(Sunflower Oil and Its Fraction, Whether or Not Refined, But not Chemically Modified, Excluding Crude)

The sunflower oil industry, which is anticipated to grow at a cumulative annual growth rate of 5.3% during the periods of 2021 and 2026 has met with a crucial “road block” which is the Russian Ukraine crisis. Despite the emergence of COVID 19 in 2020 and its impact on the industry, the market potential was still glowing positively, but the question is, will the Russian invasion of Ukraine, the leader of sunflower export hampers the anticipated growth rate of the industry?

Also, it is believed that the consumption of sunflower oil exceeds production coupled with other factors like the weather which has greatly affect crop yields and the steady increase in global population, what would become of the price of sunflower oil? On the other hand, sunflower oil is known to be the 4^th largest vegetable oil consumed globally which can be attributed to its health benefits, has gradually increase the demand for the oil. The oil is rich in essential nutrients that help lower bad cholesterol levels. These include oleic acid and linoleic acid. (1)

Global Trends of the Industry.

The value of sunflower oil that was exported in 2020 was about $4.334 trillion USD. There has been a steady increase in the value of this product over the past couple of years. Between 2016 and 2020, the annual growth rate in the value of this product has been 6%. Russia and Ukraine are known to be the leading producers of sunflower oil with a 29.3% share in world export as of 2020.

Europe is known to hold the largest market share of the sunflower oil market as of 2020 with a market value of about 6.28 billion USD. This can be supported by the shift in eating habits in Europe and health awareness. Countries like France, Hungary, Netherlands, Spain, Germany, and Belgium are among the top exporters of Sunflower oil with a combine world export share value of 31.4%.

The Asia Pacific still remains the top growing market for sunflower oil with its huge adoption in the confectionery, snack and bakery markets.  As of 2020, the Asia Pacific was responsible for over 30% of global sunflower consumption. The is a remarkable increase in the demand for healthy bakery products in Asia.

The governments in the Asia Pacific region are also encouraging the consumption of healthy alternative as partially hydrogenated oils (PHO) are being banned in the region. A good example can be seen with the ban of PHO by the ministry of health in Singapore in 2019.

Also, the boom in the cosmetic industry in Asia can further explains the huge imports of sunflower seed oil by the cosmetic industry.

In Africa and the Middle East, the production of sunflower oil has been increasing to meet the demand in the region. There has been a rapid growth in the food processing industry in these regions which has caused the demand for sunflower oil.

The South American market has also been ramping on the production of sunflower oil due to health measures in the region. The demand for healthy cooking oils has been rising as health awareness increases in the region.

Top Exporter of Sunflower Oil

It should be noted that our concern is on the top exporter of sunflower seed or safflower oil and their fractions, whether or not refined, but not chemically modified excluding crude.

The top exporter as of 2021 is Turkey with a 13.7% share in global exports, a 1% fall from previous year 2020. In the year 2020, Russia was the leading exporter of sunflower oil and currently at the third spot with a market share of 12.6% a 2.5% drop from the previous year. An obvious reason from these changes is due to the emergence of other nations in Africa, South America, Europe in the industry.

The Top 10 Exporters of Sunflower Oil in 2021

In situations where the total export value is lower or higher than the base year record given an increase or decrease in quantity produced in the current year is due to the change in the unit price per ton.

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Turkey

Turkey is the top exporter of sunflower oil as of 2021 and as Russia dropped to the third position. Turkey exported over 478 thousand tons of sunflower oil with an export value of over $731 million which recorded an annual growth value of 15%. Turkey currently holds a market share of 13.7%. In 2020, Turkey held 14.7% of the market share with an export market value of over $638 million USD and exported over 643,503 tons.

Ukraine

In second position is Ukraine with an export share value of 13.6% and exported over 502 thousand tons of sunflower oil and recorded an export value of over $724 million USD. For the year 2021, Ukraine recorded an annual growth in value between the year 2020 and 2021 of 18%. In the previous year, Ukraine was at the third position with a market share of 14.2% exported over 616 thousand tons of sunflower oil with an export value of over $616 million USD.

Russia

Russia is at the third position of the top ten exporters of sunflower oil with a market share of 12.6% with an export value of over $673 Million USD. Russia exported over 470 thousand tons of sunflower oil with an annual growth between 2020 and 2021 of 3%. Compared to the year 2020, Russia was the leading exporter of sunflower oil with a market share of 15.1% with a global export value of over $652 million USD and exported 712 thousand tons of sunflower oil.

Hungary

Hungary is at the fourth position in the global sunflower export with a market share of 7.3%, exporting over 282 thousand tons of sunflower oil. Hungary registered an export value of over $389 Million USD with an annual growth of 46%. In the previous year (2020), Hungary represented just a 6.2% share of the market, exported 277 thousand tons of sunflower oil with an export value of over $267 million USD.

France

The fifth top exporter of sunflower oil is France, with a market share value of 6.2% with an export value of over $332 million USD. France exports over 227 thousand tons of sunflower oil with an annual growth value of over 21%. In 2020, France held 6.4% share of the market with an export value of over $278 million USD after exporting over 244 thousand tons.

Netherlands

The Netherlands is at the sixth spot with a global market share of 5.3% with an export value of over $282 million USD. The Netherlands exported over 205 thousand tons of sunflower oil with an annual growth in value of 15% between 2020 and 2021. In the previous year, the Netherlands controlled a market share of 5.5% and exported over 236 thousand tons of sunflower oil with a market value of over $236 Million USD.

Spain

With an export value of over $270 million USD, Spain is at the seventh spot with a market share of 5.1%. Spain exported over 177 thousand tons of sunflower oil with an annual growth rate of 31% between the 2020 and 2021 year period. This has been a major increase in Spain’s export of sunflower oil. In 2020, Spain was responsible for only a 4.8% market share with a global export value of $206 million USD.

Germany

At the 8^th spot is Germany with a market share of 4.9%, exporting over 179 thousand tons of sunflower oil globally.  The global export value for Germany stood at over $261 million USD with an annual value growth rate of 29% between 2020 and 2021. In the year 2020, Germany controlled a market share of 4.6% with an export market value of over $200 million USD. Germany exported over 140 thousand tons of sunflower oil in 2020.

Belgium

Belgium maintained the 9^th position with a market share of 3.5% and exported over 123 thousand tons of sunflower oil, not chemically modified and excluding crude. Belgium registered a global export value of over $187 million USD and measured an annual value growth between 2020 and 2021 of 11%. In the year 2020, Belgium controlled a market share of 3.9% with a market value of over $106 million USD and exported over 100 thousand tons of sunflower oil.

Argentina

At the 10^th spot is Argentina with a market share of 2.2% and exports over 76 thousand tons of sunflower oil with an export value of over $115 million USD and with an annual growth of 39%. In the previous year of 2020, Argentina controlled a market share of 2.5% with an export value of over $106 million USD and exported over 100 thousand tons of sunflower oil.

Looking at the details above and compared to the previous year of 2020, it is obvious that the same countries are still controlling the entire export of sunflower oil (not chemically modified and excluding crude) in the world. Despite the fact that the same countries control the market, it was clear that their global market share dropped which indicates other countries are currently producing more sunflower oil than they used to do before. A good example can be seen with South Africa, Romania and Austria.

From the above analysis, Turkey, Ukraine and Russia controlled about 39.9% of the market share. Compared to the previous year of 2020, the same countries controlled over 44% of the global market share. During the year 2021, Hungary reported the highest annual growth rate of over 46%. It is important to note that due to the health benefits of sunflower oil, other markets are interested to market the oil as people become aware of the benefits of healthy options.