Major companies in the fats and oils market include Wilmar International Limited; Archer Daniels Midland Company; Bunge Limited; Cargill and Ruchi Soya. The global fats and oils market is expected to grow from $136.
New York, Feb. 09, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Fats And Oils Global Market Report 2021: COVID 19 Impact and Recovery to 2030" - https://www.reportlinker.com/p06018876/?utm_source=GNW
31 billion in 2020 to $146.63 billion in 2021 at a compound annual growth rate (CAGR) of 7.6%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $200.21 billion in 2025 at a CAGR of 8%.
The fats and oils market consists of sales of fats and oils by entities (organizations, sole traders and partnerships) that produce shortening and margarine from purchased fats and oils; refine and/or blend vegetable, oilseed, and tree nut oils from purchased oils; and blend purchased animal fats with purchased vegetable oils. The fats and oils market is segmented into fats and oils.
Asia Pacific was the largest region in the global fats and oils market, accounting for 62% of the market in 2020. Western Europe was the second largest region accounting for 13% of the global fats and oils market. Middle East was the smallest region in the global fats and oils market.
Manufacturers are increasingly offering avocado oil due to increase in demand from health-conscious customers. Avocado oil provides a lot of health benefits as it is a healthy fat and contains plenty of vitamins. Also, there is an increase in global avocado fruit production with five million metric ton, and annual production is expected to increase by nearly 200,000 metric tons. Mexico produces around 1.8 million metric tons of avocado fruit. This increase in fruit production is also expected to lead to increased demand.
The outbreak of Coronavirus disease (COVID-19) has acted as a massive restraint on the fats and oils manufacturing market in 2020 as supply chains were disrupted due to trade restrictions and consumption declined due to lockdowns imposed by governments globally. COVID 19 is an infectious disease with flu-like symptoms including fever, cough, and difficulty in breathing. The virus was first identified in 2019 in Wuhan, Hubei province of the People’s Republic of China and spread globally including Western Europe, North America and Asia. Food and beverage manufacturers depend on supply of raw materials from domestic and international suppliers. As many governments restricted the movement of goods across countries and locally, manufacturers had to halt production due to lack of raw materials. Also, restrictions on trade of non-essential goods and fear of contamination through manufacturing facilities contributed to the decline. The outbreak is expected to continue to have a negative impact on businesses throughout 2020 and into 2021. However, it is expected that the fats and oils manufacturing market will recover from the shock across the forecast period as it is a ’black swan’ event and not related to ongoing or fundamental weaknesses in the market or the global economy.
Many countries across the globe are experiencing falling prices of crops due to overcapacity; this is expected result in low raw material costs for fats and oils manufacturing companies. For example, in 2019, the Indian government spent $873 million to subsidize the export of sugar as a result of overproduction of sugarcane, thereby reducing prices. Thus, overproduction of certain crops is likely to result in higher profit margins for food and beverage companies. Higher profit margins will enable fats and oils manufacturing companies to increase their production and drive the market going forward.
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