An Incisive, In-depth Analysis on the Safflower Oil Market

This study offers a comprehensive, 360 degree analysis on the Safflower Oil market, bringing to fore insights that can help stakeholders identify the opportunities as well as challenges. It tracks the global Safflower Oil market across key regions, and offers in-depth commentary and accurate quantitative insights. The study also includes incisive competitive landscape analysis, and provides key recommendations to market players on winning imperatives and successful strategies.

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The edible oil industry is highly unpredictable in terms of adequate supply of oils. All edible oils such as sunflower oil, safflower oil, palm oil, olive oil, etc., are used alternatively as per the supply of each oil. Climate has often played a major role in deciding the fate of edible oils in the market. Fluctuating yield and poor supply of a particular edible oil is mostly compensated through another alternative edible oil in the market. In times of shortage of palm oil or other specialty oils such as olive oil, the supply of safflower oil has compensated for this shortage, and is expected to do so in the future. Hence, edible oil commodity brokers and traders play a major role, which is resulting in the stable demand for safflower oil. Furthermore, safflower oil is also a healthier substitute to coconut oil and palm oil that are high in saturated fats, and hence, is expected to attract a larger consumer base from the health conscious bracket.

Safflower Oil Being Used as a Healthy Alternative in Salad Dressings

The enhanced nutritional content of safflower oil, especially oleic acid and linoleic acid, is contributing to its increased utilization in various end-use industries such as food & beverage processing, dietary supplements, etc. Safflower oil usage is becoming increasingly common, especially amongst the health-conscious demographic preferring high oleic and cold pressed edible oils in their food. Producers of processed food products such as salad dressings have replaced traditional oils with safflower oil which also contributes to the consistency and flavour desired in various recipes.

In terms of value, the global safflower oil market is expected to represent an incremental opportunity of 8.2 Mn by 2018 end over 2017. By type, the high oleic segment is expected to register a CAGR of 5.4% in the safflower oil market. The organic segment is expected to register a CAGR of 4.8% over the forecast period.

Research Activities are Leading to Development of Unique Blends of Safflower Oil

Biotechnology has made room for new strains in the agriculture industry, and research is heating up to create better strains that overcome the flaws of the natural variety of safflower seeds. Some of the prominent characteristics that are targeted by researchers are improving the beneficial aspects of safflower oil to match those of olive oil, and improving the yield of safflower oil. A strain with improved yield of safflower oil is especially important in developing regions, where local farmers have taken to cultivating other competing crops, due to lower yield of safflower that earns them a very low profit. A higher oleic acid content from safflower oil is likely to help farmers get a better price, and thus, augment the cultivation acreage of safflower.

Continuously Declining Acreage of Safflower Cultivation

Growing urbanization in developing regions has led to a severe decline in agricultural acreage, and since safflower is grown and processed in a large quantities in these regions. This factor is impacting the safflower oil market in a major way. This factor is further burdened with low safflower oil yield, which has compelled many farmers to opt out of the safflower oil business and cultivate other profitable crops.

Subdued Demand from Biodiesel Producers to Impact the Growth of Safflower Oil Market

Safflower oil is an important part of the paint and biodiesel industry. However, the consumption of specialty fats and oils across the biofuel sector has been declining for the past few years. This is mainly attributable to the uncertainty in biofuel policies, and the encouragement to use alternative vegetable oils, such as waste vegetable oils, in certain countries. This uncertainty in the regulatory scenario is topped with the growth in the electric vehicles segment, which has decreased the opportunities for the biodiesel market, furthering restricting the growth of the safflower oil market in this area of application.

Asia Pacific to Set the Pace for Safflower Oil Demand over the Forecast Period

On the basis of region, the market in APEJ is anticipated to have a substantial share in the global safflower oil market in 2018. North America and Europe are expected to gain significant market shares in revenue terms by 2027 end, in the safflower oil market.

FMI has compiled a study that offers an analysis and forecast of the safflower oil market, in its publication titled, Safflower Oil Market: Global Industry Analysis 2013–2017 and Opportunity Assessment 2018–2027. This report on the safflower oil market covers some of the vital facets that are key influencing factors on the demand and supply for safflower oil over the next several years. An in-depth review of the growth drivers, potential challenges, unique trends, and opportunities for safflower oil market participants equips readers to fully comprehend the overall landscape of the safflower oil market. The report on the safflower oil market also covers the analysis of key regions and countries of particular interest that are anticipated to become frontrunners or remain laggards during the forecast period. The report covers a historical analysis of the safflower oil market from 2013 to 2017, and provides forecasts from 2018 to 2027 in terms of volume in metric tons and revenue in US$.

Safflower oil is obtained from the seeds of the safflower (carthamus tinctorius) by the expeller, cold pressing, or solvent extraction processes. Safflower oil is rich in oleic acid and linoleic acid, and is predominantly consumed as an edible oil. Safflower oil is applicable in various end-use segments such as food & beverages, dietary supplements, cosmetics, etc., and is available in different grades. Depending on the nutrition content of the safflower oil, such as monosaturated and polysaturated fats, it is segmented as high oleic and high linoleic. In food applications, safflower oil is primarily used as a frying oil or used in salad dressings. In developed countries, the demand for alternative healthy oils in food & beverages is booming. Obesity amongst adults and youngsters has prompted consumers to seek more and more healthy products. Every ingredient on the retail shelf is being viewed through a ‘health lens’ by the consumers, which has upped the demand for safflower oil. Moreover, from a production point of view, safflower production has taken a new turn. In recent times, safflower has been introduced as an exotic species in the African region. This scenario has been developed due to the emergence of an organized agricultural system in this region. Thus, there are growth opportunities for safflower oil through this region, as a high production capacity of safflower oil is needed to satiate the global demand for safflower oil.

This report on the safflower oil market has been broken down into different chapters to enhance clarity and provide context. A brief executive summary at the beginning of the safflower oil market report consists of some of the key findings of the study on the safflower oil market, as well as estimates and growth rates for important segments. The following chapter presents the definitions and scope of the study of safflower oil, as well as coverage in terms of the way the safflower oil market is structured. Subsequently, the chapter on market background in the safflower oil market report presents the evolution of safflower oil, relevant economic indicators such as GDP and per capita consumption of safflower oil, including an assessment of the supply chain, policy developments and regulatory scenario, and dynamics impacting the safflower oil market, as well as an explanation of the factors considered important to develop forecasts and estimates. The report on the safflower oil market also includes a chapter on pricing analysis, highlighting price point variations between different regions and products, including pricing forecasts. The following chapters dive deep into the global safflower oil market, covering detailed information based on nature, product type, end use, and sales channel. The next set of chapters provide region-wise analysis and forecasts of the safflower oil market, covering vital aspects of the safflower oil markets in North America, Latin America, Europe, APEJ, Japan, and the Middle East and Africa.

A dashboard view of some of the key companies operating in the safflower oil market in terms of their offerings, regional presence, and other metrics is a precursor to the detailed profiles of these participants, including financial information, strategy overview, SWOT analysis, and market share, as well as analyst commentary. Some of the key players analyzed in the safflower oil market report include Marico Limited, Gustav Heess Oleochemische Erzeugnisse GmbH, SunOpta, Connoils LLC, Oilseeds International, Ltd., Adams Group Inc., Centra Foods, Henry Lamotte OILS GmbH, Spectrum Organics Products, LLC, Moksha Lifestyle Products, Victor & Summat General Trading, Aryan International, Austrade Inc., Alt?nya? Combine, Inc., and Stoney Creek Oil Products Pty Ltd

To develop the market estimates for safflower oil, the overall production of safflower seeds in different regions and countries has been taken into account. This was followed by estimating the average yield of the safflower seed oil depending on different extraction methods. This is then cross-referenced by understanding the annual production of safflower oil by key players in the market and also from authorized databases. For the evaluation of the consumption of safflower oil, trade of major edible oil commodities and trade of safflower seeds was taken into consideration. The prices of safflower oil have been obtained from manufacturers, distributors, and wholesalers for bulk quantities at a country level.

Our team of analysts review and interpret data from a variety of sources. Data attributed to ‘FMI’ is derived by using a combination of various approaches, which are then consolidated, interpreted, and extrapolated by FMI analysts. Data is sourced from government statistics, trade associations, company annual reports and investor presentations, press articles and directories, technical publications, and online databases, which are then cross-referenced with FMI’s reports and internal repository of data to filter and validate the collected information. Intelligence gathered from desk research is supplemented by extensive interviews with selected key expert participants across the value chain, not only to gain information specific to their roles and operations but also to obtain their perspective and insights of the issues impacting the safflower oil market.

Safflower Oil Market: Segmentation

Analysis by Nature