European Vegetable Oil Applications: A Niche Industry with Growth Opportunities

Rabobank is of the opinion that, to continue on this path of profitability and growth, players can:

-... capture pockets of volume and value growth in the EU sub-segments in the medium term, and in some applications like biscuits, chocolate, and organic segments.

-... consolidate the fragmented EU industry to maintain long-term growth. A buy-and-build strategy can be a viable option for crushers who can integrate downstream and enter a niche industry with higher profitability. Some national champions specialised in food application, who have already achieved operational excellence, can also replicate their business models through selective acquisitions in other EU countries.

-... expand internationally to follow the faster growth of processed food in emerging markets. This will be the key strategic direction for specialised global leaders. Some national champions are working with European food multinationals that already started penetrating emerging markets.

-... follow the consumer drivers of health, sustainability, and niches with product development – a must for the long term