Oilseed Market: New Study Offers Insights for 2015 - 2021

Oil seeds are generally used to extract edible oil for households and food industry. However over last two decades, usage of vegetable oil has been increased in the field of bio-fuel, due to shortage of non-renewable resources for various purposes.

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Oil seeds are pressed or crushed manually or mechanically to obtain edible oil. Few oilseeds such as Soybean and Peanuts are directly consumed as food besides extracting oil from them. In addition, poppy seed and hazelnuts, which are rich in oils are consumed directly, moreover these oil seeds are used as food ingredients in daily cooking.

The global oil seed market is segmented on the basis of types as Rapeseed, cottonseed, groundnuts, sunflower seed, Palm kernels and copra among others. Oilseed market can also be segmented on the basis of end-use application as household consumption, food-service, bio-fuels and others. In terms of regions, the market is segmented into four regions as North America, APAC, Europe and Rest of the world (RoW).

The key drivers of this market are the increased household consumption in emerging countries and growing foodservice industry. Growth in retail and modern oilseed processing technologies has further triggered the availability of product in the market. Another major factor that is expected to drive the market is demand for bio-fuels in developed and developing countries. Compulsory usage of bio-fuels in vehicles and other machinery would fuel the demand of oilseeds in the global market. Changing lifestyles followed by changing food preferences and experimenting with number of new food varieties; is driving the demand for oilseed market globally.

Some of the restraining factors over next six years period could be the gap in demand and supply worldwide. Increasing government regulations on manufacturing, exporting and marketing of oil could be a potential restraint to this market. Fluctuating weather conditions in various regions of the world could destroy the proper product availability in the market. Price fluctuations and loopholes in distribution channel could also act as potential barriers to the market growth.

The oilseed market is expected to grow with a double digit CAGR from 2015 to 2021. Soybean dominates the global oil seed market, and it is the fastest growing segment in the oil seed as far as edible oil is concerned. Latin America is the largest producer of soybean. Good weather conditions in South Africa and set-up for various crushing facilities would see an increased production of oilseed in this region. Oilseed includes herbicide resistance, insecticide resistance; other includes abiotic stress tolerance and disease resistance among others.

The U.S is the largest oilseed producer in the world followed by China, Brazil, Argentina, India and the EU. The distribution channel includes hypermarkets/ supermarket, departmental stores and convenience stores among others for household and foodservice industry. Bio-fuels manufacturers follow a different supply chain altogether. They operate through distributors and other exclusive outlets for selling their products.

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The key market players producing vegetable oil for household/ foodservice industry are Burrus Seed farm, Gansu Dunhuang Seed Co Ltd, Hefei Fengle Seed Co Ltd and Land O’Lakes Inc among others. Companies engaged in producing bio-fuels from oilseeds are ADM Ölmühle Hamburg (Archer Daniels Midland), Diester Industrie (Bunge Limited), Green BioFuels Corporation among others.

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