Global Oilseed Farming Market - 2023-2030

Global Oilseed Farming Market - 2023-2030

Market Overview

Oilseed crops are those grown to produce edible oil. Oilseed farming produces oilseed crops primarily for the oil contained in the seeds. Soybean farming and other types of oilseed farming are the most common. Rising chronic disease incidences and the rising prevalence of oilseed cultivation are major driving factors for market growth. Growing consumer demand for healthy and organic-based products is leveraging the growth rate of the oilseed farming market. Additionally, increasing awareness of the production rate with the latest technologies is lavishing the market's demand.

The global oilseed farming market was valued at USD YY million in 2022. It is forecasted to reach USD YY million by 2030, growing at a CAGR of 12.34% during the forecast period (2023-2030).

Market DynamicsThe growing consumption of oilseeds in animal feed drives the market

The growing usage of oilseeds in animal feed is expected to fuel this rise. Oilseeds are high in fatty acids, minerals, protein, vitamins, and fiber, all of which are commonly employed in oil extraction. Following oil extraction from oilseeds, the nutrient-dense pulp is converted into meals or oilcake and fed to dairy farm animals to improve milk products and quality while reducing feed requirements. According to the United States Department of Agriculture (USDA), a US-based agriculture service organization, total oil meal production in 2021 is expected to be around 18.5 metric tons. Around 70–80% of India's total oilseed quantity is crushed for meal production, and the resulting oil and meal are consumed as farm animal feed. The key manufacturers are also launching new products, which is expected to drive the market. For instance, on April 29, 2022, Bunge and CoverCress Inc. (CCI) announced they were teaming up to develop the supply chain for a new biofuel and feed-targeted oilseed. CCI is a startup developing a new winter oilseed crop under the CoverCress brand. The partners added that the crop could generate farm revenue as a whole grain feed ingredient or, when processed, as low-carbon intensity oil for renewable fuel production and as a high-protein meal for livestock and poultry feed.

However, fluctuations in the production rate are gradually eroding market demand. Rapid urbanization is another issue impeding the oilseed farming market's growth pace. Unfavorable government requirements for sanctioning new products are gradually eroding the oilseed farming market.

Market Segmentation: The soybean farming segment accounted for the highest global oilseed farming market share

Soybean farming is expected to hold a major share of the global oilseed farming market owing to increasing soybean oil consumption, and growing demand for soybean cake and meals from the animal feed industry. Moreover, soybeans benefit farmers from their fast growth, which allows double-cropping production. The easy availability of soybeans is due to their increased production and the utilization of soybeans in the oilseed processing industry. Global soybean consumption is steadily increasing, mainly due to changing consumer consumption patterns and increasing health awareness. Consumers mostly prefer high nutritive value products, which are expected to increase the demand for the soybean farming segment in the global oilseed farming market. Moreover, the chemical method is a well-known and widely practiced oil extraction method. The chemical oil extraction method is commonly applied to soybean oilseeds with low oil content. This method is thought to be one of the most efficient for extracting vegetable oil, leaving less residual oil in the meal or cake, which is expected to drive the soybean farming segment in the global oilseed farming market. The key manufacturers are also launching new products, which are expected to drive the market. For instance, on October 25, 2020, Homegrown launched soybeans in Indonesia with new varieties developed using irradiation. Soybean products such as tofu and tempeh are staples in Indonesian cuisine and important protein sources for much of the population.

Geographical Penetration: The Asia Pacific is the dominant region during the forecast period

The Asia Pacific was the dominant region with the highest oilseed farming market share in 2022. India and China account for most of the market share. Increasing demand for farming and producing high-quality crops with the latest technologies enhances the market's demand. Growing support from government bodies to increase the economy through the agriculture sector is making the market grow faster. Furthermore, the rising demand for bio fuels from the automotive industry is also ascribed to bolstering the market's growth rate. Favorable trade systems in India are expanding the growth rate of the oilseed farming market. In addition, the growing concerns related to obesity and heart diseases have increased the demand for oilseed oil in food applications. Moreover, government initiatives such as the “Make in India” program are expected to promote the growth of the downstream industry, which will boost market revenue over the forecast period. For instance, on September 26, 2022, according to a NITI Aayog member, the government launched an oilseed mission to boost domestic production of oilseeds and reduce import dependence. India currently imports around $1 trillion in edible oil each year, accounting for nearly half of its demand.

Competitive Landscape

Major companies in the oilseed farming market include Bunge Limited, Bayer AG, Corteva Inc., UPL Limited, Grupo Amaggi, Seaboard Corporation, Batu Kawan Berhad, Nutrien Ltd., Jardine Matheson, and KWS Saat SE. Trends in food consumption drive demand. The profitability of individual companies depends on efficient operations. Large companies have advantages in purchasing land and equipment. Small operations can compete effectively by specializing in organic and heirloom oilseeds. The leading vendors in oilseed farming are investing heavily in research and development to develop modified oilseeds that can enhance productivity. The oilseed farming market will continue growing with a huge demand over the coming years. For instance, in July 2022, Corteva Agriscience, BASF, and MS Technologies signed an agreement to develop next-generation Enlist E3 soybeans with the nematode-resistant soybean (NRS) trait for farmers in the United States and Canada.

COVID-19 Impact: Positive impact on the global oilseed farming market

The COVID-19 outbreak has created significant medical, social, and economic challenges. Many manufacturing companies anticipated that COVID-19 will have an impact on their operations. Food and beverage industry players around the world have seen a significant drop in consumption of their products. Companies experienced supply chain disruptions as a result of lockdowns in various parts of the world and restrictions on commodity transportation. Reduced agricultural production, which disrupts raw material supply, a lack of workers in manufacturing plants, and disturbances in the distribution system has disrupted supply chains.

However, the oilseed farming market has quickly reached its pre-COVID levels, and a healthy growth rate is expected over the forecast period. The economic revival in most developing nations has driven the market. According to the India Brand Equity Foundation, oilseed production in India has increased over the last five years. The country's production in 2020–21 was 365.65 lakh metric tons, a 10% increase over the previous year. The compound annual growth rate (CAGR) of output was 7.7% from 2015–16 to 2020–21. The Government of India achieved this by implementing programs such as specific programs on mustard and rapeseed during Rabi and cluster demonstrations of better technologies.

The global oilseed farming market report would provide an access to approximately 53 market data tables, 50 figures and 200 pages