Market Definition
Edible oil is the fat of plants, animals, or microbial origins suitable to use in food. There is an extensive range of edible oils like industrial, vegetable, animal-derived, & palm oil, among others. The generic term "vegetable oil" labeled on cooking oil is a blend of different oils based on palm, corn, soybean, or sunflower oils.
Market Insights
The UAE Edible Oil Market is projected to grow at a CAGR of around 2.5% during the forecast period, i.e., 2021-26. The growth of the market is likely to be driven primarily by massive investments by the government & leading manufacturers in local edible oils across the UAE to meet the mounting food requirements of the population entwined with the escalating need to reduce dependence on imports from neighboring countries.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2016-19 |
| Base Year: 2020 | |
| Forecast Period: 2021-26 | |
| CAGR (2021-2026) | 2.5% |
| Key Companies Profiled | Iffco Group, Rafael Salgado S.A., Abu Dhabi Vegetable Oil, Co., Near East Olive Products, Cargill, Incorporated, Amira Nature Foods Ltd., Omani Vegetable Oils & Derivatives Co. LLC., AJWA Group, Archer-Daniels-Midland Company, Sime Darby Plantation Berhad |
| Unit Denominations | USD Million/Billion |
Besides, since the UAE has the highest per capita consumption of edible oils, less self-sufficiency in production is playing a crucial role in attracting several foreign edible oil brands to invest substantially in the country. It, in turn, would display a growing establishment of several edible oil manufacturers in the country and augment the market growth during the forecast period.
Moreover, the manufacturing of edible oils with high-quality natural antioxidants and high levels of minerals & vitamins entwined with the growing customer awareness about these benefits are other crucial aspects likely to create an extensive demand for edible oils & stimulate the overall market growth across the UAE during 2021-26.
Impact of Covid-19 on the UAE Edible Oil Market
The advent of the Covid-19 pandemic severely affected most industries across the UAE, where the Edible Oil Market witnessed a moderate impact. The imposition of stringent movement restrictions & frequent lockdowns by the UAE government to curb the spread of this dreadful disease resulted in several unprecedented challenges for the market.
Disruptions in the supply chain & hampered transportation & logistics led to the unavailability of raw materials & delays in the deliveries of pre-produced edible oils across the country. However, since these oils were categorized under essentials, the government allowed their production & distribution, coupled with operations associated with manufacturing amidst the crisis.
As a result, producers began increasing their capabilities to meet the burgeoning demand for oil and displayed consistent market growth amidst the crisis. Moreover, the gradual improvement in the pandemic situation enabled the government to uplift the restrictions & allowed a full-fledged operation of the market.
