Global Oilseeds Market 2025 – 2034

Reports Description

As per Oilseeds Market analysis conducted by the CMI team, the oilseeds market is expected to record a CAGR of 5.73% from 2025 to 2034. In 2025, the market size was USD 350.44 Billion. by 2034, the valuation is anticipated to reach USD 581.59 Billion.

Overview

Oilseeds are either consumed on the direct basis as food or crushed for extracting oil for biofuel, food, oleo chemicals, and the other sectors. The farmers, with continuous increase in demand for oilseeds extracts, are investing more in the production of oil crops.

The soybean segment dominates the oilseeds market. soybean is necessary for agricultural economies and various food production systems around the world. The U.S., Brazil, and Argentina are the top 3 producers of soybeans. They make up close to 80% of the crop cultivation. Improvements in agricultural methods and biotechnology have resulted in rise in yields on continuous basis.

Soymeal is turning out to be all the more essential as the global need for meat is growing day after day, especially in the under-developed economies.

The peanuts segment is expected to be the quickest growing market all across. India and China stand second and first respectively as far as the peanuts’ imports for the year 2024 are concerned. China utilizes almost 50% of its peanuts imported for human consumption. The rest half is meant for extraction of oil and in preparation of meals. besides, as per the USDA statistics, the Asia Pacific is witnessing a higher production and usage of peanuts for making peanut-based snacks.

Key Trends & Drivers

• Rise in Demand for Organic and Healthy Oilseed-processed Products

The present scenario is such that the end-consumers are raising their awareness quotient regarding the nutritional advantages offered by oilseed-processed goods. Plus, there are various public-private collaborations witnessed pertaining to molecular breeding in oilseeds.

Sunflower oil is used on an extensive note as frying oil as well as a lubricant in cosmetics. It contains oleic acid (a monosaturated fat) and linoleic acid (a polyunsaturated fat). Unrefined sunflower oil is increasingly being used in dressing of salad in the Eastern European cuisines due to presence of omega-6 fatty acids. Sunflower glyceride PEG-10 is broadly used in various cosmetic compositions. On mixing with diesel in tank sunflower oil could be used for running diesel engines as well.

Canola oil is used for cooking and as an ingredient of margarine and soap. Jet engines use canola oil’s liquefied form for lubricating and also converting to biodiesel.

The seeds that are left after extraction of oil can be used for producing fodder as well. The plant could be used as cover crop and green manure. rapeseed, after palm and soybean oil, is the largest source of proteins. Rapeseed meal is generally used for cattle even though it is used for fowl and pigs.

• Increasing Adoption of Oilseeds by Other Verticals

Oilseeds are increasingly being used in animal feed sector, biofuel production, pharmaceuticals, and paints and cosmetics verticals. Oilseed meals such as sunflower meal and soybean meal are the primary source of livestock and proteins. The edible oil from soybean and rapeseed is used for producing biodiesel.

Oilseeds are used for producing varnishes, paints, printer inks, and various other oleochemicals. They are also used in personal care products and cosmetic formulations. Some of them are used to produce pharmaceuticals as well.

Key Threats

• Inadvertent Price Rise Post-Covid and Nature’s Vagaries

The price rise with respect to sunflower oil and soy oil is restraining the oilseeds market. Research states that the year 2020 witnessed increase in this price by over 50% basically owing to worldwide lockdowns; and the prices have not been restored in spite of passage of five years therein.

Furthermore, the major oilseed-producing regions are experiencing adverse weather conditions at periodic intervals, which is resulting in disruptions and shortages of supply. Such climate-related challenges such as floods, droughts, and various other temperature variations are reported to negatively impact the overall availability and production of oilseeds.

Opportunities

The governments around the world are taking initiatives regarding increasing the production of oilseeds and cut down on costly vegetable oil imports. This could be exemplified by the fact that in August 2021 the Government of India floated a National Mission on Oilseeds and Oil Palm. The idea behind the mission is to make India self-sufficient in edible oil, thereby upsurging the output of oilseeds at the local level. The government has also decided to fund USD 1.48 Billion for helping farmers with better quality seeds and technological advancements.

What’s trending in the Global Oilseeds Market?

Plant-based foods are gaining popularity, which is, in turn, bolstering the market for oilseeds such as sunflower, canola, and soybeans, which are vital ingredients in dairy substitutes, meat alternatives, and packaged foods.

Technological advancements with respect to seed development such as introducing genetically modified seeds with features such as resistance toward insects and pests are also improving the productivity and economics related to seeds.

There is an increasing emphasis on sustainable agricultural practices that are capable of enhancing production of oilseeds while reducing the environmental impact. The U.S., china, Argentina, Brazil, and various other countries are witnessing increased oilseed utilization by crushing.

Category Wise Insights

By Product

• Sunflower

Sunflower ranks third in the production of oilseed and fourth in production of vegetable oil worldwide. In countries such as South Africa and India, sunflowers are amongst the competitive crops, which offer farmers a good option to make profits. Sunflower oil is known for higher content of unsaturated fatty acids. It also finds presence in non-edible applications such as detergents, soaps, lighting oil, and varnishes. The major advantage is that sunflower is a comparatively short-duration crop, thereby facilitating flexible plating schedules could with integration into several cropping systems.

• Soybean

Soybean plays an important role in oilseeds market as one of the main sources of animal protein feed and second in line with respect to source of vegetable oil. It is crucial for consumption at the domestic scale. Soybeans are rich in proteins and beneficial compounds such as tocopherols, isoflavones, and lecithin. The applications include cooking oil, vanaspati, salad oil, oil paints, and printing inks.

• Peanut

Peanuts have an oil content of around 52%. Peanut oil, apart from cooking, is used in fuels and cosmetics. Peanuts are produced in close to 40-43 million tons every year. as per APEDA, India is amongst the major producers and exporters of peanuts, thereby noticeably contributing to supply at the global level. Peanuts contain essential fatty acids, proteins, and numerous other nutrients. They are also used for producing functional foods. Peanut leaves and haulms provide fodder for livestock. In certain economies, peanuts are looked upon as “wonder nut” (source of protein).

• Cottonseed

Cottonseed oil is used in food processing, and also as frying oil owing to its higher smoke point. It is a prime component in salad oil, margarine, and blended oils. Cottonseed cake is a by-product of extraction of cottonseed oil. It is a good source of animal feed, especially for dairy cattle. The major producers of cottonseed include India, China, the U.S., Pakistan, and Brazil.

• Rapeseed

Rapeseed oil, also called canola oil, accounts for almost 20% of the global supply. It is a good choice owing to higher content of unsaturated fatty acids. It is basically used in frying and cooking. Rapeseed meal that is obtained post-oil extraction, is amongst the valuable sources of proteins for livestock such as poultry and cattle. Rapeseed oil could also be used for producing biodiesel as one of the alternative fuel sources. The EU, India, China, and Canada are the major producers of rapeseed.

By Type

• Animal Feed

Oilseed meals are a noticeable source of proteins for animal feed. They are a significant component regarding formulation of compound feeds. Growing demand for white feed, particularly in Asia Pacific drives the demand for high-class feedstuffs inclusive of oilseed meals. Oilseed proteins, though incomplete, could be one of the valuable sources of dietary proteins for animals as well as humans. The Asia Pacific is a major player, led by India and China.

• Edible Oil

Edible oil is a primary product derived from oilseeds. their consumption is amongst the major drivers of the oilseeds market on the whole. Edible oils are used in frying, cooking, and likewise. Higher prices of the edible oils could incentivize the farmers to increase their production.

By Breeding

• Genetically Modified

Genetically modified oilseeds increase productivity, improve resilience, and impact food security. The benefits offered include cutting down on reliance on imports. Genetic manipulation is reported to improve content of fatty acid in oilseeds, thereby resulting in formation of oils with superior nutritional qualities.

• Conventional

Conventional oilseeds are cost-effective, eco-friendly, and foster the increasing demand for organic products. The examples of conventional oilseeds include mustard, rapeseed, peanuts, and sesame. The application areas include frying, cooking, food processing, and salad dressings.

By Biotech Trait

• Herbicide Tolerant

Herbicide tolerant oilseeds exercise a better control over weeds, thereby resulting in rise in crop yields and reduction of costs for the farmers. Continual research with regards to biotechnology are leading to floating of new-fangled herbicide tolerant oilseed varieties, thereby resulting in enhanced adaptability to several environmental conditions.

• Insecticide Resistant

Insecticide resistant oilseeds reduce dependency on chemical insecticides, thereby promoting sustainable agricultural practices and increasing the crop yields. Rise in demand for eco-friendly pest control solutions is the factor majorly driving the demand for insecticide resistant oilseeds.

• Other Stacked Traits

Other stacked traits imply genetically modified traits that cannot be categorized as insecticide resistant or herbicide tolerant oilseeds. Such traits could cover a broad spectrum of improvements inclusive of improved nutritional content, increased yield, and enhanced resilience to natural calamities such as disease or drought.

By Application

• Oilseed Meal

Oilseed meals are basically used as animal fed. However, they do find applications in human food and several industrial sectors as well. They include oleochemicals, biofuels, and pharmaceuticals. Certain oilseed meals such as the ones from sunflower and soy are used in human food formulations for enhancing nutritional value.

• Vegetable Oil

Vegetable oil is used for industrial purposes and human consumption. The factors of influence include production costs and consumption of vegetable oil. These days, vegetable oil is used to produce biodiesel as well.

By End-user

• Household or Residential Area

Household or residential areas influence the oilseeds market through their buying power, consumption patterns, and preferences, thereby affecting market dynamics. Oilseeds, especially the ones used for producing vegetable oils (such as sunflower, soybean, peanut, etc.) are the essential components of household diets as they provide cooking oils.

• Commercial or Corporate Sector

The commercial or corporate sector influences the production, processing, consumption, and trade of oilseeds. They invest in research and development activities for creating new as well as improved oilseed varieties that are more resistant to diseases and pests, have a higher content of oil, and are well-suited for certain industrial applications. Corporate entities also help to develop and supply high-quality seeds including advanced and hybrid varieties that are important for having oil of good quality.

• Automobiles

The automobile vertical is a prime consumer of engine oil, which is important for lubricating the engine parts, thereby maintaining optimum performance. The automotive industry also needs various other lubricants inclusive of transmission fluid, gear oil, and hydraulic fluid, all of which oilseeds could provide. The other factor driving oilseeds market is potential of utilizing oilseeds in manufacturing sustainable aviation fuel (SAF).

What is the Effect of Demand for Sustainable Sourcing on Oilseeds Market?

The growing inclination toward sustainable sourcing is visible in the form of stakeholders and consumers prioritizing oilseed cultivation. Also, improved varieties of seeds, sustainable agricultural practices, and integration of technology in production are improving the productivity. Moreover, canola, soybean, and palm are increasingly utilized for production of biodiesel. This could be credited to energy security initiatives. The governments are also extending support to oilseed production, thereby promoting the sustainable farming practices.

Report Scope

Regional Perspective

The oilseeds market is classified into North America, Europe, Asia Pacific, and LAMEA.

• Asia Pacific

Asia Pacific dominates the global oilseeds market. It holds close to 37% of the market. This could be attributed to expanding food processing vertical coupled with increasing production of soybean. India is the fourth largest producer of oilseeds. Asia Pacific is expected to witness a CAGR of 4.3% between 2025 and 2034.

• North America

North America holds 28.8% of the market share and the status quo is expected to remain unchanged during the forecast period. This could be credited to increase in production of soybean in the U.S. This cash crop has reported to hit around 90% of the production of oilseeds in the U.S.

• Europe

The European Union accounts for production of nearly 30 million tons of oilseeds every single year. Majority of oilseeds are crushed for producing oils (for biofuels or food) and meals (for animal feed). The major oilseeds include rapeseed, sunflower seeds, and soybeans.

• LAMEA

Soybean dominates the oilseeds market in LAMEA. Argentina and Brazil are the leading producers as well as exporters of soybean meal. Palm oil, peanut oil, sunflower oil, and rapeseed oil follow suit. The dynamics of this market are influenced by factors such as transportation costs and trade agreements.

Key Developments

The oilseeds market is witnessing geometric progression related to organic and inorganic expansion. Some of the key developments include –

• In March 2025, TradeStation Securities (one of the award-winning online brokerage firms) expanded the future product offering for including micro-sized grains and oilseed future contracts of the CME Group. The clients are now able to trade Micro Soybean, Micro Corn, Micro Soybean Oil, Micro Wheat, and Micro Soybean Meal futures, thereby offering more flexibility of trading in the agricultural markets with minuscule contract sizes.

• In January 2025, The Food Corporation of Kazakhstan announced that it had intended to aid medium and small farms in exporting domestic agricultural products overseas. Six export contracts worth US$ 20 Million were concluded in this regard.

• In June 2024, Australian Oilseeds Holdings Limited announced that it had uploaded a novel Investment Relationship section on their website wherein they started promoting GMO-free organic and conventional oilseeds.

• In March 2024, Chevron, in collaboration with Bunge, did wrap up their oilseed feedstock venture by inaugurating a processing plant in LA. The plant is expected to be online by 2026. It would be processing soft seeds, soybeans, and modern winter oilseed crops.

Leading Players

The oilseeds market is highly competitive, with a large number of service providers globally. Some of the key players in the market include:

• Archer Daniels Midland Company
• BASF SE
• Bayer AG
• Burrus Seed farms Inc.
• Cargill Incorporated
• Corveta Agriscience
• Gansu Dunhuang Seed Industry Group Co. Ltd.
• KWS SAAT SE & Co.
• Mahyco Seeds Ltd.
• Syngenta Crop Protection AG
• AGT Food and Ingredients
• Louis Dreyfus Company
• Mountain States Oilseeds
• Oilseeds International
• Cootamundra Oilseeds
• Others

These firms apply strategies such as innovations, mergers and acquisitions, as well as collaborations to enter market. The oilseeds market is shaped by the presence of diversified players that compete based on product innovation, vertical integration, and cost efficiency.

The Oilseeds Market is segmented as follows:

By Product

• Sunflower
• Soybean
• Peanut
• Cottonseed
• Rapeseed

By Type

• Animal Feed
• Edible Oil

By Breeding

• Genetically Modified
• Conventional

By Biotech Trait

• Herbicide Tolerant
• Insecticide Resistant
• Other Stacked Traits

By Application

• Oilseed Meal
• Vegetable Oil

By End-user

• Household or Residential Area
• Commercial or Corporate Sector
• Automobiles

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America