The US Vegetable Oil Market size was at US$ xx million in 2023, and it is predicted that it will reach a valuation of US$ xx million by the end of 2028 with an annual development rate (CAGR) of xx%
Vegetable oil is a mixture of triglycerides derived from the seeds or parts of fruits or vegetables. These oils are used in raw materials for biodiesel, food, lubricants, pharmaceuticals, and many other industries. Beans, palms, corn, cotton seeds and olives are the main sources of vegetable oil extraction. Vegetable oils are derived from plant seeds or parts thereof and are used for a variety of food and non-food applications. The main types of vegetable oils include rapeseed oil, sunflower oil, palm kernel oil, soybean oil, and palm oil. It is also available in a solid state at room temperature known as vegetable fat. The oil is primarily derived from oilseeds, but it can also be extracted from plants or plant parts. Although it is not naturally edible, it can be used in a variety of industrial applications, including pharmaceuticals, cosmetics, paints, and lubricants. The popularity of palm oil in a variety of applications in the food and culinary industry is driven by several factors. It produces more than other commonly used oils, such as soybean oil. This is a good sign for the growth of the US vegetable oil market. Palm oil is preferred for making margarine in many parts of the region. The growing popularity of palm oil as a feedstock for biofuel manufacturing is providing a strong driving force for oil demand.
Vegetable oil is used as a feedstock in the fuel industry to produce biofuels, an important factor influencing the market for vegetable oil in the USA.
Vegetable oils have a variety of uses in the food processing and food service industries. Commercial applications in the food industry include cooking, salads and dressings, composite coatings, industrial fried foods, fillings and spreads, ice cream coatings, and the use of vegetable oils to replace milk fats. The popularity of fast food and consumer lifestyle changes for more convenient foods have led to a significant increase in the demand for vegetable oil in food processing and catering. Therefore, sustained demand has primarily driven the growth of the US vegetable oil market. Additionally, due to the health benefits of vegetable oils such as olive and canola oil, increasing use has created an opportunity for vegetable oils to grow rather than solid fats. Vegetable oil is used mainly in the food industry. Palm oil promotes market growth as it becomes the best alternative to trans fats for culinary purposes. Growing health concerns and the main benefits that vegetable oils provide are key drivers of the overall U.S. vegetable oil market growth. The growing awareness of the need for convenience foods, biofuels, processing and other food sectors, and the growing consumption of vegetable oils in the region, is driving U.S. vegetable oil market production. Rising per capita income in emerging economies is driving the US market for vegetable oils. Consumption is expected to grow 1% per year in the forecast period. This expected increase in consumption will be offset by the expansion of oilseed cultivation and increased imports of palm oil in particular. The costs associated with manufacturing depend largely on the availability of raw materials, the type of raw materials, the strict measures and techniques used for the extraction and use of the extracted vegetable oil. The increasing use of food applications, especially in emerging countries, has contributed to the growth of the market. The US vegetable oil market is driven by increased consumption in the region. The increased consumption of these economies is due to population growth, dietary changes and improved living standards. The growing need for imported goods has provided more stimulus to the market.
The production process of vegetable oil requires huge capital investment, and the unstable prices of vegetable oil can hinder the vegetable oil market to some extent. Changes to the U.S. biodiesel policy or global biodiesel policy could potentially impact maintenance seed prices as the policy changes. Biofuel policy has led to a lack of availability of soybean and rapeseed oils used in food and other industries in the United States. This makes vegetable oil sources vulnerable to high price volatility. The high prices of these major vegetable oil sources lead to a shortage of working capital and serve to hinder global market growth. In addition, governments require specific certification and labeling laws regarding the content of ingredients in oils. Therefore, manufacturers must comply with these timely regulations. Hence, these factors could potentially hinder the growth of the US vegetable oil market.
by product type
distribution channel.
By product type
palm oil
soybean oil
olive oil
sunflower oil
corn oil
canola oil
Soybean oil accounted for a dominant share in the US vegetable oil market in 2019. This is because soybeans are grown primarily in the United States, and it has the highest consumption of soybean oil per capita. Additionally, soybean oil is used for a variety of food applications and is inexpensive. However, canola oil is foreseen to grow at a faster rate during the outlook period, as canola oil is considered one of the best nutritional vegetable oils due to its potential to reduce the risk of heart disease if used instead of saturation fat.
It is divided into B2C (Business-to-Consumers) and B2B (Business-to-Business) according to the distribution channels. The B2B sector is further divided into food service and food processing. The B2C segment is subdivided into specialty/convenience stores, online channels, hypermarkets/supermarkets, etc. The B2C segment had the largest share of the US vegetable oil market in 2019. The increasing penetration of online channels has accelerated the growth of the vegetable oil market in this sector. However, the B2B segment is foreseen to grow at the highest CAGR during the outlook period of the US vegetable oil market due to expansion of food retail stores and increased consumption outside the home.
Due to the outbreak of the coronavirus pandemic, the demand for US vegetable oil markets had a slight negative impact mainly due to low export demand. The decline in commodity value led to a decline in the value of vegetable oil. As COVID-19 begins to spread worldwide, concerns over the availability of soybean fungi have caused global oilseed processing margins to skyrocket through the end of the first quarter of 2020. Due to closure and social distancing norms, resulting in a sharp decline and numerous restaurants have been shut down there is a demand in the food service industry. Conversely, restrictions have had a limited impact on overall vegetable oil consumption in the United States by realigning food consumption from the service sector into the home.
The United States is a major regional market and is characterized by high vegetable oil consumption in biofuel production and bio-based product manufacturing. Consumers' high awareness of the environmental impact of petrochemical products has increased demand for bio-based products. This trend is expected to strengthen the US vegetable oil market in the coming days.
Major Key Players in the US Vegetable Oil Market are
Associated British Foods
Ventura Foods, LLC
Archer-Daniels-Midland Company
Cargill Inc
Bunge Limited
JM Smucker Company
Deoleo, SA
Richardson International Limited
Pompeian, Inc
Wilmar International Limited
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