UAE edible oils market is projected to witness a CAGR of 5.91% during the forecast period 2024-2031, growing from USD 1.62 billion in 2023 to USD 2.57 billion in 2031. There is increasing demand for relatively healthier options in edible oils such as olive oil, canola oil, and avocado oil, which are known to bring more heart health benefits and general well-being due to their favorable fatty acid profile and antioxidant content, driving the growth of the UAE edible oils market.
The demand for edible oils that are sustainable in processing is on the rise. Consumers would rather buy edible oils that have lesser ecologically detrimental attributes in their processing, and which have clean labels when it comes to processes such as fair trade.
The diverse population in the UAE results in high demand for various edible oils to suit the culinary traditions and dietary preferences of a diverse population. For instance, sesame oil is commonly used in many cooking applications, and coconut and sunflower oil have their unique uses through various cooking cultures, creating endless options for usage.
Another trend for functional foods is governing the UAE edible oil market demand. Consumers are getting attracted to oils, which have offerings healthy nutrients like omega-3 fatty acids or vitamins in enriched fortified oils.
Various companies are using used cooking oil (UCO) in creating biodiesel, which promotes recycling and circular economy. Bee’ah Group planned to launch the country’s first community used cooking oil recycling program in December 2021. According to its report published on 27th December, it planned to set up the collection machines in the communities in Sharjah and other areas.
Wide Applicability to Drive the Market Growth
The wider applicability of edible oils is driving the market growth exponentially. Edible oils are an integral part of cooking process such as frying, baking, and sautéing, whether done at home or in the food business sector.
Some companies are incorporating olive oil in their coffee products to add a velvety texture. For instance, in May 2023, Starbucks introduced olive-oil infused coffee series in Dubai. This coffee chain launched the Oleato series in Italy in February which has been inspired by the Mediterranean custom of consuming a spoonful of olive oil each day. In Dubai, two Oleato products were sold in 30 stores across emirates, one was a cold brew with extra virgin olive oil infused cold foam and the other was an iced shaken espresso with the olive oil infused oat milk.
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Subsidiary products derived from edible oils have increased their application in the food processing sector, including snack, margarine, and sauce preparation, and others. In addition, edible oils are widely applied in cosmetics, pharmaceuticals, and biofuel production, thereby increasing their market applicability. The applicability of edible oils is essential, be it in traditional or contemporary requirements. Their demand will always be on the rise based on other needs.
Rising Imports of Edible Oil in UAE to Drive Market Growth
With increasing urbanization, the growing population in UAE results in an increased demand for food products such as edible oils. UAE has very little arable land and limited water resources, so large-scale domestic oilseed production is a problem in the region, due to which the country has to largely rely on the imports from foreign countries for the consumption of edible oils. The consumers in UAE possess varied tastes for various edible oils, including olive oil, sunflower oil, and palm oil, which is imported to meet the demand of consumers in the country.
Increased health awareness in the country leads to high demand for healthier types of edible oil, such as olive and canola, which is primarily available through imports. Improved trade treaties, agreements, and policies, have eased the import of edible oils less expensive and simplified. Well-established supply chains ensure steady and reliable flow of increasing volume of imported edible oils to cater to the rising domestic demand.
In 2022, UAE imported USD 28.6 million in olive oil, becoming the 5th largest importer of olive oil globally. Moreover, in the same year olive oil was the 604th most imported product in the UAE.
Sustainably Processed Edible Oils to Gain Momentum in Market
Environmental awareness associated with food production is increasing which is driving the growth for sustainably produced edible oils in UAE. Sustainably processed edible oils are preferred by the consumers as they reduce deforestation, lower carbon footprints, and raise biodiversity.
Most of the sustainably processed oils often retain more natural and are free of harmful chemicals. Hence, they are a much healthier options. It, therefore, aligns with the rising health consciousness among UAE consumers.
The UAE government has begun to offer more in support of sustainability. Encouragement of eco-friendly practices and imports falls in line with national goals for sustainability. The move boosts the interest of companies in using sustainably processed oils. Consumers in UAE prefer brands which prove a sense of commitment towards sustainability and corporate social responsibility. In December 2023, IFFCO Group announced the launch of region’s first carbon neutral olive oil by Rahma. The launch included Extra Virgin Olive Oil and Organic Extra Virgin Olive Oil. The manufacturer responded to climate change by reducing carbon emissions and revolutionizing the production process of olive oil. The process of production preserves both rich flavors and the environment.
Sustainable processes are preferred by the companies as they have economic benefits in the long term, such as healthy soil and little dependence upon non-renewable resources, ensuring a stable supply chain.
Future Market Scenario (2024 – 2031F)
The edible oils market in UAE is witnessing expansion due to health benefits of various edible oils catering to the health-conscious consumers and wider applicability of edible oils. Such growth rate is anticipated in the forecast period. There are numerous edible oils such as olive oil, sunflower oil, and coconut oil, providing a vast array of culinary preferences and dietary needs of the consumers. Consumers are becoming increasingly aware about the health advantages of various edible oils, such as olive oil for heart health and coconut oil for medium-chain triglycerides, is further fueling demand. Thus, a wider expansion is expected in the foreseeable future.
Report Scope
“UAE Edible Oils Market Assessment, Opportunities and Forecast, 2017-2031F”, is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of UAE edible oils market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecast between 2024 and 2031. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business models, competitive intelligence, etc.
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