good fats, contribute to its market expansion.

Global Plant-Based Oils for Bakery Market Segmentation: By Application

• Foodservice outlets

• Household

• Food processing

The use of branded cooking oils in households is increasing significantly, particularly in urban areas where people prioritize maintaining good health. High-quality foods are preferred by people as their living conditions improve. A shift to using soft cooking oils at home drove a 28.2% increase in branded oil sales in India in 2022, according to retail analytics platform Bizom. It is anticipated that as more households prioritize baking healthfully, this trend will continue. The rise in fast food chains and restaurants is driving rapid growth in the food service sector. To attain balanced fatty acid levels and high smoke points, manufacturers are combining various oils. Due to hectic work schedules, more people are dining out, which is growing this market. In order to maintain the quality of their fried food, fast food restaurants are also employing vegetable oil filters more frequently, which draws in more consumers and boosts sales.

Global Plant-Based Oils for Bakery Market Segmentation: By Packaging Type

• Cans

• Bottles

• Pouches

• Others

For a number of reasons, pouches are popular in international markets for cooking oils, cosmetics, and household goods. They provide affordability, portability, flexibility, and ease of pouring. Pouches are thought to be more environmentally friendly and sustainable than bulk drums, barrels, rigid bottles, and cans. Because of their easy transportation, high automation levels, low labor costs, and effective filling and sealing processes, they are very economical. Gourmet oils are particularly well-liked in pouches because customers recognize the value added by the opulent packaging.

Global Plant-Based Oils for Bakery Market Segmentation: By Region

• North America

• Europe

• Asia Pacific

• Middle East and Africa

• South America

When it comes to the global market for plant-based oils used in baking, the Asia Pacific area leads. Urbanization, shifting dietary habits, consuming more processed foods, and rising living standards are the main drivers of this growth. Processed meals are becoming more and more popular among consumers in nations like China, India, and Indonesia. Eating habits will be further influenced by the urban population growth in Asia and Africa, which is predicted to account for 90% of global population growth. Renowned for their health benefits and superior quality, premium oils like sunflower, rapeseed, and olive oils are imported by nations in Europe like the UK, France, and Germany. Tight EU regulations guarantee edible oils of the highest caliber to consumers, bolstering the expansion of the regional market.

COVID-19 Impact on the Global Plant-Based Oils for Bakery Market:

The pandemic's initial hoarding and panic buying, as well as the shift from restaurant to retail dining and an increase in home dining, all contributed to a rise in the amount of edible oil used domestically for cooking. One of the first consumer-only categories in large retail chains was cooking oil. The Chinese National Bureau of Statistics states that the oil category made a major contribution to the 9.7% increase in food goods retail sales in China in 2022. Oil prices also rose sharply as a result of the pandemic. According to the Indian Department of Consumer Affairs, in 2022, the price of mustard, soy, sunflower, groundnut, and palm oils rose by 20% to 56%. In addition, poor harvests of sunflower and rapeseed in Europe and the Black Sea region, labor disputes, and export taxes drove up prices in the U.S., Brazil, and other international markets. Furthermore, the market for baking equipment for food processing was further stimulated by the COVID-19 pandemic and the lockdowns that followed, which caused consumer purchasing patterns to shift toward packaged foods for consumption at home.

Latest Trend/Development:

Numerous significant trends and advancements are occurring in the market for plant-based bakery oils. Demand for oils that are beneficial to health as well as useful for baking, like those rich in unsaturated fats and omega-3 fatty acids, is rising. The growing inclination of consumers towards natural and sustainable products is propelling the demand for oils such as olive, rapeseed, and sunflower oils. Producers are concentrating on improving the nutritional profiles of their oils while making sure they adhere to strict sustainability and quality requirements. Furthermore, improvements in accessibility and appeal are being made possible by advancements in packaging and distribution, especially in urbanizing areas where processed foods are becoming more common. These patterns point to a shift in the market for plant-based bakery oils toward healthier and more sustainable options.

Key Players:

1. Cargill Inc.

2. Archer Daniels Midland Company

3. Bunge Limited

4. Wilmar International Ltd.

5. Fuji Oil Company, Ltd.

6. ConAgra Brands, Inc.

7. IFFCO Group

8. Ottogi Co. Ltd.

9. Associated British Foods Plc

10. CJ Cheiljedang Corporation