Cotton Seed Oil Market Size to Grow at a CAGR of 3.3% During the Forecast Period 2021-2026

 Cotton Seed Oil Market size is set to grow at a steady CAGR of 3.3% in the forecast period of 2021-2026 and contribute revenue of 3.91 billion by the year 2026. Cotton Seed Oil is an edible oil, extracted from the seeds of the cotton plants, mainly Gossypium Herbaceum and Gossypium hirsutum. The oil is obtained by breaking the cotton kernel and then processing it forward. Cotton Seed Oil is used in different verticals; hence its demand is cross-industrial in the oil market. Due to its quality of imbibing the taste of the food, rather than adding its own, owing to which it is widely used by the food processing industries. Apart from that, it is poised to offer various health and skin benefits to the user making it a popular cosmetic ingredient in the cosmetic industry. Increasing health awareness of the health benefits rendered by the cottonseed oil is set to lead the cotton seed oil market demand during the forecast period of 2021-2026.  

Cotton Seed Oil Market Segment Analysis- By Nature

By nature, the cotton seed oil market is segmented into two variants namely, conventional, and organic. Conventional cottonseed oil had the largest share amongst the two in the year 2020. The reason for the dominant demand in the past years is due to the low cost involved in the production, and the overall process is less complex than that of organic. Although, in the forecast period, the organic cotton seed oil demand and revenue is set to exceed the former due to the various benefits it offers to nature. Organic Cotton Seed Oil reduces the carbon footprint by 75%, and the overall water requirement by 92%. The low usage of pesticides and chemicals will benefit the environment in a matter of more than one. Due to the rising awareness for organic products amongst the population, the organic cotton seed oil market will grow at the fastest CAGR of 3.9% during the forecast period of 2021-2026.

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Cotton Seed Oil Market Segment Analysis- By End User

By end-user, the cottonseed oil market can be segmented into four subcategories namely, household, retail, industries, and food service provider. Industrial Demand for the cottonseed oil market made the highest contribution in the year 2020.

The reason for such domination lies in the several qualities of cottonseed oil. For instance, it acts as a substitute for edible oil, with low cholesterol than others, hence the food processing industry demands for higher proportion. It also doesn’t mask the food natural taste, and helps in the manufacturing of chips & snacks, bakery and confectionary and has a high proportion of fatty acids, which makes the smoke point of the oil high which makes it an ideal substitute for frying. In the forecast period of 2021-2026, the industrial segment of cottonseed oil will grow at the fastest rate with a CAGR of 3.6%. 

Cotton Seed Oil Market Segment Analysis- By Geography

By Geography, North America dominated the overall segment. It contributed to a market share of 40%, in the year 2020. The reason for the surging demand is because of the low-fat content and low cholesterol contribution to the overall food. The fast-food industry and the food processing industry had a massive contribution to the overall share in this demographic for the year 2020. Although, with a rise in awareness about the health benefits of cottonseed oil and the overall shift of preferences towards leading a low cholesterol life, Europe shows the maximum potential for demographic domination and rising with the fastest CAGR over the period of 2021-2026. 

Cotton Seed Oil Market Drivers

Increasing Skin Benefits

Owing to an abundance of Vitamin-E, fatty acids, and antioxidants the cottonseed oil serves as a great cosmetic ingredient for a moisturizer, anti-ageing and anti-inflammatory products. The presence of linolic acid reduces the inflammation of the hair and other areas, which serves in reducing dandruff and other hair-related ailments of the consumer.

Decreases the chances of developing cardiovascular diseases

A higher proportion of the current global population has uncontrolled blood pressure and goes undiagnosed. While there are a lot of comparison charts, comparing cottonseed oil with sunflower oil- scientific studies have proven that cottonseed oil has more amount of unsaturated fats, which leads to an increase in good cholesterol levels and simultaneously reducing bad cholesterol.

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Cotton Seed Oil Market Challenges

Controversy surrounding presence of Gossypol- Aluminium Salts

Cottonseed Oil produces phenolic compounds, produced by the pigment glands of the cotton seeds and flower buds. The presence of gossypol, an aluminium salt has certain negative side effects- including infertility. Cases of liver damage, respiratory distress have also been reported after prolonged use of cottonseed oil owing to the presence of aluminium salts. The presence of gossypol poses a threat to the cottonseed oil market and its growth in the forecast period.

Cotton Seed Oil Market Landscape

Product launches, mergers and acquisitions, joint ventures, and R&D activities are key strategies adopted by players in the Diabetes Food Market. Diabetes Food Market top 10 companies include Adani Wilmar Ltd, Ruchi Soya Industries, Associated British Foods Plc, Cargill Inc, Archer Daniels Midland Company, Bunge Limited, Adams Group, American Vegetables, Borges International and Marico Limited.

Development:

In December 2019: Ruchi Soya Industries was acquired by Patanjali Ayurved in the year 2019, and within the acquisition, Patanjali got the exclusive rights over “Mahakosh Oil”, thus enabling Patanjali Ayurved to further expand its range in the edible oil segment. Mahakosh Oil has been the brand under which Edible Oil is being sold, and Cottonseed oil is one of the edible oil present in the brand.

Key Takeaways

North America dominated the cotton seed oil market in the year 2020, owing to a surge in demand in the food and beverages industry. The adoption is due to a low contribution in cholesterol and low-fat content.

Increasing preference of the cosmetic and food industry outlook is further set to launch the demand in the cotton seed oil market.

Detailed analysis of the Strength, Weaknesses, and Opportunities of the prominent players operating in the market will be Cottonseed Oil Market Report.

Companies operating in the cotton seed oil market will have to face stiff competition from different edible oils, and as well as companies in the cotton seed oil segment to gain a dominant market share.  

Related Reports:

A. Grape Seed Oil Market

https://www.industryarc.com/Report/17799/grape-seed-oil-market.html

B. Edible Oil Market

https://www.industryarc.com/Report/16630/edible-oil-market.html

For more Food and Beverage related reports, please click here

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