Industrial Oil Market Size, Share, and Industry Analysis By Type (Soybean, Rapeseed, Sunflower, and Others), By End-use (Food & Beverages, Biofuel, Cosmetics & Personal Care, Pharmaceuticals, Animal Feed, and Others), and Regional Forecast till 2032

The global industrial oil market is witnessing significant growth due to the emergence of the industrial sector, especially in developing economies. Industrial oils include a wide range category of oils extracted from soybean, rapeseed, sunflower, palm, cottonseed, and others. These varieties are broadly utilized in various applications across several end-use industries.

The rising technological advancements in the biodiesel, chemical, and cosmetics industries are anticipated to accelerate the growth of the market during the forecast period. According to Solvent Extractors' Association of India (SEA) data, the import of vegetable oils in India increased by 18%, with 1.55 million tonnes on higher imports of crude palm oil and crude sunflower oil in June 2024.

The outbreak of COVID-19 has significantly impacted the dynamics of the global industrial oils market owing to the temporary shutdown of manufacturing facilities. The imposition of restrictions on import and export facilities worldwide disrupted the supply chain of raw materials and finished goods. However, the post-pandemic situation led to the revival of the market through the rising demand from various sectors such as healthcare, pharmaceuticals, food and beverages, and others.

Industrial Oil Market Driver

Increasing Industrialization to Uplift the Demand

Increasing population, rising consumer demand, and growing expansion of manufacturing activities are the major factors attributed to the surge in industrialization across the world. The industrial oils offer numerous applications in various industries. These oils are utilized as one of the major ingredients in the production of soaps, detergents, and cosmetics. The manufacturing of biofuels also includes the use of industrial oils such as soybean and rapeseed. The multi-functionality of industrial oil is expected to drive the growth of the market with the increasing industrial expansion and diversification during the forecast period.

Industrial Oil Market Restraint

Volatility of Raw Material Prices to Hamper the Growth

The continuous fluctuations in the raw material prices significantly impact the production costs for manufacturers. The prices of industrial oil directly rely on the supply of raw materials such as vegetable oils. The inconsistency in the raw material supply creates variations in the profit margins. The sudden increase in prices either reduces the profit margins or forces the manufacturers to raise the prices, which further makes the products less competitive. The uncertainty in the raw material costs creates challenges in long-term planning, thereby affecting the overall industrial investments, growth, and stability.

Industrial Oil Market Opportunity

Rising Demand for Plant-based and Natural Ingredients

Increasing consumer preference for natural or minimally processed ingredients is one of the major factors responsible for the growing trend toward the adoption of plant-based diets. Health-conscious consumers are seeking alternatives to animal-based products and highly processed oils. The plant-based oils are derived through mechanical extraction and refining processes, which makes them less processed and health beneficial. Therefore, the rising utilization of industrial oils in the production of various organic and clean-label food products is further accentuating the growth of lucrative opportunities in the long run.

Segmentation

Key Insights

The report covers the following key insights:

• Overview of the Global Industrial Oil Market
• Supply Chain Analysis
• Regulatory Analysis
• Industry SWOT Analysis
• Key Industry Developments
• Qualitative Analysis Related to COVID-19

Analysis by Type

Based on type, the market is divided into soybean, rapeseed, sunflower, and others.

The soybean segment is expected to hold the largest share of the market. Soybean oil is affordable compared to the other segments and, therefore, becomes a popular choice among the middle-class population. The segment growth is attributed to the affordability, convenience, and health benefits associated with soybean oil.

The rapeseed segment is anticipated to show significant growth during the forecast period. Rapeseed oil is low in saturated fats and rich in omega-3 fatty acids. Therefore, the increasing demand for rapeseed oil for culinary applications is expected to accelerate the growth of the market. The segmental expansion is attributed to the rising consumption for the production of biodiesel, especially in the Europe region. According to the U.S. Department of Agriculture (USDA), the European Union (EU) itself acquires 22% of the global rapeseed production, with a total yield of 19.95 million metric tons, for the financial year 2023-2024.

Analysis by End-use

Based on end-use, the market is divided into food & beverages, biofuel, cosmetics & personal care, pharmaceuticals, animal feed, and others.

The food and beverages segment is expected to hold the largest share of the market. High demand for edible oils in the food processing industry is projected to create lucrative growth opportunities in the industrial oil market. These oils are often used as emulsifiers and stabilizers in processed foods, enhancing the blending of ingredients, especially in products such as dressings and spreads. Therefore, the increasing consumption of plant-based edible oils is expected to propel the segment growth.

The biofuel segment is anticipated to show significant growth during the forecast period. The expansion of the biofuel sector, particularly biodiesel, is driving the growth of industrial oils in the market. The biodiesel is produced from a variety of oilseeds, such as rapeseed, soybean, linseed, and others. These biofuels, manufactured from plant-based biomass, can be used as fuel alternatives, which can help in the reduction of fossil fuel consumption. These plant-based biodiesels have significantly lower levels of emission as compared to petroleum-based diesel, which consequently helps to reduce the negative impact on the environment. These factors associated with biofuel are expected to augment the segment growth during the forecast period.

Regional Analysis

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Based on region, the market has been studied across North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

North America is expected to account for the largest share of the market during the forecast period. The growth of the market in the region is attributed to the presence of robust industrial infrastructure. Technological advancements in extraction and processing methods ensure the enhanced efficiency and yield of industrial oils, amplifying the market's dominance in the region. Furthermore, the increasing demand for biodiesel feedstock in the region is expected to propel the market growth.

The Asia Pacific is expected to account for the largest share of the market during the forecast period. The regional expansion is attributed to the rapid urbanization and growing economic development in countries such as India and China. Increasing health consciousness among consumers is driving the demand for better quality cooking oils that are rich in unsaturated fats. The endorsement of government initiatives for creating awareness regarding lower consumption of saturated fats is further expected to fuel the growth of the market in the region. For instance, in February 2019, the government of China issued the National Food Safety Standard for Vegetable Oil to reinforce the food safety regulations in the country. The standard applies to edible vegetable oil, edible vegetable blend oil, and various edible vegetable oils used in frying food.

Key Players Covered

The key players in the global industrial oil market continuously adopt growth strategies to expand their global presence through new product launches, partnerships, collaborations, mergers and acquisitions, capacity improvement, and industrial investments.

The report provides the profiles of the following key players:

• Archer-Daniels-Midland Company (U.S.)
• Bunge Limited (Netherlands)
• Gemtek Products (U.S.)
• Cargill, Incorporated (U.S.)
• Louis Dreyfus Company BV (Netherlands)
• Wilmar International Ltd. (Singapore)
• CHS Inc. (U.S.)
• AAK Kamani (India)
• Soya Mills SA (Greece)
• Buhler Group (Switzerland)
• Ag Processing Inc (U.S.)

Key Industry Developments

• In July 2024, the multinational food and beverage conglomerate Adani Wilmar Ltd announced an industrial investment of 600 crore rupees in India to expand edible oil processing capacities and launch new food products. Adani Wilmar Ltd is a joint venture between one of the leading fast-moving consumer goods (FMCG) companies in India, Adani Enterprises (AEL), and Singapore-based Wilmar International.
• In November 2021, the leading manufacturer of food products, Cargill, Incorporated, announced that it would acquire an edible oil refinery located in Nellore, Andhra Pradesh. The company invested USD 35 million in this acquisition and upgradation of the refinery to expand the edible oil production capacity and footprint in southern India.