Castor Oil

Global Market Outlook Of Castor Oil

• The global castor oil market is estimated to value at $1.6 billion in 2022, and it will grow at a CAGR of 3.8 percent by 2026

• The APAC region is dominating the castor oil market, and it is likely to drive the market growth in the forecasted period

• Castor oil prices witnessed an increase of an average of 2.4 percent in November 2022. Castor seed supplies continue to remain tight in India; however, reduced demand from export markets, like China and Europe, are supporting the downward price movement. Combined factors like revival in acreage and likely revival in castor oil supply are likely to support the downward price trend in the coming weeks.

Castor Seed: Supply Analysis

• Castor seed production is estimated to witness a steep increase in 2022–2023, owing to a sharp rise in acreage in key producing regions, like Gujarat, Rajasthan, etc. Delayed monsoon are likely to encourage farmers to grow crops like castor that are less dependent in irrigation water.

• India is the largest castor seed producer in the world. It accounts to around 80 percent of the global castor seed production

• China and Brazil are the major producing countries, with 6 percent and 5 percent of the world’s castor seed production, respectively

• Castor seed acreage for the 2022-23 season in India is expected to rise, as farmers are likely to have planted castor seed as an alternative to groundnut oil seed, in states, like Andhra Pradesh, Telangana, Gujarat, etc. The input cost of castor is relatively lower, encouraging farmers to increase the seed's acreage

• Gujarat is the largest producer of castor seed in India

• Palanpur, Kadi, Deesa, Patan are some of the major castor seed and oil trading mandis in India

• Castor seed production in 2021-2022 is estimated to be around 1,506 Thd MT. It is a decrease of around 12 percent from the previous year’s record production levels. Despite this castor oil production did not decrease steeply, as ample castor seed carry overstocks were available from last year

• Castor oil production is expected to increase in 2022-23 by approx. 2 percent

Global Castor Oil Market Outlook Trade Dynamics

This section of the report gives details of the global castor oil market share. Castor oil prices and availability are driven by various global factors that are detailed in this section of the report. Any standout past trends in the market demand are described. It details the castor oil production market share by the major producing countries.  The global supply-demand analysis is presented graphically along with the castor oil market forecast. Global trade volumes, as well as the country-wise import and export statistics, are listed.

Regional Market Snapshot

The castor oil market trends differ in different geographical regions. This part of the report presents detailed facts about the regional castor oil market size, price trends, price drivers as well as the castor oil market forecast for each country. The castor oil market trends that are peculiar to each region and country are listed. The castor oil market share of exporting countries and the countries that they export to are listed. Importing countries and the market share of the countries that they import from are also given. 

Supply–Demand Dynamics: Latin America 

In spite of being one of the major supplying regions, Latin America loses its competitiveness with India, as the region's domestic consumption exceeds the supply.Castor seed production growth targets in Brazil, the key producing country in Latin America, has not been accomplished in 2016–2017 and has declined beyond 35 percent this year.Latin America currently contributes to approx. 25 Thd T of castor oil supply, the world's largest supplier in 1970–1980s. Imports surged in 2016–2017 beyond 50 percent to meet the raising demand in the region.Production in Brazil for castor seed and oil has been curbed over the years, owing to several factors, as in poor yields/ha, higher production costs, and transportation costs.Financial assistance from the government to promote castor cultivation for use of castor oil in the biodiesel industry has been terminated, owing to the high cost of cultivation. This has further decreased the attractiveness for castor in Brazil.

Industry Drivers And Constraints

The castor oil market demand is driven by the need for vegetable oils, edible oil as well as oils and fats used in the food industry. Changes in the industries that drive the demand affect the castor oil market trends. Weather patterns, customer preferences, and technological innovations also affect the demand in a positive or negative manner. This section of the report helps one fully comprehend the forces that change the castor oil market outlook.

Price Trend And Forecast

This section of the castor oil market report details the historical price trends in the recent past and the reasons for any big changes. It also details the castor oil market forecast based on price and demand.