Market Trends of Sunflower Oil Industry
This section covers the major market trends shaping the Sunflower Oil Market according to our research experts:
Surge in Demand for Sunflower Oil as a Food Ingredient, Owing to Its Health Benefits
- Consumers worldwide are increasingly looking for non-GMO and lower-saturated fat foods that meet dietary restrictions, such as vegan, kosher, or halal foods, and which offer a variety of health benefits. As a result, sunflower oil consumption is on the rise among consumers seeking non-GMO products. As sunflower oil is non-GMO, sunflower seeds are grown using traditional breeding techniques, and it is one of the few oils used in food manufacturing that is non-GMO. Furthermore, with good oxidative stability, regular sunflower oil finds many applications in the food industry, mainly as a salad oil and cooking oil in developed countries such as the United Kingdom, Germany and others.
- Some industrial applications of sunflower oil include its use as frying oil and its use in manufacturing mayonnaise and oil-based dressings. In developing companies, players are also launching new brands owing to the rising demand for sunflower oil. For instance, in April 2022, the Karnataka Cooperative Oilseeds Growers' Federation (KOF) of Bengaluru launched a new brand of Dhara sunflower oil. The National Dairy Development Board (NDDB) authorized the Fisheries, Animal Husbandry, and Dairy Minister to provide KOF with a check for INR 16.32 crore (USD 1.9 million) to aid in the purchase of oilseeds and edible oils.
- Additionally, high-oleic sunflower oil has higher oxidated stability than conventional oil. This expands the applications of sunflower oils for frying purposes, enhances the shelf life of snacks, and enables it to be used as an ingredient for infant formulas requiring stability.
- Hence, 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. Sunflower oil is also a feasible alternative for palm oil in the snack industry since, unlike palm oil, which has a higher freezing point, it does not require additional heating in cold temperatures. This lowers the expense of installing an additional heating system.
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Europe Emerged as the Largest Sunflower Oil Market
- Europe held the largest share of the sunflower oil market. The natural neutral oil market in the region is experiencing steady growth due to the rapid increase in natural neutral oil consumption in the region. Among the factors that have led to the rapid usage of sunflower oil in the region are its high level of unsaturated fatty acids and its high smoke point.
- Consumers in Europe are choosing healthier cooking oils to support their health due to their fast-paced lifestyles. As a result, oil consumption has increased significantly in the food service sector and the household. Such trends have aided the market growth of sunflower oil in the region.
- There are two major producers of sunflower seed oil worldwide: Russia and Ukraine. In Russia, the oil and fat industry is one of the leading sub-sectors of the food processing industry, and sunflower oil production increased exponentially in the past decade. After Ukraine, Russia is the second-largest producer of sunflower seed and sunflower oil worldwide. According to the US Department of Agriculture, a total of 5.82 million metric tons of sunflower seed oil was produced during 2021-22, which increased from 5.12 million metric tons in 2020-2021 owing to higher demand from the domestic processing sector and other parts of Europe. However, the production of sunflower has been impacted due to ongoing war, due to which the prices of sunflower oil have increased, restraining the market's growth in the short term.
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