Oilseeds Market, Analysis By Type (Copra, Cottonseed, Palm Kernel, Rapeseed, Soybean, and Others), By Category (Conventional and Genetically Modified), By End-use (Food & Beverage, Personal Care & Cosmetics, Biofuels, Animal Feed, and Others), and Regional Forecast, 2024-2032

Oilseeds are known to be one of the most important crops in the world. Oilseed crops are promising crops with a high potential to prevent malnutrition, improve human diets and food insecurity, and provide employment through income generation. Besides the food value of oilseeds, they are also used in several industrial applications such as fertilizer, biodiesel, medicine, cosmetics, animal feeds, fibers, paint, and others. Furthermore, the increased consumption of vegetable oils and their high production in various developing countries fuel the demand for oilseeds in the market. According to the Organisation for Economic Co-operation and Development (OECD) report 2022, the consumption of vegetable oils is projected to reach 249 Mt by 2031 in which food use may account for 66% of total consumption, driven by population growth and increased per capita use of vegetable oil in low and middle-income countries.

Genetic engineering approaches have presented a significant breakthrough in elevating oil content in oilseed crops. Agricultural biotechnology advancement is the major driver for improving oilseeds economics by introducing Genetically Modified (GM) seeds. Furthermore, introducing biotech traits such as insect resistance and herbicide tolerance may significantly increase seed value and the oilseeds market. For instance, in June 2022, Corteva Agriscience, an American agricultural chemical and seed company, BASF SE, a European multinational company, and M.S. Technologies, a manufacturer and innovator of advanced detection and diagnostic sensors, signed an agreement to develop next-generation Enlist E3 soybeans with Nematode-Resistant Soybean (NRS) trait for the U.S. and Canada farmers.

Impact of COVID-19 

The COVID-19 pandemic moderately affected the oilseeds industry growth due to strong demand for vegetable oils and a slight production decline, especially rapeseed and soybeans. The demand for retail groceries spiked owing to consumer risks associated with supply chain breakdowns and replaced food service consumption with home cooking. The restrictive trade measures set by governments led to severe effects on the overall food supply, including oilseeds. According to the USDA report 2020, the U.S. recorded 3.8 million tonnes of soybean stock in 2020, which was comparatively lower than the previous year. The region also observed a spike in canola price, which was the highest during the global financial crisis.

Key Insights

The report will cover the following key insights:

• The product launched by key market players


• Overview of the oilseeds market


• Impact of COVID-19 on the oilseeds industry


• Drivers of the oilseeds market


• Applications of oilseeds in various sectors

Analysis by Type

The soybean segment is expected to hold a significant global oilseeds market share. Soybean oil has been increasingly used by food processors and food service operators for various fried and baked food products. Furthermore, soy oil is extensively used in cooking, frying, margarine, and shortenings. Besides using soy oil in the food sector, it is also extensively used as feedstock for biodiesel production, which provides higher British Thermal Units (BTU) value and burns more efficiently. According to the World Agricultural Supply and Demand Estimates report in May 2021, the use of soybean oil for biofuel production is expected to be higher in the coming years. Therefore, the growing soybean demand led manufacturers to expand their production capacities to meet the increasing demand. For instance, in May 2022, Cargill Inc., a privately held American global food corporation, planned to build a new soybean processing facility in Missouri. The new plant would support the growing demand for oilseeds for food, animal feed, and fuel markets.

The rapeseed segment is expected to grow at a high CAGR in the forecast period. The market also saw a rise in the retail consumption of rapeseed owing to its nutritional benefits and easy availability. Rapeseeds contain a good amount of magnesium, calcium, potassium, and other nutrients. Rapeseed is also used in personal care products such as creams, oils, and lotions. Therefore, the diverse applications of rapeseed across many industries propel its demand in the market.

Analysis by Category

The conventional segment is expected to hold a major share of the global market. Conventional oilseeds are cheaper in prices compared to genetically modified ones. Furthermore, the increasing demand for organic and healthy products in the market led to increased demand for conventional seeds.

Analysis by End-use

The food & beverage segment is expected to hold a significant global market share. The oilseeds offer various opportunities for the food industry owing to their high oil and protein content. Oilseed crops are majorly grown for the production of edible oil, which is used in various food applications. The oilseeds contain beneficial omega-3 fatty acids, lignans (phytoestrogens), and phytosterols, which also steered the development and production of novel foods. The players operating in the oilseeds industry adopted various business strategies to expand their market share. For instance, in April 2023, Richardson International, a privately-held Canadian agricultural and food industry company, announced an investment of USD 220 million in its Wesson Oil facility in Memphis, Tennessee. The investment would replace the existing refinery with a new, state-of-the-art refinery plant and help the company fulfill the growing global demand for vegetable oil.

Analysis by Region

Asia Pacific is expected to hold a major share of the global oilseeds market. China is known to be the largest consumer of oilseeds. According to the Observatory of Economic Complexity (OECD) report, in 2021, China consumed 31,863 (kt) of oilseeds. The country's major oilseeds include soybeans, rapeseed, cottonseed, peanuts, and sunflower seeds. Furthermore, recent growth in food consumption, changing dietary trends, and rising sustainable production of oilseed crops further drive the market for oilseeds in the region.

South America is expected to grow at a high CAGR over the forecast period. Brazil is known to be the largest producer of oilseeds, especially soybean. Soybeans are used in food production and industries throughout the region. According to the Observatory of Economic Complexity (OECD) report, in 2021, Brazil exported USD 39 billion of soybean. The soybean oilseed has been the driving force behind the country's recent agricultural development, with significant economic and social impact. Key players in the region adopt several business strategies in order to attain a competitive edge. For instance, in May 2020, Bunge Limited, an agribusiness and food company in Brazil, acquired two soy-crushing plants from Imcopa. The acquisition helped the company to consolidate its position as Brazil's largest soybean crusher.

Key Market Players

• BASF SE


• Bayer AG


• Corteva Agriscience


• Cargill Inc.


• Syngenta Group


• Archer Daniels Midland


• Wilmar International


• Bunge Ltd.


• Richardson International


• Australian Oilseeds Investments Pty Ltd

OILSEEDS MARKET SEGMENTATION ANALYSIS

Key Industry Developments

• In March 2023, Scoular, an agriculture supply chain solutions company, invested in a Kansas oilseed crush facility for renewable fuels. The investment would allow producers to participate in the booming renewable fuels market.


• In February 2022, Sucden, a French-based commodities company, established its new trading division for grains & oilseeds and will operate from March 2022 from Paris and Singapore.