Buttered up: Amid rising public health consciousness, operators will develop all-natural oils

The Margarine and Cooking Oil Processing industry in Canada grew over the past five years as companies expanded operations into Canada and demand for industry products rose. Growth over the past five years has indicated growing demand for margarine, vegetable oils, shortenings and other innovative industry products. The versatility of soybeans, canola and corn has enabled the industry to continuously innovate its products and keep up with trends in consumption. Health trends are expected to increasingly influence the decisions consumers make in the future, particularly impacting fellow food manufacturers that want to purchase premium oils to advertise the health benefits of their products...read more.

Industry Statistics & Market Size
Revenue
$8bn
Annual Growth 12-17
1.2%
Forecast Growth 17-22
Profit
Employment
3,182
Businesses
60

Industry Threats & Opportunities

  • The versatility of soybeans, canola and corn has enabled the industry to continuously innovate its products
  • Major players have attributed foreign exchange costs to some of their losses
  • Consolidation is expected to increase throughout the industry
  • Industry Report - Starting a New Business Chapter

    Barriers to entry for the Margarine and Cooking Oil Processing industry are moderate, with the most significant barrier being the ability to raise capital. Capital investments are needed to purchase machinery and equipment and purchase or rent facilities. While the amount of capital needed to enter the industry depends on the scale of operations an entrant is pursuing, even small-scale facilities require significant capital for processing machinery. Other barriers include securing supply contracts with upstream suppliers of soybeans, oilseeds and other ingredients used to produce margarine, cooking oil and other industry goods.The well-entrenched position of the leading processors in the industry can also represent a barrier to entry for prospective entrants. Ind...purchase to read more.

    Additional Insights for the Margarine & Cooking Oil Processing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Margarine & Cooking Oil Processing Industry are

  • Downstream ownership links
  • Supply contracts in place for key inputs
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as Demand from food manufacturing and Canadian-dollar effective exchange rate index in the Margarine & Cooking Oil Processing industry impact industry performance..

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    What's in this report

    What is the Margarine & Cooking Oil Processing Industry?

    Operators in this industry produce cooking oil, shortening and margarine. Activities include wet-milling corn and vegetables, crushing oilseeds and tree nuts, refining and blending cooking oils and blending purchased animal fats with vegetable fats.

    Industry Products
  • Oilseed processing
  • Wet corn milling
  • Fat and oil refining and blending
  • Industry Activities
  • Margarine
  • Vegetable oil, meal or cake
  • Edible oils or fats blending and
  • Deodorized vegetable oil
  • Starch
  • Refined tallow
  • Refined lard
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from food manufacturing
  • Canadian-dollar effective exchange rate index
  • World price of soybeans
  • Demand from cattle ranching and farming
  • Demand from meat, beef and poultry processing

  • Current Performance
  • It’s a process
  • Domestic growth
  • People
  • Chart: Revenue Growth

  • Industry Outlook
  • Expansion
  • Premium products
  • Rising exports
  • Table: Margarine & Cooking Oil Processing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Margarine & Cooking Oil Processing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Chocolate Production in Canada
  • Seasoning, Sauce and Condiment Production in Canada
  • Grocery Wholesaling in Canada
  • Full-Service Restaurants in Canada
  • Margarine & Cooking Oil Processing in Canada

  • Key Selling Industries
  • Corn Farming in Canada
  • Meat, Beef & Poultry Processing in Canada
  • Soybean Farming in Canada
  • Vegetable Farming in Canada

  • Products & Services
  • Oilseed processing
  • Fat and oil refining and blending
  • Wet corn milling
  • Chart: Margarine & Cooking Oil Processing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Exports
  • Food manufacturers
  • Grocery wholesalers
  • Retailers
  • Foodservice providers
  • Chart: Major Market Segmentation for the Margarine & Cooking Oil Processing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitRent and utilitiesWagesOther
  • Chart: Cost Structure Benchmarking – Sector vs Margarine & Cooking Oil Processing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Margarine & Cooking Oil Processing Industry

  • Industry Globalization
    Bunge Limited, Archer Daniels Midland Company, Cargill Inc.,
  • Table: Bunge Limited - financial performance
  • Table: Archer Daniels Midland Company - financial performance
  • Table: Cargill Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Margarine & Cooking Oil Processing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Margarine & Cooking Oil Processing Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • Canadian-dollar effective exchange rate index (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    High-Fructose Corn Syrup (Hfcs)
  • Sweet syrup derived via an enzymatic process to convert its naturally occurring glucose into fructose.
  • Trans Fat
  • A man-made, unsaturated fat that is created by partial hydrogenation. This type of fat is associated with an elevated risk of coronary heart disease.
  • Vertical Integration
  • Owning different parts of the supply chain, either in the form of forward integration (owning downstream buyers) or backward integration (owning upstream suppliers).
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Margarine & Cooking Oil Processing market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Margarine & Cooking Oil Processing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Margarine & Cooking Oil Processing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Margarine & Cooking Oil Processing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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