The global sunflower oil market size is expected to reach USD 29.59 billion in 2028, exhibiting a CAGR of 6.12% during the forecast period. The growing awareness regarding the benefits of this oil in diminishing cholesterol levels will influence the healthy growth of the market in the forthcoming years, states Fortune Business Insights, in a report, titled, “Sunflower Oil Market, 2021 – 2028.” The market size stood at USD 18.50 billion in 2020.
Thwarted Foodservice Industry to Dampen Market growth amid COVID-19
The COVID-19 pandemic has massively disturbed the global market. The lockdown imposed by the governments and transportation restrictions has negatively impacted the growth of the market. The trade barriers have caused colossal loss for the food and hospitality industry during the pandemic. The HoReCa (Hotel, restaurants, Café) sector was hit severely by the pandemic. The surging oil prices due to restriction on import and export activities will further limit the market's growth. According to the Solvent Extractors’ Association of India (SEA), there has been a 5% decline in edible oil imports. Nonetheless, the ease of transportation and logistics by governments can significantly elevate the market post-pandemic.
The Mid- Oleic Sunflower Oil to Hold the Highest Share
Based on type, the market is classified into high-oleic, mid-oleic, and linoleic. The mid- oleic segment is expected to hold the largest share during the forecast period. The growth is attributed to its high demand for cooking oils due to excellent dietary benefits. The lower Trans fats and health benefits of mid- oleic sunflower oil will further spur the market's opportunities. According to the National Sunflower Association (NSA), the mid-oleic type has proven to lower cholesterol levels.
Based on end-users, the market is divided into household/retail, foodservice/HORECA, and industrial. The foodservice/HORECA is expected to hold the lion’s share during the forecast period due to the demand for sunflower seed oil across the foodservice sector. The increasing consumer inclination towards dine-outs and flourishing restaurants chains will influence the segment’s growth. According to the Agriculture and Agri-Food Canada report, 80.5% of edible cooking oils in India in 2018 were consumed through food restaurants, while 6.4% of sales through pubs, bars, and clubs.
Geographically, the market is divided into North America, Asia Pacific, Europe, Latin America, and the Middle East and Africa.
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Increasing Biodiesel Production to Benefit Market
The dearth of fossil fuels has led to the shift towards alternative biofuels or biodiesel made from vegetable oils, which, in turn, will promote the growth of the market. Sunflower seeds have high oil content and have an average yield of nearly 600 pounds of oil per acre. The growing inclination towards sunflower seeds for biodiesel production will greatly impact the global sunflower oil market growth in the foreseeable future. Moreover, easy harvest and high-profit yields of sunflower seeds will further boost its demand. Also, its sustainability and eco-friendliness in cooking can positively affect this industry during the forecast period.
Rising Consumption of Sunflower Oil to Propel Market in Europe
The market in Europe stood at USD 6.28 billion and is expected to hold the largest sunflower oil market share during the forecast period. The growth in the region is attributed to the growing consumption of this oil. Russia and Ukraine are the leading producers of sunflower seed oil in the world. The ever increasing demand for this healthy oil in cooking can bolster the healthy growth of the regional market. According to an article published by the Oil Palm Industry Economic Journal, 2018, Russia produced 4.6 million tonnes of sunflower seed oil in 2017. The fast-paced lifestyles of European consumers will further contribute to the market growth in the region. Asia Pacific is expected to hold the highest share in the global market during the forecast period. The increase is attributed to the high utilization of sunflower seed oil in manufacturing bakery, snacks, and confectionery products. The flourishing bakery industry is expected to propel the growth of the market in Asia Pacific.
July 2020: Amul, an Indian dairy cooperative society, introduced a new oil brand Janmay edible oils, in Gujarat, India. The brand range includes groundnut oil, soybean oil, sunflower oil, and other prominent cooking oils.
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