Global Castor Oil Market - Procurement Intelligence Report

Castor Oil Market Analysis

Spend growth of this market has the potential to touch a value of USD 250 million with spend momentum accelerate at a CAGR of over 3% between 2019-2024. Castor oil is being extensively utilized as the less expensive alternative to vegetable oil varieties such as olive oil, avocado oil, and argan oil. Buyers from end-user industries such as F&B, pharmaceutical, and FMCG are exhibiting an exponential demand for castor oil and its derivatives which is bringing ample investment opportunities in the castor oil market. Inherent properties of castor oil, such as high density, viscosity, and thermal conductivity render it as an important constituent in the manufacturing of plastic, lubricants, and paints. This is contributing to spend growth in the castor market during the forecast period.

Top Spending Regions in the Castor Oil Market

APAC will continue to dominate the production and consumption of castor oil, with the rising demand from the pharmaceutical industry, during the forecast period.

APAC

Climatic conditions are favoring the cultivation of castor crop across some of the APAC countries such as India which is currently assuming the title of the market leader in the production of castor oil. The continuous expansion of pharma manufacturing units across the APAC countries is creating an exponential demand and is catering to spend growth in the castor oil market in APAC.

Europe

Europe is second in lead after APAC as the largest regional consumer of castor oil. Castor oil, including its derivatives such as dehydrated alkyd resins, is finding its extensive application in the industrial production of coatings, which are used for manufacturing paints and varnishes. Buyers from the pharmaceutical industry which is one of the chief end-users import pharmaceutical-grade castor oil. This is propelling spend growth in the global castor oil market.

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What are the Key Price Trends in this Market?

• Forecasts of increase in raw material prices such as castor oil beans will drive manufacturing costs of suppliers. According to the castor oil price trends, this will have an inflationary impact on the overall price structure in the market.
   
• The extraction of castor oil from beans is a highly labor-intensive process. The oil extraction processes include cleaning, conditioning, pressing, and storing. While most crushing and extractions have a higher percentage of contractual labor compared with permanent labor, there is a need for surplus labor due to the cyclical process of extracting oil. This will make significant additions to suppliers' OPEX which will have a subsequent impact on the castor oil market price.
   
• Hike in energy price globally will affect the operating cost of suppliers due to the energy-intensive nature of the production of castor oil.
   

Download the free sample of this report to know what the key castor oil procurement best practices that you must adopt to address price dynamism in this market.

Insights into Castor oil Supply Market
 

• Currently APAC is accounting for over 80% of the castor oil market share in terms of supply. This trend is expected to continue during the forecast period owing to the growing consumption of low-calorie food products. However, in Europe, the supply influence is low, accounting for less than 10% of the total volume produced globally. This is because climatic conditions in the region are not favorable for cultivating castor oil beans.
   
• Regional and local castor oil suppliers are offering tough competition to global suppliers by diversifying their product portfolio and collaborating with other regional and local players to expand their manufacturing facilities and gain access to the latest technologies.
   
• Castor oil suppliers are engaging in long-term contracts with vendors of raw materials that are highly volatile with respect to pricing, such as oilseeds, surfactants, and monomers. Such contracts may help suppliers save on the procurement cost of raw materials and pass on the benefits to buyers in the form of low costs.

Insights into Some of the Leading Castor oil Suppliers

The supply market dynamics hint at a substantial hike in suppliers' OPEX which will drive buyer's procurement spend. Keeping such dynamics in mind, strategic selection of suppliers and maintaining an effective supplier relationship management are observed to facilitate buyers with optimized procurement expenditure and better category management in the castor oil market. This castor oil market procurement intelligence report has enlisted the top suppliers and their cost structures, SLA terms, best selection criteria, and negotiation strategies for the top castor oil suppliers. The top castor oil suppliers highlighted in this report include:

• JAYANT AGRO-ORGANICS Ltd.   
• Gokul Refoils & Solvent Ltd.        
• Adani Wilmar Ltd.           
• AMBUJA solvex Pvt. Ltd.              
• ITOH OIL CHEMICALS Co. Ltd.     
• R.P.K. Agrotech Exports Pvt. Ltd.               

Criteria to select suppliers in this dynamic castor oil market is subject to change based on the day-to-day market outlook. Get a free demo of our procurement platform to gain immediate access into real-time insights to the changing suppliers selection criteria.