Hydrogenated Cottonseed Oil Market - Forecast(2021 - 2026)

Hydrogenated cottonseed oil market size is forecast to reach $XX million by 2025, after growing at a CAGR of 3.5% during 2020-2025, owing to the increasing popularity of hydrogenated cottonseed oil. The popularity of hydrogenated cottonseed oil is rising due to its extensive properties such as it contains a high amount of antioxidants which are essential for good health, it is better for baking as it is not as heavy as other oils and the light texture of this oil makes it great for cosmetic use, making it a common ingredient in creams and lotions. Also, it is rich in Vitamin E that helps in fighting the free radicals, which is anticipated to drive the hydrogenated cottonseed oil market during the forecast period.

The report: “Hydrogenated Cottonseed Oil Market – Forecast (2020-2025)”, by IndustryARC, covers an in-depth analysis of the following segments of the hydrogenated cottonseed oil Industry. 

By Type: Partially Hydrogenated, and Fully Hydrogenated

By Application: Personal Care Products & Cosmetics, Food & Beverages, and Others

By Geography: North America, South America, Europe, Asia Pacific, and RoW

The fully hydrogenated cottonseed oil segment held the largest share in the Hydrogenated cottonseed oil market in 2019, as fully hydrogenated oils have better characteristics than partially hydrogenated oils. The fully hydrogenated cottonseed oils are firmer and do not contain any of the dangerous artery inflaming trans fat found in the partially hydrogenated oils. Also, the fully hydrogenated oils are much more like stearic acid, which is a less harmful form of saturated fat. And since stearic acid doesn't raise LDL cholesterol levels, and it's relatively stable, so fully hydrogenated cottonseed oil is being widely used. All these extensive properties of fully hydrogenated cottonseed oil are the key factor anticipated to boost the demand for Hydrogenated cottonseed oil during the forecast period.

The food & beverage application held a significant share in the Hydrogenated cottonseed oil market in 2019 and is growing at CAGR of 4%, owing to the increasing use of hydrogenated cottonseed oil in the food and beverages industries for making potato chips, cookies, crackers, margarine, mayonnaise, salad dressing and more. The demand for hydrogenated cottonseed oil is increasing as it is being widely used in processed foods as cooking oil because of its ability to extend shelf life, low cholesterol, and reduced fat intake. It’s also a popular ingredient for baking as it provides a solid fat index for shortening, making for baked goods that are moist and chewy. Also, hydrogenated cottonseed oil is used by many fast-food chains for deep frying because it enhances the flavor of food instead of masking it and it is less expensive than other vegetable oils, which is anticipated to drive the hydrogenated cottonseed oil market during the forecast period.

Asia Pacific region held the largest share in the hydrogenated cottonseed oil market in 2019 up to 30%, owing to the increasing demand of hydrogenated cottonseed oil from the personal care & cosmetic product industries in the region. According to the International Trade Administration (ITA), China is the 10th largest market for U.S. personal care and cosmetics exports. According to the India Brand Equity Foundation (IBEF), the market size of India's beauty, cosmetic and grooming market will reach $ 20 billion by 2025 from the current $ 6.5 billion. According to the International Trade Administration (ITA), the beauty and personal care products market of Thailand was valued at approximately $6.2 billion in 2018 and is expected to reach $8.0 billion in 2022. Thailand's beauty care and personal care industry are anticipated to have a growth of 7.3% per year from 2019 to 2022. Since the personal care and cosmetic industries are booming, the demand for hydrogenated cottonseed oil is also showing a significant increase. According to Assocham, the rise in the middle-class disposable incomes and people’s growing aspirations to live a good life and look good is increasing the cosmetics market, which is anticipated to further drive the hydrogenated cottonseed oil market in the Asia Pacific during the forecast period.

The personal care and cosmetic sector is booming in varied regions due to the increasing demand of cosmetics from the consumers. According to International Trade Administration (ITA), France ($324 million) is the largest exporter to Korea in 2017, followed by the U.S. ($291 million) and Japan ($182 million). And, the total cosmetic production of France increased from 22,236 in 2018 to 22,680 in 2019. Also, South Korea is the 8th largest cosmetics market in the world, representing nearly 3.0% of the global market. In 2017, South Korean’s market size was approximately $8.8 billion, the total local production increased by 3.6% from the previous year and the market is growing by an annual growth rate of 4.7% for the last 5 years (2013-2017). The United States imports accounted for 24.7% of the total import market share at $291 million. Hydrogenated cottonseed oil are extensively used in the formulation of cosmetic and personal care products such as skin cleansing products, lip care products, baby oil eye makeup, skin and hair care products. Thus, the increasing personal care and cosmetic sector act as a driver for the hydrogenated cottonseed oil market during the forecast period. 

The partially hydrogenated cottonseed oil (PHOs) are the primary dietary source of artificial trans fat in processed foods, and trans fat has been linked to heart disease. Partially hydrogenated cottonseed oil (PHOs) contains gossypol, which has been found to have several negative side effects such as infertility, reduced sperm counts, pregnancy problems, liver damage, respiratory distress, anorexia. On June 18 2018, the US Food and Drug Administration FDA announced it was revoking the “generally recognized as safe” (GRAS) status of partially hydrogenated oils (PHOs) and food manufacturers cannot add PHOs to human food unless they are approved by the FDA. Thus the health risks due to which the ban has been imposed on the partially hydrogenated cottonseed oil may restrain its market growth.

While the Lipstick Theory suggests that consumers will splurge in recessionary times on an expensive lipstick instead of the luxury item which is out of reach, the COVID-19 outbreak will have an economic impact on the consumer spending. While many personal care products are essential, there are others that are not, along with products for which consumers will make alternate choices. Consequences of COVID-19 in personal care will likely lead to a reduction by consumers on discretionary expenses (fragrances, hair styling products), while spending on basic necessities would be relatively protected (personal liquid soap, hand and body lotions). These changes in consumer consumption will directly impact the hydrogenated cottonseed oil market as the demand for cosmetic ingredients is declining.