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Margarine & Cooking Oil Processing in the US - Industry Market Research Report

  • August 2016
  • -
  • Ibisworld
  • -
  • 36 pages

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Marginal growth: Health consciousness will drive demand, but imports will hamper sales



Abstract

Margarine & Cooking Oil Processing in the US

The Margarine and Cooking Oil Processing industry experienced significant revenue volatility over the past five years due to fluctuations in the price of inputs such as soybeans, oilseeds and corn. Producers responded by rising and dropping product prices in line with commodity costs, which skewed revenue figures in both directions. Meanwhile, due to growing health consciousness among consumers, demand for edible vegetable oils strengthened, while demand for animal-derived fats declined. As a result, producers introduced a greater variety of edible oils that are marketed as healthier alternatives to traditional cooking oil and margarine. Industry operators have recently noticed consumers shifting away from artificial buttery spreads, and in response, operators are restructuring product lines to better fit demand for healthy, organic products. Over the next five years, lower input prices are expected to curb revenue growth, but will result in higher profit margins for operators who keep their prices to downstream markets stable.


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.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.



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