Sunflower Oil Market Growth, Trends and Forecasts (2020 - 2025)
The global sunflower oil market is forecasted to witness a CAGR of 5.67% during the forecast period (2020 - 2025).
Fluctuating Prices of Other Vegetable Oils Drives the Demand
The sunflower oil is witnessing an upsurge in the global market, mainly driven by the fluctuating prices of other vegetable oils, such as palm oil, soybean oil, and others. The fluctuating prices often affect the overall sales of the end-user products; thus, firms are inclining toward stable-priced options like sunflower oil to utilize them for various purposes.
The manufacturers of snacks are readily opting for sunflower oil due to its capability to impart good properties to the products at a comparatively lower cost than olive oil. Moreover, the snack industries are choosing sunflower oil as a convenient alternative to palmolein oil as it does not require any kind of additional heating in cold temperature conditions, thus reducing the cost required for putting extra heating setup, unlike for palmolein oil, which has a higher freezing point.
The sunflower oil provides cost-effective solutions in other industries as well. Sunflower oil is rich in essential fatty acids and helps moisturize, regenerate, and condition the skin. Thus, it is considered for a variety of skin care products due to its lower pricing as compared to other nourishing oils, like argan oil, almond oil, and olive oil. Additionally, it is also used as the primary vegetable oil in bath oil and massage oil formulations.
Increasing Application and Demand of Sunflower Oil in Russia
In Russia, the oil and fat industry is one of the leading sub-sectors of the food processing industry, and the production of sunflower oil increased at an exponential rate in the past one decade.
Russia is the second-largest producer of sunflower seed and sunflower oil in the world, after Ukraine. According to Oil World, a total of 11.4 million metric ton of sunflower seed was produced during 2018-19, which was the highest ever, owing to higher demand from the domestic processing sector.
Moreover, the country is still continuously expanding its production of sunflower oil. In 2019, Russia increased the production of sunflower oil by 23%, which immensely drives the overall European market.
Russia is a net exporter of oils and fats, with export of sunflower oil increasing to more than one million metric ton, and the country is gradually becoming an important player in the sunflower oil trade.
The major players of the sunflower oil market such as Archer Daniels, Midland Company, and Bunge Limited Cargill Incorporated have a broad geographical presence and extensive product portfolios to cater to numerous consumer demand. This factor assists the companies in maintaining a strong foothold in the market.
Product innovations are among the most adopted strategies by the key players of the market studied, followed by partnerships, with an aim to meet the demand and withstand the competition in the market led by the global players.
The prime factors determining the market players and their positions in the concerned market are the high-quality ingredients used without any addition of preservatives to deliver completely natural products, worldwide.