MARKET DEVELOPMENT
Demand for Sunflower Oil May Grow 50% Next Year
Demand for Sunflower Oil May Grow 50% Next Year
11/04/2014 (Hindu Business Line) - With burgeoning middle class households in the country, edible oil imports will rise by close to 25 per cent next year, said Satendra Aggarwal, Chief Operating Officer, Ruchi Soya Industries Ltd, the market leader in the packaged edible oils segment.
According to him, this growth would predominantly be driven by growing domestic demand for sunflower oil.
He said that the annual consumption of edible oil in India in 2013 was 18 million tonnes.
“This will cross 22 million in 2015,” he said. Of this, a little over 50 per cent came from the packaged oil segment – the other half being unpacked (loosely sold) oil.
Within the packaged category, palm oil was the most consumed with 28 per cent share of the total consumption, followed by soya at 15 per cent, cotton seed oil at 12 per cent and sunflower oil at 11 per cent – while the remaining consists of groundnut oil, rice bran oil, mustard oil, gingelly and coconut oil.
Of the top four categories, palm and sunflower are the fastest growing categories.
Going by his estimates, sunflower will outperform the overall growth.
“With the price differential between palm oil (the cheapest now) and sunflower shrinking in the global market, and considering the shift in consumption pattern which is skewed towards sunflower, the demand for sunflower is expected to grow by over 40-50 per cent next year,” he said.
Reeling out numbers, Aggarwal said the per capita consumption of edible oil in India is 14 kg. This, in comparison with the global average of 22 kg is too low and hence, there is a lot of headroom for growth in this market.
He was here to announce the relaunch of Ruchi Soya’s sunflower oil – Sunrich. The company wants to focus on the southern market for this product, as the South accounts for over 70 per cent of the country’s sunflower oil consumption.
According to him, this growth would predominantly be driven by growing domestic demand for sunflower oil.
He said that the annual consumption of edible oil in India in 2013 was 18 million tonnes.
“This will cross 22 million in 2015,” he said. Of this, a little over 50 per cent came from the packaged oil segment – the other half being unpacked (loosely sold) oil.
Within the packaged category, palm oil was the most consumed with 28 per cent share of the total consumption, followed by soya at 15 per cent, cotton seed oil at 12 per cent and sunflower oil at 11 per cent – while the remaining consists of groundnut oil, rice bran oil, mustard oil, gingelly and coconut oil.
Of the top four categories, palm and sunflower are the fastest growing categories.
Going by his estimates, sunflower will outperform the overall growth.
“With the price differential between palm oil (the cheapest now) and sunflower shrinking in the global market, and considering the shift in consumption pattern which is skewed towards sunflower, the demand for sunflower is expected to grow by over 40-50 per cent next year,” he said.
Reeling out numbers, Aggarwal said the per capita consumption of edible oil in India is 14 kg. This, in comparison with the global average of 22 kg is too low and hence, there is a lot of headroom for growth in this market.
He was here to announce the relaunch of Ruchi Soya’s sunflower oil – Sunrich. The company wants to focus on the southern market for this product, as the South accounts for over 70 per cent of the country’s sunflower oil consumption.