Cottonseed Oil Market

Global cottonseed oil market is expected to grow at a steady rate as the product is used in processing of many food & beverage products. It has neutral flavour and is said to enhance the natural taste of food products in which they are used. Thus, they are used extensively for frying and baking purposes. Margarines, whipped toppings, icings, salads, potato chips & french fries, cereals, baked goods, stir-fried and oriental dishes, mayonnaise and spicy foods are some trending food products that will drive the cottonseed oil market.

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The product has low cholesterol and saturated fat content which lowers risk of heart disease. It also contains a high amount of antioxidants and vitamin E. Awareness among consumers about these benefits will boost the cottonseed oil market in the coming years. The product is also employed in cosmetic such as soaps and shampoos and is added in detergents.

The highly competitive cooking oil industry along with many substitutes such as olive oil, almond oil, sunflower oil, etc. will likely hamper the cottonseed oil market. Health issues related to cotton seed refining, use of genetically modified crops, and high pesticide load in the product may also be significant restraining factors for the cottonseed oil market.

Global cottonseed oil market is segmented according to raw materials into two main categories including genetically modified (GM) cotton and non-GM cotton. GM cotton is widely used all over the world due to increased yield and pest resistance. More than 75% of cotton grown in the U.S. is genetically modified. Due to growing concerns about health issues such as reproductive problems, digestive problems, allergic reactions, and organ disruption related to GM crops this segment may lose its market share in coming years.

By end users, global cottonseed oil market is segmented as retail, food processing, cosmetics and other applications. Retail segment has a significant share but will likely increase at a slow rate during the forecast period due to competition from other substitute oils. Food processing segment also has a substantial share which is expected to increase further in the coming years due to high demand for processed foods such as chips, french fries, etc. Cottonseed oil market for cosmetics product is forecasted to grow at a steady rate due to growing awareness and demand for cosmetic products in developing regions of the world. Other end user industries employing the product are rubber, explosives, detergent, and as an insecticide in agriculture.

Global Cottonseed Oil Market size will be driven by the products demand in food processing and other industrial processes. Growing awareness about the health benefits of the product will further augment the industry in the forecast period.

The product is extracted from seeds of cotton and is an important by-product of the cotton industry. It is refined by various processes such as alkali refining, bleaching, winterization, hydrogenation, etc. The refining of the product is necessary because cottonseed contains a toxic named gossypol which cannot be metabolised by non-ruminant animals.

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Global cottonseed oil market has been segmented in North America, Europe, Asia Pacific, Middle East & Africa, and Latin America. Asia Pacific cottonseed oil market share is substantial with a high potential for growth due to high production of cotton and consumption of the oil as a low-cost alternative. China and India are the leading countries in this region. North America is also a significant cottonseed oil market as the product has been popular in this region for many years. U.S. will lead the market in this region due to high cotton production and presence of industries that use the product.

Key manufacturers in the cottonseed oil market are Archer Daniels Midland Company, Louis Dreyfus, Matangi Cotton Industries, Asha Cotton Industries, Oil Seeds International Ltd, Bunge Limited, Swarna Industries Limited, Adani Wilmar, Pyco Industries, Cargill Incorporated, Gokul Refoils & Solvent Ltd, Maharashtra Solvent Extraction Ltd, Willmar International Ltd, Gelivi Group of Industries and Alice Cottonseed Oil Mill.

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