The global specialty oils market is projected to reach a significant US$ 414.7 billion by 2031, driven by a strong CAGR of 5.4% from 2023 to 2031. This growth is fueled by the increasing awareness of the health benefits associated with specialty oils, their diverse applications in various industries, and evolving consumer preferences for healthier alternatives. Specialty oils are gaining traction as consumers seek healthier cooking options and ingredients for a variety of purposes.
These oils are packed with health benefits, offering consumers a nutritious and flavorful addition to their diets. Almond oil, for instance, is rich in monounsaturated and polyunsaturated fatty acids, which can contribute to positive health outcomes when replacing saturated fats in the diet. It also contains vitamin E, an antioxidant crucial for maintaining brain health, reproduction, and eyesight. Sunflower oil, on the other hand, boasts high levels of fatty acids while being low in saturated fat. Its anti-inflammatory properties make it a potential preventative measure against chronic inflammatory conditions such as rheumatoid arthritis and bronchial asthma. Additionally, the zinc present in sunflower oil strengthens the body’s defenses against illnesses, further adding to its health benefits.
Beyond dietary applications, specialty oils find their way into a range of other industries. They are used as coadjuvants, skin moisturizing agents, excipients, and transdermal transporters in pharmaceuticals and cosmetics. Avocado oil, in particular, is a popular ingredient in skincare products due to its rapid skin absorption and ability to act as a sunscreen. Its versatility extends to soap formulations, massage and muscle lotions, and treatments for psoriasis and dandruff.
In industrial settings, certain specialty oils serve as lubricants for machinery or metalworking surfaces operating under high pressure or temperatures, minimizing wear and friction. Their ability to dissolve and remove impurities, dirt, and grease without damaging sensitive surfaces makes them ideal for industrial equipment cleaning. They also serve as efficient heat transfer fluids in various industrial processes.
The global specialty oils market is segmented based on product type, with corn oil, sunflower oil, blend oil, soybean oil, palm oil, cottonseed oil, coconut oil, rapeseed oil, and others (peanut oil, olive oil, etc.) making up the major categories. According to research, palm oil currently dominates the market, finding its way into a wide range of food items, including butter, peanut butter, Nutella, margarine, cakes, biscuits, ice cream, breads, pizzas, candies, chips, and chocolates. It is also a common ingredient in ready-to-eat and frozen food items, as well as cleaning supplies, dental pastes, deodorants, and makeup. Some nations even utilize palm oil as a feedstock for biofuel production. This widespread usage stems from its rich antioxidant properties, including vitamin E, which plays a crucial role in maintaining a healthy immune system and facilitating intercellular communication within the human body.
The Asia Pacific region currently dominates the global specialty oils market. This dominance is attributed to the growing awareness of health benefits and the adoption of healthier eating habits in the region. Consumers in Asia Pacific are increasingly replacing conventional cooking oils with specialty oils due to the alarming rise in obesity cases. The region’s growing popularity for Western cuisine, which often incorporates specialty oils, is further driving demand for these products. Moreover, the increasing acceptance of olive oil in Asia Pacific is contributing to the market’s growth.
Specialty oils offer distinct tastes and a high smoking point, making them advantageous for cooking. The diverse culinary traditions found across Asia Pacific, many of which emphasize specific specialty oils, further fuel the market’s expansion.
The global specialty oils market is characterized by a competitive landscape featuring numerous small to medium-sized companies alongside major corporations. Companies are focusing on implementing advanced extraction technologies and developing innovative products to stay ahead of the curve. Key players, such as ADM, Cargill Inc., Bunge Limited, and Wilmar International, have prioritized sustainability and product portfolio enhancement through the implementation of sophisticated extraction methods.
Several significant developments within the market are noteworthy. Novozymes introduced Quara LowP in November 2023, a product designed to completely degum vegetable oils, boosting oil yield and eliminating phosphorous contaminants. In November 2021, Cargill Inc. invested US$ 35 million in the Krishnapatnam Port Oil Refinery in South India, aiming to strengthen its existing supply chain and expand its regional presence. This expansion enhanced the refinery’s capacity to produce specialty oils. Furthermore, Cargill and its partners successfully launched the Sustainable Certified Coconut Oil (SCNO) supply chain in November 2019, promoting social responsibility, environmental integrity, and economic viability for all stakeholders.
The global specialty oils market is poised for continued growth, driven by the increasing consumer awareness of health benefits, expanding applications across industries, and evolving preferences for healthier alternatives. As the demand for specialty oils rises, companies are continually innovating and refining their processes to meet the growing needs of this dynamic market.
