Edible oils are among the widely used ingredient and considered essential in preparing food items. The global edible oils market is expected to witness steady growth. Consumers are leading the growth of healthier oils with low cholesterol, fat and calories. In addition to population growth, better crop yields and growing economies.
Fats & Oils
In the Middle East:
- Predicted to record a 4% CAGR from 2017 to 2022 in the Middle East and Africa, a slightly higher growth than the world average. ‘
- A slowdown in growth in Saudi Arabia due to unfavourable economic conditions led to slower overall growth.
- Apart from Sunflower and Olive Oli other edible oils are also expected to remain a dynamic category in the Middle East and Africa, with a 5% CAGR forecast.
- In Egypt, edible oils recorded current value growth of 166% in 2017. This was mostly due to the high increase in the unit price after the floatation of the Egyptian pound, in addition to population growth and a wider availability of different types of edible oils in various marketing channels throughout the country.
Sunflower & Olive Oil:
- While sunflower oil is forecast to remain the largest edible oil category, it is expected to remain outperformed by olive oil, with a CAGR forecast of 7%.
- Despite increasing unit process, olive oil is set to be the most dynamic edible oil category in the Middle East and Africa.
- In the United Arab Emirates, olive oil sales are driven by the increasing influx of Arab and Southern European expatriates. As olive oil is considered a staple in Mediterranean cuisine, this influx naturally increased demand for olive oil.
- Growth for olive oil in the United Arab Emirates and Saudi Arabia is also driven by consumers who are becoming more health-conscious and deem this type of oil healthier than others.
- Sunflower oil is commonly blended with other types of vegetable and seed oils, with lower unit prices and appeal to price-conscious consumers.
*Source: Euromonitor International
Key trends and sales drivers include:
- Oils from sources such as vegetables, nuts and fish, in high demand among health-conscious consumers who seek low-fat, low-cholesterol, and low-calorie varieties.
- ‘Low impact processing’ varieties of oil (where nutrients are not destroyed by heat), such as virgin olive oil, raw coconut oil and cold pressed walnut oil.
- In Saudi Arabia, consumers are shifting preference to lower-priced products, including private label.
"We came to Gulfood in search of top quality ingredients to prepare our products and have been impressed by the diverse range of things to choose from. We’re have plenty of options to explore ways of enhancing our products."
Arshad Safwan, Al Khatir, Saudi Arabia