Oils & Fats - Iceland

Iceland

Highlights

Revenue in the Oils & Fats market amounts to US$34.37m in 2024. The market is expected to grow annually by 4.42% (CAGR 2024-2029).
In global comparison, most revenue is generated India (US$46bn in 2024).
In relation to total population figures, per person revenues of US$91.01 are generated in 2024.
In the Oils & Fats market, volume is expected to amount to 7.29m kg by 2029. The Oils & Fats market is expected to show a volume growth of 3.2% in 2025.0.
The average volume per person in the Oils & Fats market is expected to amount to 17.5kg in 2024.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Oils & Fats Market in Iceland is witnessing negligible growth, influenced by factors such as consumer preferences for healthier alternatives, fluctuating prices of raw materials, and increasing competition from imported products, which challenge local producers.

Customer preferences: Consumers in Iceland are increasingly prioritizing health-conscious food choices, leading to a notable shift towards plant-based oils and fats. This trend is influenced by a growing awareness of sustainability and nutrition, particularly among younger demographics who favor eco-friendly products. Additionally, local culinary traditions are evolving, with traditional fats being replaced by healthier alternatives like avocado and coconut oils. As lifestyles become busier, convenience in packaging and usage is also driving demand for ready-to-use, health-oriented oil products among busy professionals and families.

Trends in the market: In Iceland, the Oils & Fats market is experiencing a significant shift towards plant-based oils as consumers become more health-conscious and environmentally aware. The demand for alternatives like avocado and coconut oils is rising, particularly among younger generations who prioritize sustainability. This trend is prompting local producers to innovate and offer healthier, ready-to-use oil products that cater to busy lifestyles. As traditional fats decline in popularity, industry stakeholders must adapt their offerings and marketing strategies to align with these evolving consumer preferences and capitalize on the growing emphasis on nutrition and convenience.

Local special circumstances: In Iceland, the Oils & Fats market is being shaped by unique geographical and cultural factors that influence consumer preferences and production methods. The country's remote location and harsh climate limit the availability of traditional crops, making imported plant-based oils more appealing. Additionally, Icelanders have a strong cultural connection to sustainability and local sourcing, driving demand for eco-friendly products. Regulatory support for health-focused initiatives further encourages innovation among producers, fostering a market that prioritizes nutritious, convenient, and environmentally conscious oil options.

Underlying macroeconomic factors: The Oils & Fats market in Iceland is significantly influenced by macroeconomic factors, including global commodity prices, national economic stability, and trade policies. Fluctuations in international oil prices can directly impact import costs, shaping consumer pricing and purchasing behavior. Furthermore, Iceland's strong economy, characterized by low unemployment and robust tourism, supports discretionary spending on premium and sustainable oil products. Fiscal policies promoting green initiatives and investments in local production are also encouraging innovation. With rising consumer awareness of health and sustainability, these factors collectively drive demand for high-quality, eco-friendly oils and fats in the market.

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.