Sunflower, a native crop of North and Central America, is widely cultivated for its seeds, flowers, and oil extraction. The oil derived from the seeds is commonly used in various industries such as food, energy and chemical industries globally.
The covid-19 pandemic has had a significant impact on the global economy and supply chain activity. Moreover, the government’s enforcement of lockdowns have negatively impacted the growth of the sunflower oil business. Also, the stay-at-home customer trend had a negative impact on the food service. Also, the coronavirus pandemic has led to rise in edible oil and wreaking havoc on leading oil exporters.
Recently, FMCG food companies have been creating stocks of sunflower oil due to rising tensions with Russia-Ukraine. Moreover, now these companies are also looking to import sunflower oil if the supply line is exhausted in the coming months due to an escalation in tension.
Sunflower oil market is driven by growth in the bakery and confectionery products market
Sunflower oil is expected to witness high demand as it is beneficial for the heart and skin. It also keeps bad cholesterol in check which is expected to fuel the growth of sunflower oil market. Besides this, sunflower oil is also used to make cosmetic treatments that protect, moisturize and help heal the skin from various skin issues.
Also, sunflower oil is used by snack manufacturers because it offers various desirable qualities to products at a lesser cost than olive oil. Moreover, snack manufacturers prefer sunflower oil as a cost-effective alternative to palmolein oil as it doesn’t require any additional heating in cold temperatures.
High adoption of sunflower oil is witnessed in the personal care segment
Sunflower oil is highly adopted in the personal care segment. Also, it is commonly used in clean label and sustainable products by key players of the market.
- In April 2019, L’Oreal launched a sustainable beauty brand, Seed Phytonutrients, consisting of sunflower seed oil.
Moreover, sunflower oil is also used to create active component carriers such as creams and gels for quick absorption. These multiple factors are expected to fuel the growth of global sunflower oil market during the forecast period.
Significant presence of cosmetic and personal care brands in various countries such as Europe is expected to boost demand for sunflower seed oil during the forecast period. Also, demand for sunflower oil in the future due to awareness of its benefits for skin and hair among consumers. Moreover, growing demand for processed foods is also expected to boost sunflower oil demand.
Key players in the market are focusing on increasing their production capacity
Start-ups are focusing on adopting natural ingredients to improve the nutrient profile of their products and is expected to offer lucrative opportunities for upcoming sunflower oil producers. Moreover, key sunflower oil manufacturers are also focusing on expanding their production capacity to meet increasing demand across the globe.
- In December 2022, Perfect Day, dairy product supplier announced that nestle had started the testing of its animal-free milk product that contains high oleic sunflower oil and oat concentrate.
By region type, Europe is one of the largest suppliers of the sunflower oil
Europe region imports a considerable volume of sunflower oil to meet the exceeding product demand. Russia and Ukraine together account for the highest supply of sunflower oil and this offers highly lucrative opportunities for the leading sunflower oil manufacturers. Moreover, majority share of more than 80% of the total European imports is derived from Intra-European trade, with Bulgaria and Romania being major suppliers.
Key players of the sunflower oil market are Midland Company, Bunge Limited, Cargill Incorporated, Archer Daniels have a broad geographical presence and broader product portfolios to cater to numerous consumer demands. These factors assist the companies in maintaining a strong foothold in the market. Product innovations are among the most adopted strategies by the key market players.