Global Plant-Based Oils for Bakery Market Size (2023-2030)

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%.

Plant-based cooking oil is a synthetic fat that is used for frying, baking, chopping, and flavouring food. Different fatty acid fractions make up these oils. Many different oils, including those from palm, canola, sunflower, soybean, avocado, and others, are utilised in food applications and have many health advantages. Organic and unsaturated healthier products are in high demand, which is driving the industry. The market is expanding as a result of an increase in healthy soybean oil product launches by large companies, and an increase in the usage of avocado oil for its nutritional health benefits.

The growing trend towards packaging that maintains environmental sustainability is also anticipated to open up chances for this market. The more environmentally friendly alternative to disposable cans is the reusable vegetable oil spray bottle. Together, these elements are anticipated to increase consumer demand for more environmentally friendly packaging and support market expansion.

Global Plant-Based Oils for Bakery Market Drivers:

• Rising demand for packaged bakery items in developing countries is increasing demand in the Global Plant-Based Oils for Bakery Market.

It is anticipated that rising processed food consumption will significantly speed up industry expansion. Small food chains, homes, and restaurants will need more of these oils to make food as a result of consumer preference for packaged and processed foods, which is likely to drive the market. Additionally, the development of the middle class, urbanisation, and the income growth rate all contribute to more diverse diets, which increases the demand for processed food items.

Organisation for Economic Co-operation and Development (OECD) and Food and Agriculture Organisation (FAO) report states that availability of vegetable oil is anticipated to rise by 1.3% annually for least developed countries, reaching 9 kg per capita in 2030 as opposed to 7.96 kg per capita in 2022. Additionally, the U.S. Department of Agriculture (USDA) reports that due to factors including tourism and population expansion, cooking/edible oil imports into emerging nations are predicted to rise by 34%, accounting for 79% of the growth in global imports. Therefore, it is anticipated that these factors will fuel market expansion in the next years.

• Enhancing cooking oil with vitamins and other minerals to spur market expansion of Global Plant-Based Oils for the Bakery Market.

When micronutrients are added to oil, its nutritional value rises. The Food Safety and Standards Authority of India (FSSAI) claims that enriched oil can assist a person in consuming 25–30% of the advised daily consumption of vitamins A and D. Given that both vitamins A and D are fat-soluble vitamins, fortification is an effective technique for addressing micronutrient deficiency.

People's poor consumption of fat-soluble micronutrients is caused by the low-fat and fitness trend, therefore oil fortification makes sure they consume enough fat-soluble vitamins through diet. With consumer awareness growing, numerous nations have started extensive initiatives to promote the fortification of basic foods, including oils. As part of the Food Fortification Initiative, 27 nations have already requested the fortification of oils. Additionally, governments are prioritising food fortification due to its potential to contribute to the achievement of international nutrition targets.

Global Plant-Based Oils for Bakery Market Challenges:

Manufacturers now face fresh hurdles as a result of the sustainability of the refining process and the quality of the oil. To accomplish these new objectives, advanced refining technique technology must be created and implemented. High-grade soybean, canola, and sunflower oils are still being developed through research and development using conventional farming techniques. Additionally, scientists are concentrating on ways to extend the shelf life of substances without sacrificing their clean label designation.

While addressing the challenges of land usage and sustainability, plant scientists and geneticists continue to discover strategies to boost production from oilseed crops. For instance, genetic characteristics in grown soybeans that improve oil content have been found by Purdue University researchers. Beyond seeds, where the majority of study has been concentrated, Purdue University researchers have found a link between oil production and the genetic characteristic essential for flowering in the pods. Therefore, current trends in the cooking oil market expansion include functional improvements and extraction technologies, which are anticipated to open up new potential for the industry.

Global Plant-Based Oils for Bakery Market Opportunities:

Due to people's increasing living standards and their desire to purchase high-quality foods for their diets, the global market for cooking oil is expanding at a very rapid rate. According to current market trends, people all over the world are choosing healthy oils like vegetable oil, olive oil, Pam oil, avocado oil, and others. Additionally, rising demand for cooking oils that are reduced in cholesterol and can enhance heart health is anticipated to propel market expansion on a global scale. Therefore, it is projected that rising health consciousness and living standards will be significant growth accelerators of cooking oil, significantly influencing the market's expansion.

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

Due to the initial hoarding and panic buying there is storage and the switch from food service to retail, the increase in the number of people eating at home led to an increase in domestic cooking/edible oil use per capita. It is one of the first categories in big retail chains that are exclusive to each consumer. The retail sales of food goods in China increased by 9.7% in 2022, and the oil category contributed to this growth, according to the Chinese National Bureau of Statistics. In addition, the epidemic has caused a dramatic increase in oil prices.

The cost of groundnut, soy, sunflower, palm, and mustard oils has increased by 20% to 56% in 2022, according to the Indian Department of Consumer Affairs. Due to export taxes, labour disputes, and subpar rapeseed and sunflower seed harvests in Europe and the Black Sea region, prices increased in the U.S., Brazil, and other international markets as well. Additionally, COVID-19 and the ensuing lockdown of the region's nations resulted in a shift in consumer purchasing patterns towards packaged food goods for home consumption, which further fuels the market for baking equipment for food processing.

Global Plant-Based Oils for Bakery Market Recent Developments:

• In September 2021, The Indian government unveiled a new national palm oil production strategy to boost agricultural income. With an expenditure of nearly USD 1,470.6 million, the National Edible Oil Mission Oil Palm (NMEOOP) strategy seeks to attain self-sufficiency in cooking oil. The strategy aims to boost palm oil production, lessen reliance on imports, and assist farmers in making money from sizable markets.
• In June 2021, to address the rising demand for sustainable and traceable edible palm oil, Cargill Inc. announced that it would invest USD 200 million in the construction of a new palm oil refinery in Lampung, Indonesia. Due to their favorable weather, expanding economies, and growing populations, South-East Asian nations are being considered by the organization for economic expansion.

PLANT-BASED OILS FOR BAKERY MARKET REPORT COVERAGE:

Global Plant-Based Oils for Bakery Market Segmentation:

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

Due to its high smoke point and ability to be utilised in a variety of baking methods, such as baking, frying, and roasting, soy oil held the bulk of the market share. This oil is very refined and high in omega-3 fatty acids. It is a recommended option for homes and restaurants due to its emulsifying properties, low-calorie count, minimal saturated fat, and absence of trans fat. Soyoil production is rising along with demand and crop yields for soy.

Due to its widespread use in about 50% of packaged foods in Asian and African nations, the palm oil industry is anticipated to have rapid expansion. It is frequently utilised because of qualities including oxidation resistance, semi-solidity at room temperature, and stability at high temperatures. It doesn't change the appearance or fragrance of food goods and is also colourless and odourless. Furthermore, this product type is particularly effective and appealing to manufacturers due to its capacity to produce large quantities of oil over relatively small amounts of land, which supports the expansion of this market.

Due to qualities including a smooth texture, mild flavour, and high smoke point, canola oil is predicted to experience significant development. The device is suitable for baking a wide variety of healthful foods both on a commercial scale and at home because it is also reasonably priced. The expansion of this market sector is aided by the health advantages of its use, such as its high content of beneficial fats and ability to lower LDL cholesterol in the blood.

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

• Foodservice outlets
• Household
• Food processing

Due to the increased usage of branded cooking oils, particularly in urban households looking to preserve good health, households will experience significant growth. People now prefer high-quality foods for their diets as a result of changes in living circumstances. Data from Bizom, a retail analytics platform, shows that in 2022, brand-name oil sales in India increased by 28.2% as a result of consumers' move to domestic consumption of soft cooking/edible oils. Therefore, it is anticipated that greater home penetration and the importance of healthy baking would fuel the segment's expansion.

Due to the increase in fast food restaurants and restaurant chains, which has encouraged manufacturers to adopt the idea of blending two or more oils, the food service industry is the segment with the quickest growth. High cooking oil smoke points and balanced fatty acid levels are achieved as a result. Additionally, the growing number of people who work has caused consumers to turn to these establishments for fast meals, which is promoting the expansion of this market. Additionally, by using vegetable oil filters more frequently, these establishments guarantee the good quality of their fried food, attracting more consumers and boosting the segment's revenues.

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

• Cans
• Bottles
• Pouches
• Others

Pouches are the most widely used type of packaging worldwide in the markets for domestic goods, cosmetics, and culinary oils. This can be linked to a variety of elements, including ease of pouring, portability, adaptability, and affordability, among others. Pouches are a more sustainable and environmentally friendly option to bulk drums and barrels, rigid bottles, and cans.

The main advantage of pouch packing is that it is more affordable than other types of containers. This is due to high production volumes during filling and sealing, high levels of automation, low labour costs, and simple transportation. Pouches are also a great option for goods like gourmet oils when consumers are ready to spend a little bit extra for luxury packaging.

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

• North America
• Europe
• Asia Pacific
• Middle East and Africa
• South America

The plant-based oil for the baking market in the Asia Pacific is the largest in the world. Urbanisation, dietary changes, a rise in the consumption of processed goods, and higher living standards are the main factors for the region's rapid growth. Market expansion is anticipated to be significantly influenced by rising consumer interest in foods that are not only tasty but also offer nutritional and health benefits. In China, India, and Indonesia, where urbanisation is growing, processed meals are becoming more popular with consumers. 90% of the future urban population growth, according to United Nations projections for 2020, will take place in Asia and Africa, which will influence regional eating habits. The region's fast-growing distribution network is probably going to have a big impact on sales. 

The U.K., France, and Germany are a few of the nations that import premium oils from plants like sunflower, rapeseed, and olives. Because these oils have the right amount of unsaturated fats, their producers can market them based on these qualities, which helps them build strong brand recognition and increase sales. France presents a market opportunity for baking oils in the area because of their textural and health benefits. The European Union has rules governing the sales of edible oil, ensuring that consumers can acquire high-quality goods, which has helped to expand the business there.

Global Plant-Based Oils for Bakery Market 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