Australia Oilseed Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Market Overview

The Australian oilseed market is estimated to grow at a CAGR of 5.6%, during the forecast period (2020-2025).

Increased demand for canola oil, driven by a growing health consciousness amongst the consumers, has subsequently led to a surge in the demand for rapeseed for the oil processing sectors across countries. Favorable climatic conditions in the major rapeseed growing regions in western and southern Australia, following years of extreme drought, along with improved domestic and international prices of canola, are helping augment the production of rapeseed in the country, in order to cater to the expanding demand in the importing countries.

Furthermore, government initiatives in developing inter-trade relations with Asia have helped establish the significance of high-quality GM and non-GM oilseeds from Australia in the region. For instance, the Australian Export Grains Innovation Center (AEGIC), along with Grain Trade Australia, has been working towards the development of Australian canola exports for Chinese processing industries. Furthermore, the growth of the Philippine and Malaysian livestock and poultry industries pose a significant opportunity for Australian oilseeds for the feed industries in these countries.

Scope of the Report

The majorly produced oilseeds in Australia, viz., rapeseed, cottonseed, soybean, sunflower seed, and safflower seed, have been considered under the scope of the study. The scope extends to both qualitative and quantitative analyses of the production, consumption, import, and export trends of oilseeds in the country. The review period considered for the study is 2016-2019 and the forecast period is 2020-2025.

Report scope can be customized per your requirements. Click here.

Key Market Trends

Increasing Global Consumption of Canola Oil

Australia is well-positioned to meet the growing demand for canola oil through increased exports of canola or rapeseed. Growing health consciousness amongst the consumers in developing countries, aided by the claimed health benefits and improved functionality of canola oil, is further augmenting the production of rapeseed in the country. In 2018, Australia produced a total of 3,893.1 thousand metric tons of canola, when compared to 2,775.4 thousand metric tons in 2016. However, extreme drought conditions in the major canola producing regions have also hampered the growth in production in recent years. According to a report by the United States Department of Agriculture (USDA), at the beginning of the cropping season in 2020, adequate rainfall has helped reinvigorate production in drought-hit regions like New South Wales. Furthermore, favorable domestic and international prices, reaching almost USD 50.0 per ton during the first half of 2019-2020, are expected to stabilize and boost production in the country, thus, strengthening exports in the coming years. The area harvested has also risen significantly from 2,090.9 thousand hectares in 2016 to 3,171.1 thousand hectares in 2018. Therefore, an increase in the surplus production of canola in Australia is anticipated to cater to the ever-growing demand in the importing countries, during the forecast period.

To understand key trends, Download Sample Report