Global PHO and Non-PHO based Oils Market - 2023-2030

Overview

Global PHO and Non-PHO based Oils Market reached US$ 149.3 billion in 2022 and is expected to reach US$ 217.3 billion by 2030, growing with a CAGR of 4.8% during the forecast period 2023-2030.

The global, encompassing both non hydrogenated and partially hydrogenated oils, plays a pivotal role within the food industry. An extensive array of culinary and industrial-grade oils commonly utilised in food processing, cooking, and different non-food industrial uses make up the global market for PHO and non-PHO-based oils. The aforementioned oils are crucial components of an extensive assortment of savory products, such as bakery and confectionery products, and snacks.

The global PHO and non-PHO based oils market is set to go through a major evolution, mostly as a consequence of individuals being more conscious of the potential hazards of trans fats, particularly can be found mainly in PHO-based oils. There is an increasing demand for cleaner product labels that contain fewer artificial and potentially harmful ingredients. Non-PHO-based oils are often perceived as more natural and thus align with the demand for cleaner labels.

Similarly, Asia-Pacific dominates the PHO and non-PHO based oils market, capturing the largest market share of over 1/3rd. Asia-Pacific has witnessed a surge in the fast-food industry, leading to a growing need for cooking oils suitable for frying and deep frying. Although PHO-based oils were traditionally used for frying, regulations and changing consumer preferences have prompted a transition towards non-PHO alternatives, like high oleic oils, known for their stability at high temperatures.

Dynamics

Clean Label Trends

Clean label trends exert a significant influence on the global market for PHO (Partially Hydrogenated Oils) and non-PHO-based oils. These trends are marked by consumers' growing inclination towards food products characterized by clear and comprehensible ingredient lists, free from artificial additives or undesirable components.

Consumers, now more than ever, are conscientiously scrutinizing the contents of their food. They actively seek out products with easily understandable ingredient lists, driven by a desire for transparency in their dietary choices. Clean label trends underscore the avoidance of artificial additives, including trans fats frequently found in PHOs. Consumers are motivated to steer clear of such harmful additives, perceiving non-PHO-based oils as a more natural and clean substitute.

Consumer demand for non-PHO-based oils is apparent through their purchasing choices. Many consumers actively seek out products bearing labels such as "trans fat-free" or "no PHOs," underscoring the demand for healthier alternatives within the market. A Nielsen survey of 2022 uncovered that globally, 60% of consumers are willing to pay a premium for products free from artificial ingredients, including trans fats.

Dietary Trends and Health Consciousness

Healthy Living choices are actively sought out by people who are concerned about their health. They are selecting products with lower trans fat content and paying attention to labels that proclaim "trans fat-free" or "no PHOs." This behavioral shift significantly impacts the market dynamics, as food producers strive to meet this demand by incorporating non-PHO-based oils into their products.

Health-consciousness dovetails with regulatory initiatives aimed at reducing the use of trans fats. In response to health concerns, numerous countries have implemented regulations that either curtail or outright ban the usage of PHOs. These regulatory changes align with the health-conscious consumer movement and exert a profound influence on the food industry's product formulations, emphasizing the integration of non-PHO-based oils.

Regulatory Constraints

One of the foremost restraints in the global PHO and non-PHO-based oils market is the imposition of strict regulatory restrictions. Health authorities and food regulatory bodies in many nations have recognized the health hazards linked to trans fats, prevalent in PHOs. Consequently, numerous jurisdictions have enacted regulations that either curtail or entirely ban the use of PHOs in food production. Several countries have enacted comprehensive bans on the use of PHOs in food products, effectively limiting their usage.

Certain regulations mandate transparent labeling of trans fats on food packaging, compelling manufacturers to reassess their ingredient choices. This often encourages the adoption of non-PHO-based oils to reduce trans fat content. Adhering to these regulations can be financially burdensome for food producers, particularly those required to reformulate their products or modify their manufacturing processes to exclude PHOs. This can result in cost escalation, potentially leading to higher product prices.

Availability and Cost of Non-PHO Alternatives

The availability and cost of non-PHO-based oils can pose a substantial restraint. Although alternatives like high oleic oils and non-hydrogenated oils exist, they may not always be conveniently accessible or cost-competitive when compared to PHOs. This presents a challenge for food producers keen on making the transition.

The supply of non-PHO alternatives may not be as robustly established as that of PHOs, leading to intermittent scarcities and price fluctuations. In certain instances, non-PHO-based oils might be more expensive than PHOs, which can impact production expenses and potentially lead to increased consumer prices. Food manufacturers may need to invest in product reformulation to accommodate the use of non-PHO-based oils, an undertaking that can be costly and time-consuming.

Segment Analysis

The global PHO and Non-PHO based Oils market is segmented based on type, application, end-user and region.

Increased Demand for Non-PHO based Oils

The non-PHO based oils segment held 34.5% of the global market share. A primary catalyst for the demand surge in non-PHO-based oils is the escalating awareness of health issues among consumers. The well-established health risks associated with trans fats, largely present in PHOs, have heightened consumer awareness. This has prompted consumers to actively seek out alternatives low in trans fats, such as non-PHO-based oils.

A study conducted by the World Health Organization (WHO) Report 2022 has revealed that trans fats are accountable for over 500,000 deaths annually due to cardiovascular diseases worldwide. This stark reality has played a significant role in driving awareness and fostering demand for healthier alternatives, which increased the demand of non-PHO based oils in the market.

Consumers are increasingly gravitating toward products boasting clean labels, signifying a reduced presence of artificial or harmful ingredients. Non-PHO-based oils are often perceived as a more natural and cleaner option for food products, aligning with this broader clean label trend. The food processing industry has wholeheartedly adopted non-PHO-based oils, primarily because of their adaptability to various applications. These oils enable food manufacturers to create products with reduced trans fat content while maintaining the desired quality and taste.

Geographical Penetration

Demand for Specialty Fat Products in Asia-Pacific

The Asia-Pacific PHO and Non-PHO based Oils market held the largest market share of 40.3% in 2022 in the PHO and Non-PHO based Oils market analysis. The Asia-Pacific region demonstrates a diverse and dynamic demand for PHO (Partially Hydrogenated Oils) and non-PHO-based oils, shaped by a multitude of factors. These factors reflect the region's cultural richness, health awareness, economic growth, regulatory landscape, and evolving dietary habits.

Asia-Pacific boasts a vast and varied culinary landscape, with each locale having distinct cuisines and cooking methods. This diversity creates a substantial demand for an array of cooking oils, both PHO and non-PHO-based, to accommodate the unique requirements of each cuisine. For instance, Southeast Asian cooking predominantly uses palm oil, while South Asian dishes often rely on sunflower oil.

The heightened focus on health and nutrition in Asia-Pacific has led to an increased demand for non-PHO-based oils. Consumers are becoming more health-conscious, particularly regarding the potential health risks associated with trans fats, commonly found in PHO-based oils. Consequently, many consumers are actively seeking alternatives with minimal trans fats, such as non-PHO oils like sunflower, soybean and canola oil.

The yield of the region's agribusiness has an enormous effect on the need for specific oils. In particular, both Indonesia and Malaysia are renowned for producing palm kernel oil, making it a convenient and affordable option for cooking in these places. Between January 2017 and December 2022, 453 new cooking oil food products were introduced in Indonesia, according to Global New Products Database (GNPD).

Competitive Landscape

The major global players in the market include Cargill, Inc., ADM, Bunge Limited, Wilmar International, IOI Group, AAK AB, Wilmar International Ltd, Musim Mas Group, Fuji Oil Holdings Inc., Golden Agri-Resources Ltd and Ventura Foods LLC.

COVID-19 Impact Analysis

The COVID-19 pandemic had a widespread impact on supply chains, affecting the production and distribution of fats and oils. Lockdowns, restrictions, and labor shortages disrupted logistics, leading to challenges in accessing raw materials. The pandemic brought about changes in consumer behavior, particularly in terms of cooking at home. This shift resulted in an increased demand for edible oils, with olive oil experiencing heightened popularity due to its perceived health benefits.

Health awareness was heightened during the pandemic, influencing the consumption of fats and oils. Trans fats, which are linked to health risks, became less desirable, contributing to the increased demand for non-PHO-based oils. The closure of restaurants and a reluctance to visit physical stores prompted a surge in e-commerce and home deliveries. This change supported the demand for packaged foods and meal kits, many of which featured non-PHO-based oils.

Russia-Ukraine War Impact Analysis

The Russia-Ukraine war disrupted the export of key agricultural commodities, including sunflower oil. Ukraine is a major producer of sunflower oil, and these disruptions affected global supplies of sunflower-based non-PHO oils. The conflict contributed to price fluctuations in the fats and oils market. Uncertainties surrounding the availability of essential commodities, such as sunflower oil and soybean oil, led to price volatility and increased production costs.

Countries heavily reliant on imports of fats and oils faced challenges. For instance, nations that traditionally imported sunflower oil from Ukraine had to diversify their sources, causing ripples in the supply chain. The geopolitical tensions associated with the Russia-Ukraine conflict underscored the importance of diversified sourcing and regional stability in supply chains. Companies actively sought to mitigate risks and ensure a consistent supply of non-PHO-based oils.

By Type

• Non-Partially Hydrogenated Oils (Non-PHO)
• Partially Hydrogenated Oils (PHO)

By Application

• Food and Beverages
• Pharmaceuticals
• Cosmetics
• Personal Care Products
• Others

By End-User

• Household
• Commercial

By Region

• North America
  • U.S.
  • Canada
  • Mexico

• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe

• South America
  • Brazil
  • Argentina
  • Rest of South America

• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific

• Middle East and Africa

Key Developments

• In October 2023, the new reusable 10-litre multi-use jar of Freedom Refined Sunflower Oil, which is a non-hydrogenated oil was launched, according to Gemini Edibles & Fats India Limited (GEF India).
• In October 2021, FIONA, the first on-premises brand from Bunge India, has officially launched. While Bunge India operates with some of the most well-known brands in the edible oil industry, such as Dalda, Gagan, Chambal, and Hudson, the launch of FIONA is their first brand that was created from scratch.
• In October 2021, Calyno® cooking oil, a premium, high-performing oil, was launched for retail purchase through the newly created e-commerce website calyno.com by plant-based technology firm Calyxt, Inc. Calyno offers all the advantages of a heart-healthy cooking oil along with the practical performance of a premium oil. Farmers in the Midwest cultivate it, and it is made in America. Calyno oil has no trans fat and is allergen- and gluten-free.

Why Purchase the Report?

• To visualize the global PHO and non-PHO based oils market segmentation based on type, application, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of PHO and non-PHO based oils market-level with all segments.
• The PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global PHO and non-PHO based oils market report would provide approximately 61 tables, 57 figures and 212 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies