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

Oilseed Market Size and Trends

The global oilseed market is estimated to be valued at USD 305.16 Bn in 2024 and is expected to reach USD 432.26 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 5.1% from 2024 to 2031.

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The global oilseed market is expected to witness positive growth over the forecast period driven by the rising demand for edible oils across the food industry. Additionally, the increasing consumption of nutritional supplements containing oilseeds is also contributing to the increased demand. Oilseeds are rich sources of proteins and various vitamins and minerals which is making them popular ingredients in nutrition bars and other similar products. The growth of end-use industries such as food and beverages, personal care products, and others is further augmenting the demand for oilseeds. Positive government initiatives in major growing regions to promote domestic oilseed production is further expected to support the market growth during the forecast period.

Increasing demand for edible oils

Global demand for edible oils is on a constant rise over the past few decades. As population and income levels continue to grow across major economies, the consumption of food products which use edible oils as a key ingredient has seen a significant surge. Edible oils are widely used in preparation of various cuisine styles around the world and are also utilized as raw materials in food manufacturing industries. Countries like India, China, Indonesia, and other emerging Asian markets have experienced rising living standards and changing dietary patterns of the consumers which is translating to increase per capita consumption of edible oils.

As people's disposable incomes are increasing, they are opting for more calorie-rich, tasty and convenient food options prepared with liberal usage of edible oils. The fast-evolving food cultures and expansion of global quick service restaurants chains have also contributed to boosting the demand. Growth in urban population coupled with busy lifestyles have made ready-to-eat and packaged food more desirable for time-pressed consumers, providing impetus to food processors to develop various edible oil-based food products. Rising health consciousness and focus on wellness have led to shifts to healthier oils such as canola, soybean, and sunflower oils, replacing commonly used palm and peanut oils in certain geographies.

While demand for global oilseed momentum remains strong across developing nations, matured markets like U.S. and Western Europe are witnessing steady intakes of edible oils mainly from food industry applications. However, the increasing prevalence of lifestyle ailments and diseases related to obesity has triggered moderation in direct-to-consumer edible oil consumption in some advanced economies. Nevertheless, with robust worldwide growth projections for population, income levels as well as food production, stakeholders can expect the requirements for oilseeds and edible oils to maintain an upward trajectory over the long term. This presents significant potential for oilseed producers, refiners, and traders to benefit.

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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.