Growing Oil Consumption to Fuel Oilseed Processing Market
The key factors driving oilseed processing market growth is rising oil production and consumption across various sectors and rising awareness about sustainable energy resources. Global oilseed production will reach 632 million tonnes. Soybean production is expected to increase by 23 million tonnes, or 6%, to 386 million tonnes this year. All oilseeds are expected to increase in production, with the exception of cottonseed and rapeseed, all hitting the 10-year highs. Similarly, global oilseed consumption is expected to rise 3% in 2021/22, the highest annual increase since 2019/20, driven by higher demand for China soybean reflecting a rebuilding of feed demand. More than half of the increase in global oilseed use is expected to be accounted for by soybean crush, and feed waste consumption. Sunflower-seed consumption is up 9%, and cottonseed consumption is up 3% as supplies recover from this year's shortfalls.
Furthermore, one of the major factors expected to boost oil demand over the forecast period is the growing importance of vegetable oils across food and non-food applications due to various underlying benefits. Growing demand for biodiesel as a result of rapid industrialization and urbanization contributes to regional market growth. According to the Energy Information Administration (EIA), global biodiesel production in 2019 was 12.34 million gallons, while global biodiesel consumption was 10.73 million gallons.
Manufacturers are embracing emerging technologies to speed up production and reduce waste generation. In the coming years, this factor is expected to create potential growth opportunities for new entrants and entrepreneurs. For instance, Bunge, a leading oilseed processor, debuted its new Enzymatic Interesterification (EIE) technology. The new technology uses enzymes to process oilseeds and produce fats and oils with desired functional properties while also saving energy and emissions, reducing waste, and avoiding trans fats.
Rising Consumption of Soybean Oil to Fuel Oilseed Processing Market Growth
Soybean is expected to dominate the global market due to rising crop production, rising consumption of soybean oil, and rising demand for soybean cake and meal from the animal feed industry. Furthermore, farmers benefit from soybeans' rapid growth, which allows for double-cropping production. The increased availability of soybean due to increased production is likely to increase soybean utilization in the oilseed processing industry. Global consumption of sunflower oil is steadily increasing, owing primarily to changing consumer consumption patterns and increased health awareness. Nowadays, consumers prefer products with high nutritional value, which is expected to increase the demand for sunflower from oil processing companies.
Rise in Edible Oil Consumption to Drive Growth of Asia Pacific Oilseed Processing Market Growth
Asia Pacific is expected to hold the greatest share of the global oilseed processing market due to rising demand for various oilseed products such as soybean meal. Factors such as the robust expansion of the livestock sector and the rise in edible oil consumption in this region are driving the market. Oilseed processing market is also steadily rising, and with leading players increasingly adopting new strategies, the market is expected to rise over the foreseeable horizon. It's widely utilised in the food, pharmaceutical, and cosmetic industries, as well as in animal feed.
The oilseed processing market is being driven by rising soybean and sunflower output in China and India, as well as rising demand for oilseed products. Market growth is expected to be aided by regional enterprises' increasing interest in expanding their businesses in this area. For instance, in July 2020, Amul joined the edible oils sector with the launch of the Janmay brand in Gujarat, with the goal of providing remunerative pricing to oilseed farmers. Similarly, according to the Chinese National Bureau of Statistics, food product retail sales in China increased by 9.7 % in 2020, with the oil sector contributing to this increase. Furthermore, the region's expansion of animal husbandry necessitates a higher proportion of oilseed meals and cake in the manufacturing of concentrates for modern diets. The increasing demand for oilseed products from the food and feed industries is likely to boost the market growth.
North America is expected to be the fastest-growing market in the coming years. Several factors, including the adoption of advanced crop plantation and processing technologies, rising soybean production, and the increasing popularity of oilseed products, are expected to drive the growth of the North American oil processing market.
Global Oilseed Processing Market: Competitive Landscape
Major players in the market are introducing new products alongside initiation collaborations, alliances, and partnership agreements. For instance, in June 2021, Cargill Inc. announced plans to build a new palm oil refinery in Lampung, Indonesia, worth USD 200 million, to meet the growing demand for sustainable and traceable edible palm oil. South-East Asian countries are being targeted for business expansion because of their favorable weather conditions, growing economy, and rising population. On the other hand, in September 2019, ASTON and Vandeputte Huilerie SA formed a joint venture to carry out linseed processing and oil production activities on Russian Federation territory.
A few of the players in the Oilseed Processing market include Archer Daniels Midland Company (U.S.), Bunge Limited (U.S.), Cargill (U.S.), Wilmar International Ltd. (Singapore), CHS Inc. (U.S.), Ag Processing Inc. (U.S.), Richardson International Limited (Canada), Louis Dreyfus Company B.V. (Netherlands), ITOCHU Corporation (Japan), and EFKO GROUP (Austria)
Global Oilseed Processing Market is Segmented as Below:
Key Elements Included In The Study: Global Oilseed Processing Market
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