The Global Cottonseed Oil Market size is expected to grow from USD 4.36 billion in 2022 to USD 5.62 billion by 2030, at a CAGR of 3.7% during the forecast period (2023-2030).
Cottonseed oil is an edible oil obtained from the seeds of various cotton plants, mainly from the seeds of cotton plants grown for cotton fiber, animal feed, and oil. Cotton seeds have a similar structure to other oil seeds, such as sunflower seeds, with an oil-rich core surrounded by a hard-outer shell during processing, the oil is separated from the kernel. Cottonseed oil is used in salad oil, mayonnaise, salad dressings, and similar products because of its flavor stability. Cottonseed oil is a commonly used vegetable oil obtained from the seeds of cotton plants. Whole cottonseed contains about 15-20 percent oil. Unrefined cottonseed oil contains a poison called gossypol. This naturally occurring toxin gives the crude oil its yellow color and protects the plant from insects. Sometimes unrefined cottonseed oil is used as a pesticide. Cottonseed oil is often used in processed foods because it increases shelf life.
Top Key Players for Cottonseed Oil Market:
Archer Daniels Midland Co. (US), La Tourangelle (US), Best Natures Cosmetic (Canada), Higher Nature Limited (UK), Bio Planete (Germany), Louis Dreyfus Company B.V. (Netherlands), Biopurus. CO. UK (UK), Aromex Industry (India), Byodo Naturkost GmbH (Germany), Cargill Inc. (US), Oilseeds Australia Pty Ltd. (Australia), Ruchi Soya Industries Ltd. (India), Associated British Foods PLC (UK), Matangi Cotton Industries (India), and Other Major Players,
Market Dynamics and Factors for Cottonseed Oil Market:
Drivers:
Increasing Health Awareness of the Consumption of Cottonseed Oils
Cottonseed oil helps reduce the risk of abnormal heartbeats or arrhythmias, which can lead to sudden death in a patient. It also helps lower triglyceride levels, slow the growth of atherosclerotic plaques, and lower blood pressure. Consumers are increasingly choosing a healthier option while viewing preventative care as a necessary tool for a healthier lifestyle. As a result, cottonseed oils are becoming increasingly popular because they are a good source of vitamins, proteins, and minerals and can help with conditions such as cancer, asthma, and depression driving the growth of the market. The rising awareness of the benefits of cottonseed oil through various forms of media boosts the growth of the cottonseed oil market.
Opportunities:
Various Mergers and Acquisitions, Partnerships, and New Product Launches
The benefits of cottonseed oil are likely to influence purchasing behavior through various forms of media, including electronic and print information. Cottonseed oil is an excellent cosmetic ingredient for moisturizing, anti-aging, and anti-inflammatory products because it is rich in vitamin E, fatty acids, and antioxidants. Linoleic acid reduces inflammation in the hair and other areas, which helps the consumer reduce dandruff and other hair diseases. Additionally, the presence of many key players in the market such as Archer Daniels Midland Co., La Tourangelle, Best Natures Cosmetic, and other major players are driving the growth of the market. Various mergers and acquisitions, partnerships, and cooperative relationships in the cottonseed oil market, as well as relatively large investments in the food industry, create growth opportunities for the market.
Segmentation Analysis of the Cottonseed Oil Market:
- By End-User, The industrial segment drives the growth of the market. The industrial segment is dominated by food processing industries, as cottonseed oil is used in various applications and products, such as margarine, icings, bakery and confectionary, salad dressing, and is more importantly used as a flying and cooking oil.
- By Raw Material, Among the raw material segments, genetically-modified cotton is being used to increase the yield of cottonseed, and thus, increase the yield of its by-products. However, consumers are shifting towards products that are non-genetically modified, which is anticipated to change the market scenario for cottonseed oil production, increasing the growth of the non-genetically modified cottonseed oil segment.
Regional Analysis of the Cottonseed Oil Market:
North America dominated the cottonseed market. Low-fat, low-cholesterol foods are driving demand in this region. The fast food and the food industry made a significant contribution to the total share of the market. The United States is a major producer of cottonseed oil. The market is driven by new developments in production techniques. The increasing use of cottonseed oil in the manufacture of cosmetic products and the presence of major manufacturers of cottonseed oil increase the market value.
Key Industry Development:
- In July 2022, Eni launched the first production of vegetable oil for biorefining in Kenya. Eni completed the construction of the oilseed collection and pressing plant (agri-hub) in Makueni, Kenya, and started production of the first vegetable oil for bio-refineries. The agri-hub will process castor, croton, and cottonseeds to extract vegetable oil.
- In March 2023, in a disruption to edible oil retailing, cooperative major Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) launched a fixed-price retail pack of refined cottonseed oil. The Amul marketer GCMMF sells six variants of edible oils under the brand Janmay.
