Key regions: Canada, India, Spain, Philippines, South Korea
The Oils & Fats Market within The Food market in G7 is experiencing negligible growth, influenced by shifting consumer preferences towards health-conscious options, regulatory changes, and competition from plant-based alternatives that challenge traditional fats.
Customer preferences: Consumers are increasingly gravitating towards healthier and more sustainable oils and fats, reflecting a broader trend towards wellness and environmental consciousness. This shift is particularly evident among younger demographics, who prioritize plant-based options and clean-label products. Additionally, cultural influences, such as the Mediterranean diet, are promoting the use of olive oil and other heart-healthy fats. The rise in cooking at home, accelerated by the pandemic, has also led to greater experimentation with diverse oils, further shaping preferences in the Oils & Fats Market.
Trends in the market: In the G7 nations, the Oils & Fats Market is experiencing a significant shift towards healthier and more sustainable options, driven by growing consumer demand for wellness-oriented products. The popularity of plant-based oils, such as avocado and coconut oil, is surging, especially among younger consumers who favor clean-label and environmentally friendly choices. Furthermore, the influence of dietary trends, particularly the Mediterranean diet, is reinforcing the preference for heart-healthy fats like olive oil. As home cooking continues to rise post-pandemic, industry stakeholders must adapt to these evolving consumer preferences, emphasizing innovation in product offerings and transparency in sourcing practices.
Local special circumstances: In Canada, the Oils & Fats Market is shaped by its diverse multicultural population, leading to a demand for a variety of oils that cater to different culinary traditions, such as sesame oil in Asian cuisines and canola oil for local recipes. Additionally, stricter regulations around food labeling and health claims are pushing manufacturers to innovate and provide transparency in sourcing. In France, the emphasis on artisanal and regional products influences consumer preferences, driving demand for high-quality oils like truffle and walnut oil, which are seen as gourmet choices.
Underlying macroeconomic factors: The Oils & Fats Market is significantly influenced by macroeconomic factors such as global commodity prices, trade policies, and consumer spending trends. Fluctuations in the prices of raw materials like palm and soybean oil affect production costs and, consequently, retail prices. National economic health, characterized by GDP growth and employment rates, impacts consumer purchasing power and preferences for premium versus standard oils. Moreover, fiscal policies promoting sustainability and healthy eating are encouraging innovation in oil production, such as the rise of plant-based and organic oils. These factors collectively shape market dynamics and consumer choices in the Oils & Fats sector.
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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