China's high-end edible oil market share will increase

With people's attention to health and the decline in the profit margin of low-end edible oil, it is expected that the share of high-end cooking oil in the Chinese edible oil market will increase significantly in 2013.

China's high-end edible oil market has great potential. In the future, there will be a large number of brands launching their own high-end edible oil brands. Why the market potential of high-end edible oil is huge, analysts believe that there are three reasons:

First, the increase in the prices of raw materials such as soybeans and peanuts has increased the cost of manufacturing low-end edible oils and reduced the profit margin. Second, due to the frequent occurrence of food safety and quality problems, frequent negative events such as genetically modified edible oil and cooking oil have been exposed. Because of their own health concerns, they are also willing to purchase high-quality edible oils with guaranteed quality. Third, national policies also make the production of high-end cooking oil more favorable. According to the “12th Five-Year Development Plan for Food Industry”, the state will actively develop the production of woody vegetable oil such as tea seed oil, walnut oil and olive oil in the future to promote the diversification of oil and fat varieties. Moreover, raw materials such as rapeseeds and walnuts are rich in resources and quality in China, all of which have created conditions for the mass production of high-end cooking oil.

In this context, many Chinese companies have launched their own high-end edible oil brands. For example, Luhua, Longda, Jinlongyu, Fulinmen, etc. are all developing high-end edible oil series such as olive oil, rapeseed oil, wild tea oil, and safflower seed oil, and actively seize market share. But at the same time, the issues exposed in this process cannot be ignored. At present, foreign companies mainly occupy the high-end edible oil market in China, mainly Spain and Italy, and mainly produce high-end olive oil. From raw materials to packaging are directly imported from the origin, the price is not cheap, packaging used more than 750ml high-end small bottles, 250ml price between 30-40 yuan. Compared with these brands, domestic brands have a certain gap between quality and packaging. Moreover, China does not use olives as the main raw material for oil production, and olive oil produced by many brands is blind and follows the trend. In this situation, domestic edible oil brands will face fierce competition with foreign edible oil brands.