Market Snapshot for cooking oil industry.
•Kenya is a diverse, semi modern society of approx. 43 million people, half of whom live in urban areas.
In 2014, the population of people living in urban areas was estimated to be approx. 14 million people.
•The emerging middle class, at an annual average rate of 5% and now stands at 45% of the total population which translates to 19.4 million people, is fueling consumption behavior in the economy especially on consumable goods.
•Kenya’s well-educated middle-class consumers are increasingly becoming more health conscious.
According to Euromonitor International, Kenyan middle-class consumers are increasingly interested in health benefits for most edible commodities.
•Kenya’s demand for edible oils continues on an upward trend as Kenya’s population continues to expand.
Cooking oil is one of the common commodities in almost every household which makes the industry one of the highly lucrative in Kenya with an average annual consumption of 500 million Liters annually.
The commodity has for a long time been a compliment to most meals in our kitchens thereby making it almost inevitable a fact that has seen consumption of cooking oil increase by a margin of approx. 11% annually.
The industry is oligopolistic in nature with market leaders being Bidco Africa, Kapa Oils Industries Ltd and Pwani Oils whose market shares are 24%, 14% and 11% respectively.
Other market players include Golden Africa, Menengai, Diamond manufacturers, United Millers and Gill Oil. The three market leaders have been in constant competition with a sole objective of increasing their market shares but has this competition really yielded desirable results of lowering prices for the benefits of consumers?
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