Market Definition
Vegetable oils are mild, odorless, flavorless, light-colored edible oils used for cooking, frying, and making salad dressings. Vegetable oils are a group of fats derived from several seeds, nuts, cereal grains, and fruits. They are used mainly in food & feed items. Due to a growing health consciousness in the Middle East, the demand for vegetable oil is on the rise at an exponential rate.
Market Insights
The Middle East Vegetable Oil Market is anticipated to register around 2.85% CAGR in terms of quantity sold during the forecast period, 2022-27. The Middle East Vegetable Oil market has shown a notable demand for vegetable oils such as palm oil, mustard oil, olive oil, etc., over the past few years, due to the increased awareness about the health benefits of vegetable oils, such as preventing vitamin deficiency, lowering blood pressure, lowering cholesterol levels, etc. Additionally, the growing inclination toward the usage of palm oil has led giant companies such as Savola Group to sign agreements to increase the imports of palm oil in the Middle East countries such as the UAE, and Saudi Arabia, among others.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2017-20 |
| Base Year: 2021 | |
| Forecast Period: 2022-27 | |
| CAGR (2022-2027) | 2.85% |
| Country Covered | UAE, Saudi Arabia, Iran, Qatar, Kuwait, Oman, Bahrain, Egypt, Jordan, The Syrian Arab Republic, Israel, Lebanon, Others |
| Key Companies Profiled | Near East Olive Product, Abu Dhabi Vegetable oil, Co., United Foods Company, Savola Group, IFFCO Group, Rafael Salgado S.A, Cargill Incorporated, Amira Nature Foods Ltd., Archer-Daniels –Midland Company, Sime Darby Plantation Berhad |
| Unit Denominations | USD Million/Billion |
Furthermore, the rise in inbound tourism resulted in an increase in hotel construction activities, which is expected to generate substantial demand for food, thereby boosting the revenue growth of the Vegetable Oil market in the Middle East. For instance, the Saudi Arabia Government announced to welcome around 30 million Umrah visitors every year by 2030.
Moreover, the rising number of expatriates in the region has urged the need for housing. For this, the government of countries such as Qatar, Saudi Arabia, etc., are increasingly floating tenders to build up residential areas in the countries. For instance:
Key Trends in the Middle East Vegetable Oil Market
Fortification of edible oil such as olive, palm, and soybean is done to improve the efficiency of vitamin A in the oil. Fortified edible oil has numerous functional benefits, such as brain health, anti-aging, and vitamin A, owing to its low trans-fat content & affordable prices. Thus, the demand for fortified edible oils in the Middle East has increased.
Furthermore, the fortification of edible oils & fats with vitamin A & D is an effective technique to provide micronutrients to the human body. Hence, fortified oil helps to provide nearly 25% to 30% of the nutritional value for vitamins A & D. These oils are manufactured & consumed primarily to control the problem of undernourishment. Thus, these have been gaining significant momentum across the region in recent years.
Impact of COVID-19 on the Middle East Vegetable Oils Market
With the advent of COVID-19 in 2020, most countries in the Middle East, being import-driven, faced supply shortages of vegetable oil due to the disruption in the logistics & transportation, which, in turn, led to a significant price hike & adversely impacted its demand. Besides, the demand for vegetable oil is induced mainly by the residential sector for cooking purposes, and it was marginal among restaurants, food outlets, cafes, hotels, etc. It was attributed principally to stringent movement restrictions & lockdown imposed by the governments of Saudi Arabia, Oman, Egypt, etc., during March-June 2020, which reduced social gatherings at restaurants, hotels, etc., and, consequently, catering services.
Hence, this turndown in catering services led to a significant decline in the demand for vegetable oil across the region. Furthermore, with the ease of restrictions, the revived supply chain of vegetable oil in the Middle East facilitated smooth imports from countries like Russia, Turkey, Morocco, etc. Hence, this leads to substantial market growth during the forecast period.
