Edible Oils Manufacturing
Companies in this industry manufacture oils through wet-milling corn (separating corn into its basic components); processing soybeans, tree nuts, and vegetables into oil; refining vegetable fats; and blending vegetable fats with purchased animal fats. Major companies include ADM, Bunge, Cargill, CHS, and Ingredion, all based in the US; as well as Adani Wilmar and Ruchi Soya (both from India), Associated British Foods (UK), Avril Group (France), COFCO (China), GrainCorp (Australia), and Nisshin Oillio (Japan).
Global edible oils market is forecast to reach a CAGR of 7.1% for 2021-2028 forecast period, according to Data Bridge Market Research. Brazil overtook the US as the leading soybean producing country in 2020, according to Statista. China leads the soybean oil production worldwide. Population increases and rising demand for animal protein in developing nations have driven growth in the market for livestock feed, which is highly dependent upon global corn and soybean production. China, India, Brazil, and the US are the largest livestock producers.
The US edible oils manufacturing industry includes about 350 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $55 billion. The edible oils manufacturing industry doesn't include companies that render or refine animal fats, wet-mill corn into ethyl alcohol, or mill-dry corn for flour.
Demand is driven by shifting consumer attitudes toward different types of sweeteners, fats, and food oils; as well as livestock production trends, as soybean meal is used to feed poultry, swine, and cattle. The profitability of individual companies depends on managing raw material costs, leveraging federal farm subsidies, and operating efficiently. Large companies have advantages in purchasing, distribution, and marketing. Small operations can compete effectively by serving a local market or offering specialized products. The US industry is highly concentrated: the 20 largest companies account for about 90% of industry revenue.
Exports, mainly to Mexico, Canada, and the Philippines, represent about 20% of US production. Imports account for about 20% of the US market. Edible oil imports come mainly from Canada, Indonesia, Spain, and Italy.
Products, Operations & Technology
Major products of edible oil manufacturers include soybean cake and meal; shortening and cooking oils; and corn sweeteners.
Sales & Marketing
Finance & Regulation
Regional & International Issues
Also includes the following chapters:
Quarterly Industry Update
Trends and Opportunities
Call Preparation Questions
Glossary of Acronyms