Global Cottonseed Hulls Market - 2022-2029

Global Cottonseed Hulls Market - 2022-2029

Market Overview

Cottonseed Hulls Market was valued at USD YY million in 2021. It is forecasted to reach USD YY million by 2029, growing at a CAGR of 4.3% during the forecast period (2022-2029).

Cottonseed hulls are the outer coverings of cotton seeds. These are rich in fiber but have a low content of calcium, phosphorous, protein and energy. Cottonseed hulls contain approximately about 8% of cotton linters which has almost 100% cellulose in them a serve as a good source to feed ruminants. In addition, these hulls are also used in industries like furfural production, plastic manufacturing, and oil drilling. Cottonseed hulls serve as a substrate for fungal cultivation. Furthermore, hulls are also used as metal ion adsorbents in aqueous solutions and are therefore useful for wastewater treatment as it adsorbs unwanted metals such as Zn(II), Cu(II) and Ni(II). Thus, owing to these benefits the demand for cottonseed hulls among the consumers has increased globally.

Market Dynamics: Growing demand for cottonseed hulls in feed industry is driving the growth of global cottonseed hulls market

Feeding can affect the quality and quantity of milk and other products gained or produced by the ruminants. Also, the increase in human population has led to increase in demand for milk and it’s derivatives such as yogurt, cheese, cottage cheese, etc., which can be fulfilled only when efficient feed is provided to ruminants. Cottonseed hulls can prove to be a good source of feed to the livestock.

In addition, the mass production and consumption of meat, the increase in awareness about the quality and safety of the meat are the factors that have increased the demand for meat worldwide which ultimately has increased the demand for cottonseed hulls for feed industry. For instance, in 2020, according to Redefine Meat Ltd, the world meat consumption was 340 million tonnes.

Furthermore, the increase in demand for organic, natural & healthy products has increased the demand for cottonseed hulls as cottonseed hulls are a favorable source of livestock feed. For instance, the European legislation has made rules so as to ensure that the livestock feed does not cause any harm to animals, humans as well as the environment. They have also prohibited the use of antibiotics and so they are most likely to prefer the feeds such as cottonseed hulls which are organic as well as has shown positive effects on the growth of livestock.

However, the challenges associated with farming such as higher production costs for management, labour charges even for lower farm yields may trouble the farmers and cottonseed cultivators economically which may hamper the growth of the market.

Market Segmentation: Bulk segment stands for the highest share in global cottonseed hulls market

In 2021, the bulk segment dominated the market and accounted for YY share of the global revenue. The growth of this segment is attributed to the fact that there has been increase in demand for cottonseed hulls for various industries such as fungal cultivation, animal nutrition and others. Thus, farmers are also contributing to the growth of the segment by growing the pure cotton farming and selling it in bulk amounts in the market to fulfill consumer demands which adds to the growth of the segment. For instance, according to TheWorldCount, 27 million tones cotton is produced around the world.

Geographical Penetration: North America is the dominating region during the forecast period

In 2021, North America had the highest revenue share of YY percent. The region has well-developed farming and meat industry. In addition, different types of meat and its products have been popular in the U.S., Canada, and Mexico. Thus, the demand for cottonseed hulls has increased for the animal feed industry, to maintain the quality of milk and other meat products in the region. For instance, in 2020 according to USDA, the cotton production in U.S. was raised 3% to 18.1 million. Additionally, increasing demand for healthy and sustainable products in countries such as U.S, Canada is driving the segment.

Competitive Landscape

The global cottonseed hulls market is competitive and comprises players such as Bunge, Parkash Cotton, Shandong Huaao, Shiv Sales Corporation, Shanxi Zhongmin, Dafeng Jiafeng, Zouping Fuhai, ADM, Cargill and Yihai Kerry among others. The organic cottonseed hulls market competitiveness is estimated to increase over the forecast period as the key players are focusing on various strategies such as strong online presence, collaborations, advertising the use of cottonseed hulls for various industries and others. Moreover, growing demand for sustainable products as well as chemical free will propel the market growth in coming years.

For instance,

In July 2022, Cargill and Continental Grain Company completed the acquisition of Sanderson Farms, Inc.

COVID-19 Impact Negative impact on global cottonseed hulls market:

The COVID-19 pandemic has adversely affected the economies of various countries due to lockdowns, restrictions of import-exports, business close, and travel bans. Food and beverages is among the major industries suffered from intense disruptions such as restrictions on the supply chain and the shutdown of warehouse plants. There was a large decrease in overall global cotton demand during downturns in economic activity. For instance, during the global financial crisis, global cotton demand decreased 11 per cent. During COVID-19 however, the extreme lockdown measures imposed by governments around the world resulted in the closure of cotton ginning facilities which indirectly affected the cottonseed hulls market. This meant that cotton sold ahead of the pandemic could no longer be shipped. As a result of both these economic and logistical factors impacting demand, cottonseed hulls futures decreased 30 per cent in price between February and early April 2020.

The global cottonseed hulls market report would provide an access to approximately 53 market data tables, 42 figures and 170 pages