Africa Fats and Oil Market Size (2024 - 2029)

The African fats and oils market is anticipated to experience growth driven by its extensive use in the food and beverage sector, where it serves as a crucial ingredient in various products like confectionery, bakery items, and sauces. The increasing demand for processed foods, fueled by population growth and rising income levels, is a significant factor contributing to the market's expansion. Additionally, the application of fats and oils in non-food industries such as paints, lubricants, and personal care products presents further opportunities for market growth. Strategic initiatives, including the expansion of production facilities and partnerships with local manufacturers, are being employed to enhance market presence. Government actions to increase the availability of edible oils also support the market's development.

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Market Size of Africa Fats and Oil Industry

Africa Fats and Oil Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 4.49 %
Market Concentration Low

Major Players

Africa Fats and Oil Market Major Players

*Disclaimer: Major Players sorted in no particular order

Africa Fats and Oil Market Analysis

The African fats and oil market size is expected to grow from USD 22.41 billion in 2023 to USD 27.92 billion by 2028, at a CAGR of 4.49% during the forecast period.

  • The market is primarily driven by wide applications of oils and fats in the food and beverage industry. Fats and oils are essential raw materials and functional ingredients for several food products such as confectionery, bakery, ice creams, emulsions, sauces, shortenings, and margarine. The increasing consumption of processed food products in the region due to the rising population and inflating income levels propels market growth. Moreover, oils and fats are used to make paints, lubricants, paper, soaps, candles, personal care items, and cosmetic products, thus providing lucrative opportunities for players to expand their market share in the region. In addition, players are focusing on production facility expansion and partnerships with domestic manufacturers as key market penetration strategies.
  • For instance, in July 2022, Eni launched its first production of vegetable oils for biorefining in Kenya. Eni completed the construction of the oilseed collection and pressing plant (agri-hub) in Makueni, Kenya, and started production of the first vegetable oils for bio-refineries. The agri-hub installed capacity of 15,000 tons, with an expected output of 2,500 tons in 2022. Besides this, governments of various countries are undertaking initiatives, boosting the demand for fats and oils in the region. For instance, in January 2023, Ethiopia's Ministry of Finance purchased more than 43,37,412 palm cooking oils from the Golden Africa Company in Djibouti to provide the public with edible oils at affordable prices.

Africa Fats and Oil Industry Segmentation

Oils and fats form a vital part of a healthy diet as they are a source of essential fatty acids and a concentrated energy source in human nutrition. On the other hand, fats and oils can also provide distinctive flavors to food and offer unique and desirable functions during cooking. For example, oils are the frying media for deep-fried food, whereas fats (shortenings) are added to prevent the flour and other ingredients from clumping together when making pastries. 

The African fats and oils market is segmented by product type, application, and geography. By product type, the market is segmented into oils and fats. The oils segment is further segmented into soybean, palm, coconut, olive, canola, sunflower seed, and other oils. The fat segment is segmented into butter, lard, and other fats. By application, the market is segmented into food and beverages, animal feed, and industrial. The food and beverages segment is segmented into bakery and confectionery, dairy products, and snacks and savory foods. Industrial is sub-segmented into cosmetics, paints, biofuel, and lubricants and greases. The market is segmented by geography into Egypt, South Africa, and the Rest of Africa. 

The market sizing has been done in value terms in USD for all the abovementioned segments.

Product Type
Oils
Soybean Oil
Palm Oil
Coconut Oil
Olive Oil
Canola Oil
Sunflower Seed Oil
Other Oils
Fats
Butter
Lard
Other Fats
Application
Foods and Beverages
Bakery and Confectionery
Dairy Products
Snacks and Savories
Animal Feed
Industrial
Cosmetics
Paints
Biofuel
Lubricants and Greases
Geography
Egypt
South Africa
Rest of Africa
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Africa Fats and Oil Market Size Summary

The African fats and oils market is experiencing significant growth, driven by the extensive use of oils and fats in the food and beverage industry. These substances are crucial as raw materials and functional ingredients in a variety of food products, including confectionery, bakery items, ice creams, and sauces. The rising consumption of processed foods, fueled by population growth and increasing income levels, is a key factor propelling market expansion. Additionally, fats and oils find applications in diverse industries such as paints, lubricants, and personal care, offering substantial opportunities for market players. Companies are actively expanding production facilities and forming partnerships with local manufacturers to enhance their market presence. Government initiatives, such as Ethiopia's procurement of palm cooking oils, further stimulate demand in the region.

The market's growth is also supported by the increasing demand for oils and fats in the automotive and personal care sectors. The rise in passenger car sales presents opportunities for manufacturers to produce lubricants for industrial and transportation uses. In the personal care industry, there is a growing trend towards products with natural and organic ingredients, as seen in the launch of skincare oils by companies like Bio Oil. Palm oil, in particular, is in high demand, with investments in production increasing in countries like Nigeria and Ghana to meet both domestic and international needs. The competitive landscape is marked by the presence of global and regional players such as Wilmar International, ADM, Cargill, Bunge, and Olam, who are employing strategies like mergers, acquisitions, and expansions to strengthen their market position.

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Africa Fats and Oil Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

      1. 1.1.1 Wide Applications of Oils and Fats in Different End-Use Industries

      2. 1.1.2 Government Initiatives and Key Players Adopting Innovative Market Expansion Strategies

    2. 1.2 Market Restraints

      1. 1.2.1 Volatility in Imports and Supply Chain of Oils

    3. 1.3 Industry Attractiveness- Porter's Five Forces Analysis

      1. 1.3.1 Threat of New Entrants

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Bargaining Power of Suppliers

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Product Type

      1. 2.1.1 Oils

        1. 2.1.1.1 Soybean Oil

        2. 2.1.1.2 Palm Oil

        3. 2.1.1.3 Coconut Oil

        4. 2.1.1.4 Olive Oil

        5. 2.1.1.5 Canola Oil

        6. 2.1.1.6 Sunflower Seed Oil

        7. 2.1.1.7 Other Oils

      2. 2.1.2 Fats

        1. 2.1.2.1 Butter

        2. 2.1.2.2 Lard

        3. 2.1.2.3 Other Fats

    2. 2.2 Application

      1. 2.2.1 Foods and Beverages

        1. 2.2.1.1 Bakery and Confectionery

        2. 2.2.1.2 Dairy Products

        3. 2.2.1.3 Snacks and Savories

      2. 2.2.2 Animal Feed

      3. 2.2.3 Industrial

        1. 2.2.3.1 Cosmetics

        2. 2.2.3.2 Paints

        3. 2.2.3.3 Biofuel

        4. 2.2.3.4 Lubricants and Greases

    3. 2.3 Geography

      1. 2.3.1 Egypt

      2. 2.3.2 South Africa

      3. 2.3.3 Rest of Africa

Africa Fats and Oil Market Size FAQs

The Africa Fats and Oil Market is projected to register a CAGR of 4.49% during the forecast period (2024-2029)

Bunge Limited , Wilmar International Ltd, Archer Daniels Midland Company (ADM), Cargill Incorporated and Olam International are the major companies operating in the Africa Fats and Oil Market.

Africa Fats and Oil Market Report Snapshots

Africa Fats and Oils Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)