OILSEED MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Market Concentration and Competitive Landscape

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Growth in food processing industry

The food processing industry has made significant advancements over the past few decades and has become one of the largest economic sectors worldwide. For example, the expanding food industry is anticipated to propel market growth. For instance, according to data published by Invest India in 2022, by 2025, the Indian Food Processing market is estimated to reach US$ 535 Bn, growing at a compound annual growth rate of 15.2%. Constant technology advancement, shifting consumer needs, and favorable regulatory environment have propelled investments and innovations in this industry. Food manufacturers are introducing an array of new product variants targeting diverse consumer segments. Quick Service Restaurants, bakeries, confectionaries as well as packaged snacks and processed food companies heavily rely on edible oils as important ingredients in their formulations. Companies prioritize usage of highest quality oilseeds and edible oils for ensuring consistency, hygiene, longer shelf-life and superior taste of end food products.

Rapid urbanization in emerging markets has stimulated demand for convenient, branded packaged food items which has spurred capacity expansions and new plant set-ups by multinational food corporations. As discretionary spending climbs, consumers are willing to pay more premium prices for superior quality packaged foods. This encourages food processors to introduce premium and innovative offerings. At the same time, private label brands offered by leading retailers are gaining traction on the back of value proposition. Both trends provide sustained support to oilseed and edible oil demand from food industries.

Government initiatives such as food safety programs and foreign direct investment reforms have made many developing countries attractive manufacturing hubs. Establishing processing units locally allows companies to effectively cater to the growing domestic demand as well as access regional export potentials. Overall, the secular uptrends in urbanization, incomes, and modern retail penetration particularly across developing regions ensure a thriving environment for the food processing sector, translating to continued strengths in demand for oilseeds and edible vegetable oils.