Oilseeds Market Analysis, Growth, Trends, Share, & Forecast To 2025

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According to the new market research report ‘Oilseeds Market by Type (Soybean, Rapeseed, Sunflower, Cottonseed, Groundnut, Copra, Palm Kernel), Category (Conventional and Genetically Modified), Application (Oilseed Meal and Vegetable Oils), and Region-Global Forecast to 2025′, published by MarketsandMarkets™. The Global oilseeds market is estimated to be valued at USD 250.0 billion in 2019 and is projected to reach USD 335.0 billion by 2025, recording a CAGR of 5.0%. Due to the growing health awareness among consumers, the demand for healthy oil in the preparation of foods is increasing. The change in the dietary habits of consumers has also led to an increase in demand for oilseeds.

The soybean segment is estimated to account for a larger market share, in terms of value

The soybean segment dominated the market for oilseeds as nearly 85% of the oilseeds that are produced in the world are processed and crushed to manufacture soybean meal and oil. There has been an increase in the number of areas, in which soybeans finds applications. Due to these factors, the market is projected to witness significant growth.

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The genetically modified segment is estimated to witness the fastest growth in the oilseeds market, in terms of value

The genetic modification of oilseeds improves the quality and production of oil. The high demand for competitive and economically priced vegetable oil has led to an increase in the preference for genetically modified seeds. Genetically engineered oilseeds are being used as an important ingredient in the functional foods industry. This widespread demand and an increase in the application areas are some of the factors, due to which the market is projected to witness faster growth.

The demand for healthy and organic oilseed-processed products has created opportunities for oilseeds manufacturers

The increasing number of health-conscious consumers and growing awareness about the adverse effects of trans-fatty acids among the consumers are factors projected to drive the demand for food products that contain low trans-fat levels during the forecast period. Manufacturers are developing food products that use healthier oils instead of trans-fatty acids. They are also developing high-stability oils such as high oleic sunflower, linolenic canola, and low linoleic soybean, to seek emerging opportunities.

By category, the oilseeds market is segmented into conventional and genetically modified. The demand for genetically modified or transgenic seeds remains high due to characteristics such as higher levels of disease resistance, high output, and quality. Countries in the South American and Asia Pacific regions witness high demand for oilseeds that are genetically modified, to cater to the domestic market.

Based on application, the oilseed market is segmented into vegetable oil and oilseed meal. The oilseed meal segment is further segmented into food, feed, and industrial products. The food products segment is further segmented into bakery & confectionery products, sauces, spreads, and dressings, meat products, and others, which include baby food, isolated proteins, and cereals. The vegetable oil segment is further segment into food products and industrial products. The food products segment in the vegetable oil segment is further segmented into bakery & confectionery products and sauces, spreads, and dressings. The market for oilseeds is growing at a high rate due to the changing consumer preferences from animal to plant products. In addition, soy-based products are a major source of protein for vegans worldwide. The high nutritional profile, low carbon footprint, and low price of plant-sourced products are projected to encourage the consumption of oilseeds in food applications. The demand for healthy and organic oilseed-processed products, public-private partnerships in varietal development, and molecular breeding in oilseeds are some of the factors driving the growth of the oilseeds market.

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Oilseeds are increasingly finding applications in the feed industry due to the growing preference for natural and organic sources of oilseeds among the feed manufacturers. The market is also witnessing increased demand from the biodiesel sector. With the increasing demand for non-GMO oilseeds in various sectors, the oilseeds market is projected to witness significant growth. However, the market also faces various challenges such as new entrants in the market and poor post-harvest management in developing countries.

Key Market Players

Key players in this market include Archer Daniels Midland (US), Cargill (US), Wilmar International (Singapore), and Bunge Limited (US). Major players in this market are focusing on increasing their presence through expansions & investments, mergers & acquisitions, partnerships, joint ventures, and agreements. These companies have a strong presence in North America and Europe. They also have manufacturing facilities along with strong distribution networks across these regions.