US Vegetable Oil Market Research Report 2023

US Vegetable Oil Market Synopsis

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

US Vegetable Oil is a type of edible oil derived from various plant sources, such as seeds, fruits, nuts, or vegetables. It plays a crucial role in cooking, baking, and food preparation worldwide. The extraction process typically involves crushing or pressing the plant's seeds or fruits to obtain the oil, which is then refined to remove impurities. US Vegetable Oils are rich in essential fatty acids, like omega-3 and omega-6, and they provide a significant source of energy and nutrients in the human diet.

• Common examples of US Vegetable Oils include soybean oil, sunflower oil, canola oil, corn oil, and olive oil, each with its distinctive flavor and culinary properties. Besides culinary uses, US Vegetable Oils find application in various industries, such as cosmetics, pharmaceuticals, and biofuels, making them versatile and indispensable commodities in modern society.

Top Key Players Involved Are:

"Archer Daniels Midland Company (ADM) (US), Bunge North America (US), Cargill, Incorporated (US), Wilmar International (USA) LLC (US), Louis Dreyfus Company LLC (US), Ag Processing Inc (AGP) (US), Richardson Oilseed Limited (USA) (US), Ventura Foods LLC (US), Darling Ingredients Inc. (US), The J.M. Smucker Company (US), AAK USA Inc. (US), CHS Inc. (US), IFFCO USA (US), The Hain Celestial Group Inc. (US), The Hershey Company (US), The Andersons Inc. (US) and Other Major Players."

The US Vegetable Oil Market Trend Analysis

Rising Demand for Plant-Based Foods

• The United States US Vegetable Oil Market is driven by the growing demand for plant-based foods, fueled by the rising popularity of plant-based diets and awareness of their health and environmental benefits. US Vegetable Oils are essential in formulating various plant-based products, meeting the demand for healthier and sustainable dietary choices.
• The expanding presence of plant-based food companies and the growing availability of plant-based menu options in restaurants and food service establishments have further driven the need for US Vegetable Oils. Their versatility, including soybean oil, canola oil, and sunflower oil, makes them ideal for a wide range of cooking applications in the plant-based food industry.
• The upward trend in plant-based diets presents a significant opportunity for US Vegetable Oil manufacturers and suppliers to cater to health-conscious and environmentally aware consumers. By aligning with this consumer shift towards sustainable and healthier food choices, US Vegetable Oil companies can capitalize on the thriving market for plant-based foods in the United States and foster innovation in the industry.

The emergence of Specialty Oils

• The emergence of specialty oils presents a promising opportunity for the United States US Vegetable Oil Market. Specialty oils are unique and premium oils that offer distinct flavors, nutritional benefits, and culinary properties, catering to the evolving preferences of consumers. These oils include avocado oil, grapeseed oil, walnut oil, sesame oil, and others, each with its distinctive taste and health attributes.
• As health-conscious consumers seek healthier alternatives and gourmet cooking experiences, the demand for specialty oils has witnessed significant growth. Specialty oils are known for their high nutritional value, rich in monounsaturated and polyunsaturated fats, omega-3 fatty acids, and antioxidants, making them appealing to health-conscious individuals.
• Moreover, the rise of gourmet and upscale dining trends has led to increased adoption of specialty oils in restaurants and culinary establishments. Chefs and food enthusiasts appreciate these oils for their unique flavors and ability to enhance dishes, making them a sought-after ingredient in the culinary world.
• The versatility of specialty oils extends beyond culinary applications. They are also gaining popularity in the personal care and cosmetic industry, as they are used in various skincare and beauty products due to their moisturizing and nourishing properties.

Segmentation Analysis of The US Vegetable Oil Market

US Vegetable Oil market segments cover the Type, application, and end-users. By Type, the Soybean Oil segment is Anticipated to Dominate the Market Over the Forecast Period.

• Soybean oil dominates the United States US Vegetable Oil Market due to several key factors. Firstly, soybeans are one of the major oilseed crops grown in the country, and the United States is one of the world's leading producers of soybeans. This abundant domestic production ensures a steady supply of soybeans, making soybean oil readily available and cost-effective.
• Secondly, soybean oil is widely used in various food products and food service industries. Its neutral flavor and versatility make it a popular choice for cooking, frying, baking, and salad dressings. It is also used in the production of processed foods, snacks, and margarine.
• Additionally, the United States is a major exporter of soybean oil, meeting the global demand for US Vegetable Oils. The dominance of soybean oil in the U.S. market is strengthened by its widespread use, cost-effectiveness, and the country's status as a key player in the global US Vegetable Oil trade.

                                                                                                                                                                                                  Source: Statista

According to the graph, the consumption of edible oils in the United States in 2022 was presented by type in 1,000 metric tons. Among the edible oils, soybean oil stood out as the most highly consumed with approximately 11.56 million metric tons. In contrast, palm oil consumption in the same year was notably lower, amounting to around 1.7 million metric tons.

Country Analysis of the US Vegetable Oil Market

• The United States US Vegetable Oil Market is one of the largest and most significant in the world. The country's vast agricultural resources, advanced technology, and favorable climate contribute to its prominence in the production of US Vegetable Oils. The United States produces a wide variety of US Vegetable Oils, including soybean oil, canola oil, corn oil, sunflower oil, and cottonseed oil, among others.
• Soybean oil is the dominant segment, owing to extensive soybean cultivation and the versatile applications of soybean oil in various industries, such as food processing, biodiesel production, and industrial uses. The country's efficient logistics and distribution network ensures a steady supply of US Vegetable Oils to meet the diverse consumer demands.
• Additionally, the United States is a significant exporter of US Vegetable Oils, catering to global markets and maintaining a strong presence in international trade. With a growing focus on health and sustainability, the demand for healthier and plant-based oils is on the rise, presenting opportunities for further growth and innovation in the U.S. US Vegetable Oil Market.

Covid-19 Impact Analysis on US Vegetable Oil Market

• The COVID-19 pandemic had a notable impact on the United States US Vegetable Oil Market. During the early stages of the pandemic, panic buying and stockpiling of essential items, including US Vegetable Oils, leading to a surge in demand. This sudden increase in consumer purchasing behavior caused temporary shortages and supply chain disruptions. However, the industry swiftly adapted to the changing landscape by ramping up production and distribution efforts to meet the heightened demand.
• Moreover, with widespread lockdowns and restaurant closures, there was a shift in consumer behavior towards home cooking, resulting in increased consumption of US Vegetable Oils. The closure of restaurants and food service establishments also affected the demand for bulk quantities of US Vegetable Oils used in the food service sector.
• On the production side, the pandemic impacted labor availability and logistics, causing challenges for some US Vegetable Oil manufacturers. Nevertheless, the United States' resilience and technological advancements in the agricultural and food processing sectors helped mitigate the adverse effects of the pandemic, ensuring a steady supply of US Vegetable Oils to consumers.

Top Key Players Covered in The US Vegetable Oil Market

• Archer Daniels Midland Company (ADM) (US)
• Bunge North America (US)
• Cargill, Incorporated (US)
• Wilmar International (USA) LLC (US)
• Louis Dreyfus Company LLC (US)
• Ag Processing Inc (AGP) (US)
• Richardson Oilseed Limited (USA) (US)
• Ventura Foods LLC (US)
• Darling Ingredients Inc. (US)
• The J.M. Smucker Company (US)
• AAK USA Inc. (US)
• CHS Inc. (US)
• IFFCO USA (US)
• The Hain Celestial Group Inc. (US)
• The Hershey Company (US)
• The Andersons Inc. (US) and Other Major Players.

Key Industry Developments in the US Vegetable Oil Market

in July 2021, ADM's expansion in US Vegetable Oil was driven by the rising demand for biofuels, particularly in the transportation industry. The Chicago-based company reported strong second-quarter earnings due to increased usage of US Vegetable Oils for green diesel production. With US Vegetable Oils serving as a crucial feedstock for this growing demand, ADM remains committed to investing in this sector.

In April 2023, Bunge, a global agribusiness leader, entered a definitive asset purchase agreement with Fuji Oil to acquire a newly constructed, state-of-the-art refinery in Louisiana. The facility, located at IMTT's Avondale Terminal, has multi-oil refining capabilities and will allow Bunge to broaden its customer base. The transaction is subject to customary closing conditions.