The vegetable oils market is expected to witness substantial growth through 2024, according to a new market study by Global Market Insights (GMI).

Vegetable oils – which are considered healthy due to their high unsaturated fat content – are used in bakery applications, ice cream manufacturing, meat products, dairy products, frying fats, confectionery and infant nutrition.

Rising health concerns among consumers were one of the major drivers contributing the growth of the industry in the research period, GMI said in a 12 December statement.

Government initiatives around the world to enhance the adoption of electronic health care systems were another factor contributing to the growth of the market, the study added.

The increasing demand for rich and high quality had changed consumption habits and caused consumers to shift from animal-based oils and fats to vegetable oils, which have been linked with preventing several diseases and stroke and with helping in reducing blood pressure.

However, GMI said the vegetable oils market is facing challenges due to a lack of skilled labour, the high cost of analytics solutions and an operational gap between suppliers and buyers.

The vegetable oils market was split between monounsaturated fats, including among others olive and peanut oil, and polyunsaturated fats, the latter of which are rich with omega 3 and omega 6 fatty acids and were projected to dominate the market due to their high quality and health benefits.

North America will be dominating the global market, projected GMI, as it was expected to be the fastest growing economy in the vegetable oils market.

Factors contributing to the region’s growth included federal healthcare mandates to provide, the government initiative to maintain an electronic health record and increasingly personalised medicine.

Asia Pacific had an abundance of high quality vegetable oil, which made another leader in the vegetable oils market where the rising demand for processed foods and ready-to-drink beverages was escalating growth.

The key players in the market include AAK Kamani Pvt Ltd, IFFCO, Archer Daniels Midland Co, Unilever PLC, Conagra Foods, United Plantation Berhad,, Wilmar International Ltd, Bunge Ltd, Arla Foods and Gujarat Cooperative Milk Marketing Federation.