Published on: December 10, 2019
Sunflower, also known as Helianthus annuus, is a native to North American and South American regions. It is cultivated primarily for its edible seeds. The seeds may be eaten dried, roasted, or ground into nut butter and are a common constituent in birdseed mixes. The seeds can also be processed to extract oil that is used for cooking and other applications. Moreover, the leaves of the flower are used as fodder. We have categorized the sunflower products market as a part of the overall packaged foods and meats market. The packaged foods and meats market cover producers of packaged foods including dairy products, fruit juices, meats, poultry, fish and pet foods. Frequent product launches and growing demand for organic sunflower products are few of the major trends in the market which are expected to drive the demand for sunflower products during the forecast period.
Based on type, the sunflower seeds segment dominates the global market. The global sunflower seed market was valued at around USD 25 billion in 2018 whereas the global sunflower oil market was valued at around USD 15 billion 2018. Sunflower seeds are enriched in vitamin E, selenium, phytosterols, and magnesium and are observing a major demand from various end-use industries such as food & beverage, personal care, and animal feed.
Moreover, based on geography, the European region dominates the global sunflower products market owing to the dominance of sunflower crop in the region. Countries like Russia, Ukraine, and Bulgaria in the region have the presence of major sunflower producers that fulfill the demand of domestic food & beverage industry. Moreover, Germany and the Netherlands generate significant demand for sunflower kernels that are majorly used in bakery and confectionery products. However, APAC region witnessed the highest market growth owing to the rapid growth of the sunflower oil market. Significant demand for sunflower oil is generated from India and China where governments have signed agreements with other countries to improve sunflower oil trade.
The global sunflower products market can be segmented into the following:
Many factors are expected to drive growth in the sunflower products market during the forecast period. Our analysis identifies the following factors to be driving the growth in the sunflower products market:
Sunflower seeds and oil are used in the manufacturing of a variety of products. They are used as an ingredient in food products, bakery products, snacks, cosmetics and for some medical purposes. An increasing number of products using sunflower seeds and oil are getting commercialized in the market which is driving the growth of the global sunflower products market.
The sunflower products market growth is driven by increasing investments in the market. The investments are being made toward increasing production, infrastructure development, research, and marketing of sunflower products. For instance, Trans-Oil partnered with three development banks and six commercial lenders to invest a sum of around USD 150 million to grow its sunflower oil production and expand into different geographies.
The strategic collaborations help the vendors in product development, geographical expansion, and gaining access to technological expertise. This also enables vendors to explore new opportunity areas for products and services. For instance, to enter sunflower seed market, BASF SE announced that it has signed a distribution agreement with Euralis Semences.
Meanwhile, the vendors operating in the market face numerous challenges in increasing their sales and improving profitability. Some of those challenges are:
A wide range of substitutes is available in the market for sunflower products. For instance, sunflower oil that is widely used for cooking can be replaced with palm oil, olive oil, soybean oil, and canola oil. Further, few of these substitutes offered in the market have greater health benefits than sunflower oil owing to which consumers have high preference for these substitute products.
The global vegetable oil trade market is witnessing multiple tax hikes including sunflower oil. For instance, Government of India increased its import tax on vegetable oil including sunflower oil from 35% to 45%. Such tax hikes increase overall prices of sunflower oil which makes it difficult for market vendors to maintain their profit margin. Moreover, increase in prices also compels customers to switch to other substitutes.
Our reports on the global sunflower products market cover several large and small vendors active in the market including Archer Daniels Midland Co., Bunge Ltd., Cargill Inc., Advanta Seeds Pty Ltd., and Bayer AG.
Acquisitions, market investments and the introduction of new products and technologies are some of the strategies adopted by the manufacturers in the global sunflower products market.
Following are a few of the major developments in the market:
Backed with competitive intelligence and benchmarking, our sunflower products market research report is designed to provide entry support, customer and M&A assessment, as well as go-to-market strategy support.
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