Edible oil is an extract of organic sources such as oil seed grains, tree fruits, and nuts. Edible oils are highly consumed as food ingredients. They are majorly in use, especially in cooking which includes frying, sautéing, and baking. Limited amount of edible oil can also be consumed in case of flavoring without undergoing any cooking processing. These oils possess various nutritional elements and results in their commercialization as healthy and hygienic products.
Additionally, they are digestible, free from unsaturated fat, and also rich in caloric value. Consumers are giving high preference to edible oil because it acts as a healthy fat without toxic components and also inhibits risks on human health. Corn Oil, canola oil, sunflower oil, olive oil, soybean oil, palm oil, specialty blended oils, groundnut oil, and coconut oil are the prevalent types of edible oils among buyers, which are raising the edible oils market revenue in KSA (Kingdom of Saudi Arabia) and Levant geographies. The rise in popularity of healthy, natural, crude, and organic vegetable oils is growing the prevalence of edible oils in these regions. Increasing health consciousness among buyers along with the shift in consumer preferences for healthy and organic products as per health requirements is also leading to the edible oil market growth in KSA and the Levant. The KSA and Levant Retail Edible Oil Market size was evaluated at $948 million in 2018 and is estimated to grow with a CAGR of 4.12% over the forecast period 2019-2025.
Hypermarket and supermarket channels are recognized as the fastest-growing segment among all distribution channels such as convenience stores, online retail, and specialty stores in KSA and Levant. This channel is set to grow at a CAGR of 4.16% during the forecast period 2019-2025. Panda retail store is the largest modern grocery chain in Saudi Arabia, and it serves nearly 116 million customers on an annual basis through a chain of hypermarkets and supermarkets. There are 214 stores of the brand throughout the country. These stores offer formidable geographic reach, thereby increasing the market share of the company in the retail space. In addition to this, Herfy food store is also one of the most renowned retail stores in this country. The rise in demand for organic and virgin olive oil coupled with the growing number of organized retailing outlets in KSA and Levant is boosting the growth of olive oil in KSA and Levant retail edible oil market. In KSA, LuLu hypermarket is one of the prominent retail divisions, which is currently elevating as a trendsetter in this region. Its footprints have established at UAE, Oman, Qatar, Kuwait, Bahrain, Egypt, Saudi Arabia, India, Indonesia, and Malaysia. It is handling 174 stores to provide quality retailing for consumers by integrating all able convenience needs. Moreover, LuLu is planning to open 15 more hypermarkets in Saudi Arabia by 2020. Therefore, this expansion in the distribution channel is fuelling the demand influx in the edible oils market of KSA and Levant.
Government of Canada states that among various countries in the Gulf Cooperation Council, the country Saudi Arabia has recorded the highest value of $731.6 million in edible oil retail sales as of 2017. According to the International Trade Centre (ITC), Saudi Arabia experienced 88% growth in the import value of virgin olive oil from 2017 to 2018. Increasing imports of olive oil in KSA is replicating massive consumption in this region and also driving the growth of the KSA edible oil market. On the other hand, 4% annual growth was registered in Saudi Arabia for sunflower oil export quantity from 2014 to 2018. In the Levant region, huge consumption of olive oil is noticeable, particularly in the soap making techniques of Syria.
Trends in KSA and Levant Retail Edible Oil Marketplace:
· E-commerce, omnichannel strategies implementation, the contribution of budget goods, and artificial intelligence (AI) are acting as the primary growth-promoting factors in Saudi Arabia retail sector. The growth in the retail sector of KSA is indirectly contributing to an increment in the retail edible oil market revenue.
· E-commerce: The government of Saudi Arabia targets to upsurge the share of e-commerce so that it reaches 80 percent in the retail sector by 2020. In 2017, the Internet was accessed by 70.4% of the total population in KSA, and it is estimated to reach 73.4% by 2022. The rise in the usage of internet is due to the perceptible penetration of smartphones and digital services. Hence, it is reflecting the growth pace of KSA e-commerce and retail edible oil market.
Furthermore, the Saudi Communications and Information Technology Commission (CITC) added a statement that the e-commerce market in the KSA is projected to touch $8.35 billion by 2020.
· AI: AI is improving the digital customer experience as it identifies consumer preferences with great accuracy, thereby assisting for the growth of the retail sector in KSA. AI is capable enough to empower the customer experiences with customizations and also in supporting the retailers to cross-sell in-store and online as well. Many brands are foot-stepping towards AI to stay ahead of the curve in the competition and also to enhance their customer base.
Major Players in Squalene Market Include:
Sundrop, Wilmar International, Cargill Inc., Mazola Oils, Unilever, Bunge Ltd., Marico, CONFO Group, Nisshin Olillio, Adani Group are some of the foremost players which are operating in the KSA and Levant Retail Edible Oil market. They are altering their business strategies to gain maximum traction from the consumers. For instance, here is the business strategy of one of the edible oil market players –
In 2017, Savola Group and Aves signed an agreement for a joint venture in Iraq. It aims to establish a Bonus Food Company LLC, which deals with the refining and packaging of edible oils. In 2018, Savola foods edible oil accounted for a 40% volume of the business line. The Savola Group edible oil revenue was noted as $1.81 billion in 2018. Savola Foods is an important manufacturer of high-quality products such as edible oils, sugar, pasta, seafood, vegetable ghee, and baked goods.
Talk to one of our sales representative about the full report by providing your details in the link below:
B. Essential Oils Market
C. Process Oil Market
Any other custom requirements can be discussed with our team, drop an e-mail to [email protected] to discuss more about our consulting services.
To request for a proposal, provide your details in the below link:
Mr. Venkat Reddy
Email: [email protected]
Contact Sales: +1-614-588-8538 (Ext-101)
About IndustryARC: IndustryARC is a Research and Consulting Firm that publishes more than 500 reports annually, in various industries such as Agriculture, Automotive, Automation & Instrumentation, Chemicals and Materials, Energy and Power, Electronics, Food and Beverages, Information Technology, and Life sciences and Healthcare.