UAE Edible Oil Market Research Report: Forecast (2021-2026)

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. 

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.

Market Segmentation

Based on the Extraction Method:

• Mechanical Extraction
• Solvent Extraction
• Hydrogenation
• Sparging

Of them all, Solvent Extraction dominated the UAE Edible Oil Market with the largest share in recent years. It attributes principally to the rapidly growing demand for vegetable oils like soybean oil, i.e., instigating manufacturers to increase their production capacities using solvent extraction methods.

In addition, the mounting awareness about its benefits like low energy consumption, large production capacity, fast action, easy continuous operation, and ease of automation is another prominent aspect augmenting the demand for edible oils in the UAE. Moreover, since the solvent extraction method helps improve the yield at minimum cost, more and more edible oil manufacturers are increasingly inclining toward adopting this method, thereby driving the market.

Based on the Type:

• Industrial Oil
• Vegetable Oil
• Animal-Derived Oil
• Palm Oil

Here, the demand for Vegetable Oils is anticipated to display the fastest growth in the UAE Edible Oil Market during the forecast period. It owes principally to the extensive range of options available in this category like Canola Oil, Soybean Oil, Olive Oil, Sunflower Oil, & Peanut Oil, among others.

Besides, soybean oil is the most popular vegetable oil in the country due to its medium price range & growing awareness among people about the health benefits like high smoke point, richness in healthy fats, versatile, easy to use, & high content of omega-3 fatty acids, among others. Moreover, growing purchasing power, changing living standards, and rising health consciousness are other prominent aspects fueling the demand for vegetable oils and driving the UAE Edible Oil Market.

Market Dynamics:

Key Driver: Government Bans on the Production of Adulterated Oil

Since adulterated oil severely affects the health of the people, causing several cardiovascular diseases, the government of UAE has imposed bans on its production. It, in turn, has displayed growing sales of Edible Oils and encouraged the leading players to increase the production capacities & augment the UAE Edible Oil Market growth in the coming years. Moreover, since the number of migrants & young population is increasing swiftly across the UAE, the demand for Edible Oils, owing to their affordable prices, is anticipated to drive the UAE Edible Oil Market during 2021-26.

Key Questions Answered in the Market Research Report:

1. What are the overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares) of the UAE Edible 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 UAE Edible Oil Market?
4. Who are the key competitors, their key strengths & weaknesses, and how do they perform in the UAE Edible Oil Market based on the competitive benchmarking matrix?
5. What are the key results derived from surveys conducted during the UAE Edible Oil Market study?