Oils & Fats - South America

South America

Highlights

Revenue in the Oils & Fats market amounts to US$19.23bn in 2024. The market is expected to grow annually by 7.76% (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$46.55 are generated in 2024.
In the Oils & Fats market, volume is expected to amount to 5.22bn kg by 2029. The Oils & Fats market is expected to show a volume growth of 4.4% in 2025.0.
The average volume per person in the Oils & Fats market is expected to amount to 10.4kg in 2024.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Oils & Fats market in South America is witnessing subdued growth, influenced by fluctuating commodity prices, evolving consumer preferences towards healthier options, and increasing competition among traditional and plant-based alternatives in the food sector.

Customer preferences: Consumers in South America are increasingly prioritizing health and wellness, driving a shift towards oils and fats that align with these values. There is a growing preference for organic and non-GMO oils, reflecting a cultural inclination towards natural products. Additionally, younger demographics are embracing plant-based diets, contributing to higher demand for alternatives such as avocado oil and coconut oil. This evolving lifestyle, influenced by wellness trends and environmental awareness, is reshaping purchasing behaviors and fostering innovation in the oils and fats segment.

Trends in the market: In South America, the Oils & Fats market is experiencing a notable shift towards healthier options, with consumers increasingly favoring organic and non-GMO oils. This trend is significantly driven by a cultural emphasis on wellness and natural products, with younger generations gravitating towards plant-based diets. As a result, there is a rising demand for alternatives like avocado oil and coconut oil. These evolving preferences are reshaping purchasing behaviors, prompting industry stakeholders to innovate and adapt their offerings to meet consumer expectations for quality, sustainability, and health benefits.

Local special circumstances: In South America, the Oils & Fats market is shaped by a diverse range of local factors that influence consumer preferences and industry practices. The region's rich agricultural landscape provides an abundance of raw materials, such as olives in Argentina and coconuts in Brazil, fostering a culture of local sourcing. Additionally, the increasing awareness of health and environmental issues drives demand for sustainable practices, with regulatory support for organic certifications. These elements collectively encourage innovation in oil production, aligning with consumer desires for authenticity and nutritional value.

Underlying macroeconomic factors: The Oils & Fats market in South America is significantly influenced by macroeconomic factors such as commodity price fluctuations, trade policies, and currency stability. Global demand for vegetable oils and fats, driven by changing dietary trends and biofuel production, impacts local pricing and export opportunities. Additionally, national economic health, characterized by GDP growth and inflation rates, shapes consumer purchasing power and preferences. Fiscal policies promoting agricultural innovation and subsidies for sustainable practices further enhance market dynamics, encouraging local production and reducing reliance on imports. These factors collectively create a complex landscape for the Oils & Fats market, impacting its growth trajectory and competitive positioning.

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.