Study: Corn oil market brightens on improving living standard in BD

Corn oil is an increasingly competitive market in Bangladesh, with a number of external as well as internal factors shaping the overall scenario, says a new study. Bangladesh corn oil market was expected to reach $202,072 by 2026 from $1,67,073 in 2015, according to a report released recently by the Transparency Market Research, a US-based global market intelligence company. “One of the most significant factors boosting the consumption of corn oil across Bangladesh is the changing dietary habits and improving living standards of the consumers, which can be attributed to the rise in disposable income.” The report said the intense internal competition in the corn oil market in Bangladesh is owing to the presence of a number of large international as well as small domestic providers. These include Adani Wilmar Ltd, Associated British Foods plc, American Vegetable Oils, Inc., and Olympic Oils Ltd. On the basis of type, the corn oil market in Bangladesh is bifurcated into edible and non-edible. Among these, non-edible corn oil is expected to account for dominant share of 71.4% by the end of 2016, and on the other hand, edible corn oil is forecast to exhibit the highest CAGR of 2.1% between 2016 and 2026, it said. Based on the end use, the Bangladesh corn oil market comprises food service restaurants, food processors, retail, livestock and pharmaceuticals. By the end of 2016, livestock is expected to account for a value share of 34.9%, emerging as the leading end-use segment, the report forecasts. However, it said the industrial segment is expected to register a growth rate higher than any other category, reporting a 2.5% CAGR from 2016 to 2026. On health and fitness, the report said: “Just like consumers in European and North American countries, consumers in Bangladesh are exhibiting a shift in demand toward less processed foods.” “Growing health concerns and rising awareness about the benefits of switching to healthier edible oils such as olive oil, corn oil, rice bran oil, and blended oil have upped the demand for as well as consumption of corn oil.” Most of the edible oil products in the country are sold in loose packets. In fact, loosely-packed edible oils account for approximately 75% of the overall market, with bottled edible oils accounting for the rest. “Corn oil falls in the latter category and owing to a weak distribution network for bottled edible oils, the corn oil market is likely to take a hit in the forecast period,” predicts the lead analyst, Transparency Market Research.