LONDON–(BUSINESS WIRE)–SpendEdge has been monitoring the global castor oil market and the market is poised to experience spend growth of more than USD 200 million between 2019-2024 at a CAGR of over 3% during the forecast period. Request Free Sample Pages.
Read the 127-page research report with TOC and LOE on “The Global Castor Oil Market – Procurement Intelligence Report, Pricing Outlook in Geographies that include APAC, North America, South America, and MEA, and insights into best practices to optimize procurement spend.”
As a lesser expensive alternative to a range of vegetable oils such as olive oil, argan oil, and avocado oil, castor oil and its derivatives are finding their extensive applications across the F&B, pharmaceutical, and FMCG industries. Beneficial aspects such as high density, viscosity, and thermal conductivity are rendering castor oil as one of the key constituents in the manufacturing of plastic, lubricants, and paints. This is contributing to spend growth in the castor market during the forecast period.
APAC is the market leader in the production of castor oil owing to the climatic conditions that are favoring the cultivation of castor crop. An exponential demand from the rapidly expanding pharma manufacturing units across the APAC countries is contributing to spend growth in the castor oil market in the region. Europe is second to APAC as the largest regional consumer of castor oil. Along with its derivatives such as dehydrated alkyd resins, castor oil is finding its extensive application in the industrial production of coatings. Buyers from the pharmaceutical industry which is one of the chief end-users are importing pharmaceutical-grade castor oil. This is propelling spend growth in the global castor oil market.
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Insights into the market pricing trends
- An increase in the prices of raw materials such as castor oil bean will inflate the supplier’s manufacturing costs. A part of this inflated expense will be ultimately compensated by buyers in the form of excess procurement spend in the castor oil market.
- The oil extraction process is labor-intensive and requires surplus labor owing 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.
Insights into the supply market that will have potential impacts on your procurement strategy
- APAC accounts for over 80% of the castor oil market share in terms of supply and is expected to retain this position 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 of climatic conditions that do not favor the cultivation of castor oil beans.
- Highly volatile raw material prices are driving castor oil suppliers towards engaging in long-term contracts with raw material vendors. Such contracts are expected to help suppliers save on the procurement cost of raw materials and pass on the benefits to buyers in the form of low costs.
Some of the top castor oil suppliers enlisted in this report
- Jayant Agro-Organics Ltd.
- Gokul Refoils & Solvent Ltd.
- Adani Wilmar Ltd.
- Ambuja Solvex Pvt. Ltd.
- Itoh Oil Chemicals Co., Ltd.
- RPK Agrotech Exports Pvt. Ltd.
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Some of the key topics covered in this report are:
- Castor oil market spend segmentation by region
- Castor oil supply market analysis
- Regional spend opportunity for castor oil suppliers
- Castor oil suppliers cost structure
- Total cost of ownership analysis in the castor oil market
- Castor oil pricing models analysis
- Category management objectives
- Cost saving opportunities in the castor oil market
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