The global oilseed market comprises various seeds that are grown primarily for the production of oils. Some of the major oilseeds produced globally include soybean, sunflower seed, rapeseed, cottonseed, and corn. These oilseeds are processed to extract edible vegetable oils which find a wide range of applications in food production as well as in industrial sectors such as biodiesel production.
Oilseed Market Demand significant oilseed crops grown worldwide owing to the versatility and high oil content of soybean oil. The oil derived from soybean is used extensively in food applications like salad dressings, mayonnaise, baked goods, and others due to its neutral taste. It also serves as an important source for production of biodiesel which is witnessing rising demand as a renewable fuel alternative.
The Global Oilseed Market is estimated to be valued at US$ 230 Billion in 2024 and is expected to exhibit a CAGR of 5.1% over the forecast period 2024-2031.
Key Takeaways
Key players operating in the oilseed market are Cargill, Archer Daniels Midland, Bunge Limited, Louis Dreyfus Company, Wilmar International.
Oilseed Companies of edible oils across both developed and developing economies is propelling the demand for oilseeds globally. Factors such as rising disposable incomes, growing fast food culture and expanding food processing industry are fueling the consumption of edible oils.
Several key producing regions and companies are also strategically expanding their oilseed production and processing capabilities to international markets. For instance, North American companies are strengthening their presence in South America and Europe to cater to the growing demand.
Market Key Trends
The use of oilseeds for biodiesel production is gaining significant momentum over the past few years. Driven by the focus on developing renewable and cleaner fuel alternatives, biodiesel production from oilseeds is witnessing a notable growth worldwide. Factors such as policy support through tax exemptions and subsidies as well as the mandatory blending targets set by regions like European Union for renewable fuels are encouraging biodiesel production using oilseeds.
Porter's Analysis
Threat of new entrants: Low capital requirements however, established companies have advantage of brand recognition and economies of scale.
Bargaining power of buyers: Large buyers can negotiate lower prices however, availability of substitutes limits their power.
Bargaining power of suppliers: Suppliers have moderate power depending on region and crop season, suppliers can impact prices.
Threat of new substitutes: Substitute oils based on soybean, sunflower and palm pose threat though consumer preferences also impact demand.
Competitive rivalry: Intense as major players compete on pricing and product innovation.
Geographical regions:
In terms of value, North America accounts for the largest share where soybean is a major crop. Countries like the US and copyright contributes significantly to meet local and global demand.
The fastest growing region for oilseed market is Asia Pacific mainly driven by growing populations and increasing consumption of edible oils in countries like India, China, Indonesia. Increasing affordability, westernization of diets and food processing industry and efforts for import substitution are driving demand growth in the region.
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About Author:
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)