Spain Leads Sunflower Oil Imports in Europe
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The global Sunflower Oil market size was USD 18.50 billion in 2020. The global impact of COVID-19 was unprecedented and staggering, with Sunflower Oil witnessing a negative impact on demand across all regions amid the pandemic. The global market exhibited a lower growth of 5.02% in 2020 compared to the average year-on-year growth in 2017-2019. The market is projected to grow from USD 19.5 billion in 2021 to USD 29.6 billion in 2028 at a CAGR of 6.12% in 2021-2028.
According to the research paper published in Oilseeds & fats Crops and Lipids (OCL) 2020, the Sunflower Seed Oil is the fourth largest consumed vegetable Oil in the world. The Oil is rich in oleic acid, linoleic acid, and other essential nutrients that lower harmful cholesterol levels in the body. This has gradually increased its consumption as a healthy cooking Oil and frying Oil in food manufacturing services and households.
According to the Food and Agriculture Organization (FAO), Sunflower Seed Oil production is expected to reach 60 million tons by 2050, implying a rise in per capita consumption. However, the presence of substitute edible Oils such as olive Oil, canola Oil, and coconut Oil with similar nutritional attributes acts as a restraint in its market growth. The manufacturing process of Oils with high wax content, such as Sunflower, is expensive due to the additional filtration.
In terms of types, mid-oleic Sunflower Oil dominates the global market with a 36.8% market share, followed by high-oleic (32.3%) and linoleic (27.8%). The mid-oleic Sunflower Oil is considered the standard variant, as it is the most common type available worldwide. This is because mid-oleic Oil retains linoleic acid levels to remain an excellent dietary source, along with the high levels of oleic acid, making it less prone to rancidity and breaking down. Thus, eliminating the need for hydrogenation and resulting trans-fat. It is primarily utilized in the cooking industry in conditions with high cooking temperatures.
According to the National Sunflower Association of the USA, the mid-oleic type has proven to lower cholesterol levels. The high-oleic segment is projected to showcase substantial growth owing to its higher demands and superior qualities than the other two variants. The higher shelf life, stability at high temperatures, and neutral taste make it a favorable option among food manufacturers and processors.
Europe’s Sunflower Oil Market on the Rise
Europe’s Sunflower Oil market reached USD 6.3 billion in 2020 and is forecast to grow constantly in the next years. According to AgFlow data, Europe imported 2.1 million tons of Sunflower Oil in 2022. The largest importing countries are Spain (0.4 million tons), the Netherlands (0.2 million tons), Italy (0.15 million tons), and France (0.1 million tons).
South America is anticipated to witness substantial growth due to the increase in Sunflower cultivation and production in the region. Due to increasing health and wellness concerns among consumers, the consumption of such healthy cooking Oil is surging. An increase in demand for Sunflower Seed Oil and its by-products is forecasted internationally, and the region is expected to contribute to meeting the needs significantly. North America holds a relatively small share of the market. However, it has tremendous opportunities for the sector to grow in the upcoming years owing to its extensive use in culinary preparations and animal feed.
The market is moderately consolidated owing to the presence of prominent players worldwide. Companies such as Conagra Brands, Inc., Bunge Ltd., Cargill, Inc., Hanoon Oil Factory, and Archer Daniels Midland Company focus on expanding their geographic presence and business expansion acquisitions and new product launches. For instance, in November 2018, Abu Dhabi Vegetable Oil Co. (ADVOC) announced a partnership with Patanjali Ayurved Limited to produce a range of edible Oils for the middle-eastern market
Other sources: FORTUNE BUSINESS IN SIGHTS
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