Global Oils & Fats Market Volume - Ken Research

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G8 Nations Exploring New Prospects Market
Outlook Ken Research
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The G8 countries are among the most
industrialized nations. There strong progress
extends to their food and beverage industry as
well which is made up of many segments like
groceries, oils and fats, additives, packaged
foods, canned foods, energy drinks and soft
drinks among others. According to the study,
Oils Fats Global Group Of Eight (G8) Industry
Guide 2013-2022, these countries immensely
contribute to this already fledgling sector that
is estimated to be worth trillions of US dollars.
Contributing to this industry are the markets for
specialty fats and oils which were recently
valued at billions of US dollars with the oil
industries worth being several times that of
specialty fats. Bakery products have been
reported to account for the largest market share
in the specialty fats sector. High income
countries such as UK, US, Canada and Germany have
experienced a growth in the production and
consumption of ultra-processed food mainly bakery
products such as breads, pastries, cakes and
cookies. Creaming fats and specialty oils such as
cake oils are increasingly used to enhance the
product performance and ensure higher consumer
satisfaction.
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Despite the progress made, the G8 countries are
not the absolute leaders in the oil and fats
market. World consumption of oils and fats is
driven mainly by Asia which accounts for half of
the world total. China and India together make up
one-third of the world total. Chinese demand,
which is the greatest globally, is mainly for
soya bean oil, followed by canola and palm oils.
India follows next and is a major consumer of
canola oils as well as palm oils and butter.
From the G8 nations only the US is comparable
to India and China as it is third, after the two
giants with a one-tenth consumption of the
worlds fats and oils mainly in food uses such as
salads and cooking oils. Europe as a whole is
responsible for a significant one-fifth part of
the demand for the worlds oils and fats but the
end use pattern has been found to vary from
country to country. For example, France continues
to consume fats and oils primarily for food use
while Germanys growth is driven by biodiesel use.
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Even in the production sector, Asia appears far
ahead of the G8 nations with Indonesia being the
worlds largest producer with more than one-fifth
production share and harboring more than half of
the global production of palm oil. Indonesia is
followed by China, Malaysia and India as global
leaders. All this has led to Asia becoming the
largest global producer of oils and fats
accounting for more than half of the global
produce. The leading companies from G8 nations
that make a global impact are mainly from the
United States and Japan. The companies from the
former nation are Cargill and Bunge while those
from the latter one are Fuji Oil and The Nisshin
Oillio Group.
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Apart from uses in the food industry, oils and
fats are also being increasingly used in the
industrial sector. There is a continuous shift
from food to industrial consumption. In Europe
there has been increased use of rapeseed oil for
biodiesel production. Similar patterns are
observed in South America with soya bean
oil. The G8 nations are key contributors to the
general food and beverage market. By market size,
six of the top ten countries for the overall food
and beverages industry are G8 nations with the US
being the global leader and Japan being third in
the global ranking. Russia, Germany, France and
the UK follow shortly. The growing interest in
biodiesel has led to Europes shift from food to
industrial uses in its oil and fats industry.
Though G8 nations may not be leaders in oil and
fats, yet they are strong economies that are
exploring new prospects and going strong in the
bakery segment.