2024 Top 10 News Stories in the Vegetable Oil Industry
In 2024, tourist destinations and the restaurant industry in Japan were extremely busy due to strong inbound demand in the post-COVID era. Against the backdrop of a serious labor shortage, annual labor negotiations in the spring were concluded with a high wage increase rate. Even so, Japan failed to completely correct the trend of negative real wages, and a revision of vegetable oil prices was unavoidable due to the growing awareness for maintaining the current standard of living, high raw material and energy prices, and the weak yen. Although demand for vegetable oil has increased compared to last year, it has not yet recovered to pre-COVID levels. Amid growing awareness toward food security due to the prolonged geopolitical situation in Ukraine and the Middle East and to competition with biofuel demand for raw materials, the vegetable oil industry is continually working to fulfill its responsibility to provide a stable supply of safe and secure products at reasonable prices. For example, the industry is taking various measures to address the logistics crises known as the “2024 Problem.” The value of vegetable oil is expanding, with strong support for premium oils and high evaluation of functional oils and cooking oils to address labor shortages. The Top 10 News Stories in the Vegetable Oil Industry for 2024 reflect these conditions.
| Ranking | Item |
| 1 | The price of olive oil has soared due to two consecutive years of poor harvests caused by heat waves and droughts along the Mediterranean coastline. This has affected stable supplies and forced companies to make major price revisions. |
| 2 | Although raw material prices stabilized compared to prior levels, costs remained high. The yen weakened. The cost of distribution, materials, and fuel increased significantly. Vegetable oil refineries revised their prices in response to the severe cost environment. |
| 3 | In the household market, the quantity of consumption decreased due to the impact of price revisions and consumers’ growing awareness of maintaining the current standard of living. Even so, sales volume expanded smoothly due to price revisions of products such as olive oil and the sale of value-added products. |
| 4 | Due to the expansion of biodiesel mandates in Indonesia Palm, oil prices increased significantly and reached their highest level since 2022. |
| 5 | The market size grew for rice oil and sesame oil. Sesame oil overtook canola oil to become the second largest oil in terms of monetary value after olive oil. |
| 6 | Due to the prolonged impact of the “cocoa shock” which involves soaring cocoa bean prices and supply instability, there was increasing worldwide demand for cocoa butter alternatives made from vegetable oil. |
| 7 | The Japan Olive Oil Fair Trade Council was established on March 28 and began its activities. |
| 8 | The restaurant industry recovered due to factors such as the increase in inbound demand. Commercial demand rose as the result of factors such as strong performance in the ready-meal market. Furthermore, labor shortages led to increased demand for functional oils such as long-lasting oils, rice cooking oils (edible oils added to rice cookers before cooking in order to coat the rice) , and other cooking oils that reduce workload and simplify cooking processes. |
| 9 | 100 years passed since the birth of salad oil. As a highly refined vegetable oil that can be eaten raw, salad oil has grown into a food product that fulfills a central role in improving dietary habits and is used in a wide range of dishes. |
| 10 | Due to the “2024 Problem,” logistics costs rose and delivery concerns grew due to the tight supply and demand of trucks. Each company is being forced to respond to logistics issues. Meanwhile, the revised Act on Advancement of Integration and Streamlining of Distribution Business was promulgated in May. Public comments were submitted for the summary implementing regulatory measures on shippers. |
Note: The Top 10 News stories for the year are chosen by votes from 9 oil production industry trade paper companies and the chairman of the Japan Oilseed Processors Association.
