In Australia, foodservice outlet closures towards the end of March 2020 resulted in a shift towards retail sales of edible oil, accelerating growth in this channel as consumers started to cook more at home during the lockdown. Most types of edible oils are outperforming their growth rates in 2019 (pre-pandemic) as a result, with corn oil showing the highest volume and value sales increases.
Increasing consumer-awareness of the benefits of using extra virgin olive oil, coupled with strong marketing initiatives by the Australian Extra Virgin Olive Oil industry body, means consumption of the largest category olive oil continues to rise. With its flexibility, consumers are switching to extra virgin olive oil as opposed to other oils.
With the extensive range of formats available and lower average unit prices per litre in comparison with brands, private label products from different retailers have collectively proven to be especially popular, occupying three out of the top five ranks within edible oils. Aldi Stores Supermarkets Pty Ltd is ranked first in company terms in 2020, while Coles Group Ltd and Woolworths Ltd (Australia) occupy the fourth and fifth ranks respectively.
Stockpiling earlier in the year is likely to see retail sales of edible oils dip moderately in 2021, while the reopening of foodservice establishments for dine-in means that sales channel dynamics are normalising, which will contribute to retail decreases. However, overall retail category growth will still be supported for some time to come by the home-cooking trend, an effect of the economic recession.
A consumer shift in preference towards healthier diets has resulted in faster value share growth within organic vegetable and seed oil, encouraging more players to enter the category. Smaller manufacturers such as Murray River Organics have launched three flavoured organic coconut oils – chilli, garlic and ginger, focusing on their health benefits and taste.
Climate change and unfavourable seasonal factors have affected the production of canola crops in Australia, leading to a late start to the canola season and resulting in lower yields. According to the Australian Oilseeds Federation crop report, combining the lower rate of production with the rising popularity of olive oils, growth of rapeseed oil is expected to be fairly slow over the forecast period.
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Understand the latest market trends and future growth opportunities for the Edible Oils industry in Australia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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This report originates from Passport, our Edible Oils research and analysis database.
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