Originally Published on: technavio |Organic Edible Oil Market by End-user, Distribution Channel, and Geography - Forecast and Analysis 2023-2027
The global organic edible oil market is projected to grow at a CAGR of 10.33% from 2022 to 2027, with an estimated market size increase of USD 3,126.37 million. This growth is attributed to factors such as the rising demand for trans-fat-free oils, diverse applications of organic edible oils, and the health benefits associated with their consumption. The report provides a comprehensive analysis, including market segmentation by end-user (organic soybean oil, organic olive oil, organic canola oil, organic coconut oil, and others), distribution channel (offline and online), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also covers key drivers, trends, challenges, and includes historic market data from 2017 to 2021.
The key driver of the organic edible oil market is the growing awareness among consumers about the benefits of organic edible oils. These oils are free from harmful pesticides, chemicals, and genetically modified organisms, making them a safer and healthier choice. They also retain their nutritional value and are known to have several physical and mental health benefits. This increasing awareness is expected to drive the market's demand and growth during the forecast period.
An emerging trend in the market is the increasing prominence of private-label brands. Retailers worldwide are prioritizing private-label organic edible oils to boost their profits. These private-label products are often priced lower than branded products, making them appealing to price-sensitive consumers. Supermarket chains are allocating more shelf space to private-label products and engaging in various marketing and promotional activities, which is expected to further fuel market growth.
However, the market faces a significant challenge in the form of certification issues for organic edible oil producers. The certification process is expensive and time-consuming, involving government approvals, international validation, and extensive documentation. Many vendors may not fully understand the requirements for organic certification, which can delay the process. The lack of supporting infrastructure for certification further complicates the process. These certification challenges can hinder market growth during the forecast period.
The organic soybean oil segment is expected to experience significant market share growth during the forecast period. This growth is due to the increasing demand for organic, non-GMO food products and the rising awareness among consumers about the benefits of organic soybean oil, making it a popular choice.
APAC is estimated to contribute 34% to the global market's growth during the forecast period, driven by rising disposable incomes, greater consumer awareness, and the expansion of the retail industry in the region. Premium organic oils like olive oil, coconut oil, and avocado oil are gaining popularity, particularly among health-conscious consumers, further boosting the market in APAC.
The COVID-19 pandemic initially hindered market growth in 2020 due to lockdowns and travel restrictions. However, as vaccination programs were initiated in 2021, governments lifted restrictions, and online distribution increased. Consumers started buying their own organic edible oil, leading to market recovery and expected growth in the forecast period.
In summary, the organic edible oil market presents significant growth opportunities driven by consumer awareness of health benefits, the rise of private-label brands, and increasing demand in the APAC region, although certification challenges remain a hurdle.
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