New pattern of China's Edible Oil Market in 2015

Throughout China's edible oil market, after years of development, it has gone through the industry growth process from small brands to big fish eating small fish, and now the domestic edible oil market continues to move towards the trend of brand, standardization and health. In terms of the current situation of the edible oil market, the consumption scale of 26 million tons, of which soybean oil, peanut oil, blend oil and rapeseed oil occupy the dominant position, and camellia oil and olive oil are secondary products; flaxseed oil, grape seed oil and other special raw materials oil, as a special oil opened a segment of the market.

However, in 2014, the domestic grain and oil market was affected by the overall economic environment, the overall operation was weak. The prices of major domestic vegetable oil varieties have hit a new low this year, driven by a sharp drop in international crude oil prices, and domestic well-known oil companies have lowered the prices of their small packaging oil in order to expand their market share. Coupled with the sluggish mobile sales of the domestic edible oil raw materials market, the edible oil market is even more severe. In contrast, the market for non-GM cooking oils and specialty cooking oils is indeed in full swing, and the market momentum has been booming in 2014. Under the dual-factor-driven market situation, domestic edible oil is bound to fluctuate greatly in 2015.

Trend 1: supply exceeds demand, and the price of soybean oil will continue to fall.

In December 2014, the spot price of domestic soybean oil continued to fluctuate and hit the lowest point of the year. Market sales and purchases are lukewarm, and terminal consumption is extremely poor, resulting in insufficient market profits. There is a large backlog of domestic soybean oil products, and bulk oil and small packaging oil are concentrated in oil plants. The price of crude oil in the international market has fallen, and the fundamentals of the decline in soybean oil industry demand are short. In order to solve the problem of inventory backlog and market sales, oil factories have taken price reduction measures one after another, aggravating the downward trend of soybean oil market.

It is expected that there will be a big shock in the market in 2015 due to the abundant spot supply of domestic soybean oil. On the one hand, the strong export progress of US soybeans since the launch of new beans is much higher than that of the same period in history, while the crushing profits of domestic soybeans are at an all-time high to stimulate domestic demand. The USDA expects total US soybean exports in 2015 to rise 6.9 per cent year-on-year; domestic oil consumption rose 2.6 per cent year-on-year. Most of the domestic soybean oil market depends on imports, which will greatly increase the inventory of domestic soybean oil products. Coupled with the monthly soybean imports of nearly 1500-16 million tons, the import of soybeans to Hong Kong has increased, the port soybean inventory has increased, and the operating rate of oil plants will remain high. It is expected that there will still be a large increase in domestic soybean oil supply in 2015.

The market demand is limited, and the supply far exceeds the demand, which leads to a more severe situation of soybean oil, which dominates the domestic edible oil market.

Trend 2: cost support and rapeseed oil prices fluctuate in a range.

As the domestic temporary storage of rapeseed oil in 2014 was nearly 1 million tons less than the previous year, the number of imported rapeseed increased by 1.44 million tons over the same period last year, with a discount of nearly 600000 tons, directly offsetting the reduction in imported rapeseed oil. Although the selling price of rapeseed oil is at a historically low level, it is conducive to pulling the market to buy. However, the domestic supply of rapeseed oil is very abundant, the price is seriously suppressed, and the market profit continues to decline. By the end of 2014, domestic rapeseed oil prices continued to fluctuate within the range of several months.

In 2015, domestic rapeseed oil is expected to be active due to the increase in overall demand, but the overall market sales will still fluctuate greatly due to time differences. Although people's awareness that soybean oil is genetically modified has become very common, which contributed to the increase in the consumption of rapeseed oil in 2015, from the perspective of domestic rapeseed oil imports, from November to December 2014, the number of imported rapeseed was nearly 1.5 million tons. Although lower than the same period last year, it is also in a year on the high side in the past five years. Imports are expected to be more than 1.5 million tons in 2015, which will greatly increase the production capacity of domestic rapeseed oil. At the same time, in the second half of 2015, with the domestic rapeseed harvested and pressed, the supply of rapeseed oil far exceeded the consumer demand.

In the market environment with sufficient supply of rapeseed oil, only holiday demand can effectively drive product consumption, and consumer purchase has obvious periodicity. As a result, domestic rapeseed oil will continue to fluctuate in 2015, and prices will fluctuate throughout the year.

Trend 3: blowout development, non-GM edible oil in spring

In 2014, the domestic consumption of non-genetically modified cooking oil sounded, and public consumption soared. At present, China's non-GM edible oil market is expanding rapidly, and its market share is relatively concentrated, coupled with the cost advantage brought about by the decline in international oil prices. Judging from the consumption trend, in 2015, or even in the next 2-3 years, this market will usher in a rapid blowout period in terms of business promotion and consumer mentality.

At present, China has a market of 26 million tons of edible oil, of which small packages account for less than 20%. This means that the market share of small packaging edible oil of Chinese brands can be further expanded, and the largest proportion of market growth of small packaging oil is non-genetically modified edible oil. The market for non-GM small packaging oil will grow at an annual rate of more than 8%, and the overall sales of small packaging oil will exceed 10 million tons in the next 2-3 years, of which the non-genetically modified edible oil market will probably account for 20% of the market share, that is, 20% to 3 million tons. According to industry insiders, there are dozens of non-GM edible oil varieties on the market, and all kinds of products are dazzling on the shelves. This also indirectly reflects the hot market of domestic consumers for non-GM products, which will continue in 2015.

Trend 4: look up all the way, flaxseed oil dominates special oil

In recent years, with the strengthening of people's health awareness, many consumers began to try high-end edible oil, which led to a rise in sales of high-end edible oil, and the high-end edible oil market began to heat up. Rare raw material resources, more in line with the nutrition of the human body, long-term brand management can bring strong anti-risk ability.

At present, China's high-end edible oil market, the first echelon: represented by foreign olive oil, to Spain, Italy, Greece and other places are the most famous. The second echelon: high-end edible oil based on Chinese-style raw materials, such as safflower seeds in Xinjiang and walnuts in Shanxi. New Forces: in the past two years, flaxseed oil rich in unsaturated acid has become a dark horse of high-end edible oil, the market performance is very active, leading the special edible oil market.

Due to the extremely scarce food sources of α-linolenic acid and the unique dietary structure of Chinese people, the intake of α-linolenic acid is seriously insufficient and everyone is scarce, which is the main contradiction leading to the nutritional imbalance of Chinese people at present. The market for α-linolenic acid is vast, first of all, 160 million patients with hypertension, 170 million people with abnormal blood lipids, 260 million people who are overweight and obese, 90 million people with diabetes, 110 million people with abnormal glucose metabolism, 20 million new cancer patients in China each year, 18 million newly married couples, and more than 21 million newborns, followed by other chronic diseases and sub-health people who account for more than 70 percent of China's total population. Finally, there are healthy people. With the continuous improvement of people's awareness, China's α-linolenic acid market has entered a stage of rapid development.

In 2014, "linseed Khan" linseed oil aimed at this market and began to lead the brand operation of flaxseed oil market in an all-round way. Flax Khan brand is the core brand created by Alfa Biotechnology Co., Ltd., and its products are mainly middle and high-end edible oil brands. The company has laid out its planting bases in Zhangbei, China and Canada, the two major global flaxseed gold producing areas at 42 degrees north latitude, laying a foundation for comprehensively leading the flaxseed oil market. For the development of flaxseed industry, Mr. Wang Wenjie, general manager of the company, has made on-the-spot visits across more than half of China and Canada, the core producing area of the world, and has made flaxseed industry a lifelong endeavor, devoting himself to building the whole flaxseed industry chain and digging deep into the value of flaxseed industry chain.

Since the company's products were listed on the market, through omni-directional brand planning and promotion, "linseed Khan" has become the first brand in China's linseed oil market, seizing the first mind of linseed oil consumers and forming the brand awareness that linseed oil is "linseed Khan". In the future, through continuous brand operation and product research and development, the company will realize the leading position of "linseed Khan" in the linseed oil market in China and even in the world, and make "linseed Khan" a pioneer brand in China's edible oil market. become the brand leader of new oil. China's flaxseed oil market, dominated by flaxseed Khan, is bound to become a hot spot in 2015.

In the face of the new market environment, consumer demand is also changing, and the competition in the edible oil market will break away from the traditional supply competition and gradually turn to meet the needs of consumers. The market pattern dominated by traditional edible oils is also changing.