The
cooking oil market in the GCC region is marked by intense
competition, Transparency Market Research finds, and focusing on
research and development activities to introduce new products has
augured well for these players.
For
instance, market leader Savola Group launched a new line of canola
oil products in February 2015 and this product – with high Omega-3
properties – has furthered strengthened its hold on the GCC
and Qatar cooking oil market.
In
terms of revenue, the cooking oil market in the GCC and Qatar was
valued at US$988.2 mn in 2015 and is expected to reach US$1.7 bn by
2024, expanding at a 6.6% CAGR therein. In terms of volume, the
market is projected to register a CAGR of 8.4% during the forecast
period.
Corn
Oil to Witness Rapid Growth despite Low Market Share
On
the basis of product, the cooking oil market in the GCC and Qatar is
led by the sunflower oil segment, which recorded a significant share
of more than 70% in 2015. On the other hand, despite accounting for a
share of less than 7% in 2015, corn oil is expected to grow at the
fastest rate through 2024. By type of packaging, retail package
emerged as the key contributor in the cooking oil market in GCC.
Geographically,
the market is divided into Qatar and other GCC countries. In terms of
revenue, the cooking oil market in the rest of GCC accounted for a
larger share in 2015 and is projected to amount to US$1.6 bn by the
end of the forecast period. Registering a 6.5% CAGR from 2016 to
2024, the regional segment will retain its dominance in the GCC and
Qatar cooking oil market. The Qatar cooking oil market, on the other
hand, is projected to witness a greater rise in terms of volume than
by value.
Demand
for Processed Food Surges as Consumption Patterns Evolve
The
increasing demand for processed food among consumers residing in the
GCC region has complemented the growth of the cooking oil market in
Qatar and other GCC countries, TMR finds. “Keeping this in mind,
manufacturers operating in this market are engaged in extensive
research and development activities to produce high-quality cooking
oils that can address the health requirements of the consumers,”
the lead analyst states. High purchasing power and the increasingly
busy lifestyle of the consumers in the GCC region have altered
consumption patterns and this is also pushing the demand for various
cooking oils.
Lack
of Local Production Hindering Growth
Most
of the countries in the GCC region depend on imports for cooking oil
owing to their weak local production. The economic and political
instability in some countries and adverse climatic conditions in most
have restrained the local production of cooking oil. “Imported
products are priced on the higher side, due to which, consumers in
the low-income group refrain from buying such products,” the author
of the study. This acts as a major restraint on the cooking oil
market in the GCC.
By
nature, the GCC and Qatar cooking oil market is highly consolidated,
with the top three companies accounting for almost three quarters of
the market in 2015. Savola Group, Emirates Refining Company Ltd., and
United Foods Company dominate the scene through aggressive
investments, strong distribution networks, and product innovations.
