Oil change: Rising health consciousness has increased demand for premium products

Rising health consciousness, changing consumer preferences and greater international trade have affected the Cooking Oil and Margarine Manufacturing industry’s performance over the past five years. Growing consumer concern regarding health and nutrition has weakened demand for some traditional industry products, such as vegetable oil, which are perceived to be unhealthy. This trend has limited industry revenue growth over the past five years. However, rising health consciousness, coupled with growing demand for premium foods, has prompted many consumers to switch to healthier and more profitable industry products, such as extra-virgin olive oil...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 14-19
6.8%
Forecast Growth 19-24
Profit
Employment
1,781
Businesses
187

Industry Threats & Opportunities

  • Many consumers are switching to healthier and more profitable industry products
  • Industry firms have faced rising competition from imports and supermarket private-label brands
  • The domestic price of fats and oils is projected to grow at a slower pace over the period
  • Industry Report - Starting a New Business Chapter

    The Cooking Oil and Margarine Manufacturing industry exhibits moderate barriers to entry, and these have remained relatively steady over the past five years. Due to the capital-intensive nature of production, potential entrants face significant initial capital costs to purchase the machinery needed for manufacturing. New firms also face strong competition from existing industry players. It can be especially difficult for new participants to gain a foothold in the market because they compete against manufacturers with established brand names. New industry players may also struggle to deliver the same degree of productivity and cost competitiveness as larger existing firms with greater economies of scale and scope. Eff...purchase to read more.

    Additional Insights for the Cooking Oil and Margarine Manufacturing Industry

    IBISWorld has determined the most important Key Success Factors for the Cooking Oil and Margarine Manufacturing are:

  • Upstream vertical integration (ownership links)
  • Output is sold under contract - incorporate long-term sales contracts
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as Domestic price of fats and oils and Demand from supermarkets and grocery stores in the Cooking Oil and Margarine Manufacturing industry impact industry performance..

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    What's in this report

    What is the Cooking Oil and Margarine Manufacturing Industry?

    Industry companies manufacture a range of refined and unrefined cooking oils, such as olive, avocado, coconut, and canola oil. In addition, industry companies produce margarine, lard and several other products using vegetable and animal oils and fats.

    Industry Products
  • Refined cooking oil and meal
  • Margarine and other products
  • Unrefined cooking oil
  • Industry Activities
  • Refined animal oil
  • Deodorised vegetable oil
  • Blended edible oil or fat
  • Fish and other marine animal oil or meal
  • Refined lard
  • Margarine
  • Olive oil
  • Vegetable oil, meal or cake
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Domestic price of fats and oils
  • Demand from supermarkets and grocery stores
  • Health consciousness
  • Per capita fat consumption
  • Demand from agriculture
  • Demand from cafes, restaurants and takeaway food services

  • Current Performance
  • Consumer preferences
  • Business demand trends
  • International trade
  • Profit and participation
  • Chart: Revenue Growth

  • Industry Outlook
  • Competitive environment
  • Cold-pressed oils
  • Profit and participation
  • Table: Cooking Oil and Margarine Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Cooking Oil and Margarine Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • General Line Grocery Wholesaling
  • Supermarkets and Grocery Stores
  • Fast Food and Takeaway Food Services
  • Restaurants
  • Cafes and Coffee Shops

  • Key Selling Industries
  • Citrus Fruit, Nut and Other Fruit Growing
  • Grain Growing
  • Meat Processing

  • Products & Services
  • Refined cooking oil and meal
  • Margarine and other products
  • Unrefined cooking oil
  • Chart: Cooking Oil and Margarine Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Other markets
  • Retailers
  • Export markets
  • Wholesalers
  • Food-service establishments
  • Chart: Major Market Segmentation for the Cooking Oil and Margarine Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Cooking Oil and Margarine Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Cooking Oil and Margarine Manufacturing Industry

  • Industry Globalization
    GrainCorp Limited, Cargill Australia Limited, Riverina Oils & Bio Energy Pty Ltd,
  • Table: GrainCorp Limited - financial performance
  • Table: Cargill Australia Limited - financial performance
  • Table: Riverina Oils & Bio Energy Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Cooking Oil and Margarine Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Cooking Oil and Margarine Manufacturing Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Degumming
  • A method to remove items such as proteins in crude oil that are insoluble in oil when hydrated.
  • Fractionation
  • A separation process in which a mixture is divided into several smaller quantities.
  • Hydrogenation
  • A process of converting liquid oil to solid oil that is used in margarine production. It involves a chemical transformation, whereby trans-fatty acids are created.
  • Interesterification
  • A process whereby heat treatment causes a movement of fatty acids on glycerol molecules. This changes the property of the oil and fat, but does not create trans-fats.
  • Shortening
  • A type of semi solid fat such as butter or lard, which is mostly used in cooking.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Cooking Oil and Margarine Manufacturing market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Cooking Oil and Margarine Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Cooking Oil and Margarine Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Cooking Oil and Margarine Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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