United States Plant-Based Oils Market to Grow at a CAGR of 7.8% until 2028
United States Plant-Based Oils Market is flourishing owing to the prevalence of cardiovascular diseases is on the rise, health awareness is expanding, and the need for sustainable and alternative fuels is rising.
A recent study conducted by the strategic consulting and market research firm,Report Ocean, revealed that the United States Plant-Based Oils Market is predicted to grow at a CAGR of 7.8%, by the end of 2028. The United States Plant-Based Oils Market is booming because the growing consumer interest in natural and organic food, drink, and personal care goods have compelled producers to switch their attention from synthetic to natural products, which has had a significant impact on the US market for plant-based oils. The demand for heart-healthy oils like olive oil is anticipated to rise as cardiovascular disease prevalence and health awareness rise. Biodiesel and oleochemicals are both made from plant-based oils. The market for plant-based oils in the United States is anticipated to rise in response to the rising demand for sustainable and alternative fuels. However, inadequate supply of raw materials and price fluctuations, in turn, may act as a huge restraining factor for the market growth.
Rising Interest in Natural Flavors
Because of the severe side effects of synthetic flavors, demand for natural flavors has increased. Plant-based oils have the minimal nutritional benefit and can sometimes be harmful to the environment. Natural oils are gaining popularity, owing to growing worries about their safety and potential health repercussions. Consumers are becoming increasingly aware of the detrimental repercussions of eating synthetic chemicals in food and beverages. Artificial flavorings in food and beverages have been banned by several health and food safety groups. For example, the US Food and Drug Administration (FDA) banned seven cancer-linked synthetic flavorings on October 5, 2018. The FDA suggested that organically derived counterparts of the banned tastes be used because they are safer.
Finding New Herbs and Oils in Response to Changing Customer Preferences and Trends
United States government has started to take action and engage in R&D to increase consumer awareness of the advantages of natural ingredients and extracts. Several businesses are also spending money on R&D to develop new plant-based oils that will appeal to customer tastes. For producers of plant-based oils, new market prospects are created by the creation of consumer-favorite plant-based tastes and fragrances. The market for plant-based oils has also increased due to changes in consumer lifestyles and a rise in the popularity of natural flavors in developing nations. Exposure to the scents and perfumes of many cultures has risen as a result of globalization.
Challenge: Similar Items Sparked Fierce Rivalry and Competitiveness
The market for plant-based oils is very fragmented, with both large and small players present. Key market players are concentrating on R&D investments to introduce plant extracts that would cater to the needs of the food and beverage, pharmaceutical, and cosmetic industries worldwide to produce extracts following the needs of the consumer due to the rise in the demand for natural, clean-labeled food and cosmetic products. The rise of distributors in the industry that meet consumer requests from specialized markets is also a result of the strong demand for plant extracts.
United States Plant-Based Oils Market By Application
Based on application, the United States Plant-Based Oil Market is segmented into Food and Beverages, Animal Feed, Biofuel, Industrial, and Others. Among these, the food and beverage segment holds the largest market share. These oils are in high demand for the production of processed foods, bakery goods, confectionery, dairy products, and bread. The processed food sector of the food industry is dominated by products like salad dressings, margarine, mayonnaise, cookies, etc. Food producers choose plant-based oils due to their vast availability and high content of polyunsaturated fatty acids, which improve heart health. The industrial use of the product is predicted to see the highest CAGR during the forecasted period. Oleochemicals and biodiesel are anticipated to make up the segment's market share and growth rate, respectively. Plant-based oils are ideal for the production of biodiesel because they have high energy content and are created from renewable resources like plant fruits and seeds.
Impact of COVID-19 on United States Plant-Based Oil Market
The new coronavirus/COVID-19 pandemic had a significant impact on almost all enterprises. This epidemic has resulted in significant business shutdowns and supply chain disruptions, negatively impacting the economy. However, the global shutdown has had a substantial impact on the supply of raw materials for medicinal plant-based oils. The influence of COVID-19 on logistics also contributes to higher raw material prices, raising the cost for manufacturers of medicinal plant extracts. With cross-border commodities shipping restrictions under this pandemic situation, enterprises are becoming more reliant on local raw material suppliers, which increases suppliers' bargaining strength. As a result of rising raw material prices and high demand for plant-based oils, prices would rise.
The leading market players in the United States Plant-Based Oil Market are ADM, Bunge Limited, Cargill Incorporated, Westmill Food, CHS Inc, FUJI Oil Asia Pte Ltd, Ag Processing Inc a Cooperative, Riceland Foods, ACH Food Companies Inc, Viterra, and other prominent players. The United States Plant-Based Oil Market is highly fragmented with the presence of several manufacturing companies in the country. The market leaders retain their supremacy by spending on research and development, incorporating cutting-edge technology into their goods, and releasing upgraded items for customers. Various tactics, including strategic alliances, agreements, mergers, and partnerships, are used.
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The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the United States Plant-Based Oil Market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in the United States Plant-Based Oil Market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.