Kenaf Seed Oil Market Analysis Report By Application, By Region And Segment Forecasts From 2019 To 2025

Industry Insights

The global kenaf seed oil market size was worth USD 170.0 million in 2018 and is anticipated to grow at a CAGR of 6.1% over the forecasted period, from 2019 to 2025. The demand for biofuel is increasing to reduce the usage of fossil fuels. This is anticipated to drive the demand for kenaf seeds as a precursor. In addition, these oilseeds are used as functional ingredients in the production of cosmetics, as it is a high source of fatty acids that helps to maintain skin health. 

The increasing adverse effect of global warming owing to the high consumption of fossil fuel is a major factor driving the market. Hence, governments are supporting the consumption of kenaf seed oil-based biofuel across the globe. For example, in 2018, the Indian government invested USD 719.1 million for the development and advancement of 2G biorefineries of ethanol. These eco-friendly seeds are used as a substitute for fossil fuel as well as offer significant performance along they are less harmful to the environment. This initiative is projected to open different avenues for the growth of the market during the forecast period.

The fiber extracted from seed oil has a wide range of applications in several industries such as constriction, textile, and paper industries. As fiber produced by kenaf seeds is being used in several industries, the government has taken initiative to promote the cultivation of the crop. For example, the Malaysian government occupied around 2213 hectares of land for kenaf cultivation, in 2017 and that was increased to 2500 hectares by the end of 2018. Malaysia's government is striving to develop kenaf fiber to fulfill the rising demand from different industries. 

Application Insights

By application, the kenaf seed oil market is fragmented into cosmetics & personal care, biofuel & lubricants, and others. In 2018, Lubricants and biofuel accounted for the largest market share and are projected to register the highest CAGR of over 6.0% during the forecast period. Rising usage of biodiesel across the globe due to less carbon emission and non-toxicity properties compared to traditional gasoline fuel is projected to be a prominent factor. Moreover, the stringent government rules to reduce carbon emission along with the initiative to achieve sustainability through the promotion of biodiesel in developed regions like Europe and North America are anticipated to spur market growth from 2019 to 2025.

Kenaf seeds oil has various applications in personal care and cosmetic products such as shampoo, hair spray, face washes, scrubs, and soap. The product is a high source of fatty acids, antioxidants, nutrients, and proteins. The nutritional values of kenaf seed oil are projected to raise the application in various industries in forthcoming years.

Regional Insights

In 2018, Asia Pacific dominated the kenaf seed oil market and accounted for the largest market share of over 67.0% in terms of revenue. Increasing concerns about rising global warming and scarcity of fossil fuel in several countries such as South Korea, Japan, and India are the major factors to drive the demand for kenaf seed oil. The government of several countries including Malaysia, Bangladesh, China, and India has taken various initiatives to endorse the cultivation of kenaf crops to grow sustainable development. For instance, in 2017, state media reported that China has announced the use of ethanol-based petrol by the end of 2020. China's government is concentrating on the production of biofuel prepared from trees, crop waste, cellulosic plants, and kenaf. This initiative opens avenues for crop cultivators and ensures considerable demand over the forecast period.

The fiber prepared from kenaf seeds is majorly used in the paper and textile industry. Hence governments of several countries are encouraging the production of kenaf seeds to increase application in various industries. For example, in 2017, the Nigerian government planned to encourage the cultivation of this crop, as the kenaf seed oil is expected to boost the economy of the country.

Impact of COVID-19

The market has observed a negative impact on account of the COVID-19 pandemic. Governments across the globe have restricted foreign trade to prevent the spread of the virus. As there are only a few producers present in this industry, the supply chain is disrupted for kenaf seed oil, thereby adversely affecting the market growth.

However, growing awareness regarding the health benefits of this oil is expected to drive market growth globally. Kenaf seed oil contains monounsaturated and polyunsaturated fatty acid which is helpful for cardiovascular diseases. In addition, this oil is used for personal care products such as soap manufacturing and found application industrial purposes and also acts as lubricants and biofuel. Further, this seed oil is eco-friendly as they are biodegradable than mineral oils. Therefore, several benefits associated with kenaf seed oil are expected to drive the market growth post-COVID-19 pandemic. 

Kenaf Seed Oil Market Share Insights

The market is competitive in nature due to limited producers of kenaf seeds globally. Hemp, Inc. and Chempro Technovation are the prominent domestic players in several regions. Manufacturers are implementing several strategies to expand their business including mergers with local farmers of the respective region. In addition product innovation and product launches, strong distribution channel to expand kenaf seed application in various industries to get maximum share and customer base.

Some manufacturers are striving to increase their product visibility in economically developed countries such as Germany, Canada, and the U.S., as governments of these countries are encouraging biofuels. Moreover, investment in R&D, product launches, product innovation, and partnership strategies are implemented by manufacturers. In addition, they are also focusing on technological innovation to cater to the untapped market and gain more market share.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels, and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For this study, Million Insights has segmented the global kenaf seed oil market report based on application and region:

• Application Outlook (Volume, Kilo Tons; Revenue, USD Million, 2015 - 2025)
    • Cosmetics & Personal Care
    • Biofuel & Lubricants
    • Others

• Regional Outlook (Volume, Kilo Tons; Revenue, USD Million, 2015 - 2025)
    • North America
        • The U.S.
    • Europe
        • Germany
        • France
    • The Asia Pacific
        • China
        • India
        • Bangladesh
    • Central & South America
        • Brazil
    • Middle East & Africa