Sunflower Oil Market Report

Mid-oleic sunflower oil is the leading segment in sunflower oil markets due to its better stability and cost-effectiveness. In the United States and Canada, this oil is called ‘standard’ sunflower oil because it contains 65% oleic acid, 25% linoleic acid, and 10% saturated fats. It was developed through conventional breeding practices; consequently, it has a mild taste and a long shelf life, making it suitable for deep-frying purposes. According to the International Sunflower Association, its reduced levels of linoleic acid contribute to enhanced oxidative stability, setting it apart from conventional sunflower oils.

In March 2024, World of BRIO introduced its innovative collection of Non-GMO and Organic Safflower and Sunflower Oils, highlighting the rising opportunities in the sunflower oil market. With a growing consumer preference for oils that deliver significant health benefits like enhanced cardiovascular health and antioxidant properties, sunflower oil is rapidly establishing itself as a leading choice. Furthermore, the shift towards sustainable agricultural practices opens substantial opportunities for growth. Businesses incorporating eco-friendly farming techniques such as reducing pesticide use and optimizing water resources are well-positioned to attract environmentally aware consumers. Certifications like organic and non-GMO further drive the premium market segments, enhancing overall market demand and growth potential.

The continuous conflict involving Ukraine and Russia has interrupted agricultural supply networks, creating considerable uncertainty in global supply and demand conditions. According to the USDA, prices for sunflower oil in Rotterdam rose by more than US$1,000 per metric ton to reach a record high of US$2,570 in March due to uncertainties about reduced supplies. The conflict has led to limited port access in the Black Sea and a reduced crush of sunflower seeds. Additionally, potential decreases in new crop plantings are expected to keep sunflower oil prices raised in the near term, which hinders the global supply of sunflower oil and limits market growth.

The sunflower oil market faces significant challenges due to competition from alternative vegetable oils such as palm, soybean, and canola oils. These substitutes often present lower costs or distinct nutritional benefits, impacting sunflower oil demand. According to Ukraine Invest, recent supply disruptions have led to severe shortages and inflated prices in key markets. For instance, the price of sunflower oil in the United Kingdom surged by 60%, from GBP 1,130 per ton in February to over GBP 1,800 in March. Additionally, stringent food safety regulations complicate the switch to alternative oils, as snack companies would suffer higher costs for new packaging and production adjustments.

Major industry leaders utilize strategies that focus on launching new products, merging with competitors, and purchasing companies to grow their customer base and enhance their range of products. In October 2023, Gemini Edibles & Fats India Ltd. (GEF India), a prominent player in the sunflower oil sector, introduced a new 10-litre reusable jar of Freedom Refined Sunflower Oil. The launch event featured Suma Kanakala, celebrated anchor and actor, and P. Chandra Shekhara Reddy, Vice-President of Sales and Marketing. This environmentally-friendly packaging upgrade is aimed at contemporary consumers looking for sustainable choices. GEF India is broadening its presence by establishing refineries in Chhattisgarh and Tamil Nadu, in addition to its current operations in Andhra Pradesh, Telangana, Karnataka, and Odisha.

Moreover, in February 2023, Cargill launched Gemini Pureit in Karnataka, marking a significant expansion of its edible oil portfolio into South India. This move celebrates the 40-year milestone of the Gemini brand, recently recognized as the top sunflower oil in India by Consumer Voice. The expansion leverages a newly acquired and upgraded facility in Nellore, Andhra Pradesh, which began operations in December. This US$35 million investment enhances Cargill’s production capacity and strengthens its supply chain, addressing the region's substantial sunflower oil demand and expanding its market presence across Andhra Pradesh, Telangana, Karnataka, and Tamil Nadu.

Europe is a dominant player in the sunflower oil market with large production capacities and a rising demand for healthier cooking oils. Historically, Russia and Ukraine have led global production, with Russia contributing 31% and Ukraine 29%, as per USDA data for 2023/2024. However, Europe's role is pivotal, accounting for 18% of global production with 3.89 million metric tons. This substantial output is driven by Europe's vast agricultural lands and favourable climate, coupled with a rising health-conscious consumer base that increasingly favours sunflower oil for its unsaturated fats and vitamin E content.

The Asia Pacific region is becoming the fastest-growing market for sunflower oil due to an increasing population and expanding middle class. With a growing focus on health among regional consumers, sunflower oil is being selected over other oils due to its high levels of unsaturated fats and vitamin E. The Malaysian Palm Oil Council revealed that imports of sunflower seed oil into China increased 176.0% in 2023, which added up to an overall increase of 51.3% for rapeseed and sunflower seed oils totalling 8.48 million metric tons. However, India and China, as major importers, reflect a notable rise in per capita consumption of edible oils.