Cottonseed Oil Market Growth, Size, Share, Trends, and Forecast 2030

Cottonseed Oil Industry Prospective:

Cottonseed oil is cooking oil from the seeds of cotton plants of various species, mainly Gossypium hirsutum and Gossypium herbaceum, that are grown for cotton fiber, animal feed, and oil.The global cottonseed oil market size was worth around USD 5.12 billion in 2022 and is predicted to grow to around USD 6.87 billion by 2030 with a compound annual growth rate (CAGR) of roughly 3.75% between 2023 and 2030.

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The report delves deeper into several crucial aspects of the global cottonseed oil industry. It includes a detailed discussion of existing growth factors and restraints. Future growth opportunities and challenges that impact the cottonseed oil market are comprehensively addressed in the report.

Cottonseed Oil Market: Overview

Cottonseed oil is a form of vegetable oil extracted from the seeds of the cotton plant also known as Gossypium. Primarily, cotton is cultivated for its fiber but the seeds also contain oil which can be extracted and used for commercial purposes using chemical or mechanical processes. The oil is extracted from the cottonseed kernels in which the seeds first have to undergo delinting. In this step, the fiber content of the seed is removed. The remaining kernels are then subjected to either solvent extraction or mechanical pressing to obtain the oil which is known to have versatile applications, especially in preparing food or culinary items.

Key Insights:

• As per the analysis shared by our research analyst, the global cottonseed oil market is estimated to grow annually at a CAGR of around 3.75% over the forecast period (2023-2030)
• In terms of revenue, the global cottonseed oil market size was valued at around USD 5.12 billion in 2022 and is projected to reach USD 6.87 billion, by 2030.
• The cottonseed oil market is projected to grow at a significant rate due to the growing awareness about the health benefits of cottonseed
• Based on packaging segmentation, retail was predicted to show maximum market share in the year 2022
• Based on type segmentation, conventional was the leading type in 2022
• On the basis of region, Asia-Pacific was the leading revenue generator in 2022

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Cottonseed Oil Market: Growth Drivers

Growing awareness about the health benefits of cottonseed oil to drive higher demand

The global cottonseed oil market is projected to grow owing to the increasing awareness among consumers about the health benefits associated with the consumption of oil extracted from cotton seeds. This form of oil has low cholesterol content making it highly popular among health-conscious consumer groups. High cholesterol levels are known to impact heart and brain function since it causes the deposition of fats in blood vessels which may eventually lead to a stroke or a heart attack. As people are becoming more aware of the importance of a healthy diet and eating habits, there has been significant growth in demand for healthier versions of commonly used food products such as oil. A recent report submitted by the Centers for Disease Control and Prevention (CDC) claims that nearly 25 million US citizens showed total cholesterol levels above 240 mg/dL.

Cottonseed Oil Market: Restraints

Presence of toxic content ‘gossypol’ could damage the product reputation

Studies have shown that unrefined cottonseed oil contains a toxin called gossypol. The presence of this toxin is responsible for imparting yellow color in unprocessed oil and protects the plant from insects. Although the refined version of cottonseed oil is known to contain reduced levels of gossypol, it has resulted in growing concerns over potential health effects. The toxicity of gossypol can be defined by understanding that it is sometimes used as a pesticide. Hence it is crucial that all cottonseed oil producers ensure intense refining of the oil before making the product available for commercial sale.

Cottonseed Oil Market: Opportunities

Growing efforts for higher market penetration in unexplored segments to provide growth opportunities

The cottonseed oil industry is currently limited to only certain segments of the potential consumer group. Although the awareness rate about the benefits of consuming cottonseed oil is growing, it is relatively low when compared to other healthy oils. This provides an excellent opportunity for the market players to explore since they can undertake first-mover advantage by running advertising campaigns and awareness programs in emerging economies.

Cottonseed Oil Market: Challenges

Price volatility due to dependence on several factors for the final product is an important challenge to overcome

The global cottonseed oil industry market leaders currently rely on certain countries such as India, China, the US, and some more regions for the supply of cottonseed oil since these regions are the largest cultivators of cotton. This makes the supply of the main raw material, cotton, a price-sensitive issue. There are several factors including cottonseed production and weather conditions that can impact the final supply of cottonseed resulting in a disbalance between demand and the production rate.

Cottonseed Oil Market: Segmentation

The global cottonseed oil market is segmented based on packaging, end-user, type, raw material, and region.

Based on packaging, the global market is divided into retail and bulk. The highest CAGR was observed in the retail segment in 2022. This deals with items being sold in smaller packages so that they are suitable and convenient for household consumption. In the retail segment, cottonseed oil is sold in cans, bottles, and other forms of consumer-friendly packaging. They are available across channels including supermarkets, grocery stores, specialty food stores, online platforms, and convenience stores. It also includes nutritional information, branding, usage instructions, and other aspects that aim to attract more customers. On the other hand, bulk packaging is more commercially-oriented. Bulk sales include larger volumes of oil packaged in tanker trucks, drums, and other high-volume packaging solutions. More than 25 million tonnes of cotton is produced every year.

Based on end-user, the cottonseed oil industry segments are food service providers, industrial, retail, and households.

Based on type, the global market is divided into conventional and organic. In 2022, the consumption rate of conventional cottonseed oil was recorded to be higher than the organic form driven by several favorable factors. For instance, the conventional form has greater availability since conventional cotton farming and oil extractions have been long-established practices resulting in greater production of cottonseed oil. Moreover, consumer preference is currently more tilted toward conventional form due to historical usage patterns and price considerations. However, the segment for organic cottonseed oil is steadily growing but it may not reach the demand for conventional form for many years. The oil content in cottonseed is nearly 15% to 25%.

Based on raw material, the cottonseed oil industry is divided into non-genetically modified cotton and genetically modified cotton.

Recent Developments:

• In March 2023, Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF), an Amul marketer, announced an extremely competitive pricing strategy that is claimed to have disrupted retailing of edible oil in India. As per the new announcement, the federation has launched a range of cottonseed oil with a fixed-price retail pack at INR 100. The federation currently sells 6 variants of the product under the brand name ‘Janmay’
• In July 2022, Eni, an Italian multinational energy company considered one of the 7 supermajor oil companies globally, completed the construction of a new oilseed collection and pressing plant in Kenya. The company has already commenced the production of the first vegetable oil for bio-refineries. The new facility will process croton, castor, and cottonseed for vegetable oil extraction

Cottonseed Oil Market: Report Scope

Cottonseed Oil Market: Regional Analysis

Asia-Pacific to register the highest growth rate

The global cottonseed oil market is projected to be dominated by Asia-Pacific during the forecast period. This is primarily due to the extensive cultivation of cotton in the countries of India, China, and Pakistan among others. India is currently one of the largest producers of high-grade cotton and a major exporter in the international market. In addition to this, in 2013 India became one of the primary producers of cottonseed oil in large volumes. It exports most of its cottonseed oil to France, Germany, and South Korea in addition to having an established domestic market. The oil is used extensively for household cooking purposes as well as in several food and restaurant service units.

Cottonseed Oil Market: Competitive Analysis

The global cottonseed oil market is led by players like:

• Cargill Inc.
• Archer Daniels Midland Company (ADM)
• Bunge Limited
• Wilmar International Ltd.
• Louis Dreyfus Company
• Marico Limited
• Richardson International Limited
• J-Oil Mills Inc.
• Savola Group
• Shafi Cotton Ginning and Oil Mills
• Pyramid Oil Mills
• Agarwal Industries Pvt. Ltd.
• Gokul Refoils and Solvent Ltd.
• Vimal Oil & Foods Ltd.
• Ruchi Soya Industries Ltd.
• Adani Wilmar Limited
• Astra Agro Lestari Tbk PT
• Gemini Edibles & Fats India Pvt. Ltd.
• N.K. Proteins Pvt. Ltd.
• Sime Darby Plantation Berhad
• IOI Corporation Berhad
• Associated British Foods plc
• Fuji Oil Co. Ltd.
• Ajinomoto Co. Inc.

The global cottonseed oil market is segmented as follows:

By Packaging

• Retail
• Bulk

By End-User

• Food Service Providers
• Industrial
• Retail
• Households

By Type

• Conventional
• Organic

By Raw Material

• Non-Genetically Modified Cotton
• Genetically Modified Cotton

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa