Safflower Seeds Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The safflower seeds market is projected to reach a CAGR of 5.7% over the forecast period (2020-2025). The global safflower oil consumption is growing rapidly, mainly as a result of the rising health consciousness among consumers across the world. Safflower oil is a popular cooking oil that comes from the seeds of the safflower plant. According to the Food and Agriculture Organization (FAO), Kazakhstan, India, the United States of America, Mexico, Argentina, and Australia are the primary producers of safflower seed mainly for oil extraction rotational crops along with rice, wheat, and corn. According to FAO, Kazakhstan produced safflower seeds of 214149 tonnes in 2018 up from 167243 tonnes in 2016. Safflower seed production in Kazakhstan exceeded the figures recorded by the second-largest producer, the U.S. (107220 tonnes, 2018), threefold. California is the primary producer of safflower seeds in the united states, accounting for 50% of the production. - Safflower seed is a drought-tolerant oilseed, with Lower production inputs, easy adaptability to various soil types, effective in crop rotation, effective weed and disease controller, Lower risk of production, ease of harvesting and storage are some of the factors driving the demand for safflower seed across the globe.

Key Market Trends

Increased Commercialization of Safflower oil and By Products

According to the Agricultural Marketing Resource Centre (AgMRC), the safflower oil, which is a monounsaturated and polyunsaturated state is used in infant formulas, cosmetics, and salad and cooking oils. Both types of oil are considered “high-quality” edible oil, and public awareness about its health benefits have made safflower an essential crop for vegetable oil. The oil in linoleic safflower contains nearly 75 % linoleic acid and is used primarily for edible oil products such as salad oils and soft margarine. Safflower meal, by-product after the oil extraction is about 24% protein and is high in fiber and is used as a protein supplement for livestock and poultry feed. A recent innovation in the oil extraction process using supercritical CO2 tends to provide superior oil quality compared to the traditionally extracted oil. In the year 2020, under the Crop Biofactories Initiative, the company has developed the Super High Oleic safflower oil with the help of CSIRO's gene silencing technology that has resulted in SHO which has over 92% oleic acid. With the minimal safflower seed production in the country, the Australian companies have developed one of the superior quality oil of all the other plant kind which has shown a considerable demand for the safflower seed in the Australian Market.

Russia Leads Export of Safflower Seeds

Russia is a significant producer of safflower seeds alongside being the leading exporter of the same. According to ITC Trade Map, in 2019, the country exported safflower seeds worth USD 16.3 million with 52,539 tons. Some of the major exporting countries are Turkey, Belgium, Poland, Netherlands, and others. In 2019, safflower culture is grown on the territory of the Russian Federation mainly in the Southern Federal District, the Volga Federal District and the Republic of Kalmykia. In 2018, The national project "Export of Agricultural Products" the Russian Federation government consolidated the oil and fat industry (to which safflower also belongs) as one of the key factors for the growth of total trade turnover until 2024. As part of this project, there is planned to be an almost triple increase in oil and fat products exports until 2024. Safflower seeds are a popular crop in the region and are mainly used for safflower oil extraction, in addition to being used for bird food and also in cosmetics. Benefits of safflower oil such as reduction of cholesterol levels, management of blood sugar, aiding in weight loss, improving hair, and skin health contribute to its growing popularity, which in turn is aiding exports from the region.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
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