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

The global oilseed market faces significant challenge due to volatile crude oil and petroleum product prices in the international market, according to data by Economic Times in 2022, crude oil has been on a declining trajectory since June 2022 when it reached US$ 124 per barrel. For the last four months, prices have stayed below US$ 90. Being an agricultural commodity, the price of oilseeds is dependent on crude oil prices as it determines the demand for oilseed crops for the production of biofuel. High crude oil prices reduce the demand for biofuel produced from oilseeds which impacts the prices of oilseed crops negatively. On the other hand, oversupply of crude oil and petroleum products in the market leads to fall in their prices. This makes biofuel production from oilseeds unviable for biodiesel producers. The fluctuating trend makes demand forecasting difficult for oilseed producers and exporters. It also increases the business risk for companies involved in oilseed processing and biodiesel production. The volatility in fuel prices creates uncertainty among farmers regarding the suitability of oilseed cultivation over other alternative crops.

Market Challenge - Opportunity: Innovation in oilseed varieties

The global oilseed market provides significant opportunities for companies involved in research and development of new and innovative oilseed varieties. Development of oilseed varieties with greater resistance against pests and diseases can help improve crop yields as well as reduce production cost for farmers. There is also a scope for developing varieties with enhanced oil content and improved oil quality which allows extraction of oil with superior properties suitable for specific industrial applications. Innovation in oilseed varieties adapted to diverse agro-climatic conditions help expand oilseed production to new geographic regions. This can help address supply security issues. Development of varieties with modified oil composition enables production of feedstock oils fitting the evolving needs of food processing and biofuel industries. Overall, innovation in oilseed varieties through extensive Research and Development R&D presents major opportunities for oilseed market players to capture new customers and strengthened their position in the market.