Cooking oil is extracted from animals & plants and refined for various cooking purposes such as frying other food preparations. At room temperature, cooking oil is generally liquid, while coconut and palm oils are often found in solid state.
Spices such a chilly, garlic, and herbs are used to flavor the cooking oil during the meal preparation.
Rising Popularity of Cooking Oil
The rising trend of using healthy oils to prepare meal in urban households and maintain good health is one of the many factors enhancing the growth of the global cooking oil market.The changing standards of living has encouraged people to choose quality products for their diet. People are opting for edible oils such as olive oil, vegetable oil, and avocado oil for their low cholesterol properties. These are the main factors contributing to the growth of the market in the upcoming years.
Recent Trends of the Market
According to a report published by Research Dive, the topmost players of the global cooking oil market include George Weston Foods Limited, Louis Dreyfus Company, Bunge Limited., Olam International Limited, Sime Darby Plantation, Cargill, Archer Daniels Midland Company, SIFCA SA., Kaneka Corporation, and Nutiva among others.
These industry players are investing a lot of efforts on the research and development of smart and unique strategies to sustain the growth of the market. These strategies include product launches, mergers and acquisitions, collaborations, partnerships, and refurbishing of existing technology.
Some of the recent developments of the market are as follows:
- As per a recent news release, in June 2020, Sime Darby Plantation (SDP), the world’s largest producer of certified sustainable palm oil, published its oil palm genome research. The research has opened a new path for the company to produce more oil palm yield on its existing land than ever. The company has been financing over RM150 million in the research & development since 2009 and built one of the most recognized genotyping laboratories in Southeast Asia.
- In November 2020, Nutiva, the innovator of organic plant-based food and additives that foster strength, launched its new Organic Vegan Ghee, a rich and smooth plant-based substitute to traditional dairy-based ghee. Nutiva Organic Vegan Ghee is seamless for high-temperature cooking up to 450ºF, baking and spreading, and a great cooking oil option for anyone including the people who follow plant-based, dairy-free, vegan, or keto diets.
- As per a press release, in April 2020, Olam Food Ingredients, a subsidiary of Olam International, completed its acquisition of Olde Thompson from Kainos Capital, the private equity firm, by investing approximately $950 million. Olde Thompson is based out of California and it is a private label manufacturer of dry spices and seasonings.
This acquisition is expected to combine the strengths of both the companies in global origination and sustainable supply chains.
- In May 2021, Cargill, an American privately held global food corporation based in Minnetonka, Minnesota, joined its hands with a manufacturer of commercial food service, Frontline International, to develop a cutting-edge robotic oil management system, the Kitchen Controller™.
The state-of-the-art solution is expected to combine the foodservice experience and oil quality knowledge of Cargill with equipment know-how and customer interactions of Frontline International’s Smart Oil Management®.
Impact of COVID-19 on the Market
The global cooking oil market has experienced a moderate growth during the coronavirus pandemic. Most of the industries have gone through massive loss while a few of them were able to sustain the havoc of the pandemic. Hotels, restaurants, and other public places have been closed as a part of restriction policies of the governments in order to curb the spread of the virus. This has diminished the demand of cooking oil during the lockdown period. However, cooking oil is an essential item for household applications especially food preparation. With the ease of the restrictions, the demand has increased, and the market is expected to propel in coming days.