Taiwan Vegetable Oil Market Research Report 2023

Taiwan Vegetable Oil Market Synopsis

The Vegetable Oil is Expected to Grow at a Significant Growth Rate, and the Forecast Period is 2023-2030, Considering the Base Year as 2022.

Vegetable oil is a type of edible oil derived from various plant sources, making it a key component of human diets and an essential ingredient in food preparation and cooking. These oils are extracted from seeds, fruits, or other parts of plants, and they come in a wide range of varieties, each possessing distinct flavors, nutritional profiles, and culinary uses.

• The most commonly used vegetable oils include soybean oil, canola oil, sunflower oil, olive oil, palm oil, and coconut oil. Each type of vegetable oil offers unique qualities that cater to different cooking methods and cuisines. Vegetable oils are rich in unsaturated fats, which are considered healthier than saturated fats, and they provide a concentrated source of energy and essential fatty acids vital for the human body's proper functioning.
• Apart from their use in cooking, vegetable oils have widespread applications in the food industry, serving as ingredients in baked goods, processed foods, salad dressings, margarine, and various snacks. Additionally, they are also used in non-food sectors, such as cosmetics, and personal care products, and industrial uses like biodiesel production. Due to their versatility, availability, and nutritional benefits, vegetable oils play a crucial role in global food systems and remain an indispensable part of modern-day diets.

Top Key Players: 

"Uni-President Enterprises Corp. (Taiwan), Lih Yann Co. Ltd. (Taiwan), Nisshin Oillio Group Ltd. (Japan), Farmtop Biotech Co. Ltd. (Taiwan), Sheng Chang Oil Mills Co.Ltd. (Taiwan), Morn Sun Feed Corporation (Taiwan), Pacific Oil Mills (Taiwan), Taiwan Edible Oil Co. Ltd. (Taiwan), Thye Huat Chan Oil Mills Sdn Bhd (Malaysia), Daimond Grain Tech Co. Ltd. (Taiwan), Linyi Fuchun Food Co. Ltd. (China), Rich Oil Enterprise Co. Ltd. (Taiwan), Yihai Kerry Group (Taiwan) (Taiwan), Lian Hwa Foods Corporation (Taiwan) and Other Major Players"

The Taiwan Vegetable Oil Market Trend Analysis

Growing Population and Urbanization

• Taiwan's population steadily increasing and a rising trend of urbanization, the demand for vegetable oils has seen substantial growth. As more people move to urban centers, there is a greater reliance on pre-packaged and convenience food products, which heavily utilize vegetable oils as ingredients. Additionally, urban lifestyles often lead to busier schedules, increasing the consumption of ready-to-eat meals and restaurant-prepared foods that rely on vegetable oils for cooking.
• The larger population also translates to more households using vegetable oils for daily cooking needs. As urban areas become more densely populated, there is an increased concentration of food service establishments, such as restaurants, cafes, and fast-food chains, which further drive the demand for vegetable oils in the HoReCa (Hotel/Restaurant/Cafe) sector.
• Moreover, urbanization and economic development are accompanied by changes in dietary preferences, with a shift towards consuming more processed and packaged foods. These food products require the use of vegetable oils, leading to a surge in their consumption.

Explore International Markets and Cater to Global Demand

• Taiwan's strong export capabilities and well-established trade relations offer vegetable oil producers an advantageous position to tap into international markets. By venturing into global markets, manufacturers can expand their customer base beyond domestic borders and reach consumers with diverse culinary preferences and demands for specialty oils.
• Catering to global demand allows Taiwanese vegetable oil producers to showcase the quality and unique characteristics of their products on the international stage. Different regions may have specific preferences for certain types of vegetable oils, such as sesame oil for Asian cuisine or olive oil for Mediterranean dishes, creating opportunities for market segmentation and targeted marketing strategies.
• Furthermore, exploring international markets can help mitigate risks associated with relying solely on the domestic market. By diversifying their customer base, vegetable oil producers can reduce dependence on local economic conditions and fluctuations in demand. Engaging in global trade also fosters innovation, as manufacturers adapt their products to suit international tastes and preferences.

Taiwan Vegetable Oil Market Segment Analysis

Taiwan Vegetable Oil Market is segmented into the Type, Nature, Packaging Type, Application, and Distribution Channel. By Type, the soybean oil segment is Anticipated to Dominate the Market Over the Forecast Period.

• Soybean oil dominates the Taiwan vegetable oil market due to several key factors. Firstly, soybean oil is widely available and economically priced, making it an affordable choice for both consumers and food manufacturers. Its cost-effectiveness appeals to a diverse consumer base, contributing to its widespread usage in Taiwanese households and the food industry.
• Secondly, soybean oil is versatile and suitable for various cooking methods, from stir-frying to deep-frying, making it a popular and practical option for Taiwanese cuisine. Its mild flavor allows it to blend well with a wide range of ingredients, enhancing the taste of traditional dishes.
• Furthermore, soybean oil is often perceived as a healthier option due to its relatively lower saturated fat content compared to other oils like palm oil. Health-conscious consumers, seeking oils with healthier fat profiles, favor soybean oil for its potential benefits.

Country Analysis of The Taiwan Vegetable Oil Market Country Analysis

• The Taiwan vegetable oil market is a crucial component of the country's food industry. With a population of over 23 million, Taiwan is a significant consumer of edible oils, making the vegetable oil market a vital aspect of its food supply chain. The most commonly used vegetable oils in Taiwan include soybean oil, palm oil, canola oil, and sunflower oil.
• Taiwan's vegetable oil market is characterized by the presence of both domestic producers and imported products. The country's own vegetable oil production capacity is limited, leading to a reliance on imports to meet the growing demand. As a result, international trade plays a critical role in shaping the market dynamics, with countries like Malaysia and Indonesia being major suppliers.
• The market is influenced by factors such as changing consumer preferences, health consciousness, and economic conditions. The preference for healthier and more sustainable options has led to rising demand for cold-pressed, non-GMO, and organic vegetable oils. Additionally, the economic development and increasing disposable incomes of Taiwanese

COVID-19 Impact Analysis on Taiwan Vegetable Oil Market

• The COVID-19 pandemic had significant impacts on Taiwan's vegetable oil market. As the virus spread and lockdown measures were implemented, the food service sector experienced a sharp decline in demand. Restaurants, hotels, and cafes faced closures or restricted operations, leading to reduced consumption of vegetable oils in the HoReCa (Hotel/Restaurant/Cafe) segment.
• Moreover, disruptions in supply chains caused by transportation restrictions and labor shortages affected the timely movement of raw materials and finished products. These challenges led to inventory constraints for manufacturers and retailers, impacting the availability of vegetable oils in the market.
• Additionally, economic uncertainties during the pandemic affected consumer spending patterns. With financial constraints and reduced purchasing power, some consumers cut back on non-essential purchases, including premium vegetable oils, leading to decreased demand and sales in the vegetable oil market.

Top Key Players Covered in The Taiwan Vegetable Oil Market

• Uni-President Enterprises Corp. (Taiwan)
• Lih Yann Co. Ltd. (Taiwan)
• Nisshin Oillio Group Ltd. (Japan)
• Farmtop Biotech Co. Ltd. (Taiwan)
• Sheng Chang Oil Mills Co.Ltd. (Taiwan)
• Morn Sun Feed Corporation (Taiwan)
• Pacific Oil Mills (Taiwan)
• Taiwan Edible Oil Co. Ltd. (Taiwan)
• Thye Huat Chan Oil Mills Sdn Bhd (Malaysia)
• Daimond Grain Tech Co. Ltd. (Taiwan)
• Linyi Fuchun Food Co. Ltd. (China)
• Rich Oil Enterprise Co. Ltd. (Taiwan)
• Yihai Kerry Group (Taiwan) (Taiwan)
• Lian Hwa Foods Corporation (Taiwan) and Other Major Players

Key Industry Developments in the Taiwan Vegetable Oil Market

In October 2022, Uni-President Group, a prominent food conglomerate in Taiwan, announced that it had successfully reached a settlement in a civil lawsuit with Ting Hsin International Group, another local counterpart. The lawsuit was related to tainted cooking lard.The settlement agreement was officially approved and endorsed by three of Uni-President's subsidiaries, namely Uni-President Enterprises Corp (the food brand), President Chain Store Corp (the operator of 7-Eleven stores), and President Nisshin Corp (the provider of starch and vegetable oil).

in April 2023, The Boards of Directors of The Nisshin OilliO Group, Ltd. and J-Oil Mills, Inc. both passed resolutions to transfer the oilseed processing operations from Nisshin OilliO's Mizushima Plant and J-Oil Mills' Kurashiki Plant to a newly established joint venture called Oilseed Processing Partners Japan, Ltd. The joint spinoff is scheduled to be effective. Further information regarding the details of this new spinoff joint venture is provided below.