Global Sunflower Oil Market - 2021-2028
発行: DataM Intelligence
ページ情報: 英文 180 Pages
Sunflower (Helianthus) is a native crop of North and Central America widely cultivated for its seeds, flowers, and oil extraction. The oil derived from the seeds is extensively used in food, energy, and chemical industries globally. However, its wide utilization in the food industry is one of the factors boosting the market growth. According to the research paper published in Oilseeds & fats Crops and Lipids (OCL) 2020, sunflower seed oil is the fourth largest consumed vegetable oil in the world. The oil is rich in oleic acid, linoleic acid, and other essential nutrients that lower bad cholesterol levels in the body. This has gradually increased its consumption as a healthy cooking oil and frying oil in food manufacturing services and households. This oil is also used to manufacture vegan mayonnaise, cheese, spreads, and also as an ingredient in cosmetics. Thus, the global sunflower oil market is likely to reach USD xx million in 2028, from its recorded value of USD xx million in 2020, growing with a CAGR of XX% during the forecast period.
Market Dynamics: Broad range inclusion of healthy cooking oils in processed foods
There has been a significant rise in recognizing the positive health effects of polyunsaturated fatty acids (PUFA) in recent years. This has led to an increase in demand for cooking oils with monounsaturated fatty acids (MUFA) and PUFA. Various scientific studies have suggested the consumption of MUFA increases the high-density lipoproteins (HDL) or 'good cholesterol' in the body. The Food and Drug Administration (FDA) also supports the claim that edible oils containing at least 70% oleic acid may reduce the chance of coronary heart disease. Further, the rising global population and increasing demand for foods have led to increased consumption as it is commercially utilized for culinary purposes. According to the Food and Agriculture Organization (FAO), sunflower seed oil production is expected to reach 60 million tons by 2050, implying a rise in its per capita consumption.
Moreover, the increasing health and wellness trends among consumers have gradually shifted their focus towards fortified or nutrient-rich edible oils. The sedentary lifestyle of consumers in the modern era has led to various cardiovascular diseases and obesity. This has led to consumers switching to edible oils fortified with essential vitamins and minerals to support the body's functioning. According to the World Health Organization (WHO), edible oils with vitamin A are efficacious and proved to be effective in developed countries.
However, the presence of substitute edible oils such as olive oil, canola oil, and coconut oil with similar nutritional attributes acts as a restraint in its market growth. The manufacturing process of oils with high wax content, such as sunflower, is expensive due to the additional filtration and dewaxing process. This increases the overall end-product price, which is comparatively higher than other conventional oils such as soybean, palm, and groundnut. Thus, also acting as a factor for its low adaptability in various emerging economies. Various manufacturers are investing in mineral fortification in edible oils and technologies to retain the essential nutrients of the oil during the manufacturing process. This has increased the consumers' interest in canola and olive oil as replacements
Market Segmentation: Mid-Oleic to hold major share owing to its various health-benefiting properties
The mid-oleic sunflower oil is considered the standard variant, as it is the most common type available worldwide. This is because mid-oleic oil retains linoleic acid levels to remain an excellent dietary source, along with the high levels of oleic acid making it less prone to rancidity and breaking down. Thus, eliminating the need for hydrogenation and resulting trans-fat. It is primarily utilized in the cooking industry in conditions with high cooking temperatures. Along with this, the oil is recognized to have lower trans fats and provides health benefits at a reasonable price point. The oil is also utilized as an emollient in cosmetic formulations. According to the National Sunflower Association (NSA), the mid-oleic type has proven to lower cholesterol levels.
On the other hand, high-utilization of sunflower oil in foodservice sector is expected to drive the market growth. The growing interests of consumers towards dining out and growing restaurant chains have supported the development. According to the Agriculture and Agri-Food Canada report, 80.5% of edible cooking oils in India in 2018 were consumed through food restaurants, while 6.4% of sales through pubs, bars, and clubs. India meets nearly two-thirds of its edible oil demand through imports. It buys palm oil from Indonesia and Malaysia, and soy oil and sunflower oil come from Argentina, Brazil, Ukraine and Russia.
Further, it is widely used for manufacturing various processed foods such as snacks. For instance, Frito-Lay, an American subsidiary of PepsiCo, switched to using this type of oil for manufacturing its snacks. It is also incorporated as an ingredient in manufacturing cosmetics as it helps improve skin hydration and provides antioxidant protection.
Geographical Penetration: Europe contributed for highest market revenue share of XX% in the year 2020
The region is witnessing robust growth in the market, attributable to the rapid increase in this type of oil consumption. The high level of unsaturated fatty acids and the high smoke point drive its rapid utilization in the region. Russia and Ukraine are the leading producers of sunflower seed oil in the world. According to an article published by the Oil Palm Industry Economic Journal, 2018 Russia produced 4.6 million tons of sunflower seed oil in 2017. Russia is the second-largest producer of sunflower seed and sunflower oil in the world, after Ukraine. According to Oil World, a total of 11.4 million metric ton of sunflower seed was produced during 2018-19, which was the highest ever, owing to higher demand from the domestic processing sector. Moreover, the country is still continuously expanding its production of sunflower oil. In 2019, Russia increased the production of sunflower oil by 23%, which immensely drives the overall European market. Russia is a net exporter of oils and fats, with export of sunflower oil increasing to more than one million metric ton, and the country is gradually becoming an important player in the sunflower oil trade.
In value terms, the largest sunflower-seed and safflower oil markets in 2020 worldwide were Russia ($3.1B), India ($2.2B) and Turkey ($2B), together comprising 33% of the global market. The countries with the highest volumes of sunflower-seed and safflower oil consumption in 2020 were Russia (3.6M tons), India (2.6M tons) and China (2.4M tons), together comprising 37% of global consumption. In 2021, global exports of sunflower oil are forecast to increase by 14% y-o-y, reaching 12.6M tons. The EU, China, India, Iraq and Turkey feature among the most attractive destinations for export due to rising food demand from expanding middle class and urban population. Imports of sunflower oil to India may increase by 250K tons, to 2.5M tons, while imports to Turkey may see an increase of 850K tons.
The market studied is fragmented with key players such as Conagra Brands, Inc., Bunge Ltd., Cargill, Inc., Hanoon Oil Factory, and Archer Daniels Midland Company focusing on expanding their geographic presence and business expansion acquisitions and new product launches. For instance, in October 2019, AAK AB acquired an additional five percent share in AAK Kamani Pvt. Ltd. It is a joint venture formed between AAK AB and Kamani Oil Industries Pvt Ltd, making it an owner of 69% of the company shares. The company is one of the leading FMCG manufacturers in India. In October 2019, Russian vegetable oil manufacturer EFKO and Egypt's United Oil signed a joint venture to collaboratively produce vegetable oils in Egypt that includes sunflower, soybean, and groundnut oils. In November 2018, Abu Dhabi Vegetable Oil Co. (ADVOC) announced a partnership with Patanjali Ayurved Limited to produce a range of edible oils for the middle-eastern market. In April 2019, L'Oreal launched a sustainable beauty brand, Seed Phytonutrients, consisting sunflower seed oil.
COVID-19 Impact: Negative impact on the global sunflower oil market due to supply chain disruptions
The COVID-19 pandemic outbreak has heavily impacted the global economy and disrupted supply chain activities worldwide. The governments' imposition of lockdown and trade barriers has negatively wedged the growth of the sunflower seed and oil industry. The stay-at-home consumer tendency has been reflected negatively in the foodservice and HoReCa (Hotel, restaurants, & Cafe) sectors. The coronavirus outbreak has led to an increase in edible oil prices, hitting hard the major oil-exporting countries. According to the Solvent Extractors' Association of India (SEA), there has been a 5% decline in edible oil imports to reach 14.2 million tons. In 2020, approx. 11M tons of sunflower-seed and safflower oil were exported worldwide, falling by -17.3% compared with 2019. In value terms, sunflower-seed and safflower oil exports shrank to $10B in 2020. This was owing to the disruption in the supply chain and reduced consumption by the low-income consumer group. However, the disturbances in the supply chain and logistics have started to ease up, and with countries lifting the trade bans, the industry is expected to regain its pace in the forthcoming years.