Sunflower Oil Market

• Widespread use of healthful cooking oils to propel the market growth

According to market dynamics, in recent years, awareness of the beneficial health effects of polyunsaturated fatty acids (PUFA) has grown significantly. Due to this, cooking oils that include MUFA and PUFA have seen an upsurge in demand. The ingestion of MUFA may raise the body's high-density lipoproteins (HDL), also known as "good cholesterol," according to numerous scientific research. The idea that edible oils with at least 70% oleic acid may lower the risk of coronary heart disease is also backed by the Food and Drug Administration (FDA).

Additionally, as food is increasingly used professionally for culinary reasons, consumption has increased due to the growing  population and rising food demand. Sunflower oil production is anticipated to reach 60 million tonnes by 2050, according to the Food and Agriculture Organization (FAO), indicating an increase in per capita consumption. Thus, this factor is driving the market CAGR.

Furthermore, consumers' attention has steadily switched toward fortified or nutrient-rich edible oils due to rising health and wellness trends. Obesity and a variety of cardiovascular ailments are results of consumers' modern sedentary lifestyles. Due to this, customers have begun to switch to edible oils that have been enriched with necessary vitamins and minerals to support the body's functioning. The World Health Organization (WHO) states that vitamin A-fortified edible oils have been successfully used in developed nations. Vegetable oil fortification is being used by a number of developing nations in Asia and Africa to combat malnutrition and mineral deficiencies.

The  trend toward high-value food is expected to continue, as a result of increased urbanization and higher educational standards.

This encourages reusing used cooking oil, resulting in a more environmentally responsible fuel with lower pollutant emissions. As a result, it will be extensively used in the production of biodiesel, helping to expand the market. As per the market forecast, the sunflower oil industry is anticipated to develop during the forecast period due to an increase in the use of sunflower oil in the production of biodiesel. Thus, it is anticipated that this aspect will accelerate the sunflower oil market revenue.

The increasing awareness of health and wellness among consumers is driving the Global Sunflower Oil Market Industry. Sunflower oil is perceived as a healthier alternative to other cooking oils due to its low saturated fat content and high levels of unsaturated fats. This trend is particularly evident in regions where consumers are shifting towards healthier dietary choices. As a result, the demand for sunflower oil is expected to grow, contributing to the market's projected value of 17.6 USD Billion in 2024. The emphasis on heart health and the promotion of sunflower oil as a source of essential fatty acids further bolster its appeal in the global market.

The Global Sunflower Oil Market Industry is poised for growth, with projections indicating a market value of 17.6 USD Billion in 2024 and an anticipated increase to 30.0 USD Billion by 2035. The compound annual growth rate (CAGR) for the period from 2025 to 2035 is estimated at 4.96%. This growth trajectory suggests a robust demand for sunflower oil driven by health trends, food processing expansion, and sustainability initiatives. The market dynamics are influenced by various factors, including consumer preferences and regulatory frameworks, which are likely to shape the industry's future landscape.

The food processing industry plays a crucial role in the Global Sunflower Oil Market Industry, as sunflower oil is widely used in various food products. The growth of this sector, driven by increasing urbanization and changing consumer preferences, is likely to enhance the demand for sunflower oil. Processed foods, including snacks, sauces, and ready-to-eat meals, often incorporate sunflower oil for its neutral flavor and health benefits. This trend suggests that the market could reach a valuation of 30.0 USD Billion by 2035, with a compound annual growth rate of 4.96% projected for the period from 2025 to 2035, indicating a robust expansion in the coming years.

Government policies and regulations play a pivotal role in shaping the Global Sunflower Oil Market Industry. Many countries are implementing supportive measures to promote the cultivation of sunflower crops, including subsidies and incentives for farmers. These initiatives aim to enhance domestic production and reduce reliance on imports. Additionally, regulations regarding food safety and labeling standards are becoming more stringent, which may influence the quality and sourcing of sunflower oil. Such government interventions are likely to foster a conducive environment for market growth, ensuring a steady supply of sunflower oil to meet rising consumer demand.

Sunflower oil's versatility extends beyond the culinary realm, impacting the Global Sunflower Oil Market Industry significantly. It is utilized in various non-food applications, including cosmetics, personal care products, and biofuels. The rising demand for natural and organic ingredients in these industries is likely to propel the consumption of sunflower oil. For instance, its emollient properties make it a popular choice in skincare formulations. As industries increasingly seek sustainable and eco-friendly alternatives, sunflower oil's role is expected to expand, further driving market growth and contributing to the overall valuation of the industry.

The growing emphasis on sustainability and environmental stewardship is influencing the Global Sunflower Oil Market Industry. Consumers are increasingly seeking products that align with their values, including those that are produced using sustainable practices. Sunflower oil, being a crop that requires relatively less water and is often grown in rotation with other crops, is viewed favorably in this context. This trend may lead to an increase in demand for sustainably sourced sunflower oil, as consumers prioritize eco-friendly options. As the market evolves, producers are likely to adapt their practices to meet these expectations, further driving growth in the industry.

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. Europe sunflower oil market accounted for USD 6.9 billion in 2021 and is expected to exhibit a 43.90% CAGR during the study period due to the substantial rise in this kind of oil usage. Its quick uptake in the area is fueled by its high content of unsaturated fatty acids and high smoke point. The two countries that generate the most sunflower seed oil worldwide are Russia and Ukraine.

The Oil Palm Industry Economic Journal reported in an article that Russia produced 4.6 million tonnes of sunflower seed oil in 2017.

Further, the major countries studied in the market report are: The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3:  SUNFLOWER OIL MARKET SHARE BY REGION 2021 (%)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

North America sunflower oil market is expected to grow at a significant CAGR from 2022 to 2030 due to rising demand for sunflower oil because of its health benefits, as well as increased production and consumption brought on by an expanding population. Further, the US market of sunflower oil held the largest market share, and the Canada sunflower oil industry was the fastest-growing market in the region.

Asia-Pacific sunflower oil market accounts for the second-fastest growing market share due to the widespread use of sunflower oil in the production of bakery, snack, and candy goods. According to a survey by Food and Hotel Asia 2019, the region's bakery market is constantly growing, and the demand for creative and healthful bakery items is rising. Moreover, China sunflower oil held the largest market share, and the India market for sunflower oil  was the fastest-growing market in this region.

Major market players are spending a lot on R&D to increase their product lines, which will help the sunflower oil industry grow even more. Market participants are also taking various strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, market developments, and collaboration with other organizations. According to the market competitive landscape, players in the industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market industry.

One of the primary business strategies manufacturers adopt in the  sunflower oil industry to benefit clients and expand the sector is manufacturing locally to reduce operating costs. In recent years, sunflower oil industry has provided medicine with some of the most significant benefits.

The sunflower oil market major player such as Abu Dhabi Vegetable Oil Company (ADVOC) (Abu Dhabi, UAE), Conagra Brands, Inc. (Illinois, United States), Colorado Mills (Colorado, United States), Archer Daniels Midland Company (Illinois, United States), Bunge Ltd. (Missouri, United States), Cargill Incorporated (Missouri, United States), Parakh Group (Maharashtra, India), Rein Oil CC (Western Cape, South Africa), AAK AB (Sweden), Macjerry Sunfloweroil Co. Ltd. (Ukraine) and Kaissaoil (Ukraine).

Founded in Wilmington, Delaware and with headquarters in Minnetonka, Minnesota, Cargill, Incorporated is a privately held American multinational food conglomerate. It was established in 1865 and has the greatest revenue of any privately held company in the US. In January 2022, Cargill, a large  food company, established its first innovation hub in India to create products for the food & beverage industry. The nearly 17,000 square foot centre has a demonstration kitchen, a sensory lab, and the ability to service the dairy, beverage, bread, and convenience food businesses, among other niche culinary applications.

AAK, previously AarhusKarlshamn, is a multinational firm headquartered in Sweden that makes vegetable oils and fats. Products from the company are applied in various industries, including food, confectionery, pharmaceutical, cosmetic, chemical, and animal feed. In October 2019, five percent more of AAK Kamani Pvt. Ltd. was purchased by AAK AB. AAK AB and Kamani Oil Industries Pvt Ltd founded the joint venture, which now owns 69% of the company's shares. One of India's top FMCG manufacturers in the business.