South America Vegetable Oil Market Size (2024 - 2029)

The South America vegetable oil market is experiencing growth driven by increasing demand for healthy edible oils and the expansion of the processed food and food service industries in the region. Countries like Brazil and Argentina are significant producers and exporters, with Brazil leading in overall production. The rising consumer focus on health and wellness is boosting the popularity of olive oil, which is largely imported. Additionally, the growing population and the shift towards using vegetable oils for cooking, frying, and as a component in processed foods are contributing to the market's expansion. The favorable climate for oilseed crops such as soybeans and sunflowers in South America supports high yields and competitive production costs, further enhancing the market's potential.

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Market Size of South America Vegetable Oil Industry

South America Vegetable Oil Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 3.81 %
Market Concentration Low

Major Players

South America Vegetable Oil Market Major Players

*Disclaimer: Major Players sorted in no particular order

South America Vegetable Oil Market Analysis

The South America vegetable oil market was valued at 18,963.45 thousand tons for the current year and is projected to register a CAGR of 3.81% over the next five years.

  • South American countries, such as Brazil and Argentina, are the major exporters of peanut oil. Brazil and Venezuela are the leading vegetable oil-producing countries in South America. Amplifying demand for healthy edible oils obtained from natural sources is propelling the growth of the vegetable oils market. The growing processed food industry of the region, coupled with the growth of the food service industry, is further expected to aid the market growth of vegetable oils in South America.
  • Moreover, the growing consumer emphasis on health and wellness in the region further boosts the demand for olive oil. Olive oil is not only used as a dressing but also as a cooking aid, making it a preferred choice among health-conscious individuals. The rising demand is met by imported olive oil in the region. According to the United States Department of Agriculture (USDA) Foreign Agricultural Service, Brazil imported 120,000 metric tons of olive oil in 2021, majorly from Portugal, Spain, Argentina, and other global countries.
  • Similarly, as the population in South America continues to grow, so does the demand for edible oils. Vegetable oils, which are used for cooking and frying as well as being a component of many processed foods, are a significant source of calories and fat in the diet of South America. Vegetable oils are generally considered healthier than animal fats, as they are lower in saturated fat and higher in unsaturated fat. This has led to a growing awareness of the health benefits of vegetable oils among consumers, increasing demand. Moreover, vegetable oils are utilized in creating biofuels, which are becoming increasingly popular as a more environmentally friendly substitute for fossil fuels. This has helped to create an additional market for vegetable oils, driving further growth in the industry.
  • South America has a favorable climate for growing oilseed crops such as soybeans and sunflowers, which are the primary sources of vegetable oils in the region. This has led to high yields and lower production costs, making South American vegetable oils more competitive in the global market, thus supporting the market's growth. Sunflower and soybean are the major oils consumed and produced in Argentina. According to a USDA report, in 2020-2021, Argentina produced 2,900 and 48,000 thousand metric tons of sunflower and soybean, respectively.

South America Vegetable Oil Industry Segmentation

Vegetable oils, also known as vegetable fats, are oils that are derived from seeds or other fruit portions of the plant.

The South American vegetable oil market is segmented by type, application, and geography. Based on type, the market is segmented into palm oil, soybean oil, rapeseed oil, sunflower oil, olive oil, and other types. Based on application, the market is segmented into food, feed, and industrial. Based on geography, the market is segmented into Brazil, Argentina, and the Rest of South America.

The market sizing has been done in volume terms in tons for all the abovementioned segments.

Type
Palm Oil
Soybean Oil
Rapeseed Oil
Sunflower Oil
Olive Oil
Other Types
Application
Food
Feed
Industrial
Geography
Brazil
Argentina
Rest of South America
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South America Vegetable Oil Market Size Summary

The South American vegetable oil market is experiencing steady growth, driven by increasing demand for healthy edible oils and the expansion of the processed food and food service industries in the region. Brazil and Argentina are key players in the production and export of vegetable oils, with Brazil leading in overall production. The region's favorable climate for oilseed crops like soybeans and sunflowers contributes to high yields and competitive production costs, enhancing the market's position globally. The growing consumer focus on health and wellness is boosting the demand for olive oil, while the rising population further fuels the need for various edible oils. Additionally, the market is benefiting from the increasing production of biofuels, with countries like Brazil and Colombia leading in biofuel output, which in turn drives the demand for vegetable oils used in biodiesel production.

The competitive landscape of the South American vegetable oil market is marked by the presence of major companies such as Bunge Limited, Cargill Incorporated, and Wilmar International Limited, which are focusing on product innovation and geographical expansion to meet changing consumer preferences. Brazil's commitment to renewable energy, exemplified by its biodiesel mandate, further supports the market's growth by increasing the demand for vegetable oils. The market is also witnessing strategic partnerships and expansions, such as Agropalma's collaboration with Ciranda to produce organic palm oil, reflecting the industry's adaptability to evolving market demands. Overall, the South American vegetable oil market is poised for continued expansion, driven by both domestic production capabilities and international trade dynamics.

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South America Vegetable Oil Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

      1. 1.1.1 Rising Demand for Processed Foods

      2. 1.1.2 Strategic Initiatives by Companies Uplifting Market Growth

    2. 1.2 Market Restraints

      1. 1.2.1 Availability of Substitute Products

    3. 1.3 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 Type

      1. 2.1.1 Palm Oil

      2. 2.1.2 Soybean Oil

      3. 2.1.3 Rapeseed Oil

      4. 2.1.4 Sunflower Oil

      5. 2.1.5 Olive Oil

      6. 2.1.6 Other Types

    2. 2.2 Application

      1. 2.2.1 Food

      2. 2.2.2 Feed

      3. 2.2.3 Industrial

    3. 2.3 Geography

      1. 2.3.1 Brazil

      2. 2.3.2 Argentina

      3. 2.3.3 Rest of South America

South America Vegetable Oil Market Size FAQs

The South America Vegetable Oil Market is projected to register a CAGR of 3.81% during the forecast period (2024-2029)

Sime Darby Plantation Berhad, Cargill, Incorporated, Bunge Limited, Agropalma and Wilmar International Limited are the major companies operating in the South America Vegetable Oil Market.

South America Vegetable Oil Market Report Snapshots

South America Vegetable Oil Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)