Oils

Increased interest in healthy fats and oils has expanded offerings in the oils segment far beyond commodity crop oils like rapeseed, sunflower, corn and soybean, and the value of the European oils market is predicted to reach $38 billion by 2022.28 Olive oil has grown in popularity for years, and consumption is showing stable growth of 3-5% over the next five years due to increased interest in healthy eating and the Mediterranean diet.29

However, sales are at their most dynamic for oils that are sold at much lower volumes. Among those on the rise are oils prized for their flavour rather than only for use in cooking, such as avocado oil, walnut oil and sesame oil, and coconut oil has gained attention for its medium chain triglyceride (MCT) content, which many consumers seek out for its purported health properties.30

More recently, European consumers have become aware of the health benefits of other oils and are experimenting with those from hemp, almonds, rice and flax; although, the market for such products remains relatively small.31, 32

According to Mintel producers should more overtly flag up the respective health benefits, which suggests that omega-3s or antioxidant content could be leveraged as a selling point.33

In addition, ethical and environmental claims related to oils have increased across the board, referring to elements such as eco-friendly packaging, sustainable production, and human and animal welfare.34

Ethical and enviromental claims increase their share of launches in Europe

15% Europe: selected ethical and environmental claims, as a % of total launches in butter, margarine & other blends and oils,

● Sept 2015 - Aug 2016 vs ● Sept 2019 - Aug 2020

% of launches 10%

5%

0%

7 12

Environmentally friendly package 7 11

Recycling 6 9

Environmentally friendly product 4 6

Ethical - sustainable (habitat/resourses) 2 2

1 2

Ethical - human Ethical - animal

Source: Mintel GNPD35