South Korea Vegetable Oil Market- Trend Analysis & Forecast to 2030
South Korea demand for vegetable oil stood at XX tonnes in 2023 and is projected to grow at a CAGR of XX% from 2020 to 2030. South Korea holds a...
| Report ID: COM-026 | Aug 2024 | 135 Pages | Status: Upcoming |
South Korea Vegetable Oil Market- Trend Analysis & Forecast to 2030
Market Overview
The South Korean vegetable oil market is an integral part of the country's food industry, driven by a mix of domestic consumption and the processing industry's needs. With a focus on health and well-being, the demand for vegetable oils rich in unsaturated fats, such as soybean, sunflower, and olive oil, is growing. South Korea's vegetable oil market is largely import-dependent, with the majority of its needs met by imports from countries like the United States, Canada, Argentina, and Southeast Asia. The market has evolved in response to changing dietary trends, such as an increased preference for Western-style diets and processed foods, which has heightened the demand for various types of vegetable oils. The market's future trajectory will be shaped by shifts in consumer preferences, government regulations, and global trade dynamics, positioning South Korea as a key player in the East Asian vegetable oil market.
Importance of South Korea in Vegetable Oil Global Supply Chain
South Korea plays a significant role in the global vegetable oil supply chain, primarily as a major importer rather than a producer. Its strong demand for various vegetable oils influences trade flows from major exporters in the Americas and Southeast Asia. The country’s advanced food processing industry also drives demand for specific types of oils, impacting global market trends and pricing.
South Korea Vegetable Oil Production & Demand Trend
South Korea's domestic production of vegetable oil is minimal, with the country heavily reliant on imports to meet its consumption needs. The demand for vegetable oil has been on an upward trend, driven by the food processing sector and increasing consumer preference for healthier cooking oils. The market sees a strong demand for soybean oil, palm oil, and sunflower oil, with a noticeable shift towards oils with higher nutritional value, such as olive and canola oil.
South Korea Vegetable Oil Market Growth Factors
The growth of the vegetable oil market in South Korea is fueled by several factors. The country's increasing population and rising disposable income have led to a higher demand for edible oils, particularly those perceived as healthier options. The shift towards Western-style diets, which often require more vegetable oil for cooking and food processing, has further driven market demand. Additionally, the expanding food processing industry in South Korea, which uses large quantities of vegetable oil, is a significant growth driver. The growing awareness of health and nutrition among consumers has also boosted the demand for oils with lower saturated fat content and higher levels of omega-3 and omega-6 fatty acids. The government's focus on improving the nutritional standards of food products has also played a role in promoting the consumption of healthier vegetable oils. As South Korea continues to urbanize and modernize, the demand for vegetable oil is expected to grow, supported by the expansion of retail channels and the increasing popularity of ready-to-eat and processed foods.
South Korea Vegetable Oil Market Restraints & Challenges
The South Korean vegetable oil market faces several challenges that could impede its growth. The heavy reliance on imports makes the market vulnerable to global supply chain disruptions, price volatility, and trade policies in exporting countries. Additionally, fluctuations in the South Korean won against major currencies can impact import costs and, consequently, retail prices. The market is also constrained by stringent government regulations on food safety and quality standards, which can increase operational costs for producers and importers. Furthermore, growing environmental concerns related to the production and consumption of certain types of vegetable oils, such as palm oil, may lead to stricter regulations and a shift in consumer preferences, posing a challenge to market growth.
SOUTH KOREA Vegetable Oil Supply Chain Bottlenecks/Challenges
The vegetable oil supply chain in South Korea faces several bottlenecks and challenges that affect its overall efficiency. The country's reliance on imports means that any disruption in global supply chains, such as shipping delays or changes in export policies by major producing countries, can lead to supply shortages and price spikes. Additionally, the high cost of logistics, including transportation and storage, adds to the overall cost of vegetable oil in the market. Regulatory challenges, including compliance with food safety standards and import tariffs, also contribute to the complexity of the supply chain. Moreover, the need for cold storage facilities for certain types of oils, such as olive oil, adds another layer of logistical difficulty. These challenges can lead to increased costs for consumers and limit the ability of local companies to compete with imported products.
Vegetable Oil Price Setting Power of South Korea
South Korea, as a major importer, has limited price-setting power in the global vegetable oil market. The prices of imported vegetable oils in the country are largely determined by global market conditions, including production levels in exporting countries, international trade policies, and fluctuations in global demand. However, domestic factors such as import duties, currency exchange rates, and local consumer preferences also influence the final prices in the South Korean market.
Consumer Preference of Type of Vegetable Oil
South Korean consumers exhibit a strong preference for vegetable oils that are perceived to be healthier and more versatile in cooking. Soybean oil is widely used due to its affordability and nutritional benefits, while olive oil and sunflower oil are popular for their health benefits and use in Western-style cooking. Palm oil, though commonly used in the food processing industry, faces some consumer resistance due to health and environmental concerns. Rapeseed oil holds the largest share of household consumption at 27%, followed by soybean oil at 24%, and olive oil at 22%.
Vegetable Oil End-use Industries
In South Korea, vegetable oils are primarily used in the food industry, both for household cooking and in food processing. The food processing industry, which includes the production of snacks, baked goods, and ready-to-eat meals, is a major consumer of vegetable oils. Korean households generally prefer soybean oil and rapeseed oil for home cooking, while palm oil is primarily used in food manufacturing. Additionally, vegetable oils are used in the cosmetic and pharmaceutical industries as key ingredients in products like soaps, lotions, and dietary supplements.
In South Korea, the use of vegetable oil for biodiesel production has been steadily increasing as part of the country's broader push towards renewable energy and reducing greenhouse gas emissions. The South Korean government has implemented policies that encourage the blending of biodiesel with traditional diesel fuels, leading to a rise in demand for vegetable oils such as soybean, palm, and used cooking oil as feedstocks. Biodiesel currently accounts for approximately 20-21 percent of the total vegetable oil market. The focus has been on enhancing energy security and meeting international environmental commitments, driving investments in biodiesel production facilities. Despite challenges like fluctuating oil prices and competition from other biofuel feedstocks, South Korea remains committed to expanding its biodiesel industry, with vegetable oil playing a crucial role in this transition.
South Korea Vegetable Oil Trade (Export & Import) Trend
South Korea is heavily reliant on imports to meet its vegetable oil demand, with the majority of its supplies coming from the United States, Argentina, and Southeast Asia. The country imports a wide range of vegetable oils, including soybean oil, palm oil, and sunflower oil, to meet its diverse consumer and industrial needs. The country imported 1,255 thousand tonnes of vegetable oil in 2022/23, in which palm oil and soybean oil accounted for share of around 51% and 28% respectively. The import trend has been steadily increasing, driven by the growing demand from the food processing industry and changing dietary preferences. On the export side, South Korea's role is minimal, as most of the imported vegetable oil is consumed domestically. The country's trade dynamics are influenced by global oil prices, currency fluctuations, and trade agreements with key exporting countries. As South Korea's demand for vegetable oil continues to grow, the import trend is expected to rise, although efforts to diversify sources and improve domestic production could mitigate some of the dependency on imports.
South Korea Vegetable Oil Market Competitive Analysis
The South Korean vegetable oil market is competitive, with a mix of domestic processors and international suppliers. CJ CheilJedang Corporation and Sajo Daerim Corporation are the leading domestic players with significant vegetable oil crushing capacity in South Korea. Key players include CJ CheilJedang, Daesang Corporation, and Samyang Foods, which dominate the market with strong distribution networks and a focus on quality. These companies face competition from imported brands, particularly in the premium segment, where consumer demand for high-quality, health-focused oils is growing.
List of Key Companies (Manufacturers/ Suppliers/ Exporters),
■ CJ CheilJedang Corporation
■ Samyang Foods Co., Ltd.
■ Lotte Foods Co., Ltd.
■ Sajo Haepyo Corporation
■ Ottogi Corporation
■ Daesang Corp
■ Dongwon Group
■ Borges International Group
Future Outlook
The future of the South Korean vegetable oil market is expected to be characterized by steady growth, driven by rising consumer demand for healthier cooking options and the expanding food processing industry. The market will likely see increased diversification in terms of the types of vegetable oils consumed, with a growing preference for oils with higher nutritional value. Efforts to enhance domestic production and reduce import dependency will also shape the market's trajectory. By 2030, South Korea's vegetable oil market is expected to be more robust, with a balanced mix of domestic and imported products catering to the evolving needs of consumers and industries.
Report Coverage
South Korea vegetable oil market report covers historical market data from 2015-2023 and projections to 2030. The report also includes supply & demand and trade (import-export) market analysis. The decision matrix analysis helped in identifying the barriers and their implications on the value chain and different factors of relative significance to the South Korea vegetable oil market are diligently tracked and their impact closely monitored for short, medium, and long-term market cycles. The report's contents cover an analysis of the aspects involved in the vegetable oil market such as the parent market, the evolution of the industry, innovative technologies in the manufacturing process, supply chain, and listing of key exporters.
Scope of the Report
| Report Attributes | Details |
|---|---|
| Historical Years | 2015–2022 |
| Base Year | 2023 |
| Forecast Period | 2024–2030 |
| Units | Value (US$ Million) and Volume (Tonnes) |
| Report Coverage | Production, Consumption, Export, and Import |
| Segments Covered |
|
| Geographies Covered | South Korea |
| Companies Profiled | The market players include, CJ CheilJedang Corporation, Samyang Foods Co., Ltd., Lotte Foods Co., Ltd., Sajo Haepyo Corporation, Ottogi Corporation, Daesang Corp, Dongwon Group, Borges International Group, and Others . |
Please request for a sample report to learn more about the report coverage (Contact us at: sales@statledger.com or +91-9226-888268).Related Reports
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South Korea Vegetable Oil Market – Supply & Demand, Trade, and Competitive Landscape Analysis
1. Executive Summary2. Introduction
2.1. Objectives & Scope of the Study
2.2. Definitions & Economic Importance
2.3. Research Methodology
2.4. Factors and Decision Matrix Analysis
2.5. Limitations & Challenges
3.1. Economic Importance of Vegetable Oil
3.2. Vegetable Oil Crop Seasonality
3.3. Processing & Grading
3.4. Vegetable Oil Uses & Application Areas
3.5. Regulatory Analysis
5. South Korea Vegetable Oil Market Growth Factors Analysis
5.1. Drivers and Restraints Analysis
5.2. Challenges and Opportunities Analysis
5.3. South Korea Vegetable Oil Industry SWOT Analysis
5.4. South Korea Vegetable Oil Market PESTEL Analysis
5.5. South Korea Vegetable Oil Market Porter's Five Forces analysis
6.1. South Korea Vegetable Oil Crop Analysis (Area and Yield)
6.2. South Korea Vegetable Oil Production Trend
6.3. South Korea Vegetable Oil Processing Trend
6.4. South Korea Vegetable Oil Import Trend
7.1. Domestic Consumption
7.2. Vegetable Oil Supply Chain Analysis
7.3. Vegetable Oil Product/Brand Variants
8.1. South Korea Vegetable Oil Market, by Source
8.1.1. Domestic Production
8.1.2. Imported
8.2. South Korea Vegetable Oil Market, by Type
8.2.1. Soybean Oil
8.2.2. Palm Oil
8.2.3. Rapeseed Oil
8.2.4. Coconut Oil
8.2.5. Corn Oil
8.2.6. Sunflower Oil
8.2.7. Olive Oil
8.2.8. Rice Bran Oil
8.2.9. Sesame Seed Oil
8.2.10. Others
8.3. South Korea Vegetable Oil Market, by End-use
8.3.1. Food Use
8.3.2. Industrial Applications
8.4. South Korea Vegetable Oil Market, by Sales
8.4.1. B2B
8.4.2. B2C
9.1. Vegetable Oil Import Trend Analysis
9.2. Top 5 Import Origins of South Korea Vegetable Oil
9.3. Import & Export Tariff Analysis
10.1. Domestic Price Trend
10.2. Export Price Trend
10.3. Price Seasonality & Price Pattern Analysis
10.4. Price Events Analysis
11.1. South Korea Vegetable Oil Market Mapping
11.1.1. South Korea Vegetable Oil Market Share Analysis
11.1.2. List of Key Countries Exporting Vegetable Oil to South Korea
11.1.3. List of Key Companies Importing Vegetable Oil to South Korea
11.2. Company Profiles
11.2.1. CJ CheilJedang Corporation
11.2.2. Samyang Foods Co., Ltd.
11.2.3. Lotte Foods Co., Ltd.
11.2.4. Sajo Haepyo Corporation
11.2.5. Ottogi Corporation
11.2.6. Daesang Corp
11.2.7. Dongwon Group
11.2.8. Borges International Group
13. Appendix
Table 1: South Korea Vegetable Oil Production Volume (Tonnes)
Table 2: South Korea Vegetable Oil Production, Value (USD Billion)
Table 3: South Korea Vegetable Oil Market, Demand Volume Details
Table 4: South Korea Vegetable Oil Market, Demand Values Details
Table 5: South Korea Vegetable Oil Demand Market, By Type (Volume)
Table 6: South Korea Vegetable Oil Demand Market, By Type (Value)
Table 7: South Korea Vegetable Oil Demand Market, By Source (Volume)
Table 8: South Korea Vegetable Oil Demand Market, By Source (Value)
Table 9: South Korea Vegetable Oil Demand Market, By End-use (Volume)
Table 10: South Korea Vegetable Oil Demand Market, By End-use (Value)
Table 11: South Korea Vegetable Oil Demand Market, By Sales Channel (Volume)
Table 12: South Korea Vegetable Oil Demand Market, By Sales Channel (Value)
Table 13: South Korea Vegetable Oil Import Trend, by Value
Table 14: South Korea Vegetable Oil Import Trend, by Volume
Table 14: South Korea Vegetable Oil Import, by Type
Table 15: South Korea Vegetable Oil Import, by Type
Table 16: South Korea Vegetable Oil Import Origins by Volume (in %share)
Table 17: South Korea Vegetable Oil Import Origins by Value (in %share)
Table 18: South Korea Domestic Vegetable Oil Market Price Trend
Table 19: South Korea Vegetable Oil Import Market Price Trend, CIF
Table 20: Global Bench Markets Vegetable Oil Price Trend
Table 21: Industry Recent Developments
Table 22: Key Companies involved in Global Vegetable Oil Trade, Processing, and Supply
Figure 1: Vegetable Oil Crop Production Trend
Figure 2: South Korea Population Dynamics, 2023
Figure 3: South Korea: GDP Annual Growth & Exchange Rate Trend
Figure 4: Global Vegetable Oil Market – An Overview
Figure 5: Global and South Korea Vegetable Oil Production & Consumption Trend Comparison
Figure 6: South Korea Vegetable Oil Production Trend
Figure 7: South Korea Vegetable Oil Crop Area Trend
Figure 8: South Korea Domestic Consumption of Vegetable Oil, (Volume)
Figure 9: South Korea Domestic Processing of Vegetable Oil
Figure 10: South Korea Vegetable Oil Supply Channel Framework
Figure 11: Vegetable Oil Product Variants/Brands Available in the Market
Figure 12: Global Vegetable Oil Production, Volume
Figure 13: Global Exports of Vegetable Oil, Value (USD Million)
Figure 14: South Korea Vegetable Oil Import, Value
Figure 15: South Korea Vegetable Oil Import, Volume
Figure 16: South Korea Vegetable Oil Import Origins Share (by Volume), 2023
Figure 17: South Korea Vegetable Oil Price Trend, Annual Average Prices
Figure 18: South Korea Price Trend, Monthly Average Prices
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