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The Cottonseed Oil Market is projected to increase by 965.24 thousand tons from 2022 to 2027. The market is estimated to grow at a CAGR of 3.6% between 2022 and 2027. In 2017 the market size was valued at 4,779.13 thousand tons.
One of the growth drivers of the global cottonseed oil market is the increasing awareness among consumers about the health benefits of the consumption of cottonseed oil. For instance, Cottonseed oil is low in cholesterol, making it popular among health-conscious consumers. Similarly, Cottonseed oil has a high smoke point, making it suitable for deep frying and cooking at high temperatures. Since it has a neutral taste, it tastes like whichever ingredient it is added to. Also, in cottonseed oil has a high smoke point, making it suitable for deep frying and cooking at high temperatures. Also, since it has a neutral taste, it tastes like whichever ingredient it is added to.
This market is segmented by product into GM cottonseed oil and non-GM cottonseed oil. The GM cottonseed oil segment will contribute 40% to the growth of the market. GM crops are genetically modified using genetic engineering techniques to introduce a new trait to the plant, which does not occur naturally in the species. Famers have increasingly started using GM crops globally. The segment is expected to witness a decline due to government restrictions in countries such as India, where the sales of GM cottonseed oil are prohibited for human consumption unless approved by the government.
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The availability of cold-pressed cottonseed oil is notably driving the market growth, although factors such as the easy availability of substitutes will impede the market growth. Our researchers analyzed the data with 2022 as the base year and the key drivers, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help stakeholders in the value chain refine their marketing strategies to gain a competitive advantage.
Trend
The availability of cold-pressed cottonseed oil is the primary trend in the global cottonseed oil market growth. The demand for cold-pressed cottonseed oil is increasing among consumers, and it is expected to remain high during the forecast period. The players in the market are also coming up with new cold-pressed cottonseed oil products. Cold pressing ensures that the product retains its natural antioxidants and natural odour and flavour.
Cold pressing involves extracting the oils by pressing the fruits or seeds with a modern steel press. With increasing consumer preference for cold-pressed cottonseed oil, the global market is expected to witness high growth during the forecast period.
Challenge
The easy availability of substitutes is a major challenge to the global cottonseed oil market growth. Cottonseed oil is widely used in cooking as it has healthy unsaturated fatty acids. Other types of vegetable oils, however, can be used as replacements for cottonseed oil in commercial and domestic cooking. Palm oil, olive oil, soybean oil, and canola oil are some alternatives to cottonseed oil. Soybean oil is preferred in cooking as it consists of essential fatty acids such as linoleic acid, alpha-linolenic acid, and monounsaturated oleic acid. A good balance of fatty acids in soybean oil ensures that the body obtains fatty acids and regulates cholesterol levels.
Canola oil is a good source of vitamin K and vitamin E, which helps in keeping the heart healthy. It has the lowest concentration of saturated fat among all vegetable oils. Canola oil and soybean oil are also good sources of omega-3 fatty acids, which help protect the cell membranes of the skin and eyes. Like cottonseed oil, olive oil has a high concentration of monounsaturated fats. Olive oil helps reduce cardiovascular diseases and cholesterol levels. The availability of substitutes, therefore, can hamper the global cottonseed oil market during the forecast period.
Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Cottonseed Oil Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The cottonseed oil market segmentation by distribution channel consists of offline and online. The growth of organized retail in developed as well as developing economies has rendered supermarkets and hypermarkets the most popular distribution channel for groceries, such as cottonseed oil and related products. Also, factors like discounts and attractive shelf displays contribute to unique shopping experiences for consumers and encourage them to purchase cottonseed oil in higher quantities from supermarkets and hypermarkets.
The cottonseed oil market segmentation by product consists of GM cottonseed oil and non-GM cottonseed oil. The market share growth by the GM Cottonseed Oil segment will be significant during the forecast period. The GM cottonseed oil segment was the major contributor to the global cottonseed oil market in 2022. However, the share of the GM cottonseed oil segment is expected to decrease during the forecast period due to the increasing concern among consumers about the harmful effects of GM cottonseed oil. GM crops are genetically modified using genetic engineering techniques to introduce a new trait to the plant, which does not occur naturally in the species. Famers have increasingly started using GM crops globally.
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The GM Cottonseed Oil segment was valued at 2,964.97 thousand tons in 2017 and continue to grow by 2021. The segment is expected to witness a decline due to government restrictions in countries such as India, where the sales of GM cottonseed oil are prohibited for human consumption unless approved by the government. Also, GM cottonseed oil is extensively mixed with other oil products, such as Vanaspati, and sold in developing countries such as India. Various organizations in India test oil products to identify the mixture of unapproved components in the product. Most of such products did not have GM ingredients labelling on the product. Therefore, the factors mentioned above indicate that the sales of GM cottonseed oil products are expected to decline during the forecast period.
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APAC is estimated to contribute 80% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The demand for cottonseed oil is expected to increase in APAC countries, especially China and India. India is the global leader in cotton production. However, cotton production in India is expected to increase during the forecast period due to special schemes such as intensive cotton production programs launched by the government. This will positively affect the cottonseed oil market in the region during the forecast period. The various use of cottonseed oil in other industries is also expected to increase the demand for cottonseed oil in the region during the forecast period. Cottonseed oil is used for developing biodiesel in APAC, and the use of biodiesel is expected to increase due to the depletion of fossil fuels globally.
The COVID-19 outbreak increased the consumption of nutritional foods and oils such as cottonseed oil in the region due to increased health concerns among consumers in 2020. However, in 2021 vaccines were introduced, which led to the lifting of lockdown restrictions across the region. Owing to the relaxation in lockdown restrictions, the oil processing units were restarted to cater to the rising demand. Additionally, supply and trade activities also restarted, which increased the demand for cottonseed oil. The cottonseed oil market gradually started recovering as the demand for edible oil from the HoReCa sector increased. Therefore, the market in focus in the region will witness high growth during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Cottonseed Oil Market Scope |
|
Report Coverage |
Details |
Page number |
162 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.6% |
Market growth 2023-2027 |
965.24 th t |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
2.44 |
Regional analysis |
APAC, Middle East and Africa, North America, South America, and Europe |
Performing market contribution |
APAC at 80% |
Key countries |
US, India, China, Pakistan, and Brazil |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Archer Daniels Midland Co., Aryan International, Asha Cotton Industries, Authentic Oil Co., Bunge Ltd., Cargill Inc., Henry Lamotte Services GmbH, ITOCHU Corp., Matangi Cotton Industries, Oilseeds Australia Pty Ltd., PYCO Industries, S.R. Cotton, SULU ORGANICS Corp., Vimal Oil and Foods Ltd., Wilmar International Ltd., Gemini Edibles and Fats India Pvt. Ltd., Gokul Refoils and Solvent Ltd., Louis Dreyfus Holding BV, Maharashtra solvent extraction P Ltd., and Oilseeds International Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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