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Global vegetable oil market - analysis

Date:2015-01-13 14:36:28 / News

There are two major global markets for vegetable oils: i) food which represents over80%, and ii) industrial uses including biodiesel. The main driver for expansion is still the growing demand for edible oils for the food market, although an important part of this demand comes from the biodiesel sector.

Global vegetable oil market - analysis

Biofuels have largely been blamed for most of the increases in food prices. The reasons, however, are many and complex, with the major impact coming from the increases in oil costs and speculation on agricultural commodities. It has been shown that the cost of the raw material plays a comparatively small role in the retail of food in developed countries since price increases are largely determined by commercial and other issues rather than by raw material.  
The vegetables oil market is bound for major changes, and will face substantial challenges and opportunities. Improving living standards in emerging economies, population growth together with changing diets and the expansion of biodiesel,are new trends that will have a major impact in the future development of this sector.

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