- The regional players are closely keeping abreast of the rapid evolution of the COVID-19 virus, and they have been doing their utmost to ensure a full supply continuity for all of their customers.
New York, April 19, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Europe Vegetable Oil Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" - https://www.reportlinker.com/p06030502/?utm_source=GNW
Since the very beginning of the pandemic, the major companies across the region have been taking all appropriate prevention and protection measures. The companies are also putting everything in place to minimize the economic impact of this pandemic, and they are firmly committed to ensuring the safety of their employees and serve the customers as best as possible.
- The supply chain of the market studied was vastly affected by the falling production of raw materials and social distancing measures due to the pandemic. According to COPA-COGECA, a union of the two big agricultural umbrella organisations and the strongest interest group for European farmers, the production of rapeseed in European Union is projected to reach 17 million metric ton, declining by 30%, in the marketing year 2020-2021, owing to reduction in planted area caused by the COVID-19 pandemic.
- Over the long term, the market is driven by the robust demand for organic health-based products, with increased consumption among health-conscious consumers of high-quality edible oils /cooking oils and the growing demand from various application areas. Additionally, the supporting policies by the regulatory bodies, like Renewable Energy Directive (RED) and European Union Common Agricultural Policy (CAP), are also widely supporting the application of vegetable oil in varied industries, including biofuel, food, animal feed, or cosmetics.
- Rapeseed oil dominates the market studied, owing to its abundant production in the regional market and its wide application in the biodiesel, food, and animal feed industries. Germany and France are the leading consumer of rapeseed oil in the regional market. Palm oil is another highly used vegetable oil in the European market, especially in the food industry, but the region is completely dependent on its import.
Key Market Trends
Supportive Policies on Vegetable Oil Usage in the Region
The European Union’s consumption of vegetable oil in biofuel is largely driven by the Renewable Energy Directive (RED). This directive, established in 2009, requires 10% of the energy consumption in road and rail transport in 2020 to be from renewable sources. The European Union Member States (countries) must implement this target with national laws and incentives, such as blending mandates. Among all, palm oil contributes around 20% to the production of biodiesel (fatty acid methyl ester) and renewable diesel (hydrotreated vegetable oil) in the European Union. The other major feedstocks for producing diesel substitutes are rapeseed, sunflower oil, and soybean oil. The current European Union Common Agricultural Policy (CAP) made some strategies to augment the oilseed and pulse production through “greening measures,” which will have a direct impact on the vegetable oil market of the region. Thus, the regulatory body is projected to ban many pesticides that are commonly used in the United States. As a result, the domestically produced vegetable oil will gain applications in the food, animal feed, and cosmetics industries by taking hold of consumer trust over the quality of vegetable oil used as an ingredient.
Germany Holds the Largest Market Share
After Canada, Germany is believed to be the largest producer of rapeseed oil across the world. Based on its nutritionally well-balanced composition, rapeseed oil has become one of the most common vegetable oils in Germany and all over Europe. It is used as salad and cooking oil on a large scale and serves as an oil component in margarine, mayonnaise, and dressings. The non-food industry is also interested in rapeseed oil. It is used in energy productions, such as biofuels, and serves as an environment-friendly additive in lubricants. Germany is among one of the largest European markets for olive oil. Total consumption is high and stable. Moreover, the market offers good opportunities for organic olive oil. Most consumption in Germany is for virgin olive oil, this, in turn, boosts the demand for vegetable oil in the country.
The European vegetable oil market is fragmented, yet competitive, with a significant share held by the leading player such as Bunge Limited, taking up the maximum market share in the vegetable oil market in Europe. The company is followed by other key players, such as Archer Daniels Midland Company, Olam International Limited, and Wilmar International Limited. Product expansion is the most adopted strategy by key players in the market studied, followed by mergers and acquisitions. These strategies have been adopted with an aim to meet the demand and withstand competition in the market from the global players. The prime factors determining the market players and their positions in the concerned market are the high-quality ingredients used without any addition of preservatives to deliver the completely natural and organic products across the European region.
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