Oilseed Processing Market Size, Share & Industry Analysis, By Oilseed Type (Soybean, Rapeseed, Sunflower, Cottonseed, Others), By Process (Mechanical, Chemical), By Application (Food, Animal Feed, Industrial) And Regional Forecast, 2024-2032

Oilseed processing increases the use of crops such as sunflowers and brings value to grape seeds, which are usually waste products. In recent years, the oilseed processing market has impressively expanded worldwide. The increasing need for vegetable oils and biofuels due to the rise in global oil consumption and growing awareness of environmental-friendly and sustainable alternative energies is driving the global oilseed processing market.

Oilseeds represent one of the most important components of modern agriculture. Vegetable oil is an important component in both foods as well as non-food industry. The flourishing demand for oilseeds and oilseed products encourages oilseed processors to adopt advanced technology to ensure high-quality production. For instance, one of the leading oilseed processors, Bunge, introduced its new Enzymatic Interesterification (EIE) technology. The new technology uses enzymes to process oilseeds and make fats and oils with desired functional characteristics, and it also saves energy and emissions, reduces waste, and avoids trans fats.

The increasing oilseeds production to meet the growing demand for vegetable oil through the innovative tools and genetic improvement of oilseed crops using modern biotechnology is expected to support the steady growth of the global market. The innovation and technology-led increased productivity and quality of oilseed crops would be a favorable factor for market growth. Moreover, the prominent companies operating in the market are embarking on mergers and acquisitions and joint ventures with relevant stakeholders for more benefits. For instance, in August 2018, Archer Daniels Midland Company has acquired select assets, including two oilseed processing plants from Brazil-based Algar Agro. This deal can help ADM to strengthen its business capabilities in key Brazilian demand regions while also aligning with the company’s strategic growth plans. The increasing prominence, rising interest, and expansion of global reach of big companies in the oilseed market is likely to have a positive effect on the overall market growth. In addition, rising disposable incomes of consumers in several developing economies, increasing health consciousness among consumers, and rapid urbanization are driving the demand for oilseed products.

The price instability of the oilseeds due to the seasonal nature of several crops can hinder the market growth. Moreover, high initial investment required for installation of equipment and rising consumer inclination towards blended oils such as a mixture of mustard and rice bran oil are projected to further restrain the market growth.

Key Market Driver -

Increasing End-user Applications of Oilseed Products

Key Market Restraint -

Price Fluctuation

Key Players Covered:

The prominent players operating in the global oilseed processing market are Archer Daniel Midland Company, Bunge Limited, Cargill, Wilmar International Ltd., Richardson International Limited, Louis Dreyfus Company B.V., CHS Inc., Ag Processing Inc., ITOCHU Corporation, EFKO GROUP, and Others.

Soybean is expected to hold major share in the global market owing to rising production of the crop, increasing consumption of soybean oil, and growing demand for soybean cake and meal from the animal feed industry. Moreover, soybeans benefit the farmers from their fast growth, which allows for double-cropping production. The easy availability of soybean due to its increasing production is likely to boost the utilization of soybean from the oilseed processing industry. Global sunflower oil consumption is steadily increasing mainly due to changing consumer’s consumption patterns and increasing health awareness. Nowadays, consumers mostly prefer the high nutritive value products which is expected to increase the demand for sunflower from oil processing companies.

The chemical method is the well-known and widely practiced method of oil extraction. The chemical oil extraction method is commonly applied to oilseeds with low oil content like soybean. This process is considered as one of the most efficient processes in vegetable oil extraction, with less residual oil left in the meal or cake. The chemical process is a very effective method, with high yield and consistent performance, though the cost of production was relatively higher than mechanical press methods due to the high cost of solvent, but the solvent can be recovered and reused multiple times.

Among applications, the food segment is predicted to secure a larger chunk of the revenue. Oilseed processed products such as edible oil and flour are extensively utilized processed food industry across the globe, which is expected to support the steady growth of the segment.

Regional Analysis:

Asia Pacific is anticipated to account for the largest share in the global oilseed processing market. The increasing soybean and sunflower production in China and India and increasing demand for oilseed products are driving the regional oilseed processing market. The rising interest of regional companies towards the expansion of their business in this category is predicted to support market growth. For instance, in July 2020, Amul has entered the edible oils business with the launch of Janmay brand in Gujarat and hopes to provide remunerative prices to oilseed farmers. Furthermore, intensification of animal husbandry in the region requires an increase in the share of oilseed meal and cake for the production of concentrates for modern diets. The rising demand for oilseed products from food as well as the feed industry is expected to positively leverage the market growth.

South America is expected to be the fastest-growing market in the forthcoming years. Several factors, including the adoption of advanced technologies for crop plantation and processing, rising soybean production, and the increasing popularity of oilseed products, are projected to boost the growth of South American oil processing market.

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Segmentation

Key Industry Developments:

• In September 2019, ASTON and Vandeputte Huilerie SA formed a joint venture, which will carry out activities for the processing of linseeds and linseed oil production in the territory of the Russian Federation.


• In December 2018, Sodrugestvo Group acquires multi-oilseeds processing asset in Turkey. This acquisition will allow Sodrugestvo to considerably improve service to its customers in Turkey and Middle East North Africa region.


• In March 2017, Cargill formed a joint venture with China’s New Hope to open a new soybean processing facility. The new soy crushing facility is able to process 5,000 tons of soy per day.