Castor oil production has gradually captured the global market. The Pale-colored vegetable-oil is extracted from the seeds of castor plant. The oil is used mainly in medicine, lubrication and preservatives.
Global castor-oil market will expectedly grow at around 4% down the line. It will easily reach USD 1500 million by 2024, from USD1180 million in 2020. This statistics was published lately. 360 Research Report gives key insights on the global market of castor oil in their report.
The bad news is COVID19 can affect the castor oil manufacturers market in three possible ways – diminish the production by disrupting supply chain, affect the demand and create an impact on financial markets.
International markets are taking measures to provide key insights on the global castor oil production. The market analysis is very important before we make inferences. The development trends remain important to find out the supply side factor. Landscape analysis will tell us the global demand of the important vegetable oil. Region-wise development status will also provide key insights. Policies are being discussed by castor oil suppliers as to how to increase the production of castor oil. Measures are being taken to ease out the manufacturing process. Cost structures are also being taken seriously. The 360 Research Report gives key insights on the export/import ratio, demand/supply figures, price, revenue and margins.
Needless to mention, the demand for vegetable oil is on the rise. Folks are rightly identifying its medical uses as well. The castor oil manufacturers in India are quite happy because Asia Pacific seems to be the largest consumer of the oil. Also, the oil is expected to retain its high demand in the near future. This is due to its sheer need in the cosmetic and pharmaceutical industries. India is the production & consumption hub of castor oil in the Asia Pacific region.
It won’t be wrong to assume that Europe is expanding the production of castor oil rapidly. On the other hand, even North America isn’t lagging behind. The region remains driven by strong consumptions of biodiesel, hence the demand.
Reports suggest that the market for castor oil will see an upward trend very soon.
The major classifications of castor oil products are needed to be studied in this context:
- Food grade
- Cosmetic/pharmaceutical grade
- Industry grade
Food industry – Food grade castor oil has a humongous market. This grade of the oil has preservative properties. This very equation saves food products from spoilage. Also, it extends the shelf-life of pickles and jams.
Pharmaceutical/cosmetic grade – Hydrogenated castor oil is a great cosmetic ingredient and has captured the global market with ease. Castor oil (pharmaceutical grade) finds use in lip balms and eye liners to say the least. It has thus expanded production in the Asia Pacific region.
Industry Grade – Castor oil is an excellent lubricant. These days it is being adopted globally to dodge smoky emissions. We are all working together towards making a more sustainable environment!
Some crucial questions answered
The current scenario highlights that there may be light at the end of the tunnel. It is the Indian Monopoly in the castor oil market. India is undoubtedly the largest consumer & producer of castor oil. It accounts for 85% of the exports in the global market. In the past, India had partnered with China, Japan & Thailand. But, none could surpass India in the castor oil segment. There is something else that astonishes us. China imports castor oil from India. And, it accounts for around 30% of the total imports. Back in the late 60s, Brazil was the largest production hub of this oil. But gradually, the nation went on to become a leading soy producer. This shift made castor oil manufacturers in India happier than ever. Also, the situation made the Indian monopoly over castor oil much stronger. On the flip side, cheap substitutes are now available in the market. India may have tougher times to leverage the monopoly.
So what should we do?
The industry has to work as a close-knit cohesive unit. There is very little doubt about the fact that the entire world population is dependent on India for its castor oil requirements. We have bank on this very situation. We must not let any internal dispute to disrupt the global production of castor oil. In many cases, we have failed to work as a single unit. The situation can be eased out, though. We just have to shift our focus a bit on unity.
Owing to the massive dips last year, experts were a little worried. But then, leading global leaders have now predicted a humongous jump in the global demand of this vegetable oil. This is owing to the rising demand in the EU nations, The United States and China. If the prices do not drop, we are almost all set to get back to the track.
In the end
The financial stress needs to be relieved right away. This simple but concrete measure could take us ahead of others. Other lucrative incentives to castor oil suppliers could save the situation. Technological advancements are amongst prominent measures to be taken. Government investment in the Research and Development segment becomes imperative.
Now, we need to be more particular about yielding greater quality seeds, necessitating agricultural infrastructure and also provide more knowledge-based incentives to castor oil producers. India remains ahead of others when it comes to production. But, the nation needs to brighten the export scenario. The ambition in folks can make the nation the ultimate forerunner in this regard.