Key regions: Canada, India, Spain, Philippines, South Korea
The Oils & Fats market within the Food sector in G20 countries is witnessing minimal growth, influenced by shifting consumer preferences towards healthier options, regulatory changes, and competition from plant-based alternatives affecting traditional fat sources.
Customer preferences: Consumers are increasingly prioritizing health-conscious dietary choices, driving a notable shift towards oils and fats that are perceived as healthier, such as avocado and olive oil. This trend is influenced by a growing awareness of nutrition and wellness, particularly among younger demographics who value transparency and sustainability in food sourcing. Additionally, cultural influences are promoting the adoption of traditional fats from diverse cuisines, while the rise of plant-based diets is propelling demand for alternatives that align with lifestyle changes and ethical considerations.
Trends in the market: In the Oils & Fats Market, a notable shift towards health-oriented products is emerging, with consumers increasingly favoring oils like avocado and olive oil due to their perceived health benefits. The trend is gaining momentum particularly among younger generations, who demand transparency and sustainability in sourcing. In regions such as Southeast Asia, traditional fats from local cuisines are experiencing a revival, while the rise of plant-based diets is driving demand for innovative alternatives. This evolving landscape presents significant implications for industry stakeholders, prompting them to adapt product offerings and marketing strategies to align with these consumer preferences.
Local special circumstances: In Indonesia, the Oils & Fats Market is shaped by a rich culinary heritage that emphasizes the use of coconut oil and palm oil, staples in local dishes. The government's promotion of sustainable palm oil practices is influencing consumer choices, leading to a growing demand for certified sustainable products. In contrast, in Italy, the market is characterized by a strong preference for high-quality extra virgin olive oil, driven by a deep cultural appreciation for traditional methods and regional sourcing. These unique local factors significantly impact consumer behavior and market dynamics in each country.
Underlying macroeconomic factors: The Oils & Fats Market within The Food market is significantly influenced by macroeconomic factors such as global commodity prices, trade policies, and national economic stability. In countries like Indonesia, fluctuations in palm oil prices and international demand affect local production and export strategies, while government initiatives to promote sustainable practices align with global sustainability trends, impacting consumer preferences. Conversely, in Italy, economic conditions and regional agricultural policies support the production of high-quality olive oil, with consumers willing to pay a premium for authenticity and traceability. These dynamics highlight how macroeconomic factors shape the oils and fats market across different geographies.
Data coverage:
The data encompasses B2C enterprises. Figures are based on the total consumer spending on food, which comprises all private household spending on food that is meant for at-home consumption (out-of-home consumption is not accounted for).Modeling approach:
Market sizes are determined through a top-down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, and consumer price index. This data helps us estimate the market size for each country individually.Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Food market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.
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