Global Oilseed Processing Market - 2023-2030

Market Overview

The Global Oilseed Processing Market US$ 312.5 billion in 2022 and is projected to witness lucrative growth by reaching up to US$ 627.2 billion by 2030. The market is growing at a CAGR of 4.5% during the forecast period 2023-2030.

With the growing focus on healthy and sustainable diets, there is a rising demand for plant-based protein sources. Oilseed processing plays a crucial role in producing protein-rich products such as soy protein isolates and concentrates. The market is witnessing an increased demand for these products in food, beverage, and animal feed applications.

Continuous advancements in extraction technologies are improving the efficiency and yield of oilseed processing. Innovations such as solvent-free extraction methods, enzyme-assisted extraction, and supercritical fluid extraction are gaining prominence. These technologies offer benefits such as reduced solvent usage, improved oil quality, and reduced environmental impact. Hence, with Advancements in Extraction Technologies, the Oilseed Processing market is growing.

Market Dynamics

Increasing Demand for Vegetable Oils is driving the oilseed processing market's growth

Vegetable oils are considered healthier alternatives to certain animal fats and solid fats due to their lower saturated fat content and higher levels of unsaturated fats. With a growing emphasis on health and nutrition, consumers are opting for vegetable oils in their diets. For instance, according to USDA, global vegetable oil production increased by 0.84 million tonnes to 219.05 million tonnes in August 2022. The awareness of the health benefits associated with vegetable oils, such as the reduced risk of heart disease, is driving the demand for these oils and, consequently, the oilseed processing market.

Vegetable oils have various industrial applications, including biofuels, lubricants, oleo chemicals, and personal care products. The increasing demand for biofuels as a renewable energy source, as well as the growing popularity of natural and sustainable ingredients in industries such as cosmetics and personal care, is driving the demand for vegetable oils and stimulating the growth of the oilseed processing market.

Rising Demand for Biofuels is Driving the Market Growth of the Oilseed Processing Market

The environmental benefits of biofuels, such as lower greenhouse gas emissions compared to fossil fuels, contribute to their increasing demand. According to International Energy Agency, in the most likely scenario, the demand for biofuels will increase by 41 billion liters, or 28%, between 2021 and 2026. Biofuels derived from oilseeds are considered more sustainable and eco-friendly alternatives to conventional fossil fuels. This growing concern for environmental sustainability drives the market growth of the oilseed processing industry as more oilseeds are cultivated and processed to meet the demand for biofuel feedstocks.

Many oilseeds, such as soybeans, rapeseed, and palm, serve as important feedstocks for biodiesel production. These oilseeds undergo oilseed processing to extract oil, which is then converted into biodiesel through transesterification or other conversion processes. The increasing demand for biodiesel as a renewable and environmentally friendly fuel alternative drives the need for oilseed processing and contributes to market growth.

Environmental and Sustainability Concerns can Hamper the Market Growth

Oilseed cultivation, particularly for crops like palm oil and soybeans, has been associated with deforestation and land-use change in certain regions. The clearing of forests and conversion of land for oilseed production can have adverse environmental impacts, including habitat loss, biodiversity depletion, and increased carbon emissions. Increasing awareness and regulatory actions focused on reducing deforestation and promoting sustainable land use can limit the expansion of oilseed cultivation and processing in certain areas.

Increasingly, consumers are demanding transparency and traceability in the production of oilseed-based products, particularly for commodities like palm oil and soybeans. Certification schemes, such as Roundtable on Sustainable Palm Oil (RSPO) and Round Table on Responsible Soy (RTRS), aim to promote sustainable practices and ensure the ethical sourcing of oilseeds. Compliance with certification standards and meeting traceability requirements can be challenging for oilseed processors, particularly if their supply chains involve multiple actors and regions.

COVID-19 Impact Analysis

The COVID-19 Analysis includes Pre-COVID Scenario, COVID Scenario and Post-COVID Scenario along with Pricing Dynamics (Including pricing change during and post-pandemic comparing it with pre-COVID scenarios), Demand-Supply Spectrum (Shift in demand and supply owing to trading restrictions, lockdown, and subsequent issues), Government Initiatives (Initiatives to revive market, sector or Industry by Government Bodies) and Manufacturers Strategic Initiatives (What manufacturers did to mitigate the COVID issues will be covered here).

AI Impact

AI can be employed to enhance seed cleaning efficiency by automating the sorting and grading of seeds based on their quality, size, and impurity levels. AI techniques, such as machine vision and deep learning, can be employed to automate oil extraction processes. AI can optimize mechanical pressing operations by analyzing data from sensors and actuators to control the pressing force, temperature, and duration.

AI can optimize mechanical pressing operations by analyzing data from sensors and actuators to control the pressing force, temperature, and duration. AI can optimize the oil refining process by analyzing sensor data to control parameters such as temperature, pressure, and chemical dosages AI can improve degumming processes by monitoring and controlling the degumming agent dosage, temperature, and reaction time based on real-time sensor data. AI can optimize seed conditioning by monitoring and controlling the moisture content, temperature, and other environmental factors during the treatment process.

Segment Analysis

The global oilseed processing market is segmented based on product type, category, application, and region.

The Rising Demand for Soy Products is Driving the Segment's Growth

In 2022, the soybean segment accounts for the highest market share. Soybeans are one of the most widely cultivated oilseed crops globally. For instance, according to FAO, the United States produced 120707.23 kilotonnes of soybeans in 2021. Soybean are known for their high oil content, which makes them a valuable source for oil extraction. Moreover, soybeans have versatile applications, with their oil being used in various industries such as food processing, feed production, biodiesel production, and industrial applications.

Soybeans are not only processed for oil extraction but also for the production of various soy products such as soybean meal, soy protein isolates, and soy flour. Soybean meal, a byproduct of oil extraction, is widely used as a high-protein animal feed ingredient. The demand for soy products, both domestically and internationally, has driven the growth of the soybean processing industry.

Geographical Analysis

Growing Population and Consumption of Oilseed Derivatives in the Asia-Pacific Region

Asia Pacific has a large and rapidly growing population, which drives the demand for vegetable oils and oilseed-derived products. For instance, according to an FAO, November 2020 report, India, the world's top importer of vegetable oils such as palm kernel, coconut, and cottonseed oil, is expected to keep up a strong import growth of 3.2% per year because of a growing global population and rising earnings. The consumption of cooking oils, margarine, shortenings, and other edible oil products is substantial in countries across the region. As a result, the oilseed processing industry in the Asia Pacific has expanded to meet the growing domestic demand.

Economic growth in many Asia Pacific countries has led to an increase in disposable income and changes in dietary patterns. As people's income levels rise, there is a shift toward a more diversified and higher-quality diet, including an increased consumption of edible oils and oilseed-based products. This trend further stimulates the demand for oilseed processing in the region.

Competitive Landscape

The major global players include: ADM, Bunge Ltd., Cargill, Inc., EFKO Group, ITOCHU Corporation, Louis Dreyfus Company B.V., Richardson International Ltd., Wilmar International Ltd., Chs Inc., and Ag Processing

Why Purchase the Report?

• To visualize the global castor 0il market segmentation based on product type, Process, application and region understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of oilseed processing market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The Global Oilseed Processing Market Report Would Provide Approximately 61tables, 58 Figures, And 151 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies