Middle East and Africa Edible Oil Market Outlook to 2030

Middle East and Africa Edible Oil Market Overview

• The Middle East and Africa (MEA) edible oil market is experiencing growth, driven by the increasing demand for healthier cooking oils, population growth, and urbanization. The market is valued at USD 50 billion, with key countries such as Saudi Arabia, UAE, Egypt, and South Africa leading the consumption and production of edible oils. Rising health awareness, alongside a shift towards oils with better nutritional profiles, such as olive oil and sunflower oil, is reshaping the market dynamics.
• The MEA region is witnessing a growing preference for premium and fortified oils due to the increasing consumer focus on health and wellness. Olive oil consumption, for instance, has surged in the GCC region, driven by the rising disposable income and the Mediterranean diet's growing popularity. Concurrently, sunflower oil, known for its high smoke point and health benefits, is gaining traction in North African countries.
• Government policies in several MEA countries support the production and fortification of edible oils to tackle malnutrition. In 2022, countries like Egypt and South Africa introduced fortification programs mandating the addition of essential vitamins and minerals to oils, promoting better public health outcomes. The market is also shaped by economic diversification initiatives, particularly in the Gulf, where domestic production of palm and olive oils is being prioritized to reduce reliance on imports.

Middle East and Africa Edible Oil Market Segmentation

• By Type of Oil: The market is segmented into palm oil, sunflower oil, olive oil, soybean oil, and others. Palm oil continues to dominate the market, accounting for the largest share in 2023, driven by its affordability and widespread use in food processing industries. However, the demand for sunflower and olive oils is rapidly rising due to their perceived health benefits. Olive oil, in particular, is seeing significant growth in countries like the UAE and Saudi Arabia, where it is often associated with a premium lifestyle.

• By Distribution Channel: The market is segmented by distribution channel into supermarkets/hypermarkets, online retail, and specialty stores. Supermarkets and hypermarkets dominate the distribution channels as they offer a broad range of edible oils and cater to the urban population's preference for convenience. The growth of modern retail in the GCC, North Africa, and South Africa, with large chains like Carrefour and Spinneys, plays a significant role in this channel's dominance.

Middle East and Africa Edible Oil Market Competitive Landscape

The MEA edible oil market is highly competitive, with both local and international players vying for market share. Key players include Wilmar International, Savola Group, and Cargill, all of whom have significant market presence in the region. Local companies such as Afia International in Saudi Arabia and Pioneer Foods in South Africa also hold a considerable share, focusing on localized production and distribution networks to meet the specific needs of each market.

Middle East and Africa Edible Oil Industry Analysis

Growth Drivers:

• Rising Health Awareness (Shift to Olive, Sunflower Oils): The shift towards healthier oils like olive and sunflower oils is becoming prominent across the Middle East and Africa. In 2024, Gulf countries, including Saudi Arabia, saw an increase in demand for olive oil, primarily due to rising health consciousness. Per capita consumption of olive oil in the region was recorded at 1.5 kg, reflecting a growing trend toward Mediterranean diets rich in monounsaturated fats. Sunflower oil also saw significant traction, especially in Egypt and South Africa, where nutrition awareness campaigns targeted heart disease prevention. Government health initiatives, like Saudi Arabias Vision 2030, emphasize promoting healthy diets.
• Increasing Population and Urbanization: The rising population across the Middle East and Africa, particularly in countries like Nigeria and Egypt, is driving demand for edible oils. By 2024, Nigerias population is projected to exceed 230 million people, with an urbanization rate of 54%. This surge in population, coupled with growing urbanization, has increased the demand for processed foods, which heavily use edible oils in cooking. The USDA forecasts that Egypt's total consumption of soybean, sunflower, and palm oils for food and industrial use in the 2023/24 marketing year is approximately 2.16 million metric tons, which is an increase from 2.1 million metric tons in the previous year, showcasing a sharp increase in demand.
• Growth of Domestic Production (Gulf and North Africa): The edible oil sector in the Middle East and Africa is increasingly focusing on domestic production. Gulf nations, particularly the UAE and Saudi Arabia, have invested heavily in olive and palm oil production to reduce dependency on imports. As of 2024, Saudi Arabia's domestic olive oil production increased substantially. Meanwhile, North African countries like Tunisia are experiencing a boost in domestic production, with Tunisia producing over 220,000 metric tons of olive oil, positioning itself as a major exporter to Europe and the Middle East.

Market Challenges:

• Fluctuating Global Oil Prices: The edible oil industry in the Middle East and Africa is significantly affected by fluctuating global oil prices. Palm oil, a key import, experiences price volatility due to political and climate-related issues in major producing countries such as Malaysia and Indonesia. These fluctuations have a direct impact on countries like Egypt and South Africa, which rely on imports for a substantial portion of their edible oil needs. The unpredictable nature of global oil prices creates uncertainty for local markets, affecting both availability and affordability.
• Environmental Concerns Over Palm Oil: Palm oil, widely consumed in the Middle East and Africa, is under scrutiny due to its environmental impact. Increased demand has contributed to deforestation in key supplier countries like Malaysia, raising concerns about biodiversity loss and carbon emissions. Countries such as Egypt and South Africa, which rely heavily on palm oil imports, face growing environmental pressures from global organizations advocating for sustainable sourcing practices. Efforts to mitigate these concerns include promoting eco-friendly certifications and supporting alternative, sustainable oil sources.

Middle East and Africa Edible Oil Market Future Outlook

The MEA edible oil market is poised for robust growth through 2028, driven by increasing health consciousness, government-backed fortification programs, and the expansion of modern retail channels. The regions reliance on imports is expected to decrease as local production capacities in countries like Egypt, South Africa, and Saudi Arabia expand, supported by investments in domestic manufacturing infrastructure.

Future Market Opportunities:

• Expansion in Premium and Fortified Oils: The growing demand for premium and fortified edible oils presents an opportunity for market growth in the Middle East and Africa. In 2024, the GCC countries saw an increase in the demand for organic olive oil, which caters to the premium segment. In Egypt, majority of urban households now prefer fortified oils, particularly those enriched with vitamins A and D. This shift aligns with government-backed nutrition campaigns focusing on reducing nutrient deficiencies in vulnerable populations.
• Growth of Online Retail in the GCC: The rise of e-commerce in the GCC has paved the way for edible oil market expansion. As of 2024, online grocery sales in the UAE and Saudi Arabia have grown significantly, with over USD 7 billion worth of food products sold online. Edible oils, particularly sunflower and olive oil, have gained traction through e-commerce platforms like Carrefour and Amazon. This trend is largely driven by consumers' preference for convenience and door-to-door delivery options.