At 6.2% CAGR, the South & Central America Edible Oils and Fats Market is Projected to be Worth US$ 7,983.83 Million by 2030, Says Business Market Insights

According to Business Market Insights' research, the South & Central America edible oils and fats market was valued at US$ 5,254.25 million in 2023 and is expected to reach US$ 7,983.83 million by 2030, registering a CAGR of 6.2% from 2023 to 2030. Rising demand for edible oils and fats from food & beverage processing industry and strategic development initiatives by manufacturers are among the critical factors attributed to the South & Central America edible oils and fats market expansion.

According to the Organization for Economic Co-operation and Development (OECD), in 2022, the consumption of vegetable oil reached 249 million metric tons, with the food sector accounting for the major share. Furthermore, the COVID-19 pandemic caused short-term disruptions in the oilseed and oilseed product markets, which led to sharp price hikes in the second half of 2020. Over the period of 2021-30, soybean production is expected to rise by 1.1% per year. By 2030, soybean production is predicted to reach 411 Mt, more than twice the total production of all oilseeds (groundnuts, sunflower seeds, and rapeseed), which is projected to be 179 Mt. 90% of soybeans and 87% of other oilseeds are processed into protein meal, which is nearly exclusively used for feed, and vegetable oil, which is used for food, oleochemicals, and biodiesel. Moreover, the confectionery industry significantly utilizes butter as a primary ingredient, followed by margarine. The high-quality edible oils and fats are used in bakery and confectionery, dairy and frozen desserts, snacks, Ready-to-Eat (RTE) and Ready-to-Cook (RTC) meals, and other food and beverage items. Refined oils and fats are a rich source of lipids. Thus, their use is increasing due to rising application and growing global population. Thus, the growing food & beverages industry across the globe propels the demand for edible oils and fats.

On the contrary, increasing prices of edible oils hampers the growth of South & Central America edible oils and fats market.

Based on type, the South & Central America edible oils and fats market is bifurcated into oils and fats. The oils segment held 73.9% share of the South & Central America edible oils and fats market in 2023, amassing US$ 3,882.50 million. It is projected to garner US$ 5,974.75 million by 2030 to expand at 6.4% CAGR during 2023–2030. The fats segment is further subsegmented into butter, margarine, palm oil based shortening, vegetable oil based shortening, and others. The oils segment is further subsegmented into soybean oil, sunflower oil, palm oil, canola oil/rapeseed oil, and others.

By application, the South & Central America edible oils and fats market is segmented into food and beverages, animal nutrition, pharmaceuticals and nutraceuticals. The food and beverages segment held 78.2% share of the South & Central America edible oils and fats market in 2023, amassing US$ 4,110.73 million. It is projected to garner US$ 6,253.91 million by 2030 to expand at 6.2% CAGR during 2023–2030.

Based on country, the South & Central America edible oils and fats market is segmented into Brazil, Argentina, and the Rest of South & Central America. The Rest of South & Central America held 48.5% share of South & Central America edible oils and fats market in 2023, amassing US$ 2,549.51 million. It is projected to garner US$ 3,820.06 million by 2030 to expand at 5.9% CAGR during 2023–2030.

Key players operating in the South & Central America edible oils and fats market are AAK AB, Archer-Daniels-Midland Co, Bunge Ltd, Cargill Inc, ConnOils LLC, Kao Corp, Louis Dreyfus Co BV, and Olam Group Ltd, among others.

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