SUNFLOWER OIL MARKET ANALYSIS

The global sunflower oil market size was valued at US$ 33,973.6 million in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 6.05% from 2023 to 2030. Sunflower oil market is one of the growing markets across the world. The market is experiencing a healthy growth rate due to the increasing health consciousness among consumers and their preference for light edible oils. The market is also driven by rising health awareness and adoption of healthy foods and ingredients, and the use of sunflower oil in biofuels.

Global Sunflower Oil Market: Regional Insights

Based on geography, the global sunflower oil market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Regionally, Asia Pacific sunflower oil market is projected to grow at a significant CAGR during the forecast period. The region accounts for a large share of the global sunflower oil market due to increased utilization of sunflower oil in bakery, snacks, and confectionery products. In addition, the government in this region is focused on reducing the consumption of partly hydrogenated oils (PHO) because of their harmful effects on the human body.

North America is also expected to witness fastest growth in the global market over the forecast period owing to the growing health and wellness trend. Moreover, growing awareness regarding health benefits of sunflower oil is also contributing to the regional market growth. The sunflower oil market in the United States was valued at US$ 480.3 million in 2022 and is projected to reach US$ 661.89 million by 2030, registering a CAGR of 4.09% during the forecast period (2023-2030).

Figure 1. Global Sunflower Oil Market, By Region 2022

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Global Sunflower Oil Market Drivers:

Growing demand for sunflower due to its various health benefits to propel market growth

Sunflower oil is one of the healthiest cooking oils available in the market. It has a wide range of benefits, including anti-inflammatory properties and a high level of essential fatty acids, making it an excellent choice for all of food preparation needs. It’s also a great source of vitamin E, which is essential for healthy skin and hair. It can help lighten skin marks and scars and is a powerful moisturizing agent. It’s also high in antioxidants, which helps to reduce oxidative stress and protect against harmful effects of UV radiation.

Increasing use of sunflower oil in non-food applications to foster market growth

Sunflower oil is an important vegetable oil. It is used in many different food products and has been around for thousands of years. It can be made into a variety of products and is often used in baking, snack foods, health and dietary supplements as well as for cooking. It is also used in many industrial processes, as a fuel and for making paints and coatings. There are several types of sunflower oil, each with its own properties and benefits. These include high oleic, mid oleic and linoleic varieties. Sunflower oil is also used in various emulsion for body and face. So it has wide use in personal care and cosmetic sector as well.

Global Sunflower Oil Market Opportunities:

Increasing use of sunflower oil for producing biodiesel is expected to serve major growth opportunities. Sunflower oil has high scope for offsetting petroleum diesel use, especially at the farm scale. The Oil composition of sunflower oil is similar to that of other vegetable oils, such as safflower and soy, and biodiesel from sunflower is projected to serve properties similar to biodiesel from soy.

Growing use of sunflower oil in multivitamins due to its numerous health benefits is expected to offer significant growth opportunities. Sunflower oil is a great way to add healthy fats to diet. They're higher in MUFAs and lower in PUFAs, which can make them less susceptible to oxidative damage during the refining process. In addition, sunflower oil has the ability to hydrate skin and improve its appearance. It can even help shrink pores and reduce the appearance of blemishes. Sunflower oil is a great source of Vitamin E which helps to reduce the risk of chronic diseases. It also increases immunity and improves the skin's barrier function.

Global Sunflower Oil Market Trends:

Consumer is inclining towards healthier cooking oils for frying purposes

Increased consumption of healthy cooking oil, a rise in disposable income, and supportive government initiatives to promote sunflower cultivation are recent trends. Moreover, developing regions are witnessing rapid growth in food processing industry, which largely relies on the use of sunflower oil for improving taste and texture is again uplifting market growth.

Increased consumption of natural neutral oils is another trend

Natural neutral oils are healthier for consumption and provide more nutritional value. Moreover, increase in the use of sunflower oil in cosmetics as a vegan alternative to beeswax is again propelling market growth. The rise in clean beauty and vegan trends is projected to drive the global sunflower oil market in the coming years.

Global Sunflower Oil Market Restraints:

Volatility in production and supply of sunflower oil

Factors such as political conflict          worldwide is causing fluctuation in production and supply of sunflower. For instance, the ongoing Ukrainian crisis has been threatening the availability of food and edible oil in countries that highly depend on on grain and other food exports from Ukraine and Russia.      This is expected to hamper the market growth.      

Side effects associated with consumption of sunflower oil

People allergic to sunflower may have side effects such as skin irritation, digestive issues, and dry mouth. Moreover, sunflower oil is also not suitable for people with diabetes. This factor is limiting the use sunflower oil, thereby hindering the market growth.

Figure 2. Global Sunflower Oil Market, By Product Type 2022

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Global Sunflower Oil Market Segmentation:

The global sunflower oil market report is segmented into type, application, and geography

Based on type, the market is segmented into Linoleic Oil, Mid-oleic Oil, and High-oleic Oil. Out of which, Linoleic Oil is expected to dominate the global market over the forecast period.  This is the most common kind of sunflower oil and is generally more stable than other kinds. The linoleic oil segment in the sunflower oil market was valued at US$ 28,707.7 million in 2022 and is projected to reach US$ 45,514.54 million by 2030, registering a CAGR of 5.93% during the forecast period (2023-2030).

Mid-oleic Oil segment is also expected to witness significant growth in the near future. This type of oil contains a mix of oleic and linoleic acids, which makes it less susceptible to rancidity than other kinds. It is also a good choice for deep fat frying and is used in many different applications.

Based on application, the market is segmented into Food, Biofuels, and Personal Care. Out of which, Food is expected to dominate the global market over the forecast period and this is attributed to the growing use of sunflower oil for deep frying in food industry. The food application segment in the sunflower oil market was valued at US$ 30,236.51 million in 2022 and is projected to reach US$ 47,938.39 million by 2030, registering a CAGR of 5.93% during the forecast period (2023-2030).

Biofuels segment is also expected to witness significant growth in the near future and this is owing to the growing innovation in biofuel and sunflower seeds contains a lot of oil which is gaining traction as a biodiesel feedstock crop.

Global Sunflower Oil Market: Key Developments

In April 2022, Avril planned to expand sunflower seed crush capacity in France, to expand its sunflower oil and meal output.

In February 2020, Saipol, a subsidiary of Avril Group, launched OleoZE, a purchasing service for sustainable French oilseeds. The platform enables farmers and collecting organizations to market their rapeseed and sunflower seeds by rewarding farming practices that reduce CO2 emissions.

In February 2022, Chevron USA Inc., a subsidiary of Chevron Corporation, and Bunge North America, Inc., a subsidiary of Bunge Limited, announced the signing of definitive transaction agreements to create their previously announced joint venture. The new venture has created renewable feedstocks leveraging Bunge’s expertise in oilseed processing and farmer relationships and Chevron’s expertise in fuels manufacturing and marketing. The agreements are subject to customary closing conditions, including regulatory approval.

In November 2021, Bunge Loders Croklaan, has built a state-of-the-art, sustainable production facility in the Port of Amsterdam. When completed in 2024, the plant will replace the Maasvlakte refinery in Rotterdam that was sold at the end of last year. Production at the current Bunge Loders Croklaan location in Wormerveer will also be moving to this new facility.

In November 2021, Bunge has announced a new commitment to Climate Action with Science-Based Targets to Reduce GHG Emissions.

In February 2021, Covantis launched the Transformational Blockchain Platform for Global Commodities Trade.

In January 2022, Cargill, Incorporated announced the opening of its first innovation center in India at Gurugram, Haryana. The innovation center spreads over nearly 17,000 square feet, includes a sensory lab and demonstration kitchen, and combines the company’s expertise across different industry segments, including edible oils, specialty fats, starches, sweeteners, texturizers, and other food ingredients.

In December 2021, Cargill, Incorporated acquired an edible oil refinery located in Andhra Pradesh, India. The company invested US$ 35 M to acquire, upgrade, and expand the facility. This acquisition allowed the company to produce and package its own edible oil brands for retailers, including sunflower oil. The new facility came into fully operational by May 2022.

In November 2020, Cargill, Incorporated announced the investment of US$ 20 million to expand and modernize its edible oil production facility in Port Klang, Malaysia. Expansions at the facility consist of new production technologies deployment, equipment upgradation and addition of new R&D capabilities.

In February 2020, Cargill, Incorporated announced the investment of US$ 6.4 million to increase its food pilot capabilities at its North American Pilot Development Center in Savage, Minneapolis, United States. The new facility allows the edible oils business to conduct multi-scale, continuous piloting, starting with the refining of new vegetable oils and blends and ending with innovative shortening solutions.

Global Sunflower Oil Market: Key Companies Insights

The global sunflower oil market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global sunflower oil market are Archer Daniels Midland Company, Bunge Limited, Cargill Incorporated, Avril Group, KAISSA, Optimusagro Trade, Risoil SA, Gustav         Heess   Oleochemische GmbH, MWC Oil, and Delta Wilmar

*Definition: Sunflower oil is one of the healthiest cooking oils. It’s also a great source of vitamin E, which is essential for healthy skin and hair. It can help lighten skin marks and scars and is a powerful moisturizing agent. It’s also high in antioxidants, which helps reduce oxidative stress and protect against harmful effects of UV radiation.