Cottonseed Oil Market Outlook from 2024 to 2034

The cottonseed oil market is anticipated to record a value of USD 5,891 million in 2024. The industry is projected to witness a CAGR of 6.8% in the ten-year time frame, with total revenue reaching around USD 8,189 million by 2034.

Cottonseed oil is increasingly being used in the food processing industry for extended shelf life and enhanced food flavor. Apart from the food processing sector, the cosmetics and personal care sectors are also providing opportunities for cottonseed oil sales. These industries are motivated by the anti-aging and anti-inflammatory properties of the product.

Players are constantly embracing new technologies to sustain competition. Technological advancements to facilitate effective operational maintenance, advanced packaging plus design, and sales monitoring are salient growth propellers.

The acceptance of the target oil is increasing as it is less expensive than other organic oils like olive and canola oil. As it contains many unsaturated fatty acids, it is considered good for the heart, particularly when used in moderation.

Cottonseed oil also does not need to be hydrogenated, which indicates it has no cholesterol. This makes it healthier than several other oil types. Rising demand for this oil among millennials and in emerging economies is predicted to drive up the sector’s growth.

The product is also used in an extensive range of culinary goods apart from certain industrial uses. Products like salad dressings, cooking oils, and margarine all contain the target oil.

Cosmetics, soaps, and other personal care items are made using the target oil. This oil is also used in the creation of lacquers, paints, enamels, and varnishes. Such wide use cases are driving the sector’s growth.

Growing health-consciousness among consumer is set anticipated to benefit the target industry through 2034. Cottonseed oil is utilized to manufacture brominated oils. Patients who are advised to consume a high-calorie diet benefit from this oil.

Attributes Description
Estimated Global Cottonseed Oil Market Size (2024E) USD 5,891 million
Projected Global Cottonseed Oil Market Value (2034F) USD 8,189 million
Value-based CAGR (2024 to 2034) 6.8%

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Key Industry Highlights

Increasing Traction for Organic Cottonseed Oil

One of the key trends influencing cottonseed oil consumption is the rising interest in organic variants. Consumers are gaining awareness about the benefits of consuming organic food. This is driving the demand for organic food variants among conscious consumers.

Organic cottonseed oil, a non-GM alternative, is increasingly being preferred due to the rising concerns about genetically modified (GM) contamination. These aspects are raising the scope of the cottonseed oil market.

Players to Focus on Cold-pressed Cottonseed Oil’s Accessibility

The increasing availability of cold-pressed cottonseed oil is expected to uplift the sector’s value. With cold pressing, fruits or seeds are pressed with contemporary steel to extract the oils. Demand for this variant is surging due to the growing knowledge about the importance of antioxidants, natural flavor, and fragrance. Additionally, players are creating novel cold-pressed cottonseed oil products, to align with the consistent consumer demand.

Challenges that are Creating Hurdles for Participants

Cottonseed oil market players rely on countries like China, India, and the United States for the oil’s supply. This is because these countries are significant cultivators of cotton, making the supply of cotton a price-sensitive issue. The end supply of this oil is affected by weather conditions and production. Thus, creating a disbalance between production and demand of the product.

Market scope is further limited by the availability of various substitutes, like almond oil, olive oil, and sunflower oil. Prevalent use of genetically modified crops, cotton seed refining, and significant pesticide load all develop into serious health issues later in life. Rising awareness about these aspects is restricting the acceptance of this oil.

2019 to 2023 Global Cottonseed Oil Sales Analysis Compared to Demand Forecast from 2024 to 2034

The global cottonseed oil market registered a valuation of USD 3,589 million in 2019, post which it expanded at a promising 10.4% CAGR till 2023. Over the forecast period, the sector is projected to expand at a 6.8% CAGR. Competition from other oils, like sunflower oil, and almond oil, has led to slowed product demand.

Consumers prefer cottonseed oil in home cooking and baking due to several health benefits associated with the product. As a result, its demand is growing steadily.

Cottonseed oil is prominently used in the production of confections, baked goods, snacks, and other foods. The usage of this oil expands to spreads, sauces, salads, and dressings as it lends more stability to them. Based on these elements, the growth in the snacks and food processing industry is projected to simultaneously uplift product sales.

The wide availability of this oil in modern trade stores at reduced prices is increasing product sales. Besides food processing, other well-known end-use sectors like cosmetics and retail are also leaving their mark on the sector. Increasing research and development activities to find out more applications of this oil is expected to open up expansion opportunities.

Nandini Roy Choudhury
Nandini Roy Choudhury

Principal Consultant

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Comparative Market Overview

This section provides growth opportunities available in the sectors closely related to the cottonseed oil market. These sectors are briefed regarding opportunities, trends, and drivers that lead these sectors forward. The growth graph varies significantly; while hemp seed oil is forecast to flourish at 19% CAGR, apple seed oil is predicted to expand at a moderate 4% CAGR.

Hemp Seed Oil Industry Assessment:

The hemp seed oil industry is driven by the growing popularity of omega-3 and omega-6-containing food products. Hemp seed oil is also consumed by cancer and heart disease patients to reduce inflammation issues.

Growing knowledge about the health benefits of this oil is raising its use in nutritional supplements, baked foods, cooking oils, salad oils, and sauces. Hemp seed oil is predicted to have lucrative growth in industries like cosmetics, nutraceuticals, and pharmaceuticals.

Attributes Description
Related Market Hemp Seed Oil Industry
CAGR (2024 to 2034) 19%
Growth Factor Growing awareness about the health benefits of consuming hemp seed oil.
Opportunity Emerging opportunities for entrants expand the industry’s horizon.
Key Trend The surging use of hemp seed oil in vegan goods is predicted to propel sales of hemp seed oil.

Apple Seed Oil Industry Assessment:

The sector is propelled by the increasing use of apple seed oil in the cosmetics industry due to the presence of antioxidants and monounsaturated fatty acids. Apple seed oil is also used in home care products like aroma candles owing to its sweet fragrance. The industry is further expected to be propelled by the ongoing technological advancement in new techniques and processing methods to extract oil from apples.

Attributes Description
Related Market Apple Seed Oil Industry
CAGR (2024 to 2034) 4%
Growth Factor The widespread occurrence of lifestyle diseases like diabetes, obesity, high blood pressure, and cardiovascular diseases is creating demand for apple seed oil.
Opportunity Rising research and development activities to find out more uses of apple seed oil for medicinal purposes are expected to open more doors for players.
Key Trend The increasing reach of apple seed oil across online and specialty stores is expected to propel demand.

Country-wise Insights

The consumer demand varies across countries. In developed countries like the United Kingdom and the United States, the demand is predicted to be high. However, in Germany, the demand is moderate. In Asia Pacific, India is going to observe robust growth in the cottonseed oil market.

Countries CAGR 2024 to 2034
United States 8.5%
China 5.9%
India 9.8%
Germany 4.5%
The United Kingdom 8.4%

High Consumption of Nutritional Food Items Boosting Growth in the United States

The demand for cottonseed oil in the United States is projected to surge at an 8.5% CAGR over the forecast period. The nation will likely hold a prominent global market share of 17.5% in 2024.

Significant production and consumption of the target oil in the nation are cementing America’s place as a key player. Manufacturers are developing novel production techniques to speed up the process of production. Moreover, players are ramping up their production capacity to meet the increasing consumer demand.

The industry is predicted to push forth by the force of increasing consumer inclination for nutritional food products. Apart from this, cosmetic industry players too employ this oil to produce various beauty products. This is amping up the industry’s growth.

Growth Opportunities for Cottonseed Oil Players in India

In India, the cottonseed oil market revenue is projected to rise at a substantial 9.8% CAGR over the estimated period, attracting players for lucrative growth. The abundantly produced cottonseed oil in the nation is catapulting the industry’s value.

Refined variant is widely available across Indian households to fry food or to prepare a snack. It is the preferred choice for frying, as it does not impart any odor to the fried food. This oil, instead, lifts the taste and flavor of food.

Apart from making food delectable, the product is also used to maintain the skin. It does so by infusing properties of ingredients like vitamin E, antioxidants, and fatty acids to keep the skin fresh and healthy.

Heart-healthy Oils Gaining Popularity among the United Kingdom’s Population

The cottonseed oil market in the United Kingdom is estimated to increase at a CAGR of 8.4% over the assessment period. The industry’s share in 2024 is expected to be 13%. The impact of health trends on the cottonseed oil demand is predicted to be significant.

As per the American Heart Association, unsaturated vegetable oils, including cottonseed oil, are considered “heart-healthy” when consumed with restraint. Based on these factors, it can be concluded that the surging health consciousness is fueling the market’s growth.

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Category-wise Insights

Under this division, top-performing segments in the cottonseed oil market are discussed in detail. Presently, the food processing industry in the application category is a massive user, representing a share of 28% in 2024. Under the packaging category, the bulk segment is projected to lead the sector with 38% in 2024.

Food Processing Industry to Capture Considerable Share

Segment Food Processing Industry (Application)
Value Share (2024) 28%

The food processing industry is projected to account for a massive stake in the sector. Rising use of cottonseed oil in various applications, particularly in the preparation of food and several culinary products, is predicted to expand the segment’s scope. It is extensively used in products like margarine, bakery, confectionery, and salad dressings to prolong their shelf life.

Cottonseed oil also lends a creamy consistency to whipped toppings and icing, boosting its demand therein. Several fast-food chains also use this oil for deep frying purposes to enhance the product’s flavor. The relatively reduced cost of this oil than other vegetable oils is also inducing players to adopt them for cooking purposes.

End Users Prefer Bulk Packaged Cottonseed Oil

Segment Bulk (Packaging)
Value Share (2024) 38%

The bulk packaging segment is projected to account for 38% of the cottonseed oil market share in 2024. Bulk packaging of this oil is commercially oriented. Typically, these larger volumes of oil are packaged in drums, tanker trucks, and other high-volume packaging solutions. End users prefer bulk packaging, leading to segment’s growth.

Competition Outlook

Cottonseed oil market players are zeroing in on product development, collaborations, supply chain management, and quality control. With these strategies, companies aim to make a space for themselves in the global space. Competitive pricing strategies are another key focus of players as they project higher revenues in years ahead.

Players are developing extensive product offerings while considering the environmental sustainability of oil production from cottonseed. Participants are also enhancing the content and quality of the product to make it healthier to increase sales.

Industry Updates

  • The Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF), which is an Amul marketer, revealed a competitive pricing strategy in March 2023. This strategy is claimed to disrupt the sales of edible oil in India. According to the latest announcement, the federation is expected to introduce a variety of cottonseed oil at a fixed retail price of INR 100. Presently, the retailer sells 6 product variants under the brand ‘Janmay’.
  • In September 2023, researchers at Cotton Incorporated and Clemson University were given a grant by the United States Department of Agriculture. The researchers will be using unique plant germplasm and molecular tools to grasp and enhance the genetics that impact the upland cotton’s oil content.

Leading Cottonseed Oil Brands

  • Cargill
  • Archer Daniels Midland (ADM)
  • Bunge Limited
  • Louis Dreyfus Company
  • Wilmar International
  • Itoham Foods
  • Saraogi Oils
  • AGP Oils Pvt Ltd
  • Ventura Group
  • Vimal Oil & Foods

Key Segments of Market Report

By Nature:

Based on nature, the sector is bifurcated into organic and conventional.

By Raw Material:

Various raw materials used in the production process include genetically modified cotton and non-genetically modified cotton.

By End Use:

Based on end use, the cottonseed oil market is divided into industrial, food service providers, and retail/ households. The industrial sector is further segmented into the food processing industry, cosmetics and personal care, and others. The food processing industry is also subdivided into bakery and confectionery, sauces, spreads, and dressings, shortenings/margarine, and others.

By Packaging:

The oil is commonly packaged in retail and bulk packaging. In retail packaging, cans, tins, and pouches are used.

By Distribution Channel:

The product is sold via direct/B2B and indirect/B2C channels. Under indirect distribution channel, there are hypermarkets/supermarkets, convenience stores, traditional groceries, and online retail.

By Region:

Analysis has been carried out in key countries of North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America.

Frequently Asked Questions

How much is the cottonseed oil market valued?

The industry is going to total USD 5,891 million in 2024.

What is the projected adoption rate?

The current forecast projects a CAGR of 6.8% for the industry.

What is the estimated industry size for 2034?

The sector is set to reach USD 8,189 million by 2034.

Which application type segment holds a significant value share?

Food processing industry.

Which country offers growth opportunities?

India is predicted to offer opportunities for investors.

Which players in the sector are influential?

Cargill and Ventura Group are influential industry players.

Table of Content

1. Executive Summary

2. Industry Introduction, including Taxonomy and Market Definition

3. Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments

4. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections

5. Pricing Analysis

6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034

    6.1. Nature

    6.2. Raw Material

    6.3. End Use

    6.4. Packaging

    6.5. Distribution Channel

7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Nature

    7.1. Organic

    7.2. Conventional

8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Raw Material

    8.1. Genetically Modified Cotton

    8.2. Non-Genetically Modified Cotton

9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By End Use

    9.1. Industrial

    9.2. Food Service Providers

    9.3. Retail/Households

10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Packaging

    10.1. Bulk

    10.2. Retail

        10.2.1. Pouches

        10.2.2. Cans

        10.2.3. Tins

11. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Distribution Channel

    11.1. Direct/B2B

    11.2. Indirect/B2C

        11.2.1. Hypermarkets/Supermarkets

        11.2.2. Convenience Stores

        11.2.3. Traditional Groceries

        11.2.4. Online Retail

12. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region

    12.1. North America

    12.2. Latin America

    12.3. Western Europe

    12.4. South Asia

    12.5. East Asia

    12.6. Eastern Europe

    12.7. Middle East and Africa

13. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries

14. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries

15. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries

16. South Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries

17. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries

18. Eastern Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries

19. Middle East & Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries

20. Sales Forecast 2024 to 2034 by Nature, Raw Material, End Use, Packaging, and Distribution Channel for 30 Countries

21. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard

22. Company Profile

    22.1. Cargill

    22.2. Archer Daniels Midland (ADM)

    22.3. Bunge Limited

    22.4. Louis Dreyfus Company

    22.5. Wilmar International

    22.6. Itoham Foods

    22.7. Saraogi Oils

    22.8. AGP Oils Pvt Ltd

    22.9. Ventura Group

    22.10. Vimal Oil & Foods

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