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Global Food Ingredients Database Series
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This research study provides a detailed overview of the commodity and specialty cooking oils and fats market in North America, Brazil, and Latin America. The demand for oils and fats has increased in processed food, food service, and home cooking usage in emerging country markets due to higher disposable income and busy lifestyles triggering the appetite for tastier fried foods, snacks, and ready to drink beverages that are formulated with more fats & oils. In addition, the expansion of ethnic cuisines in the West – especially Chinese, Thai, Indian, and Hispanic cuisine that use a wider variety of cooking oils is driving the market for oils and fats. However, consumer health concerns such as higher risks of heart disease related to the consumption of saturated fats, trans fat, and hydrogenation (in margarines) reduce the demand for oils and fats. In addition, product quality claims have a negative impact on the demand for specialty oils and fats leading to consumer confusion and skepticism due to labels such as pure and virgin, as well as some oil blends being marketed as healthy alternatives (for example, olive oil + canola oil). Overall, oils and fats companies have to deal with a whole range of issues from raw material volatility, changing consumer behavior to a highly competitive environment that ultimately affects market share and margin returns on a yearly basis. Key risks faced by the oil and fat companies including regulatory agencies tending to legislate and enforce independently of consumer and/or industry needs – thus creating an atmosphere of catch-up for competitors, consumer needs evolve rapidly owing from high level of ambiguity around the facts about oils & fats. Health consciousness and price sensitivity trends encourage substitution. Raw material availability and costs fluctuate, hence creating challenges for companies entrenched in certain end-markets.
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