Rising Demand for Edible Oils and Fats from Food & Beverage Processing Industry
According to our latest market study titled "US Edible Oils and Fats Market Forecast to 2030 – COVID-19 Impact and Country Analysis – by Type and Application," the US edible oils and fats market size was valued at US$ 9,525.60 million in 2022 is projected to reach US$ 13,114.97 million by 2030; it is expected to register a CAGR of 4.1% from 2023 to 2030.
The edible oils & fats sector is witnessing promising growth across the US, owing to their increasing adoption by food manufacturing and processing industries. According to the United States Department of Agriculture (USDA), soy oil is the second largest consumed vegetable oil. It is extensively utilized for frying, cooking, shortening, and margarine. Moreover, the confectionery industry significantly utilizes butter as a primary ingredient, followed by margarine. The high-quality edible oils and fats are used for various food & beverages applications such as in bakery & confectionery, dairy & frozen desserts, beverages, snacks, and RTE & RTC meals. Refined oils and fats are a rich source of lipids. Thus, their consumption is increasing due to increasing application and growing population in the country.
The food and beverages industry in the US is continuously growing owing to emerging trends such as sustainability, preference for convenience and ready-to-eat products, and the rise in the adoption of organic and plant-based products. The industry is witnessing substantial motion with innovation in processes, products, and services to cater to rapidly changing consumer preferences. According to the United States Census Bureau, there were 39,646 food and beverage manufacturing plants in the US in 2020, of which California, Texas, and New York had 6,116, 2,625, and 2,600, respectively. Thus, the demand for edible oils and fats is increasing with the growing food & beverages industry in the country, positively influencing the market growth.
Bunge Ltd, Archer-Daniels-Midland Co, Fuji Oil Co Ltd, Kao Corp, AAK AB, J-Oil Mills Inc, Cargill Inc, Olam Group Ltd, ConnOils LLC, and Louis Dreyfus Co BV are the key players operating in the US edible oils and fats market. These companies are developing innovative products to sustain the market, which also helps expand the US edible oils and fats market. For instance, in October 2021, ADM, one of the prominent edible fat and oil manufacturers in the US, announced its plans to build the first-ever dedicated soybean crushing plant and refinery in North Dakota to cater to the fast-growing demand for soybean oil from food and animal feed industries.
Impact of COVID-19 Pandemic on US Edible Oils and Fats Market
The COVID-19 pandemic affected economies and industries in various countries. Lockdowns, travel bans, and business shutdowns in leading countries in the US negatively affected the growth of various industries, including the food & beverages industry. The shutdown of manufacturing units disturbed supply chains, manufacturing activities, delivery schedules, and sales of various essential and non-essential products. Various companies announced possible delays in product deliveries and a slump in future sales of their products in 2020. In addition, the bans imposed by various governments in the country on international travel forced the companies to put their collaboration and partnership plans on a temporary hold. Moreover, the shutdown of restaurants and fast-food chains due to lockdown negatively impacted the market growth. All these factors hampered the food & beverages industry in 2020 and early 2021, thereby restraining the growth of US edible oils and fats market.
The report segments the US edible oils and fats market as follows:
Based on type, the US edible oils and fats market is segmented into oils and fats. By application, the market is segmented into food and beverages, pharmaceuticals and nutraceuticals, and animal nutrition.