Report Overview

United States Plant-Based Oils Market is flourishing owing to rising urbanization, growing demand for convenience foods, and rising health consciousness among people.

United States Plant-Based Oils Market - Industry Trends & Forecast Report 2028

United States Plant-Based Oils Market is predicted to grow at a CAGR of 7.8% during the forecast period (2022-2028). The rapid expansion of the market is predominantly due to the rising rates of obesity and related illnesses. Also, due to rising health consciousness, and increased knowledge of the advantages of plant-based oils, the demand for these oils is anticipated to increase during the projected period. Moreover, the demand for plant-based oils has greatly expanded as consumer disposable income, convenience food consumption, and application in animal feed have all increased. Due to the nutritional and biological health advantages these oils provide for animals, they are included in animal feed. Plant-based oils are widely used in several industries including food and beverage, animal feed, biofuel, industrial, and other.

Plant-Based Oils - Overview

Plant oils are triglyceride combinations that have been derived from plant seeds. The final product you find at the grocery store is created by purifying the oil and occasionally refining it or performing other chemical modifications. They are frequently referred to as "heart-healthy" and advised as a substitute for saturated fats like butter, lard, and tallow. Plant-based oils are regarded as heart-healthy because research repeatedly shows that polyunsaturated fat, as opposed to saturated fat, lowers the risk of heart issues. Plant-based oils that are edible are added to food and utilized in cooking. Numerous oils, both edible and non-edible, are used as fuel in oil lamps and as an alternative to petroleum-based fuels. Oil painting, skin treatment, and wood finishing are just a few of the numerous more uses.

United States Plant-Based Oils Market Forecast and Trends

Growth Drivers

Rising Desire for Natural Tastes

Because of the negative side effects of synthetic flavors, there has been an upsurge in demand for natural flavors. Plant-based oils have little nutritional value and can sometimes be detrimental. Natural oil is receiving more attention these days, with growing concerns about its safety and potential health consequences. Consumers are becoming more aware of the negative consequences of consuming food and beverages containing synthetic chemicals. Several health organizations and food safety organizations have banned the use of artificial flavorings in food and beverages. For example, on October 5, 2018, the US Food and Drug Administration (FDA) banned seven cancer-linked synthetic flavorings. The FDA recommended that the naturally derived analogs of the banned flavors should be used because they are a safer alternative. All these factors boost the growth of the United States Plant-Based Oils Market during the forecast period (2022-2028).

Identification of Novel Herbs and oils in Response to Shifting Customer Tastes and Inclinations

Governments in the United States have begun to take measures and invest in R&D to raise consumer knowledge about the benefits of natural components and extracts. Several companies are also investing in research and development to create and develop new plant-based oils to match consumer tastes. The development of new plant-based flavors and perfumes that customers prefer open up new market opportunities for plant-based oil manufacturers. In addition, changes in consumer lifestyles and an increase in consumer demand for natural flavors have been seen in developing regions, leading to an increase in demand for plant extracts. Globalization has also increased exposure to many cultures' smells and fragrances.

Restraints

Inadequate Raw Material Supply and Pricing Volatility

The supply of a wild diversity of plants to other industrialized countries is constrained because these plants are mostly grown in a few numbers of countries majorly in India and China. Every year, different spices and herbs are harvested and made available throughout particular seasons. One of the biggest issues the market for plant-based oils is dealing with is the consistency of the raw material supply. Depending on availability and season, the cost of herbs and spices may change. Thus, maintaining the supply throughout the year incurs high storage costs. Prices of raw materials fluctuate a lot due to seasonal availability, making it difficult to standardize the prices of finished goods.  All these factors restrain the growth of the United States Plant-Based Oils Market.

Impact of COVID-19 on the United States Plant-Based Oils Market

The new coronavirus/COVID-19 pandemic had a substantial impact on practically all businesses. This pandemic has caused widespread industry shutdowns and supplies chain disruptions, affecting the economy as well. The global shutdown, on the other hand, has had a significant influence on the supply of raw materials for therapeutic plant-based oils. The COVID-19 impact on logistics also leads to higher raw material prices, which raises the cost for makers of medicinal plant extracts. With constraints to cross-border commodity shipping under this pandemic condition, firms are increasingly reliant on local raw material suppliers, which boosts suppliers' bargaining power. As a result, higher raw material prices, along with high demand for plant-based oils, would result in a price increase.

United States Plant-Based Oils Market - By Source

Based on the source, the United States Plant-Based Oils Market is segmented into Sunflower Oil, Palm Oil, Cottonseed Oil, Soybean Oil, Rapeseed Oil, Coconut Oil, and Others. Among these, soyabean oil accounts for the largest share in the United State Plant-Based Oils Market. Soybean oil dominated the plant-based oils market in the United States and is likely to continue to do so during the forecast period. Because the United States is one of the top producers of soybeans, domestic consumption and popularity is strong. Furthermore, rapeseed oil, often known as canola oil, is the second-most profitable oil in the United States. The country is a major importer of rapeseed oil, with imports approaching 1.8 million tonnes. The United States' main rapeseed oil trading partner is Canada. The substantial market share is due to the strong health advantages and widespread availability of rapeseed oil in surrounding countries. Furthermore, during the forecast period, palm oil is expected to have the greatest CAGR. Palm oil prices are much lower than those of other plant-based oils due to the low cost of raw materials accessible in the tropical region. Palm oil yield per hectare is the highest of any plant-based oil, contributing to the cheaper cost.

United States Plant-Based Oils Market – By Application

Based on application, the United States Plant-Based Oil Market is segmented into Food and Beverages, Animal Feed, Biofuel, Industrial, and Others. Among these, the food and beverage segment holds the largest market share. The manufacture of bread, confectionery, dairy, and processed foods have a strong demand for these oils. The food industry is dominated by processed goods, which include items like salad dressings, margarine, mayonnaise, cookies, etc. Due to their widespread availability and high concentration of polyunsaturated fatty acids, which support heart health, food producers favor plant-based oils. Over the anticipated period, the product's industrial use is anticipated to see the highest CAGR. In terms of market share and growth rate, biodiesel is predicted to lead the segment, which consists of oleochemicals and biodiesel. Plant-based oils have high energy content and are made from renewable resources like plant fruits and seeds, making them perfect for the manufacturing of biodiesel.

Competitive Landscape

The leading market players in the United States Plant-Based Oil Market are ADM, Bunge Limited, Cargill Incorporated, Westmill Food, CHS Inc, FUJI Oil Asia Pte Ltd, Ag Processing Inc a Cooperative, Riceland Foods, ACH Food Companies Inc, Viterra, and other prominent players.

The United States Plant-Based Oil Market is highly fragmented with the presence of several manufacturing companies in the country. The market leaders retain their supremacy by spending on research and development, incorporating cutting-edge technology into their goods, and releasing upgraded items for customers. Various tactics, including strategic alliances, agreements, mergers, and partnerships, are used.

Recent Development

Scope of the Report

By Source

• Sunflower Oil
• Palm Oil
• Cottonseed Oil
• Soybean Oil
• Rapeseed Oil
• Coconut Oil
• Others

By Application

• Food And Beverages
• Animal Feed
• Biofuel
• Industrial
• Others