According to leading Australian industry researcher, IBISWorld , changing consumer tastes, health concerns, raw material prices and rising import competition are causing problems for cooking oil and margarine manufacturers.
Several factors are influencing the fortunes of the cooking oil and margarine manufacturing industry including changing consumer tastes, availability and prices of raw materials, and rising import competition.
Concerns about health and nutrition have impacted the overall per capita consumption of vegetable and animal fats, with the same health concerns increasing consumption of fat and oil products considered healthier such as cholesterol lowering margarine products and olive oil.
IBISWorld estimates the industry is at the mature stage of its lifecycle. Industry value added is forecast to grow at a slower pace than that of the overall economy over the 10 years through 2017-18, growing at an annualised rate of 0.5%, whereas the Australian economy is forecast to grow at 2.4% over the same period.
Per capita consumption of vegetable and animal oil and fat has been stagnant due to health concerns and increases in butter consumption. Products considered a healthier alternative such as olive oil and valued-added margarines (such as cholesterol lowering margarine) have however, enjoyed growth.