Kenaf Seed Oil Market Size Is Poised To Reach $257.3 Million By 2025: Grand View Research Inc.

 

The global kenaf seed oil market size is expected to reach USD 257.3 million by 2025, according to a new report by Grand View Research, Inc., expanding at a CAGR of 6.1% over the forecast period. Presence of various bioactive compounds including tannins, alkaloids, saponins, steroids, essential oils, and fatty acids in kenaf seed oil is expected to promote the product’s utility as a functional ingredient in the formulation of biofuels in the near future.

The demand for nutraceuticals & functional foods is expected to witness an upward surge owing to consumers opting for immunity boosting supplements during the COVID-19 pandemic. Furthermore, a decline in the consumption of poultry, meat and seafood products across the globe is expected to increase the demand for plant and animal-based protein supplements in the near future. The report will account for Covid19 as a key market contributor.

Biofuel and lubricants held the largest share in 2018 and are expected to expand at the fastest CAGR of 6.3% in terms of revenue from 2019 to 2025. Biofuels are gaining popularity owing to increasing global warming, which is attributed to the extensive utilization of fossil fuels. According to a report published by the Intergovernmental Panel on Climate Change (IPCC), in October 2018, the average global temperature has increased by 1.5 degree Celsius due to significant increase of carbon dioxide in the atmosphere.

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Governments across the globe are taking initiatives to cut down the dependency of fossil fuel by adopting renewable energy sources such as biofuel. According to United States Environmental Protection Agency (EPA), the government is aiming at producing 36 billion gallons of biofuels annually, majorly ethanol and biodiesel by 2022. These initiatives are projected to boost the product’s demand over the forecast period.

Further key findings from the report suggest:

• Biofuel and lubricants held the largest share in 2018 due to increasing application of biodiesels at a global level. The segment is expected to register the fastest CAGR of 6.3% in terms of revenue from 2019 to 2025
• Asia Pacific led the kenaf seed oil market and accounted for a revenue share of 67.7% in 2018 owing to supportive government policies on increasing the biofuel industry output
• Key market players include Hemp, Inc.; Chempro Technovation; Advanced Biofuel Center; and Shree Raghvendra Agro Processors.

Asia Pacific was the largest regional market in 2018, accounting for a share of 67.7% in terms of revenue. Supportive government policies aimed at enhancing the biofuel industry output in countries including China and India are expected to expand the application of kenaf seed oil. For instance, in May 2018, the Ministry of New and Renewable Energy (MNRE) of India, aimed at spending USD 719.1 million on the development second generation (2G) ethanol Bio refineries over the next few years.

Rising concerns over global warming due to high fossil fuel consumption is a key factor expected to increase the demand for kenaf seed as a functional ingredient for the processing of biofuels over the forecast period. However, high investment costs associated with oil and gas exploration activities and increasing prices of fossil fuel are hampering the growth. Therefore, governments across the globe are promoting the development of eco-friendly kenaf seed-based biofuel. For instance, in May 2018, the Ministry of New and Renewable Energy (MNRE) of Government of India passed a National Policy on Biofuels under which an amount of USD 719.1 million will be spent in the next six years on the advancement and development of second-generation (2G) ethanol biorefineries. These plant-based fuels are the eco-friendly substitute for fossil fuel and can offer efficient performance with less environmental harm. These initiatives are expected to open new market avenues for kenaf seed oil as a biodiesel additive soon.

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The market is extremely fragmented owing to the limited presence of the crop cultivators across the globe. Moreover, a large number of domestic players such as Hemp, Inc., Chempro Technovation, and Shree Raghvendra Agro Processors are prominent in different regions. Moreover, key manufacturers are adopting market strategies including mergers with the local cultivators of the region, increasing the chemical properties of the seed oil to expand application areas, new product launches, and expanding distribution channel to gain the maximum customer base as well as to cater to the demand of increasing health-conscious customers.

Major players are increasing their product visibility geographically, especially in developed countries including the U.S., Canada, and Germany, as various governments are promoting biofuels. Moreover, the establishment of R&D centers for product innovation, coupled with strategic partnerships with investment companies to launch new innovative products as per the customer’s demand in the region, is expected to remain a critical success factor over the next few years. Taking into account all the above-mentioned factors, producers are likely to focus on technology innovation catering particularly to developing countries and untapped market to gain maximum market share.

Grand View Research has segmented the global kenaf seed oil market on the basis of application:

Kenaf Seed Oil Application Outlook (Volume, Kilo Tons; Revenue, USD Million, 2015 - 2025)

·         Cosmetics & Personal Care

·         Biofuel & Lubricants

·         Others

About Grand View Research

Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.

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