Introduction
Cottonseed oil is an edible oil extracted from the seeds of varieties of species of cotton plants, including Gossypium herbaceum and Gossypium hirsutum. Oil is extracted from the kernels of the seeds, which are surrounded by the hard outer hull. Cottonseed oil improves the natural taste of foods, rather than imbibing its own flavor, offering flavor stability to the food product that it is being used in. The neutral taste of cottonseed oil makes it perfect for use in seafood & oriental foods, chips & snacks, and in bakery & confectionery.
Cottonseed oil is used in a wide number of end uses, including industrial, foodservice, and retail/household. In terms of value, the industrial segment for cottonseed oil constitutes a much larger share than the others. The utilization of cottonseed oil in the food processing industry is expected to dominate the other industrial segments due to the unique value proposition offered by cottonseed oil compared to other vegetable oils.
On the basis of nature, conventional cottonseed oil is anticipated to dominate the global cottonseed oil market, however, organic certified cottonseed oil is anticipated to expand at a robust CAGR of 6.0% in revenue terms over the forecast period. On the basis of raw material, the global cottonseed oil market is anticipated to be dominated by genetically modified (GMO) cotton, although consumer awareness towards the use of non-GMO ingredients is likely to supersede GMO cotton over the forecast period.
In terms of value, the global cottonseed oil market is expected to reach a market value of US$ 5,120.8 Mn by the end of 2028. The global cottonseed oil market is expected to register a CAGR of 3.2% over the forecast period. The driver for the growing demand for cottonseed oil is the rapidly expanding snacks and food processing industry.
Cottonseed oil is a prominent frying and cooking oil that is used in the production of snacks, baked goods, confections, and other food products, making the demand for the cottonseed oil increase over the forecast period. Besides, cottonseed oil is used in sauces, salads, spreads, and dressings, due to the neutral flavor and enhanced stability of the oil.
Cottonseed oil is also offered in blends with other edible oils to increase the efficacy and efficiency of the offering. Besides, cottonseed oil is used as a standard to measure the quality and taste of other oils, as it has a neutral flavor and mild taste, which forms a standard for measuring the properties of other oils. Cottonseed oil is also used to produce brominated oils, as intravenous nutrition for patients who are prescribed a high calorie diet, and as a tallow substitute to limit the import of tallow for textile sizing and soap making.
APEJ is a Key Market for the Global Cottonseed Oil Market Revenue
The APEJ market is anticipated to provide noteworthy growth to the global cottonseed oil market. In terms of value, the cottonseed oil market in APEJ is expected to expand at a CAGR of 3.6% over the forecast period, to reach a market value of US$ 2,810.7 Mn by 2028. APEJ accounts for almost 52.6% of the total share of the global cottonseed oil market in terms of revenue, which is expected to increase significantly by 2028 end.
The APEJ region is expected to showcase consistent demand for cottonseed oil, owing to the fact that, China and India are the largest producers of cottonseed oil, due to the abundance of cottonseed production in these countries and also the surging demand for cottonseed oil.
The U.S. is amongst the top cottonseed and by-products producing countries after China and India. The North American region is expected to have a market valued at US$ 611.4 Mn by the end of 2028, with a CAGR growth of 2.6%.
Industrial End Users to Continue to Create Growth Opportunities for Cottonseed Oil Producers
By the end use segment, the cottonseed market will witness major contribution from the industrial segment. The industrial segment accounts for more than half the market share of cottonseed oil. The industrial segment is dominated by food processing industries, as cottonseed oil is used in various applications and products, including bakery & confectionery, margarines, icings and whipped toppings, salad dressings, and is more importantly used as a frying and cooking oil.
Among the raw material segments, genetically-modified cotton is being used to increase the yield of cottonseed, and thus, increase the yield of its by-products. However, consumers are shifting towards products that are non-genetically modified, which is anticipated to change the market scenario for cottonseed oil production, increasing the growth of the non-genetically modified cottonseed oil segment.
Prospects for Quality Improvement of Cottonseed Oil
The quality of raw material used in the extraction of cottonseed oil is key in assuring high conversion, and thus, it is necessary to constantly check for the quality of the cotton used. The prominence of cottonseed oil in human nutrition is increasing, and the demand for this valuable commodity is growing day by day. Manufacturers of cottonseed oil are working towards the quality improvement of cottonseed oil by modifying its fatty acid profile through methods involving biotechnology and advanced breeding. Manufacturers are thus working towards increasing the quality and content of cottonseed oil, making the oil healthier, and making the cotton free from unwanted Gossypol content.
Market segmentation
Global Cottonseed Oil Market Segmentation on the Basis of Nature
- Organic
- Conventional
Global Cottonseed Oil Market Segmentation on the Basis of Raw Material
- Genetically Modified Cotton
- Non-genetically Modified Cotton
Global Cottonseed Oil Market Segmentation on the Basis of End Use
Global Cottonseed Oil Market Segmentation on the Basis of Packaging
Global Cottonseed Oil Market Segmentation on the Basis of Distribution Channel
- Industrial
- Food Processing Industry
- Bakery & Confectionery
- Sauces, Spreads, & Dressings
- Shortenings/Margarine
- Others
- Cosmetics & Personal Care
- Others
- Food Processing Industry
- Food Service Providers
- Retail/Households
Global Cottonseed Oil Market Segmentation on the Basis of Packaging
- Bulk
- Retail
- Pouches
- Cans
- Tins
Global Cottonseed Oil Market Segmentation on the Basis of Distribution Channel
- Direct/B2B
- Indirect/B2C
- Hypermarkets/Supermarkets
- Convenience Stores
- Traditional Groceries
- Online Retail
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by - Sudip Saha, Managing Director and Co-Founder of Future Market Insights
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