"Market Intelligence that Adds Flavour to Your Success"
The global organic edible oil market size was valued at USD 2.88 billion in 2022 and is projected to grow from USD 3.12 billion in 2023 to USD 5.79 billion by 2030, exhibiting a CAGR of 9.23% during the forecast period.
Consumer demand for organic food ingredients is surging globally, and their acceptance from different end-use sectors, including food processing, food service, and household is likely to propel the market growth of organic edible oil. Consumers' increasing health and environmental consciousness primarily drive market expansion. To cater to the rising product demand, various oil manufacturing companies are expanding their product range. For instance, in October 2022, Vitamin Cottage Natural Food Markets, Inc., a Colorado-based health food chain, expanded its house brand with organic extra virgin unrefined coconut oil. The product is USDA Organic certified and used for sautéing and baking. The product contains medium-chain fatty acids and is beneficial for brain and immune system function, and is available at affordable prices for health-conscious consumers. The product is ideal for salads, marinades, stir-frying, and sautéing. Furthermore, the rising income level of consumers, enhancement in the standard of living, and rapid urbanization are factors supporting the global organic edible oil market growth.
Increased Consumption of Organic Packaged Foods Propelled Industry Growth Amid COVID-19
The COVID-19 pandemic significantly impacted the food and agricultural supply chain, disrupting the food supply and demand for food products. The lockdown restrictions imposed worldwide also caused significant price fluctuations in food commodities.
However, the COVID-19 impact increased consumer awareness more toward nutrition and health. Diet and immunity were the major drivers for changing consumers' shift toward healthy foods. As a result, organic food became the most preferred option for consumers. The pandemic led people to prepare food regularly at home due to travel bans and changing food hygiene and diet. The pandemic increased the popularity of organic products, resulting in increased consumption of packaged organic foods. For instance, according to the Global Organic Trade, organic packaged food consumption in India increased from USD 11.1 million in 2019 to USD 11.8 million in 2020. A surge in demand for more sustainable and organic foods simultaneously reflected the increased demand for organic edible oil.
Request a Free sample to learn more about this report.
Increasing Use of Organic Cold-pressed Cooking Oil Positively Impacted Market Proliferation
As consumers opt for healthy cooking oil, which supports long-term well-being, the demand for organic cooking oil is witnessing a surge in the global market. Organic cold-pressed oils are high in antioxidants and omega-3 and omega-6 fatty acids. These oils help burn the stored fat, which helps promote healthy thyroid function. These oils also help improve heart health and protect against cell damage. The flavor and aroma of these oils are not lost due to heat during extraction, which thus gives a distinct flavor to cold-pressed oils. The rise in acceptance of organic cold-pressed oils in the market will positively contribute to the expansion of the global market size.
Increasing Demand for Clean Label and Non–GMO Ingredients to Boost Market Proliferation
Consumers are becoming health-conscious and favoring natural foods over artificial ones. Consumers are conscious about the food they consume and understand its importance in leading a healthy lifestyle. Clean-label products exhibit the list of ingredients used to produce final product clearly, and it is perceived that these products may not contain additives, artificial ingredients, or genetically modified organisms and are not over-processed. Therefore, to cater to the rising demand for organic, clean-labeled, and preservative-free foods, companies are introducing new products in the market. For instance, in March 2020, Nutiva Inc, a U.S.-based organic plant-based food, supplements, and body care products company, launched a new line of organic avocado oils. The new products were made available in three variants, Organic 100% Pure Avocado Oil, Organic MCT Oil Blend Avocado Oil, and Organic Extra Virgin Avocado Oil. The new non-GMO certified organic edible oils claim they are made without chemicals and have USDA organic and vegan certificates. These products are specially produced for edible purposes such as table top, dressings, and sauces.
Rising Investment in R&D Activities to Aid Market Escalation
The product demand is increasing significantly in developed as well as developing countries, which creates an ample opportunity for the industry players to develop new products within this category. Several companies operating in the industry are launching novel products to expand their market positions. It is one of the driving factors to elevate the market in the upcoming years. For instance, in October 2022, Single & Fat, an olive oil food brand for modern consumers, launched the USDA-certified organic extra virgin olive oil. The product is ideal to be used in cooking and it is harvested and sourced using sustainable practices.
High Price of Products to Impede Market Growth
Organically cultivated food products are generally more expensive as compared to their conventional counterparts, mainly due to limited supply compared to the demand. The raw materials of the product are made from organic agricultural products, which require high maintenance. The high price of the product forces some low and middle-class income households to opt for conventional cooking oil, which is hampering the growth of the market.
Soy Oil Segment to Lead the Market Owing to Rising Area Under Organic Soy Production
By type, the market is categorized into palm oil, soybean oil, rapeseed oil, sunflower oil, olive oil, coconut oil, and others. The soybean oil segment is anticipated to account for a significant market proportion of the global market share. The abundant availability of organic soy is the major factor supporting the segment growth. According to the FiBL survey 2022, organic oilseeds had grown on almost 578,000 hectares in Asia, which is around 32.7% of world’s organic oilseeds area, in which organic soybean production accounted for 74% of total organic oilseeds area in Asia Pacific. Soybean oil contains a high amount of Omega-6 fats and mostly consists of polyunsaturated fatty acids. The oil contains a high proportion of vitamin K, which helps regulate bone metabolism. It has a neutral and mild taste, which lets the real taste of the food come through. Soy oil has a high smoke point of about 450°F, and this versatile quality of the oil makes its major application in cooking, including sautéing, baking, frying, and roasting. Several prominent/key players in the oil manufacturing industries offer organic oils in their product portfolio due to increased consumer preference for organic oils. For instance, in March 2021, Protein Industries Canada, one of the leading plant protein companies, invested in new partnerships with DJ Hendrick International, Semences Prograin, Agrocorp Processing, Synthesis Network, and Ingrédients Protéiques du Canada. The aim of these partnerships is to develop soybean protein ingredients and soybean oil with non-GMO and organic labeling standards.
To know how our report can help streamline your business, Speak to Analyst
One-stop Shopping Experience to Propel Product Sales from Supermarkets/Hypermarkets
By distribution channel, the market is categorized into supermarkets/hypermarkets, specialty stores, convenience stores, online retail stores, and others. Supermarkets/hypermarkets hold the largest market share, as they offer a range of brands and product varieties in a single place. High convenience in the shopping experience is the major factor driving the demand for supermarkets. Consumers get a plethora of food options in one place. The emergence of private-label brands and the modernization of grocery stores help drive sales of food products from supermarkets.
Online retail stores are projected to grow at a high CAGR in the forecast period. The pandemic is reshaping the consumer's buying behavior and aiding in adopting online shopping among individuals. The mobile e-commerce service provides consumers with increased accessibility, competitive pricing, and customization, which is driving the product sales from online retail stores.
North America Organic Edible Oil Market Size, 2022 (USD Billion)
To get more information on the regional analysis of this market, Request a Free sample
North America is currently the leading market, and is projected to account for a significant share in the market during the forecast period. Americans’ appetite for organic foods has been growing steadily over the past few decades. People’s health concern is a major driver of increased organic food consumption. Larger number of individuals believe organically produced products are healthier than conventionally produced ones. Furthermore, the abundant availability of raw materials due to the rising area under organic oilseed cultivation across North American countries is likely to support the steady growth of the regional market in the coming years. According to the Research Institute of Organic Agriculture (FiBL), in the U.S., the organic oilseed production area increased from 61,164 hectares in 2017 to 83,883 hectares in 2019.
Consumers in the U.S. tend to purchase packaged organic foods as they are considered premium products in the region. The consumption of organic food has been increasing in the region due to its characteristics. Furthermore, several regional organic edible oil players adopted strategies such as mergers and acquisitions, investments, and others to meet the increasing demand for organic products. For instance, in December 2020, B&G Foods, an American-branded foods company, acquired the Crisco brand from The J. M. Smucker Co. The company also acquired a manufacturing facility and a warehouse in Cincinnati, Ohio, which helped to expand its organic edible oil product portfolio.
The market in Asia Pacific is expected to grow at a speedy pace owing to rising consumer awareness of organic products, rising availability of organic products on retail shelves, and increasing individuals earning capacity. Furthermore, there is rising consumer preference for healthy cooking oils, especially organic sunflower oil. The oil contains a high amount of oleic acid and is rich in Omega-3 and a lower amount of Omega-6 fatty acids. Polyunsaturated Fatty Acids (PUFAs) reduce cholesterol and triglycerides in the blood and are thus used in major food industries. Several regional players use new technologies to meet the increasing demand for the product in the region. For instance, in March 2019, Daabon Group, one of the leading producers of organic ingredients, announced building an organic vegetable oil refinery in Australia - Daabon Organic Australia. The refinery has the capability of single-processing oils and special blends. The quality of oils is ensured with constant monitoring of the in-house laboratory, allowing multiple tests and developing new techniques.
Europe is one of the rising markets that contributes considerable revenue to the global market of organic edible oil. Europe is one of the major consumers of organic rapeseed/canola oil. It is mainly used in cooking and salads and serves as the main component in margarine, mayonnaise, and dressings. Furthermore, the growing popularity of extra virgin olive oil drives market expansion. The Mediterranean oil pressed from olives is considered a healthy fat for maintaining a balanced lifestyle. Organic olive oil contains antioxidant properties, aids in weight loss, and is rich in vitamin E. Thus, major consumption of organic olive oil boosts the demand for the product in the region.
To know how our report can help streamline your business, Speak to Analyst
The market in South America is predicted to grow at a crucial pace owing to the constantly expanding organic farming in countries such as Brazil and Argentina. Several regional competitors adopt strategies such as acquisitions, mergers, investment in R&D, and others to sustain themselves in the market. For instance, in November 2022, United Phosphorous Ltd, UPL’s Advanta seeds and Bunge Ltd, announced the acquisition of a combined 40% stake in SEED CORP HO. Through the acquisition, Bunge Ltd intended to expand its barter portfolio to reinforce its grain sourcing position in Brazil, which helped meet the demand for organic edible oil in the region.
Rising Product Demand is Encouraging Companies to Expand Product Portfolio
Growing demand for organic foods has brought significant changes in markets and the supply chain. Organic retailers, manufacturers, and distributors face constant challenges from their conventional food counterparts. Organic products which do not contain preservatives, partially hydrogenated or hydrogenated oil, and artificial flavors are always in demand. Thus, companies develop products to meet the increasing demand for such organic products. For instance, in February 2021, Pompeian, Inc., a company offering a line of olive oil products, expanded its olive oil portfolio with new product innovation. The innovation includes Pompeian organic smooth extra virgin olive oil with two varieties, smooth and robust.
An Infographic Representation of Organic Edible Oil Market
To get information on various segments, share your queries with us
The research report provides qualitative and quantitative insights into the market and a detailed analysis of the global market share, market size, market segmentation, and growth rate for all possible segments in the market. The report also provides an elaborative industry analysis of different countries’ markets. The report provides various key insights, the overview of related markets, market dynamics, SWOT analysis, recent industry developments such as mergers & acquisitions, regulatory scenario in key countries, key organic edible oil market trends, and the competitive landscape.
CAGR of 9.23% from 2023 to 2030
Value (USD Billion)
By Distribution Channel
Fortune Business Insights says that the global market was USD 2.88 billion in 2022 and is projected to reach USD 5.79 billion by 2030.
Growing at a CAGR of 9.23%, the market will exhibit robust growth during the forecast period (2023-2030)
The soybean oil segment is expected to hold a significant share in the forecast period.
Increased awareness of clean-label and non-GMO food products is expected to drive the growth of the global market.
Cargill Inc., EFKO Group, Catania Spagna, NOW Foods, and Nutiva are some of the top players in the market.
North America is expected to hold the highest market share in the global market.
The supermarket/hypermarket segment is expected to hold the dominant share in the global market.
The rapidly increasing consumers concerns regarding health & environment and increasing export to various countries are the key trends driving the market growth.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry