Corn oil is an increasingly competitive market in Bangladesh, with a number of external as well as internal factors shaping the overall scenario. Transparency Market Research has observed that 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.
External competition in this market is presented by producers and distributors. These elements have been noted to adopt forward and backward integration strategies and develop their own facilities to produce corn oil.
In terms of value, the Bangladesh corn oil market was valued at US$167,073 in 2015 and is expected to reach US$202,072 by 2026. If these values hold true, the market is expected to expand at a CAGR of 1.8% during the forecast period.
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Livestock Emerges as Leading End-use Segment in Bangladesh Corn Oil Market
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. On the other hand, edible corn oil is forecast to exhibit the highest CAGR of 2.1% between 2016 and 2026.
Based on 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. However, the industrial segment is expected to register a growth rate higher than any other category, reporting a 2.5% CAGR from 2016 to 2026.
Rising Focus on Health and Fitness Boosting Growth
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. “Just like consumers in European and North American countries, consumers in Bangladesh are exhibiting a shift in demand toward less processed foods,” the author of the report states. “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.”
In addition to this, the corn oil market in Bangladesh is poised to be driven by the easy availability of grains and a higher profit margin for farmers and the overall food sector.
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Low-key Branding and Promotional Activities Restricting Sales
The existence of an unorganized market, coupled with a weak distribution system, cripples the Bangladesh corn oil market. Most of the edible oil products in the country are sold in loose packets. In fact, loosely-packed edible oils account for approximately 75.0% 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,” the lead analyst predicts.
Another factor hampering the sales of corn oil in the country is the fact that it is not used as an ingredient in traditional cooking. This can be attributed to its high price and restricted availability. In addition, low-key branding and promotional activities by manufacturers in Bangladesh is expected to hinder the growth of the corn oil market over the forecast period.