South Korean Vegetable Oil Market Research Report 2023

South Korea Vegetable Oil Market Synopsis

South Korean Vegetable Oil Market size was reasonably estimated to be approximately USD 530.89 Million in 2023 and is poised to generate revenue of over USD 833.47 Million by the end of 2030, projecting a CAGR of around 5.8% from 2023 to 2030.

Vegetable oil is a type of edible oil derived from various plant sources. It is extracted from a plant's seeds, fruits, or nuts through mechanical or chemical processes. Common plant sources include soybeans, sunflower seeds, canola, palm fruit, and olives. Vegetable oils are widely used in cooking and food preparation due to their neutral flavor and high smoke points, making them suitable for frying, sautéing, and baking.

• One of the key features of vegetable oils is their composition, which primarily consists of triglycerides. These are a type of fat made up of glycerol and fatty acids. Depending on the source, vegetable oils may contain different types of fatty acids, such as saturated, monounsaturated, and polyunsaturated fats. The proportion of these fats can have implications for the oil's health effects.
• Due to its plant origin, vegetable oil is considered a healthier alternative to animal fats like butter or lard, as it generally contains less saturated fat. However, using vegetable oils in moderation is important, as they are still calorie-dense. Additionally, some vegetable oils are produced through processes that may raise concerns about their environmental impact. Thus, choosing sustainably sourced vegetable oils can also be an essential consideration for environmentally conscious consumers.

Top Key Players: 

"Jangguri Cooperative (South Korea), Haeonfood (South Korea), Agricultural corporation Naepo Co.Ltd. (South Korea), Chung Yang Foods (South Korea), TAKII KOREA CO.LTD. (South Korea), NAM YUNG COMMERCIAL CO., LTD. (South Korea), DONGSUH FOODS CORPORATION (South Korea), Han Jin Industry (South Korea), CJ Corporation (South Korea), CROWNHAITAI Holdings (South Korea), MUKUNGHWA. CO.LTD (South Korea), DAMYCHEMICAL CO LTD (South Korea), YUSUNG MULSAN CO.LTD (South Korea), U MAC CO.LTD (South Korea), KONG FOOD FARMING CORP. (South Korea), charms Corporation (South Korea), Korea Oil & Fat Co.LTD (South Korea), CHEONNYEONMEEIN (South Korea), NOKCHAWON CO.LTD (South Korea), GW Corporation (South Korea), Avofnc Inc. (South Korea), SERIM CO.LTD. (South Korea), Hwa Sung Ind. Co. Ltd (South Korea) and Other Major Players."

South Korea Vegetable Oil Market Trend Analysis

Growing Population and Changing Dietary Habits

• As the country's population continues to grow, so does the overall demand for food products, including vegetable oils used in cooking and food preparation. With more people to cater to, the food industry experiences increased consumption, leading to higher demand for vegetable oils as essential cooking ingredients in households and restaurants.
• Moreover, South Korea's changing dietary habits play a crucial role in driving the demand for vegetable oils. Traditionally, Korean cuisine heavily relied on animal fats and sesame oil for cooking. However, as dietary preferences shift towards healthier options, there is a growing preference for vegetable oils rich in unsaturated fats, such as canola oil and olive oil. Consumers are becoming more health-conscious and seeking alternatives that are perceived as better for heart health and overall well-being, further boosting the consumption of vegetable oils in the country.
• To meet the evolving demands of the population and cater to the changing dietary preferences, manufacturers and suppliers in the South Korean vegetable oil market must adapt and offer a diverse range of vegetable oils suitable for various culinary purposes.

Growing Non-Food Applications

• The expanding use of vegetable oils beyond traditional food applications. This trend opens up new avenues and markets for vegetable oil producers and suppliers. One prominent non-food application is the use of vegetable oils in the production of biofuels. As the country focuses on reducing its carbon footprint and promoting renewable energy sources, vegetable oils can serve as feedstock for biodiesel production, providing a greener alternative to fossil fuels.
• Additionally, vegetable oils are increasingly utilized in the production of oleochemicals, which are essential components in various industries, including personal care, cosmetics, and detergents. The demand for sustainable and natural ingredients in these products has created a growing market for vegetable oil-derived oleochemicals in South Korea.
• Furthermore, the cosmetic and personal care industry is witnessing a surge in demand for natural and organic products. Vegetable oils, such as jojoba oil, almond oil, and coconut oil, are gaining popularity as nourishing and eco-friendly ingredients for skincare formulations, hair care products, and cosmetics.

South Korea Vegetable Oil Market Segment Analysis

South Korea's Vegetable Oil Market is segmented into Type, Nature, Packaging Type, Application, and Distribution Channel. By Type, the Palm Oil segment is Anticipated to Dominate the Market Over the Forecast Period.

• Palm oil has become a dominant player in the South Korean vegetable oil market due to several factors. Firstly, its versatility and wide range of applications have made it a popular choice among food manufacturers and consumers alike. Palm oil's unique properties, such as its semi-solid state at room temperature and neutral flavor, make it suitable for various food products, including margarine, baked goods, and snacks. This versatility has enabled palm oil to secure a significant share in the South Korean processed food industry.
• Secondly, palm oil's relatively low cost compared to other vegetable oils has made it an attractive option for businesses seeking cost-effective ingredients. As a result, many food processing companies in South Korea have embraced palm oil as a primary ingredient to maintain competitive prices and profitability.
• Lastly, the growth of the South Korean cosmetics and personal care industry has further bolstered the demand for palm oil-derived products, such as oleochemicals used in skincare formulations and soap production. This diversification of applications beyond the food sector has further solidified palm oil's dominance in the country's vegetable oil market.

In a survey conducted in South Korea between August and November 2020, and later from April to June 2021, respondents revealed that olive oil held the top position as the most preferred cooking oil. Approximately 27.3 percent of the participants reported using olive oil in their cooking, making it the leading choice among the respondents.

South Korean Vegetable Oil Market Country Analysis

• The South Korean vegetable oil market is a significant and competitive segment of the country's food industry. With a growing population and changing dietary habits, there has been an increasing demand for vegetable oils in South Korea. The country relies heavily on imports to meet its vegetable oil needs, as domestic production is limited. Palm oil, soybean oil, and sunflower oil are among the most commonly imported varieties, with palm oil being the dominant choice due to its versatility and cost-effectiveness.
• South Korea's food processing industry plays a crucial role in driving the demand for vegetable oils, as it utilizes these oils in various food products. Additionally, the rising awareness of health and nutrition has led to a shift in consumer preferences towards healthier vegetable oils, like olive oil and canola oil. As a result, there is a growing market for premium and specialty vegetable oils catering to health-conscious consumers.
• The South Korean government's policies and regulations also impact the vegetable oil market. Import tariffs, labeling requirements, and food safety standards influence the pricing and availability of vegetable oils in the country.

COVID-19 Impact Analysis on the South Korean Vegetable Oil Market

• The COVID-19 pandemic has had several significant impacts on the South Korean vegetable oil market. In the initial stages of the pandemic, there was a surge in demand for essential food items, including vegetable oils, as consumers stocked up on non-perishable goods amid uncertainty. This led to temporary supply chain disruptions and shortages of certain vegetable oil products in the market.
• As the pandemic progressed, there were shifts in consumer behavior and preferences. With more people staying at home and cooking meals, the demand for cooking oils, including vegetable oils, witnessed steady growth. Health-conscious consumers also gravitated towards healthier options like olive oil and canola oil, leading to increased sales of premium vegetable oils.
• On the flip side, the food service industry, including restaurants and cafes, experienced a significant downturn during lockdowns and social distancing measures, resulting in reduced demand for vegetable oils used in commercial food preparation.

Top Key Players Covered in The South Korean Vegetable Oil Market

• Jangguri Cooperative (South Korea)
• Haeonfood (South Korea)
• Agricultural corporation Naepo Co.Ltd. (South Korea)
• Chung Yang Foods (South Korea)
• TAKII KOREA CO.LTD. (South Korea)
• NAM YUNG COMMERCIAL CO., LTD. (South Korea)
• DONGSUH FOODS CORPORATION (South Korea)
• Han Jin Industry (South Korea)
• CJ Corporation (South Korea)
• CROWNHAITAI Holdings (South Korea)
• CO.LTD (South Korea)
• DAMYCHEMICAL CO LTD (South Korea)
• YUSUNG MULSAN CO.LTD (South Korea)
• U MAC CO.LTD (South Korea)
• KONG FOOD FARMING CORP. (South Korea)
• charms Corporation (South Korea)
• Korea Oil & Fat Co.LTD (South Korea)
• CHEONNYEONMEEIN (South Korea)
• NOKCHAWON CO.LTD (South Korea)
• GW Corporation (South Korea)
• Avofnc Inc. (South Korea)
• SERIM CO.LTD. (South Korea)
• Hwa Sung Ind. Co. Ltd (South Korea) and Other Major Players.

Key Industry Developments in the South Korean Vegetable Oil Market

In March 2023, The oilseeds and products market in Korea reached a mature stage, experiencing minimal annual fluctuations due to steady consumer demand and stagnant domestic production. However, in the upcoming marketing year (MY) 2023/24, the market is anticipated to witness significant changes as a result of government policy adjustments affecting both production and consumption aspects.

in March 2023, CJ Freshway, a prominent South Korean food distributor and food service company, revealed its collaboration with S&D Company, the operator of the "Green Market" waste cooking oil collection platform. The partnership aims to collect waste cooking oil from CJ Freshway's food distribution clients and subsequently recycle it into eco-friendly raw material, promoting environmental sustainability.