Middle East Vegetable Oil

Middle East Vegetable Oil Market Research Report: Forecast (2022-27)

By Type of Oil (Palm, Soybean, Sunflower, Coconut, Olive, Corn Oil, Linseed, Mustard, Sesame , Others (peanut, cotton, pumpkin seed oil, canola, grape seed, rice bran, hazelnut)) By Application (Food, Read more

  • Food & Beverages
  • May 2022
  • 167
  • FB10215

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 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:

  • In 2022, the government of Qatar signed a tender for the construction of around 19-storey residential buildings in the country.

Key Trends in the Middle East Vegetable Oil Market

  • Fortification of Edible Oil to Improve Vitamin & Minerals Efficiency  

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.

Middle East Vegetable Oil Market Research Report: Forecast (2022-27)

Market Segmentation

Based on the Type of Oil:

  • Palm
  • Soybean
  • Sunflower
  • Olive
  • Mustard
  • Others (coconut, corn oil, linseed, peanut, cotton, pumpkin seed oil, canola, grape seed, rice bran, and hazelnut)

Of them all, Palm oil witnessed a considerable growth rate during the historical period as it is the most preferred oil by the residents of these countries, owing to its ease of availability & lower price among all the available vegetable oils. Additionally, health benefits offered by palm oil, such as the prevention of vitamin A deficiency, cancer, brain diseases, etc., have proliferated the demand for palm oil during the historical years.

Further, in 2022, the growing economic disturbances in Ukraine & Russia have resulted in a decline in the supply of sunflower oil. Due to this, the Middle East manufacturers have started adopting palm oil as an alternative for producing potato chips, cookies, and other packaged snacks to meet the market demand for packaged snacks. Consequently, this is expected to largely contribute to the demand for palm oil from the Middle East in the forthcoming years.

Based on Application:

  • Food
  • Feed
  • Industrial

Among them, the Food segment grabbed the highest market share in 2021. The factors responsible for the market growth are rapid urbanization & unhealthy food consumption habits that have led to surging obesity rates & increasing prevalence of cardiovascular diseases with high mortality rates across the Middle East. Further, the growing interest of governments of countries like Iran, the UAE, Saudi Arabia., etc., in minimizing these health risks by promoting the consumption of low-fat, low-cholesterol, & low-calorie-based oil & food has contributed to the increasing demand for light vegetable oil across the region.

Additionally, the burgeoning requirement for food catering services in the Middle East, owing to the expanding tourism & launch of various events, is immensely promoting the demand for vegetable oil across restaurants & hotels. Simultaneously, the growing domestic demand for convenience foods, i.e., the increasing production of packaged & ready-to-eat meals like frozen meat, potato chips, cakes, etc., is another crucial aspect expected to augment the growth of the Middle East Vegetable Oil market during 2022-27.

Regional Landscape

Geographically, the Middle East Vegetable Oil Market expands across:

  • Egypt
  • The UAE
  • Saudi Arabia
  • Qatar
  • Kuwait
  • Oman
  • Iraq
  • Jordan
  • The Syrian Arab Republic
  • Israel
  • Lebanon
  • Others (Iran, Turkey, Bahrain, Palestine)

Of all the regions, Egypt dominated the regional Vegetable Oil market in 2021, amassing a market share of more than 30% in the following year. Egypt imports 95% of its vegetable oil, with sunflower & soybean oil being the most common ones. During 2016-21, the vegetable oil market in the country grew significantly due to the rising per capita edible oil consumption on account of the growing population & increased demand from the animal feed sector.

Aside from that, the rising demand for high-quality soybean meal & oil from the animal feed & food manufacturing sectors are considered a key contributor to the Egypt Vegetable Oil market. Moreover, strategic joint ventures among companies to launch vegetable oil production units to reduce reliance on imports of vegetable oil & meet the growing demand are also expected to thrive in the Vegetable Oil market of the country.

Recent Developments by Leading Companies

  • In 2018, Abu Dhabi Vegetable Oil Company partnered with Patanjali Ayurved to manufacture & produce a wide range of cooking oils for the Middle East market.
  • In 2021, Savola Group acquired Bayara Holding for USD260 million. The company aimed the expansion of its value-added food categories with the plans to cater to the growing need in the region.

Market Dynamics

Key Drivers: Rise in the Prevalence of Chronic Disease

With the increasing number of chronic diseases such as cancer, diabetes, heart disease, and kidney disorder in the region has positively impacted the demand for a healthy lifestyle. Some major countries with a large population, such as Saudi Arabia, Egypt, Turkey, etc., have reported an increase in chronic disease patients. According to General Authority for Statistics, in Saudi Arabia, the total number of patients requiring dialysis was approximately 15,500 in 2015, which rose to nearly 20,000 in the year 2020. Consequently, the consumer is inclined toward adopting a healthy lifestyle as a remedy for curing gastrointestinal diseases, obesity, fatty liver disease, and gastroesophageal reflux disease (GERD).

In addition, the regular use of olive oil & other vegetable oils resulted in decreasing the risk for the development of cancer & obesity. Moreover, olive oil is helpful in increasing metabolism in obese consumers due to its phenolic composites, substances with antioxidant, anti-inflammatory, and anti-clotting properties, which help increase metabolic rate. Therefore, rising health consciousness amongst the consumers is driving the growth of the Vegetable Oil market.

Potential Challenges: Rising Price, Owing to Russia-Ukraine Military Conflict

The increasing price of vegetable oil in import-dependent countries such as Egypt, Syria, Yemen, Lebanon, etc., resulted in a negative impact on the market growth of these countries. According to the United Nations World Food Program, the Russia-Ukraine war resulted in an increased price of basic foods & essential items in the region, especially vegetable oil such as palm oil, mustard oil, olive oil, etc. Ukraine & Russia have been the leading producer & exporters of vegetable oil across the globe. Ukraine produces around 46% of sunflower seeds & oil and has been the largest exporter of sunflower oil in the world whereas, Russia is the second-largest producer & exports around 23% of sunflower oil.

Moreover, the outbreak of the Russia-Ukraine military conflict in February 2022, caused wide disruptions in the supply chain industry, which has impacted the market growth & resulted in an increasing inflation rate in the countries. For instance:

  • In March 2022, the Egyptian Pound jumped nearly 17.8% in value against the US dollar, following a rise in the inflation rate & increase in economic poverty in the region.

Growth Opportunity: Surging Application of Vegetable Oil in Cosmetic Manufacturing

Numerous cosmetic companies such as Millia cosmetics, GCCM, Raychem, Nazih Group, etc., utilize vegetable oils such as sunflower oil, olive oil, palm oil, etc., due to their antioxidant & triglyceride properties. The vegetable oil has been used for the production of eye creams, sun protection creams, healing creams, lipsticks, etc. Besides, vegetable oil inclusion in cosmetics acts as a moisturizer & helps in hydrating the skin, unclogging the pores on the skin, and minimizing the sign of aging.

In addition, due to the high presence of paraffin & vitamin E, vegetable oil acts as an emollient agent in cosmetic products. Furthermore, owing to the mentioned benefits, the cosmetics industry provides an opportunity for the growth of the Vegetable Oil market in the Middle East region.

Key Questions Answered in the Market Research Report:

  1. What are the overall statistics or estimates (Overview, Market Size- By Value, Forecast Numbers, Segmentation, Shares) of the Middle East Vegetable Oil Market?
  2. What are the region-wise industry size, growth drivers, and challenges?
  3. What are the key innovations, opportunities, current & future trends, and regulations in the Middle East Vegetable Oil Market?
  4. Who are the key competitors, their key strengths & weaknesses, and how do they perform in the Middle East Vegetable Oil Market based on the competitive benchmarking matrix?
  5. What are the key results derived from surveys conducted during the Middle East Vegetable Oil Market study?

Frequently Asked Questions

A. Middle East Vegetable Oil Market is projected to grow at a 2.85% CAGR during 2022-27.

A. Palm Oil is anticipated to emerge as an opportunity area for the leading players in the market during the forecast period.

A. Growing health consciousness led by prevalence of diseases such as diabetes, cardiovascular ailments, etc., are emerging as the key growth opportunities driving Middle East Vegetable Oil market.

  1. Introduction
    1. Market Segmentation
    2. Product Definition
    3. Research Process
    4. Assumptions
  2. Executive Summary
  3. Impact of COVID-19 on the Middle East Vegetable Oil Market
  4. Middle East Vegetable Oil Market Policies, Regulations, Product Standards
  5. Middle East Vegetable Oil Market Trends & Insights
  6. Middle East Vegetable Oil Market Dynamics
    1. Impact Analysis
    2. Growth Drivers
    3. Challenges
  7. Middle East Vegetable Oil Market Hotspot & Opportunities
  8. Middle East Vegetable Oil Market Key Strategic Imperatives for Success & Growth
  9. Middle East Vegetable Oil Production Outlook, By Country
    1. Production in Metric Tons
      1. UAE
      2. Saudi Arabia
      3. Qatar
      4. Kuwait
      5. Oman
      6. Bahrain
      7. Egypt
      8. Jordan
      9. The Syrian Arab Republic
      10. Israel
      11. Lebanon
  10. Middle East Vegetable Oil Market Outlook, 2017-2027F
    1. Market Size & Analysis
      1. By Revenue (USD Million)
      2. By Quantity Sold (Metric Ton)
    2. Market Share & Analysis
      1. By Type of Oil
        1. Palm
        2. Soybean
        3. Sunflower
        4. Coconut
        5. Olive
        6. Corn Oil
        7. Linseed
        8. Mustard
        9. Sesame
        10. Others (peanut, cotton, pumpkin seed oil, canola, grape seed, rice bran, hazelnut)
      2. By Application
        1. Food
        2. Feed
        3. Industrial
      3. By Packaging
        1. Cans
        2. Bottles
        3. Pouches
        4. Others
      4. By Country
        1. UAE
        2. Saudi Arabia
        3. Iran
        4. Qatar
        5. Kuwait
        6. Oman
        7. Bahrain
        8. Egypt
        9. Jordan
        10. The Syrian Arab Republic
        11. Israel
        12. Lebanon
        13. Others
      5. By Company
        1. Competition Characteristics
        2. Market Share of Leading Players
  11. UAE Vegetable Oil Market Outlook, 2017-2027F
    1. Market Size & Analysis
      1. By Revenue (USD Million)
      2. By Quantity Sold (Metric Ton)
    2. Market Share & Analysis
      1. By Type of Oil
      2. By Application
      3. By Packaging
  12. Saudi Arabia Vegetable Oil Market Outlook, 2017-2027F
    1. Market Size & Analysis
      1. By Revenue (USD Million)
      2. By Quantity Sold (Metric Ton)
    2. Market Share & Analysis
      1. By Type of Oil
      2. By Application
      3. By Packaging
  13. Iran Vegetable Oil Market Outlook, 2017-2027F
    1. Market Size & Analysis
      1. By Revenue (USD Million)
      2. By Quantity Sold (Metric Ton)
    2. Market Share & Analysis
      1. By Type of Oil
      2. By Application
      3. By Packaging
  14. Qatar Vegetable Oil Market Outlook, 2017-2027F
    1. Market Size & Analysis
      1. By Revenue (USD Million)
      2. By Quantity Sold (Metric Ton)
    2. Market Share & Analysis
      1. By Type of Oil
      2. By Application
      3. By Packaging
  15. Kuwait Vegetable Oil Market Outlook, 2017-2027F
    1. Market Size & Analysis
      1. By Revenue (USD Million)
      2. By Quantity Sold (Metric Ton)
    2. Market Share & Analysis
      1. By Type of Oil
      2. By Application
      3. By Packaging
  16. Oman Vegetable Oil Market Outlook, 2017-2027F
    1. Market Size & Analysis
      1. By Revenue (USD Million)
      2. By Quantity Sold (Metric Ton)
    2. Market Share & Analysis
      1. By Type of Oil
      2. By Application
      3. By Packaging
  17. Bahrain Vegetable Oil Market Outlook, 2017-2027F
    1. Market Size & Analysis
      1. By Revenue (USD Million)
      2. By Quantity Sold (Metric Ton)
    2. Market Share & Analysis
      1. By Type of Oil
      2. By Application
      3. By Packaging
  18. Egypt Vegetable Oil Market Outlook, 2017-2027F
    1. Market Size & Analysis
      1. By Revenue (USD Million)
      2. By Quantity Sold (Metric Ton)
    2. Market Share & Analysis
      1. By Type of Oil
      2. By Application
      3. By Packaging
  19. Jordan Vegetable Oil Market Outlook, 2017-2027F
    1. Market Size & Analysis
      1. By Revenue (USD Million)
      2. By Quantity Sold (Metric Ton)
    2. Market Share & Analysis
      1. By Type of Oil
      2. By Application
      3. By Packaging
  20. Israel Vegetable Oil Market Outlook, 2017-2027F
    1. Market Size & Analysis
      1. By Revenue (USD Million)
      2. By Quantity Sold (Metric Ton)
    2. Market Share & Analysis
      1. By Type of Oil
      2. By Application
      3. By Packaging
  21. Lebanon Vegetable Oil Market Outlook, 2017-2027F
    1. Market Size & Analysis
      1. By Revenue (USD Million)
      2. By Quantity Sold (Metric Ton)
    2. Market Share & Analysis
      1. By Type of Oil
      2. By Application
      3. By Packaging
  22. Syria Vegetable Oil Market Outlook, 2017-2027F
    1. Market Size & Analysis
      1. By Revenue (USD Million)
      2. By Quantity Sold (Metric Ton)
    2. Market Share & Analysis
      1. By Type of Oil
      2. By Application
      3. By Packaging
  23. Company Profiles
    1. Near East Olive Product
    2. Abu Dhabi Vegetable oil, Co.
    3. United Foods Company
    4. Savola Group
    5. IFFCO Group
    6. Rafael Salgado S.A
    7. Cargill Incorporated
    8. Amira Nature Foods Ltd.
    9. Archer-Daniels –Midland Company
    10. Sime Darby Plantation Berhad
  24. Disclaimer
 Middle East Vegetable Oil Market Segmentation