Latin America Oilseed Processing Market

Latin America Oilseed Processing market is anticipated to grow at 7.55% CAGR from 2021 to 2026 and it is estimated that the Latin America market was valued at USD 36.16  million in 2021 and is expected to reach USD 52.04 million by 2026.

Oilseeds 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 the shortage of non-renewable resources for various purposes. Oilseeds 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 oilseeds are used as food ingredients in daily cooking.

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 the product in the market. Another major factor that is expected to drive the market is demand for biofuels in developed and developing countries. Compulsory usage of biofuels in vehicles and other machinery would fuel the demand for oilseeds in the Latin America market. Changing lifestyles followed by changing food preferences and experimenting with a number of new food varieties is driving the demand for oilseed market. However, the gap in demand and supply worldwide is going to hinder the growth of the market. Moreover, increasing government regulations on manufacturing, exporting and marketing of oil could be a potential restraint to this market. Furthermore, 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 Latin America Oilseed Processing market is segmented on the basis of Type, Process, and Application. On the basis of Type, it is segmented into Soybean, Rapeseed, Sunflower, and Cottonseed. Soybean is projected to be the fastest-growing segment due to the increase in production of soybean in the Asian countries, owing to the strong demand for a meal with high protein content from the feed industry. In addition, the increase in demand for biodiesel derived from soybean feedstock is expected to fuel the growth of this market segment across the globe. On the basis of Process, it is segmented into Mechanical and Chemical. The chemical process segment is projected to witness the highest growth due to the increasing use of the chemical processes to ensure maximum extraction of oil content from oilseeds. Additionally, the high usage of the chemical process of extraction for soybean drives the market growth of this segment of the Oilseed Processing Market. On the basis of Application, it is segmented into Performance Food, Feed, and Industrial.  The food segment accounted for the largest share in the Oilseed Processing Market. This is due to the high application of oilseed processed products such as edible oil in various food products.

Based on geography, the market is analyzed under various regions namely Argentina, Brazil and Mexico. Latin America is the largest producer of soybean.

The market is dominated by companies like Archer Daniels Midland Company, Bunge Limited, Cargill, Wilmar International Ltd., Richardson International Limited, Louis Dreyfus Company B.V., CHS Inc., Ag Processing Inc., ITOCHU Corporation, and EFKO GROUP.