Sizzling hot: Despite decreases in the price of cooking oil, demand has remained fairly consistent

The Margarine and Cooking Oil Processing industry has experienced revenue declines over the five years to 2018 due to the fall in the price of input commodities such as soybeans, oilseeds and corn. Producers have responded by dropping product prices in line with commodity costs, which has pushed revenue figures downwards. Over the next five years, revenue is anticipated to increase at an annualized rate of 0.9% to $66.6 billion in 2023. Industry operators have noticed consumer preferences shifting away from artificial buttery spreads, and in response, operators are restructuring product lines to better fit demand for healthy, organic products...purchase to read more.

Industry Statistics & Market Size
Revenue
$64bn
Annual Growth 13-18
-3.9%
Forecast Growth 18-23
Profit
Employment
22,834
Businesses
362
Market Share of Companies

Industry Threats & Opportunities

  • Producers have introduced a greater variety of edible oils that are marketed as healthier alternatives
  • Revenue declines driven by falls in key commodity prices squeezed smaller operators
  • Industry Report - Starting a New Business Chapter

    Barriers to entry for the Margarine and Cooking Oil Processing industry are moderate, with the most significant barrier being the ability to raise capital. Capital investments are needed to purchase machinery and equipment and purchase or rent facilities. While the amount of capital needed to enter the industry depends on the scale of operations an entrant is pursuing, even small-scale operations require significant capital investment. Other barriers include securing supply contracts with upstream suppliers of soybeans, oilseeds and other ingredients used to produce margarine, cooking oil and other industry goods.The well-entrenched position of the leading processors in the industry can also represent a barrier to entry for prospective entrants. Ind...purchase to read more.

    Additional Insights for the Margarine & Cooking Oil Processing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Margarine & Cooking Oil Processing Industry are

  • Downstream ownership links
  • Supply contracts in place for key inputs
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as Demand from grocery wholesaling and Demand from food manufacturing in the Margarine & Cooking Oil Processing industry impact industry performance..

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    What's in this report

    What is the Margarine & Cooking Oil Processing Industry?

    Operators in this industry produce vegetable oil, shortening and margarine. Activities include wet milling corn and vegetables, crushing oilseeds and tree nuts, refining and blending vegetable oils and blending purchased animal fats with vegetable fats. The industry also includes starch production.

    Industry Products
  • Wet corn milling
  • Soybean processing
  • Fats and oils refining and blending
  • Industry Activities
  • Starch
  • Deodorized vegetable oil
  • Edible oils or fats blending and
  • Refined lard
  • Margarine
  • Refined tallow
  • Vegetable oil, meal or cake
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from grocery wholesaling
  • Demand from food manufacturing
  • Per capita disposable income
  • Trade-weighted index
  • Price of corn
  • Price of oilseeds
  • World price of soybeans

  • Current Performance
  • Falling commodity prices
  • Health trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Modest expansion
  • Health trends stimulate growth
  • International trade
  • Table: Margarine & Cooking Oil Processing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Margarine & Cooking Oil Processing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Margarine & Cooking Oil Processing
  • Chocolate Production
  • Seasoning, Sauce and Condiment Production
  • Soft Drink, Baked Goods & Other Grocery Wholesaling
  • Supermarkets & Grocery Stores
  • Chain Restaurants
  • Food Service Contractors

  • Key Selling Industries
  • Corn Farming
  • Meat, Beef & Poultry Processing
  • Oilseed Farming
  • Soybean Farming

  • Products & Services
  • Soybean processing
  • Fats and oils refining and blending
  • Wet corn milling
  • Other
  • Chart: Margarine & Cooking Oil Processing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Food manufacturers
  • Grocery retailers
  • Foodservice providers
  • Exports
  • Grocery wholesalers
  • Chart: Major Market Segmentation for the Margarine & Cooking Oil Processing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther
  • Chart: Cost Structure Benchmarking – Sector vs Margarine & Cooking Oil Processing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Margarine & Cooking Oil Processing Industry

  • Industry Globalization
    Archer Daniels Midland Company,
  • Table: Archer Daniels Midland Company - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Margarine & Cooking Oil Processing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Margarine & Cooking Oil Processing Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Price of Oilseed (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Hazard Analysis Critical Control Point (Haccp)
  • A preventative approach to food safety.
  • High-Fructose Corn Syrup (Hfcs)
  • Sweet syrup derived via an enzymatic process to convert its naturally occurring glucose into fructose.
  • Trans-Fat
  • A man-made, unsaturated fat that is created by partial hydrogenation. This type of fat is associated with an elevated risk of coronary heart disease.
  • Vertical Integration
  • Owning different parts of the supply chain, either in the form of forward integration (owning upstream suppliers) or backward integration (owning downstream buyers).
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Margarine & Cooking Oil Processing Industry Research Report contains up-to-date data and analysis, allowing you to identify the strengths and potential weaknesses of major companies in the industry. Build your credibility with clients and prospects by sharing insights into the current and emerging trends driving their industry. Our market research gives you the tools to win new business and keep existing clients.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Margarine & Cooking Oil Processing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Margarine & Cooking Oil Processing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Margarine & Cooking Oil Processing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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