Page 24 - FoodFocusThailand No.154 January 2019

SPE
SPECIAL FOCUSCIAL FOCUS

A plethora of cooking
oil options available on
supermarket and hypermarket
aisles represent their enormous
demand. One of the most widely
used commodities in both residential
and industrial settings, the cooking oil
landscape has witnessed significant
evolutions. The shifts have not
been induced primarily by changing
consumer perceptions and actions
only, but also by macroeconomic
factors, especially rise of a strong
middle class in China and India
– two of the most populous
countries in the world.
Health & Wellness Trend Revs Up Demand for

Low-Fat Cooking Oils in Asia Pacific

Cooking Oil: The Market Scenario Chinese Consumers Spearhead Cooking Oil
Globally, cooking oil market consumption is expected to surpass Consumption
170,700 thousand tons in 2018, growing at a steady 4.8% y-o-y. As the world’s largest consumer of oilseeds and cooking oil, China is one
Consumption trend of different types of cooking oils remains of the most attractive markets for vegetable oil, peanut oil, and olive oil.
divergent across the world, with availability of oil crop, cost of oil Demand for these oils remains concentrated in daily cooking, deep frying
crop, production costs and customs duties influencing the final and other applications. However, China has witnessed an ebb and flow
price. in the demand for cooking oils in the past decade.
Traditionally, cooking oil sales have remained strong in Asia The ban on bulk edible oils significantly hit the China cooking oil
Pacific. At an estimated consumption of nearly 86,500 thousand market, albeit demand for premium refined oils wrapped in smaller
tons in 2018, cooking oil demand in APAC represents half of the packaging witnessed a meteoric rise. Although this represents significant
global volume. opportunities for imports, dissemination of knowledge regarding
The lucrativeness of the cooking oil market in APAC can be genetically modified (GMO) crops among the Chinese population,
attributed to multi-pronged features, most notably a behemoth challenges pertaining to agricultural practices, stringent regulations on
middle class. The growing focus on health and wellness among production-consumption, price trends and increasing urbanization are
this demographic has led to transformations in demand-supply. factors anticipated to negatively influence the China cooking oil market
Gains have also been significant in ultra-refined cooking oils, growth trajectory.
concurring with the pervasive health and wellness trend. As
dietary habits have evolved, with healthier options such as salads Indian Cuisine and Changing Consumer Demographic
gaining popularity among people on strict diets, demand for Befits Cooking Oil Utilization
extra-light olive oils has also increased. India is another lucrative market for cooking oil, wherein palm oil continues
Although the current and future prospects of premium cooking to be the top-selling cooking oil, with total demand estimated at nearly
oil sales are positive, longstanding challenges pertaining to high 20,400 thousand tons in 2018. The huge demand for palm oil can be
cost and accessibility prevail. A number of packaged premium attributed to the considerable demand of palm oil in the foodservice
oils, especially olive oils and rice bran oil, come with a high price industry. Owing to the presence of high content of saturated fatty acids,
tag. This translates into a limited market for these oils. easy accessibility, and affordable cost, palm oil has become the preferred
In addition, the region’s populous nature, growing consumption choice in the cooking oil category.
of ready-to-eat meals also contribute to the increased revenues Indians have been avid consumers of cooking oils since ages,
of the cooking oil market in APAC. China and India hold the pole however, with growing awareness on cardiovascular health, a significant
position in the cooking oil consumption whereas ASEAN countries segment of the population, especially in urban centers, has shifted to
also occupy considerable revenue share of the global market. refined and packaged options over loose oils. However, outside Tier 1
24 FOOD FOCUS THAILAND JAN 2019

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