Oilseed Processing Market Share Analysis, Demand, Trends, Industry, Market Forecast (2024-2031)

Oilseed Processing Market is Segmented By Product Type (Soybean, Rapeseed, Sunflower, Cottonseed, Others), By Process (Mechanical, Chemical), By Application (Food, Feed, Industrial) and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2023-2030 

Oilseed Processing 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. Oilseed processing companies are responding to this trend by developing and promoting oils that meet these health criteria, such as canola oil, sunflower oil, and high-oleic varieties of oils derived from different oilseeds.

Consumers are becoming more health-conscious and seeking healthier oil options. There is a shift towards oils with lower saturated fat content and higher levels of unsaturated fats, such as monounsaturated and polyunsaturated fats. The increasing focus on renewable energy sources and environmental sustainability has led to a rise in biodiesel production. Many oilseeds, such as soybeans, rapeseed, and palm, are used to produce biodiesel through oilseed processing. The expansion of the biodiesel industry presents opportunities for the oilseed processing market as it increases the demand for oilseed-derived feedstocks.

Oilseed Processing Market Dynamics and Trends

The Rise in Demand for the Oilseed With the Increased Crushing and Growing Population  is Driving the Growth Of the Oilseed Processing Market

As the population grows, so does the demand for food, including cooking oils. For instance, According to FAO (Food and Agricultural Organisation) overall, 91% of world soybean output and 87% of world production of other oilseeds are projected to be crushed by 2029. Vegetable oils derived from oilseeds are widely consumed due to their versatility and health benefits. Oilseed processing is essential for extracting oil from these oilseeds, meeting the rising demand for vegetable oils.

With a growing population and improving living standards, dietary patterns tend to shift towards a more diverse and processed food consumption. Vegetable oils are key ingredients in various processed foods and cooking applications. The oilseed processing industry caters to this increased demand for vegetable oils by processing oilseeds into edible oils for the food industry.

Increasing Usage Of Oilseeds in Animal Feed is Driving the Market Growth of the Oilseed Processing Market

Oilseed meals are known to enhance feed efficiency and contribute to improved animal performance. According to USDA, About 70–80% of India's total quantity of oilseeds are crushed to make the meal, and the resulting oil and meal are frequently utilized as animal feed on farms. The high protein content, amino acid profile, and digestibility of oilseed meals make them valuable components in balanced animal diets. Their inclusion in feed formulations can result in better growth rates, improved feed conversion ratios, and overall productivity of livestock, which further drives the demand for oilseed processing.

Oilseed processing generates by-products known as oilseed meals or oilseed cakes. These meals are obtained after oil extraction and contain significant amounts of protein, fiber, and other nutrients. Oilseed meals serve as valuable protein sources in animal feed, contributing to the growth, development, and overall health of livestock. The nutritional benefits of oilseed meals drive their usage in animal feed formulations, thereby driving the oilseed processing market.

Volatility in Commodity Prices  Hamper Oilseed Processing Market Growth

Oilseed processing is heavily influenced by the prices of oilseeds in the commodity market. Fluctuations in commodity prices, driven by factors like weather conditions, global supply and demand dynamics, and geopolitical events, can significantly impact the profitability of oilseed processing companies. Rapid and unpredictable price changes pose challenges in planning production, procurement, and pricing strategies.

Volatility in commodity prices makes it challenging for oilseed processors to predict and manage the cost of procuring raw materials. Abrupt price changes can disrupt procurement planning, as oilseed processors need to secure adequate supplies of oilseeds at favorable prices. This uncertainty can lead to supply chain disruptions, delayed production, and higher procurement costs, impacting the efficiency of oilseed processing operations.

Oilseed Processing Market Segmentation Analysis

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

Abundance of Soybean Production is Driving the Segment Growth

Based on product type, the oilseed processing market is classified into soybean, rapeseed, sunflower, cottonseed, and others. 

In 2022, the soybean segment accounts for the highest market share due to the increased usage of soybeans for the production of edible oil, fatty acids, soaps, biodiesels, and animal feed. Soybeans are one of the most widely cultivated oilseed crops globally. For instance, according to USDA, in 2022, soybean production last year (was 355.60 million tons around the globe. Soybean is grown extensively in major agricultural regions such as the United States, Brazil, Argentina, China, and India. The significant production volume of soybeans contributes to its dominance in the oilseed processing market.

Soybeans offer various valuable products that are in high demand. Soybean processing yields multiple products such as soybean oil, soybean meal, soy protein concentrates, soy lecithin, and other derivatives. Soybean oil is one of the most consumed vegetable oils worldwide, finding applications in cooking, food processing, and biodiesel production. Soybean meal is a protein-rich ingredient used extensively in animal feed formulations. The versatility and wide range of applications for soybean products contribute to the dominant market share of the soybean segment.

Oilseed Processing Market Geographical Share

North America Held Highest Share in the Oilseed Processing Market

In 2022, North America have the highest share of the oilseeds market owing to the high demand for oilseeds because of the presence of favorable trade and price support systems.  North America, particularly the United States and Canada, is a major player in soybean processing. The region has a well-established soybean cultivation industry, and a significant portion of the soybean crop is processed into soybean oil and soybean meal. For instance, according to FAO, in 2021, the United States produced 120707.23-kilo tons of soybeans. 

The North American market for oilseed processing is substantial due to the high consumption of vegetable oils and oilseed meals in various sectors, including food, feed, and industrial applications. The region has a large population and a developed food processing industry, which drives the demand for oilseed processing and its products.

Oilseed Processing Companies and 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

COVID-19 Impact on Oilseed Processing Market

COVID-19 Impact

The COVID-19 pandemic has impacted every industry, such as aerospace & defense, agriculture, food & beverages, automobile & transportation, chemical & material, consumer goods, retail & eCommerce, energy & power, pharma & healthcare, packaging, and construction. The pandemic has disrupted supply chains and lowered demand, reducing profits in the industry. 

Malaysia's palm oil exports peaked in 2018-19 but declined 15 percent to 15.5 million in 2021-22. Global import demand was down in 2021-22 owing to weaker economic growth and extremely high vegetable oil prices. Additionally, sourcing foreign labor for palm oil cultivation in Malaysia has been challenging due to COVID-19 restrictions.

Artificial Intelligence (AI) Impact

AI can be used to automate and optimize seed-cleaning processes. AI can help in determining the optimal seed conditioning parameters, such as temperature, moisture content, and duration. Machine learning algorithms can analyze historical data and real-time conditions to recommend the best conditioning parameters for maximizing oil extraction efficiency. AI can enhance oil extraction processes by optimizing extraction parameters, such as temperature, pressure, and solvent concentration.

AI can improve the performance of mechanical presses used in oilseed processing. AI can optimize degumming processes by predicting the optimal degumming agent dosage, temperature, and reaction time. AI can enhance oil refining processes by automating quality control and optimizing refining parameters. AI can improve the performance of expeller presses by optimizing process parameters, such as screw speed, feed rate, and compression ratio

By Product Type

• Soybean
• Rapeseed
• Sunflower
• Cottonseed
• Others 

By Process

• Mechanical
• Chemical

By Application

• Food
• Feed
• Industrial

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • The UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In April 2023, Cargil, an agribusiness company announced an investment of US$50 million to upgrade and expand its Newcastle, Narrabri, and Footscray oilseed crush facilities.
• In March 2023, Scoular, an agricultural marketing company, invested in a Kansas oilseed crush facility for the renewable fuels market.
• In February 2020, Amul entered the edible oil business with the launch of the Janmay brand in Gujarat.

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 oilseed processing market-level data points all for 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, 59 Figures, And 151 Pages.

Target Audience 2023

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

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