Sunflower Oil Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Sunflower Oil Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Sunflower Oil Market size is estimated at USD 30.62 billion in 2024, and is expected to reach USD 40.08 billion by 2029, at a CAGR of 5.53% during the forecast period (2024-2029).

There has been a global shift towards healthier eating habits, spurring a heightened demand for sunflower oil, which is regarded as one of the healthier edible oils. This surge in demand has resulted in an expanded cultivation area for sunflowers and a corresponding rise in sowing seed prices. Recently, the sunflower seed market, particularly for sowing purposes, has experienced unprecedented growth. Sunflower oil, being both healthy and more affordable than many alternatives, sees robust demand in developing nations. This rising consumption of sunflower oil has counterbalanced the global downturn in palm, cottonseed, and rapeseed oils. The food sector predominantly utilizes sunflower oil, but its appeal is expanding, with cosmetic manufacturers and the healthcare industry showing increasing interest. The surging demand for products like sunscreens, facial masks, and eye treatments is poised to bolster the global market growth during the forecast period. Additionally, there is a rising trend among cosmetic users for chemical-free personal care products, further propelling the global sunflower oil market. In response, manufacturers are rolling out new products to cater to this demand for chemical-free offerings. A notable example is Keys Soulcare, a brand launched by US singer-songwriter Alicia Keys. In April 2022, they introduced a range of skin-nourishing products, developed in collaboration with board-certified dermatologist Dr. Renée Snyder. The lineup features tinted lip balms, cheek tints, brow gels, and complexion brushes, all crafted with natural ingredients like avocado oil, camellia seed oil, and sunflower oil.

Sunflower Oil Market Trends

Food Sector Emerges as the Dominant Consumer of Sunflower Oil

Globally, consumers are increasingly prioritizing non-GMO foods with lower saturated fats, catering to dietary preferences like vegan, kosher, or halal, and seeking diverse health benefits. This shift has led to a surge in sunflower oil consumption, especially among those favoring non-GMO products. Sunflower oil, being non-GMO, is derived from sunflower seeds cultivated through traditional breeding methods. It is one of the few oils in food manufacturing that maintains this non-GMO status. Moreover, due to its commendable oxidative stability, regular sunflower oil is widely utilized in the food industry. Developed nations, including the UK and Germany, predominantly use it as a salad and cooking oil. Industrially, sunflower oil serves as a frying medium and is integral in producing mayonnaise and oil-based dressings. Responding to the growing demand, new brands of sunflower oil are emerging in developing countries. For example, in April 2022, Bengaluru's Karnataka Cooperative Oilseeds Growers' Federation (KOF) introduced a new brand of Dhara sunflower oil. To support this initiative, the National Dairy Development Board (NDDB) sanctioned INR 16.32 crore (USD 1.9 million) to KOF, facilitating the purchase of oilseeds and edible oils. Consequently, food manufacturers are increasingly choosing sunflower oil, appreciating its cost-effectiveness compared to olive oil and its advantages over palm oil. Unlike palm oil, which has a higher freezing point and necessitates extra heating, sunflower oil's properties eliminate the need for such systems, resulting in significant cost savings.

Europe Dominates the Sunflower Oil Market

Europe leads the sunflower oil market, boasting the largest share, fueled by rising consumption. The continent's swift embrace of sunflower oil is due to its rich unsaturated fatty acid content and high smoke point. As European lifestyles accelerate, there is a marked shift towards healthier cooking oils, boosting consumption in both homes and the food service industry. On the global stage, Russia and Ukraine emerge as the dominant producers of sunflower seed oil. Within Russia, the oil and fat industry has carved out a significant niche in the food processing realm, with sunflower oil production skyrocketing over the last ten years. Data from the United States Department of Agriculture (USDA) highlights Russia's sunflower oil production for the 2023/24 season at 6.82 million metric tons, accounting for 31% of the global output, solidifying its position as the world's top sunflower oil producer. Meanwhile, the UK has been witnessing its own sunflower oil market trends. Heightened health awareness has led consumers to favor oils with touted nutritional benefits. Sunflower oil, celebrated for its low saturated fat content, perfectly aligns with this trend. As consumer knowledge about unsaturated fats grows, sunflower oil stands out as a heart-healthy option. This surge in preference has driven substantial sunflower oil imports into the UK. For context, data from ITC Trade Map reveals that in 2023, the UK imported around 109,647 tons of sunflower oil.

Sunflower Oil Industry Overview

The sunflower oil market is competitive, with both global and domestic players vying for dominance. Major players such as Archer Daniels Midland Company, Delta Wilmar Ukraine LLC, Cargill Incorporated, Avril Group, and Bunge Limited, leverage their extensive geographical reach and varied product portfolios to meet diverse consumer demands. This expansive approach not only strengthens their market presence but also underscores their commitment to high-quality, preservative-free ingredients, ensuring the global delivery of entirely natural products. Furthermore, in response to the surging demand for sunflower oil, producers are fine-tuning their sourcing strategies to better resonate with consumer preferences. These strategic moves aim to satisfy growing demand while navigating a landscape largely influenced by global giants.

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