Castor Oil Market Report 2025 (Global Edition)

CURRENT SCENARIO OF THE CASTOR OIL MARKET

Key Factors Driving the Castor Oil Market

• Increasing Awareness About its properties and related Characteristics and Benefits Leads to the Growth in Castor Oil Demand By Industrial Applications

Technological advancements have led to improved extraction techniques that increase output and efficiency while lowering production costs. This guarantees a more environmentally friendly and sustainable production procedure for castor oil while also increasing its economic viability. Adoption of cutting-edge technology promotes higher quality and productivity in castor oil extraction, setting up the market for expansion as it satisfies changing needs from a variety of industries, such as bio-based materials, One of the main factors propelling castor oil's market expansion is its adaptability. It finds use in a variety of industries and is not exclusive to any one. Its utility in industrial applications—especially as a feedstock for the synthesis of high-performance chemicals and materials—is one of the main motivators. 12-hydroxystearic acid (12-HSA), a vital raw material in the production of polymers, speciality chemicals, and plastics, can be obtained from castor oil. These substances are employed in many sectors, including as electronics, automotive, and aviation, where high-performance materials are crucial. Furthermore, castor oil's low pour point and viscosity make it a perfect option for producing bio-based lubricants. In an effort to lessen its impact on the environment, the lubricant industry has been moving toward sustainable substitutes, including castor as it fits perfectly according to its requirements.

High viscosity, high pour point, high heat conductivity, and density are all displayed by castor oil. Consequently, nylon fibers, soaps, cosmetics, textiles, bulletproof glass, and bone prostheses all employ castor oil and its derivatives. It is utilized as an antifreeze for lubricants and fuels in space rockets and airplanes. In the pharmaceutical sector, castor oil is employed as a calming and laxative. In medicine creams and lotions, it serves as an emollient. In the production of shampoos, lipsticks, hair care products, polishes, emulsifiers, deodorants, moisturizers, creams, and lotions, its derivatives are employed as emollients and wetting agents. These elements will propel market expansion during the anticipated years.

• Increased usage of castor oil as an animal feed driving the growth of the market

The market for cow feed is growing rapidly, and as milk producers become aware of the quantifiable benefits of nutritional feed in terms of higher yield, they are moving from conventional cattle feed to nutritionally balanced compound feed. Castor oil is used as cow feed because it has a high concentration of the antimicrobial ricinoleic acid. Additionally, the market is growing since castor oil is a rich source of protein and improves the performance of dairy cattle. It has also been tried in some ruminants and used as an anti-coccidial for broilers.

The market for cow feed is expanding quickly, and milk producers are switching from conventional cattle feed to nutritionally balanced compound feed as a result of realizing the measurable benefits of nutritional feed in terms of increased yield. Because castor oil contains a high concentration of ricinoleic acid, an antibacterial, it is utilized as cow feed. Because castor oil is a rich source of protein and enhances the performance of dairy cattle, it has been attempted in some ruminants as well as utilized as an anti-coccidial for broilers. 

Since the livestock business is the most important component of agricultural development, livestock production in the Asia Pacific area has been rising faster than any other agricultural subsector. This rise has been primarily caused by the enormous expansion of the pig, livestock, and poultry sectors. Roughly 40% of all agricultural output is sold globally as livestock products. The use of animal products has increased as a result of rising living standards and population growth. This is anticipated to accelerate the market's growth for castor oil.

Factors hampering the growth of market

• Fluctuations in castor oil prices caused by extreme dependence on climate to Hamper Market 

One of the best feedstocks for making its derivatives is castor oil. Many factors, including temperature, light, rainfall, soil properties, latitude, and altitude, influence the yield of castor oil. The price of castor oil is determined by the yield. The demand for and downstream production of castor oil derivatives are impacted by the fluctuating pricing, which lowers profit margins. However, the oil industry will soon grow because to the quick adoption of contemporary farming methods supported by government regulations. 

Castor oil is the primary source of the byproducts and raw materials that are used to manufacture goods in many different industries. The amount of sunshine, warmth, latitude, altitude, and soil conditions all affect the yield of castor oil. Water requirements range from 2500 to 3000 kg/ha when cultivating with premium seeds that provide high-quality oil, and from 700 to 1000 kg/ha when rain-fed. Farmers are finding it challenging to continue farming due to the lack of water. As a result, the price of castor oil is based on yield, and because of insufficient irrigation, castor bean prices rise quickly. Price swings have an effect on downstream production and the demand for castor oil, which lowers profit margins.

For example, Gujarat is the leading producer of castor seeds in India. The unorganized nature of farming and harsh weather conditions like drought have resulted in notable alterations to the cultivated areas and a decrease in the rate of production. An imbalance in the castor seed supply chain may result from changes in the price of the product and shifting weather patterns. In the global market for castor oil and its derivatives, price fluctuations in raw materials due to the availability of low-cost replacements and the growing supply-demand imbalance caused by the protracted storage and hoarding period present a significant issue.

Opportunities

• Diversifying castor oil use in renewable energy for emissions reduction

In addition to serving as a feedstock for the manufacturing of biodiesel, castor oil helps reduce emissions in the transportation sector. Castor oil's special qualities make it a desirable resource for cleaner biofuel substitutes as global attention turns to sustainable energy options. This prospect supports environmental objectives and creates new business opportunities, enhancing castor oil's standing as a major contributor to the switch to eco-friendly and renewable energy sources.

In addition to serving as a feedstock for the manufacturing of biodiesel, castor oil helps reduce emissions in the transportation sector. Castor oil's special qualities make it a desirable resource for cleaner biofuel substitutes as global attention turns to sustainable energy options. This prospect supports environmental objectives and creates new business opportunities, enhancing castor oil's standing as a major contributor to the switch to eco-friendly and renewable energy sources.

Furthermore, continuous research and development is being done to increase the productivity and economic viability of castor oil-based biodiesel manufacturing. Castor oil is more useful than just biodiesel. Moreover, it can be utilized to make biojet fuels, which are being investigated as a more environmentally friendly alternative for aviation. The aviation sector has demonstrated a strong commitment to mitigating its environmental impact.

Castor oil is an excellent non-edible crop for making biodiesel since it has high productivity and production. Castor oil is a cheap, readily available, and renewable raw material that can be used to make biodiesel fuel. Compared to diesel, biodiesel burns more efficiently. Carbon monoxide, hydrocarbons, nitrogen oxides, and smoke are all decreased by biodiesel. Its use has expanded due to rising fuel prices and environmental concerns about vehicle emissions. In the upcoming years, it is anticipated that the global market for castor oil and its derivatives will expand more quickly due to the rising use of biodiesel.

•    In July 2023, Casterra, an Israel-based company, developed genetically engineered versions of the ancient castor bean for high-yield seed oil for better biofuel production
(Source:https://casterra.co/casterra-signs-a-framework-agreement-with-a-world-leading-oil-and-gas-company-to-sell-its-castor-seeds-for-sustainable-biofuel-production-with-initial-purchase-orders-of-9-1-million/)

• Rising Product Demand in the Cosmetic and Personal Care Industry

Castor oil has been a manufacturer's preferred option as the demand for natural and organic components in the cosmetic and personal care sector has increased. This demand is a major driver of the castor oil market because it is fueled by multiple causes. Rich in ricinoleic acid, castor oil has several advantages for the skin and hair. Because of its anti-inflammatory and moisturizing qualities, it is a great complement to skincare products including serums, lotions, and creams. Castor oil is a common component of shampoos, conditioners, and hair oils because it also encourages hair thickness and development.

Emerging markets benefit from eco-friendly cosmetics. These days, "green" might mean organic, sustainable, or healthy. It's been noted that worries about environmental issues, global warming, and climate change have contributed to the growing popularity of the green movement. Castor oil is natural, non-toxic, and promotes skin hydration. Castor is one of the greatest environmentally friendly raw materials for cosmetics. The purchasing habits of customers shift along with views toward healthy living and environmental stewardship. Consumers demand safe, healthy products devoid of chemicals, and the situation of the environment has undoubtedly increased their awareness of the value of purchasing environmentally friendly goods.

The use of eco-friendly cosmetics gives emerging nations a competitive edge. "Green" now refers to sustainable, organic, or healthful. It's been observed that the idea of going green has gained popularity due to concerns about climate change, global warming, and environmental issues. Natural and non-toxic, castor oil encourages skin hydration. One of the best eco-friendly raw resources for cosmetics is castor. As attitudes toward environmental stewardship and healthy living change, so do consumers' shopping behaviors. 

How did COVID–19 Impact the Castor Oil Market?

Manufacturing and trade curbs all over the world in the wake of the coronavirus pandemic hurt India's castor oil exports in the last leg of 2019-20 (Apr-Mar). These curbs are likely to affect exports substantially this year as well, market participants said. 

"Castor market is not immune from coronavirus pandemic. Exports are restrained now. Exports in 2019-20 were also definitely much lower than the previous year," said Abhay Udeshi, chairman of Jayant Agro-Organics Ltd. 
(Source: https://www.informistmedia.com/trend-covid-19-may-eat-away-a-big-slice-of-fy21-castor-oil-exports/)

Overseas shipments of the industry oil are seen at around 500,000 tn in 2019-20 (Apr-Mar), down from 570,000 tn in the previous last year, said Udeshi citing early trade estimates. 

Exports in April were definitely lower than in March, and are seen falling in May as well due to the COVID-19 effect.

Overseas shipments of the non-edible oil were estimated around 25% lower in April at nearly 30,000 tn as most orders were finalsed in March. In May, exports are seen shrinking to half of that in April, traders said. 

"Exports are falling primarily due to waning demand from automobile sector. Manufacturing and sales are hit hugely during the lockdown," said B.V. Mehta, executive director of The Solvent Extractors' Association of India. 

Castor oil is used to manufacture sebacic acid, a raw material used to make plastic, lubricants, cosmetics, candles, and painting material. In automotive, aircraft, and truck engines, sebacic acid is used as a corrosion inhibitor and as a coolant fluid. The oil and its derivatives are also used in medicinal formulations. 

Our study will explain complete manufacturing process along with major raw materials required to manufacture end-product. This report helps to make effective decisions determining product position and will assist you to understand opportunities and threats around the globe.

The Global Castor Oil Market is witnessing significant growth in the near future.

In 2023, the Sebacic Acid segment accounted for noticeable share of global Castor Oil Market and is projected to experience significant growth in the near future.

The Lubricants segment is expected to expand at the significant CAGR retaining position throughout the forecast period.

Some of the key companies NK Industries , Kanak castor Products and others are focusing on its strategy building model to strengthen its product portfolio and expand its business in the global market.

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