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Researched by Industrial Info Resources (Sugar Land, Texas)--Demand for vegetable oil mills, or the industrial facilities used to extract oil from oilseeds like sunflower seeds, rapeseeds, palm fruits and others, is witnessing an upward trend. This is due to increased consumption of vegetable oils, government initiatives to boost domestic production and global market conditions, especially supply shortages due to the Russia-Ukraine conflict.
Market requirements for vegetable oils are increasing due to rising world population, resulting demand for food and people's awareness of health benefits associated with these oils. The versatility of these oils across industries beyond food, such as cooking, personal care, and other industrial applications like paints, lubricants and biofuels, has further added to this growth. For instance, according to the U.S. Energy Information Administration (EIA), vegetable oils act as the main feedstock for biodiesel production globally.
Vegetable oils also serve as an alternative to mineral oil due to their higher biodegradability, inexpensive cost, transformer applications, lower volatility, high viscosity, accessibility and better performance under pressure. Demand for fortified vegetable oils (enriched with essential vitamins A & D) has also witnessed an upsurge as governments and health organizations promote fortification to combat micronutrient deficiencies.
The Russia-Ukraine conflict caused importing countries to seek substitutes, reduce reliance on imports and focus on domestic production. According to a report from the REACH humanitarian initiative, Ukraine's sunflower oil exports accounted for 47% of global sunflower oil exports in 2021. But an article from the Agricultural & Applied Economics Association shows Ukraine experienced a drop of 68% in exports to the Middle East-North Africa (MENA) region alone post-war.
According to reporting from Agri-Pulse and Reuters, respectively, in the past few months China and Indonesia curbed their export policies for used cooking oil to prioritize domestic industries, such as biofuel production, and ensure resource availability for local consumption.
Additionally, India opened doors to domestic palm oil production in 2024 by inaugurating its first integrated oil palm processing facility. For more information, see Industrial Info's April 4, 2024, article - India Opens Doors to More Domestic Palm Oil Production, and subscribers to Industrial Info's Global Market Intelligence (GMI) Food & Beverage Plant Database can click here for a profile on the plant in Dibang Valley, Arunachal Pradesh, from 3F Oil Palm (Hyderabad, India).
Industrial Info is tracking more than 570 active capital-spending projects globally, worth more than US$13 billion, that are geared toward constructing vegetable oil mills. About 61% of the spending is focused on grassroot developments, 31% on plant expansions and 4% on unit additions. Subscribers to the GMI Project Database can click here for the project reports.
Most of the spending is in South America, equivalent to more than US$6 billion, with US$2 billion in North America and US$1 billion in Asia.
By country, Brazil is attracting the highest spending worth about US$6 billion. Canada and Russia are also attracting investments worth US$1 billion and US$700 million, respectively. Some of the other countries with potential spending include the U.S., Tanzania, Indonesia, India and the Netherlands.
The top three market players are S Oleum Rds Pesquisa e Desenvolvimento Agro Industrial Ltda (Minas Gerais, Brazil), Glencore International AG (Baar, Switzerland) and Bunge Limited (Chesterfield, Missouri), with an aggregate spending of more than US$7 billion, accounting for 57% of the market share.
Overall, 76% of the projects are in their planning phase, with 7% being engineered, and 17% under construction. While most of the projects are expected to reach completion by July 2029, the remaining will reach fruition by July 2032.
As countries push for adoption of greener alternatives, the future for vegetable oil mills seems promising due to the role they play in biofuel production. New oilseed crops and alternative oils would further increase the diversity of products mills produce. Rising concerns towards traceability are likely to necessitate technological advancements monitoring the origin and quality of oilseeds and the final product. Even though market volatility and export restrictions continue to persist in some parts of the world, the vegetable oil mill market is anticipated to expand in the future.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Market requirements for vegetable oils are increasing due to rising world population, resulting demand for food and people's awareness of health benefits associated with these oils. The versatility of these oils across industries beyond food, such as cooking, personal care, and other industrial applications like paints, lubricants and biofuels, has further added to this growth. For instance, according to the U.S. Energy Information Administration (EIA), vegetable oils act as the main feedstock for biodiesel production globally.
Vegetable oils also serve as an alternative to mineral oil due to their higher biodegradability, inexpensive cost, transformer applications, lower volatility, high viscosity, accessibility and better performance under pressure. Demand for fortified vegetable oils (enriched with essential vitamins A & D) has also witnessed an upsurge as governments and health organizations promote fortification to combat micronutrient deficiencies.
The Russia-Ukraine conflict caused importing countries to seek substitutes, reduce reliance on imports and focus on domestic production. According to a report from the REACH humanitarian initiative, Ukraine's sunflower oil exports accounted for 47% of global sunflower oil exports in 2021. But an article from the Agricultural & Applied Economics Association shows Ukraine experienced a drop of 68% in exports to the Middle East-North Africa (MENA) region alone post-war.
According to reporting from Agri-Pulse and Reuters, respectively, in the past few months China and Indonesia curbed their export policies for used cooking oil to prioritize domestic industries, such as biofuel production, and ensure resource availability for local consumption.
Additionally, India opened doors to domestic palm oil production in 2024 by inaugurating its first integrated oil palm processing facility. For more information, see Industrial Info's April 4, 2024, article - India Opens Doors to More Domestic Palm Oil Production, and subscribers to Industrial Info's Global Market Intelligence (GMI) Food & Beverage Plant Database can click here for a profile on the plant in Dibang Valley, Arunachal Pradesh, from 3F Oil Palm (Hyderabad, India).
Industrial Info is tracking more than 570 active capital-spending projects globally, worth more than US$13 billion, that are geared toward constructing vegetable oil mills. About 61% of the spending is focused on grassroot developments, 31% on plant expansions and 4% on unit additions. Subscribers to the GMI Project Database can click here for the project reports.
Most of the spending is in South America, equivalent to more than US$6 billion, with US$2 billion in North America and US$1 billion in Asia.
By country, Brazil is attracting the highest spending worth about US$6 billion. Canada and Russia are also attracting investments worth US$1 billion and US$700 million, respectively. Some of the other countries with potential spending include the U.S., Tanzania, Indonesia, India and the Netherlands.
The top three market players are S Oleum Rds Pesquisa e Desenvolvimento Agro Industrial Ltda (Minas Gerais, Brazil), Glencore International AG (Baar, Switzerland) and Bunge Limited (Chesterfield, Missouri), with an aggregate spending of more than US$7 billion, accounting for 57% of the market share.
Overall, 76% of the projects are in their planning phase, with 7% being engineered, and 17% under construction. While most of the projects are expected to reach completion by July 2029, the remaining will reach fruition by July 2032.
As countries push for adoption of greener alternatives, the future for vegetable oil mills seems promising due to the role they play in biofuel production. New oilseed crops and alternative oils would further increase the diversity of products mills produce. Rising concerns towards traceability are likely to necessitate technological advancements monitoring the origin and quality of oilseeds and the final product. Even though market volatility and export restrictions continue to persist in some parts of the world, the vegetable oil mill market is anticipated to expand in the future.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
