Release of pressure: The industry has recorded consistent growth, following a sharp earlier fall

The Oil and Fat Production industry’s main activities are extracting oils and fats from oilseed crops, as well as producing non-edible animal fats. Oils and fats have a wide variety of applications and can be used as food ingredients, industrial lubricants and sources of biodiesel. The main oils produced by the British industry are palm, rapeseed, sunflower and soya oils. While rapeseed is grown abundantly on domestic farms, soya is mostly imported from North American countries and crude palm oil is normally imported from Papua New Guinea and Malaysia. As a result, industry revenue is highly dependent on the price of inputs and global demand more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • The type of oils demanded by consumers has been affected by trends in health consciousness
  • Many downstream firms have made efforts to reduce their use of trans fats, which has caused some disruption
  • Changes to biodiesel productions are expected to negatively affect demand
  • Industry Report - Industry Key Buyers Chapter

    The Oil and Fat Production industry displays a high level of concentration. The four largest players – AAK, Edible Oils, KTC (Edibles) and Cargill – are estimated to generate 75.8% of industry revenue in 2018-19. Apart from KTC (Edibles), these firms are part of multinational conglomerates that operate around the world. They may produce oils and fats from crops harvested by another subsidiary or sell their products to other parts of the same company, giving them a guaranteed market. Manufacturing in high volumes allows these firms to benefit from substantial economies of scale, thus helping them to attract large customers such as supermarket chains and food manufacturers that are interested in keeping their costs to a minimum...purchase to read more.

    Additional Insights for the Oil & Fat Production Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Oil & Fat Production Industry are

  • Economies of scale
  • Establishment of export markets
  • Ability to pass on cost increases
  • IBISWorld analysts also discuss how external factors such as Demand from bread and bakery goods production and Demand from supermarkets in the Oil & Fat Production industry impact industry performance..

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    What's in this report

    What is the Oil & Fat Production Industry?

    Industry operators process oils and manufacture crude and refined vegetable oils. They also manufacture non-edible animal oils and fats, extract fish oils and process the residual products of oil production. The industry does not cover rendering and refining lard and other edible animal fats, manufacturing margarine and corn oil or manufacturing essential oils.

    Industry Products
  • Rapeseed oil
  • Soya bean oil
  • Sunflower oil
  • Palm oil
  • Other vegetable oils
  • Oil cake
  • Industry Activities
  • Oilseed crushing
  • Extracting fat
  • Oil and fat refining
  • Oil deodorising, bleaching and hydrogenating
  • Processing and packaging oil and fat
  • 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 bread and bakery goods production
  • Demand from supermarkets
  • Demand from takeaway and fast-food restaurants
  • Real household disposable income
  • Fuel prices

  • Current Performance
  • Slick substitution
  • Health concerns
  • Vegetable oil prices
  • Changing the oil
  • Chart: Revenue Growth

  • Industry Outlook
  • Fresh off the presses
  • Changes to biodiesel production
  • Sustainable palm oil
  • Regulation
  • Table: Oil & Fat Production Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Oil & Fat Production Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Manufacturing
  • Bread & Bakery Goods Production
  • Supermarkets
  • Takeaway & Fast-Food Restaurants

  • Key Selling Industries
  • Cereals, Leguminous Crops & Oilseed Growing

  • Products & Services
  • Palm oil
  • Oil cake
  • Rapeseed oil
  • Sunflower oil
  • Soya bean oil
  • Other
  • Other vegetable oils
  • Chart: Oil & Fat Production Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Food manufacturers
  • Food-service operators
  • Retailers
  • Other manufacturers
  • Biodiesel producers
  • Chart: Major Market Segmentation for the Oil & Fat Production Industry

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

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Oil & Fat Production Industry

  • Industry Globalization
    AAK (UK) Ltd, Edible Oils Ltd, KTC (Edibles) Ltd, Cargill plc,
  • Table: AAK (UK) Ltd - financial performance
  • Table: Edible Oils Ltd - financial performance
  • Table: KTC (Edibles) Ltd - financial performance
  • Table: Cargill plc - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Oil & Fat Production 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 Oil & Fat Production Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • A diesel fuel that uses vegetable oil or animal fat as a base.
  • Cold-Pressed Oil
  • Unlike commercial oil, which is extracted at a high heat using chemicals and solvents, cold-pressed oils are pressed from their source at a lower temperature.
  • Hydrogenation
  • The process of adding hydrogen to an unsaturated fat or oil to make it solid.
  • Tallow
  • A rendered form of beef or mutton fat.
  • Trans Fats
  • Unsaturated fat produced by the partial hydrogenation of vegetable oils and present in hardened vegetable oils, most margarines, commercial baked foods and many fried foods.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Oil & Fat Production market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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 Oil & Fat Production:
    • 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 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 Oil & Fat Production 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 Oil & Fat Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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