Organic Edible Oil Market Insights: Market Size, Trends, and Growth Forecast

The global organic edible oil market size was gauged at USD 2.88 billion in 2022. The market is projected to grow from USD 3.12 billion in 2023 to USD 5.79 billion by 2030, exhibiting a CAGR of 9.23% between 2023-2030 period. Surging demand for organic food ingredients worldwide and their increasing adoption in end-use sectors such as food service and food processing will aid market proliferation. Rising health consciousness, growing income of consumers, and rapid urbanization will contribute to market expansion in the coming years. To cater to this rising demand, leading companies are focusing on enhancing their product portfolio. This information is provided by Fortune Business Insights, in its report titled, “Organic Edible Oil Market, 2023-2030.”

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Soybean Oil Segment to Lead Backed by its Abundant Availability

Based on type, the market is split into palm oil, soybean oil, rapeseed oil, sunflower oil, olive oil, coconut oil, and others. Among these, the soybean oil segment dominated the market owing to the abundant availability of organic soy. Soybean oil contains a high amount of Omega-6 fats and Vitamin K which helps boost bone metabolism. It has a neutral and mild taste which results in its increasing application in baking, frying, and cooking, thus contributing to the growth of the segment.

Supermarkets/Hypermarkets Segment to Dominate Due to Availability of Wide Variety of Products

As per distribution channel, the market is divided into supermarkets/hypermarkets, specialty stores, convenience stores, online retail stores, and others. Among these, the supermarkets/hypermarkets segment captured the largest share. Supermarkets offer a wide variety of brands under one roof and better consumer experience, which makes them the ideal choice among buyers. The emergence of private-label brands and modernization of grocery stores help drive sales of food products from supermarkets, thus contributing to growth of this segment.

Geographically, the market is segregated into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

Report Coverage:

The report sheds a light on drivers, challenges, opportunities, and threats affecting market trends over the forecast timeframe. Moreover, it studies the market at both micro and macro levels by splitting it into regions and segments. Crucial information pertaining to market share, growth rate, valuation, and sales of each region and segment are also provided. Latest updates regarding partnerships, collaborations, and mergers & acquisitions undertaken by industry leaders are also provided.

Drivers and Restraints:

Rising Health Consciousness Among Populace to Aid Market Proliferation

Consumers have become more health conscious after the pandemic and are preferring natural foods over those with artificial additives. Consumer inclination toward leading a healthy lifestyle is also increasing, which is boosting the demand for non-GMO and clean label foods. For the record, clean label products showcase the list of ingredients utilized to produce the final product clearly and mostly do not contain artificial ingredients and additives. Industry leaders in the domain are launching new products to meet the growing demand for clean-labeled, organic, and preservative free foods which will aid market expansion. For example, in March 2020, Nutiva Inc. unveiled a new line of organic avocado oils. The new products were available in three types, Organic MCT Oil Blend Avocado Oil, Organic 100% Pure Avocado Oil, and Organic Extra Virgin Avocado Oil.

On the other hand, the high price of organic edible oil due to their limited supply affects product demand negatively and hampers market proliferation.

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Regional Insights:

North America to Dominate Due to Growing Organic Food Consumption

North America held the largest organic edible oil market share in the recent past owing to rising organic food consumption due to growing health consciousness among the populace. A large number of people believe that organically produced products are healthier than conventionally produced ones. Moreover, the availability of raw materials due to growing area under organic oilseed cultivation in this region will also aid market proliferation.

The Asia Pacific market is slated to grow significantly in the coming years due to easy availability of organic products in supermarkets, growing awareness regarding organic products, and rising earning capacity of populace. Moreover, the growing consumer demand for healthy cooking oils and adoption of new technologies by leading companies to meet rising product demand will aid market growth in this region.

The Europe market is anticipated to record significant growth backed by increased usage of canola oil to make a wide variety of salads and salad dressing. The rising popularity of extra virgin olive oil also contributes to market proliferation. The Mediterranean oil pressed from olives is considered a healthy fat for maintaining a balanced lifestyle. Thus, major consumption of organic olive oil boosts the demand for the product in the region.

Competitive Landscape:

Expansion of Product Portfolio by Leading Players to Facilitate Market Augmentation

Surging demand for organic edible oil without preservatives has encouraged leading players to launch new products and expand their product portfolio. For example, in February 2021, Pompeian, Inc., a company providing a line of olive oil products, expanded its olive oil portfolio by launching new products. The innovation includes Pompeian organic smooth extra virgin olive oil in two varieties, smooth and robust.

Key Industry Development:

March 2022: Bunge Limited received a long-term loan worth USD 50 million from the European Bank for Reconstruction and Development (EBRD). The EBRD and Bunge joined forces in sustainability projects to increase certified organic olive production in Turkey and study the climate change resilience of the olive supply chain.

List of Key Players Mentioned in the Report:

  • Cargill Inc. (U.S.)
  • Nutiva (U.S.)
  • Catania Spagna (U.S.)
  • EFKO Group (Russia)
  • Aryan International (India)
  • Adams Group (Canada)
  • Daabon Organic (Australia)
  • NOW Foods (U.S.)
  • B&G Foods, Inc. (U.S.)
  • Viva Naturals (U.S.)

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