Sunflower Oil Market

Sunflower Oil Market Growth and Forecast (2023-2028):

The Global Sunflower Oil market size is expected to reach USD 29.59 billion by 2028 from USD 20.45 billion in 2022, registering a CAGR of 6.1% from 2023 to 2028.

Market Overview:

Sunflower oil is non-volatile oil and is processed from the seeds of sunflower. The oil is composed of linoleic acid, and oleic acid and is rich in vitamin E. The oil has a neutral profile and has a milder taste. The unrefined oil is less heat stable while the refined one is suitable for high-temperature cooking. It is used for human consumption, seed meal, supplements and the cosmetic industry. the oil is stored at low temperatures during storage and transport to minimize rancidity and nutrient loss. The major participants in the market are Russia, Argentina, Turkey, Ukraine and European Union.

Recent Developments in the Sunflower Oil Industry:

• In 2023, Cargill forays into south India with its edible oil portfolio. It launched Gemini Pureit, a sunflower oil in south India. The edible oil has acquired India’s No 1 quality sunflower oil brand tag by qualifying 20 quality parameters.
• In 2022, Bunge and   BZ Group entered into a strategic partnership. The BZ group is a large network of oil seed farmers and suppliers. This partnership strengthens the operational and commercial cooperation in a dynamic market and helps Bunge in its market strategy.  

REPORT COVERAGE:

Drivers:

Wide variety of applications in the food processing industry

The rising consumer awareness for healthy foods and the presence of low-saturated fatty acids in sunflower oil is propelling factor for the sunflower oil market demand. The increase in demand for healthy cooking oil in every household is lavishing the market growth.  Further sunflower oil is gaining traction in developing countries and many market players are launching their brands exclusively for sunflower oil.  Even the manufacturers are preferring sunflower oil in food processing of oil-based dressings as it is healthy and has good oxidative stability compared to palm oil. Moreover, the application of sunflower oil in supplements and the cosmetic industry is contributing to market expansion. Even further the gaining popularity of sunflower oil as a feedstock crop for biofuel production and the government investments in producing eco-friendly fuel with lower emissions are augmenting the growth of the sunflower oil market.

Restraints:

The availability of substitute products

The primary factor that impedes the growth of the sunflower oil market is the presence of substitute products. oils such as olive oil, coconut oil, and canola oil have similar nutritional profiles. The market players have been introducing these oils under their cooking oil line to extend their portfolio. Further, the manufacturing process of sunflower oil is expensive, which increases the overall end price which will be high compared to other oil in the market. In addition, supply-chain disruption and failure of crops shoot the raw material prices, further impacting the sunflower oil market.

Opportunities:

The demand to ensure consumer health and wellness is providing lucrative opportunities for the sunflower oil market. The developing countries of Asia and Africa regions are adopting oil fortifications to keep their publics healthy. The manufacturers are actively substituting the sunflower oil for oil-based dressings. This provides a high potential for market growth. further rapid urbanization and increasing awareness about healthy cooking oil can contribute to the sunflower oil market expansion.

COVID-19 Impact on the Sunflower Oil  Market:

Many countries like the U.K., Sri Lanka, Brazil, and Italy have faced economic crises. Further supply and demand mismatches have negatively impacted interconnected economies globally Many businesses have stalled and scrapped their projects due to government restrictions and supply chain disruption. The global pandemic has spread to almost 200 countries and containment of viruses and vaccination have become top priorities of every nation. This outbreak has an economic impact and implications on global markets. COVID-19 also has negatively impacted the sunflower oil market. The supply chain disruptions have affected the import exports of sunflower oil globally. The commodity market has registered the largest decline during the pandemic. Also, Russia's invasion of Ukraine has further deteriorated the sunflower oil market. Severe price hikes are anticipated as a result of this chain reaction. However, a relaxation can be observed during the forecast period.

Sunflower Oil Market Segmentation Analysis:

By Product Type:

• Linoleic Oil
• Mid-Oleic Oil
• High-Oleic Oil

The Mid-Oleic oil segment holds the largest market share in the sunflower oil market during the forecast period. It is the most common type of sunflower oil available worldwide. The oil has a good nutritional profile and low cholesterol levels thus households are using it in their daily activities. Also, manufacturers prefer mid-oleic oil as it has high oxidative stability and is resistant to high temperatures. It is primarily used for frying purposes in the food processing industry. Further Substantial growth is observed in high-oleic oil during the forecast period. Factors such as neutral taste, stability at high temperatures and long shelf life are driving the sunflower oil market in the period.

By Application:

• Food
• Biofuels
• Cosmetics
• Other

The food segment is anticipated to hold the largest market revenue during the forecast period. Sunflower oil has many applications in the food industry. Restaurants are adopting sunflower oil owing to a rise in health and wellness trends. Food processing industries use oil for long shelf life and low rancid nature. The consumers are substituting their high cholesterols level-prone oil for sunflower oil. These factors are significantly contributing to market expansion. In addition, increasing market share has been registered by the cosmetics segment. The essential fatty acids in sunflower oil are used in cosmetics such moisturisers, jel etc. These factors are contributing to the sunflower oil market expansion.

Geographical Segmentation Analysis:

• North America - the United States and Canada
• Europe - United Kingdom, Spain, Germany, Italy, and France
• The Asia Pacific - India, Japan, China, Australia, Singapore, Malaysia, South Korea, New Zealand, and Southeast Asia
• Latin America  - Brazil, Argentina, Mexico, and Rest of LATAM
• The Middle East and Africa - Africa and Middle East (Saudi Arabia, UAE, Lebanon, Jordan, Cyprus)

By Region Analysis:

The European region holds the largest market share and is also anticipated to sustain the share during the forecast period. Countries such as Russia and Ukraine are major producers of sunflower oil in the world and have robust supply chains across the European region. Also, the European region has a fast-paced and increasingly sedentary lifestyle. Thus, consumers are adopting healthy substitutes over high-cholesterol ones. This can drive the sunflower oil market growth in the forecast period. further, its high level of unsaturated fatty acids and the high smoke point is augmenting the market growth. Further growth is witnessed in the Middle East and African region. Countries like Turkey one of the producers of sunflower oil in the region also an increasing number of companies are adopting sunflower oil for processing food. Moreover, the increase in oil usage in daily activities by every household and several key collaborations in the region are driving the sunflower oil market growth.

Key Players in the Market:

Major Key Players in the Global Sunflower Oil Market are

• EFKO Group
• Cargill 
• Nutrisun
• Dicle Group
• NMGK
• Kaissa oil
• Bunge
• MHP
• Creative Group
• Tanoni Hnos. Sa
• Standard Food
• NT Ltd
• Oliyar
• Delizio
• Risoil
• COFCO
• Luhua Group
• Sanxing Group
• Pology Oil
• Adani Wilmar
• ADM