by The oilseed market plays a pivotal role in meeting global edible oil demands and animal feed requirements. Oilseeds such as soybean, rapeseed, sunflower, and palm kernel are widely grown crops that provide healthy fats and proteins. Soybean and canola oils have gained popularity as versatile cooking oils high in unsaturated fats and free of trans-fats. Oilseed meal is an important component in animal feeds due to its balanced amino acid profile.
The global oilseed market is estimated to be valued at US$ 305.16 Bn in 2024 and is expected to exhibit a CAGR of 5.1% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the oilseed market are Archer Daniels Midland Company (ADM), Cargill, Inc., Bunge Limited, Wilmar International Limited, Louis Dreyfus Company, Olam International, CHS Inc., Sime Darby Plantation, Ag Processing Inc. (AGP). These companies dominate the global supply chain and trade of oilseeds through integrated origination, processing, refining, packaging, and distribution networks spanning many countries.
The Oilseed Market Trends for protein-rich animal feeds to meet requirements of the livestock industry is driving increased cultivation of oilseeds globally. Soybean meal accounts for over 60% of the world’s consumed protein feeds and remains the most widely used agricultural product globally besides sugar and maize.
Major producer regions are expanding oilseed crop acreages to tap rising export demands. South American nations led by Brazil and Argentina are increasing soybean plantings to cement their positions as top suppliers. Production is also increasing swiftly in India, China, and Ukraine with support of governmental policies and investment in agricultural infrastructure.
Market Key Trends
Sustainable intensification of oilseed production through organic and regenerative farming practices is a key trend in the market. There is growing adoption of no-till techniques, cover cropping, and rotational grazing systems to improve soil health and boost yields with reduced synthetic inputs. Consumer demand for non-GMO and traceable organic oilseeds is propelling the expansion of organic farmlands in North America and Europe.
Porter’s Analysis
Threat of new entrants: High capital requirements to install oilseed extraction and refining facilities pose significant entry barriers. Bargaining power of buyers: Large food and beverage manufacturers have higher negotiating power compared to fragmented oilseed producers. Bargaining power of suppliers: Major suppliers such as grain traders, logistic companies and oilseed producers have consolidated market presence. Threat of new substitutes: Alternative vegetable oils including olive oil, avocado oil and peanut oil pose threat of substitution. Competitive rivalry: Intense competition exists among large multinational corporations controlling major share of the global oilseed market.
The geographical region where the oilseeds market in terms of value is most concentrated is North America. The US accounts for the bulk of oilseed production led by soybean followed by canola and sunflower. Soybean alone contributes around 35% of global oilseeds production.
The fastest growing region for the oilseeds market during the forecast period is Asia Pacific. Burgeoning population, rising incomes and shift towards healthier diets drive demand for vegetable oils. Indonesia, India and China are major consumers, importers and producers of oilseeds to fulfil domestic oil requirements. Growth of food manufacturing and foodservice industries also supports market expansion across developing Asian countries.
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1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
