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The Bangladesh mustard oil market is a significant portion of the overall edible oil market, with local production playing a crucial role. While the exact market size fluctuates, it's generally estimated to be around 250,000 tonnes annually, constituting about 36% of the country's locally produced edible oils. This figure is significantly lower than the total annual demand for edible oils, which is estimated to be over 3 million tonnes.
Here's a more detailed breakdown:
Local Production:
Mustard oil production in Bangladesh is a major contributor to the overall edible oil supply, with a production volume of approximately 250,000 tonnes. Bangladesh consumed little over 3.0 million tonnes of oils and fats in 2019, the highest in a year. The per-capita consumption increased to 18.7 kilograms, by that account, from 13.8 per cent in 2015. The consumption of oils and fats has been on the rise since 2015, apace with the country's steady economic advances, improving living standards, and food habits. But COVID-19 came down as a havoc on the consumption of oils and fats like other commodities, and as a result, consumption vis-à-vis import of oils and fats started declining in 2020, which still continues. In the year 2020, annual consumption of oils and fats decreased by 3.24 per cent compared to the 2019 level, while it plummeted to 6.49 per cent in the year 2021. See more.
Demand:
The total demand for edible oils in Bangladesh is far greater than the local production, with an estimated demand of over 3 million tonnes annually.
Market Share:
Mustard oil makes up a substantial portion (36%) of the locally produced edible oils, highlighting its importance in the national food supply.
Market Trends:
The Bangladesh mustard oil market is experiencing growth, driven by factors like increased consumption of home-cooked meals and a preference for local oils.
Market Dynamics:
The market is also influenced by factors like the COVID-19 pandemic, which led to a shift in consumer preferences towards home-cooked meals and a greater demand for edible oils. The Bangladesh Mustard Oil Market is expected to register a CAGR of 5.61% during the forecast period.
*Bangladesh's growth of the mustard oil market underwent a dramatic disruption due to the COVID-19 pandemic, which led to a substantial shift in market demand dynamics. The market witnessed a significant shift in food consumption patterns, wherein consumers started preferring home-cooked meals and experimenting with new recipes. This raised the demand and consumption of edible oils, including mustard oil.
*Although mustard oil is a major source of impurity, changing consumer dietary habits and the use of mustard oil in Bangladeshi dishes are driving the demand for mustard oil. The market needs to be more cohesive and organized, owing to the strong presence of domestic players. As a result, new entrants must contend with fierce competition, as local players command a disproportionate market share of the revenue. Thus, these factors support the country's mustard oil market growth. See more.
Key Players:
The market is dominated by local players, making it a competitive landscape.
Consumption Patterns:
A significant portion of the population consumes mustard oil, particularly in rural areas, due to its affordability and traditional use in Bangladeshi cuisine. See more.
-SZK
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