USA Crop Oil Market Outlook to 2030

USA Crop Oil Market Overview

• The USA Crop Oil Market was valued at USD 57.6 billion in 2018 and reached USD 97.1 billion in 2023. This growth is primarily driven by the increasing demand for efficient agricultural solutions, the rising adoption of sustainable farming practices, and the growing awareness of the benefits of crop oil concentrates among farmers.
• The key players in the USA Crop Oil Market include Wilbur-Ellis Company, Brandt Consolidated, Inc., BASF SE, Croda International Plc, and Helena Agri-Enterprises LLC. These companies have leveraged their extensive research capabilities and distribution networks to develop advanced crop oil formulations that enhance pesticide performance and improve crop yields.
• In 2023, Brandt Consolidated, Inc. introduced a new line of crop oil concentrates optimized for low-volume sprays, addressing the needs of cost-sensitive farmers. This innovation has gained traction, with over 70% of farmers reporting improved pesticide efficacy and reduced input costs, enhancing crop protection and supporting sustainable practices.
• California led the USA Crop Oil Market in 2023, driven by its expansive agricultural sector and diverse crop production. The state's favourable climate and soil conditions, coupled with high adoption rates of advanced agricultural technologies, contributed to its dominance in the crop oil market.

USA Crop Oil Market Segmentation

The USA Crop Oil Market is segmented into application type, formulation type, and region.

• By Application Type: The USA Crop Oil Market is segmented by application type into herbicides, insecticides, fungicides, and others. In 2023, the herbicides segment dominated the market due to the widespread use of crop oils to enhance the effectiveness of herbicides in controlling weeds across various crop types.

• By Formulation Type: The market is also segmented by formulation type into crop oil concentrates (COC), methylated seed oil (MSO), and others (including vegetable oils, adjuvants, etc.). Crop oil concentrates held the largest market share in 2023, driven by their compatibility with a wide range of pesticides and their ability to improve the coverage and absorption of active ingredients.

• By Region: The market is segmented by region into North, South, East, and West. In 2023, the Western region dominated the market, with California and other agricultural states like Washington and Oregon leading in crop oil usage due to their extensive fruit and vegetable farming.

USA Crop Oil Market Competitive Landscape

• Croda International Plc: In 2023, Croda International Plc acquired Solus Biotech for KRW 350 billion. This acquisition enhances Croda's portfolio in biotechnology-derived active ingredients for beauty care, expanding its Asian manufacturing capabilities and establishing a new R&D hub, reflecting a commitment to sustainable innovation in personal care.
• BASF SE: In 2024, BASF SE announced plans to invest 900 million in its agricultural solutions division, focusing on research and development initiatives to support sustainable farming practices. This investment includes building a new fermentation plant for biological crop protection products at its Ludwigshafen site, expected to be operational in late 2025.

USA Crop Oil Market Analysis

USA Crop Oil Market Growth Drivers:

• Increasing Demand for Sustainable Farming Practices: With over 60% of farmers expressing a preference for environmentally friendly agricultural inputs, driven by rising consumer awareness and regulatory pressures to reduce chemical pesticide use, the demand for crop oil concentrates that enhance efficacy while supporting sustainability is on the rise.
• Technological Advancements in Crop Oil Formulations: Around 30% of new crop oil products launched in the last year were bio-based, improving performance in pesticide applications, and providing better crop safety and compatibility with various pesticides, thus driving market growth through continuous innovation in formulations.
• Expansion of Agricultural Activities: In regions like California and the Midwest, over 15 million acres of new farmland have been cultivated in the past five years, characterized by diverse crop production and a high adoption rate of advanced agricultural technologies, contributing to the increased demand for crop oils as essential inputs.

USA Crop Oil Market Challenges:

• Regulatory Hurdles: Stringent regulations on pesticide and adjuvant use present challenges for the crop oil market. For instance, over 50% of traditional pesticides have been restricted or banned in Europe, limiting product availability and forcing farmers to seek alternatives like crop oil concentrates to comply with regulatory standards.
• Fluctuations in Raw Material Prices: The crop oil market is sensitive to fluctuations in the prices of raw materials, particularly vegetable oils. These price variations can affect the production costs and pricing strategies of crop oil manufacturers, impacting market profitability.

USA Crop Oil Market Government Initiatives:

• Sustainable Agriculture Research and Education (SARE) Program: The Sustainable Agriculture Research and Education (SARE) Program, supported by the USDA, promotes sustainable farming practices, including environmentally friendly agricultural inputs like crop oils. Since its inception in 1988, SARE has funded over 1,400 grant projects to enhance profitability and environmental stewardship in agriculture through research and education.
• Pesticide Environmental Stewardship Program (PESP): The Pesticide Environmental Stewardship Program (PESP), initiated by the EPA, encourages the adoption of reduced-risk pesticides and pesticide adjuvants, including crop oils. With over 1,200 partners, PESP aims to reduce the environmental impact of pesticide use and promote safer agricultural inputs, enhancing environmental quality and sustainable farming practices.

USA Crop Oil Market Future Market Outlook

The USA Crop Oil Market is expected to reach USD 161.6 billion by 2028. The market is anticipated to shift towards more sustainable and efficient formulations, with a focus on bio-based crop oils and advanced adjuvant technologies.

USA Crop Oil Market Future Market Trends:

• Increased Adoption of Bio-Based Crop Oils: Over the next five years, the adoption of bio-based crop oils is expected to rise substantially as farmers seek sustainable alternatives to traditional formulations. Currently, bio-based products account for about 15% of the total oil market, and this is projected to increase as environmental concerns drive demand for sustainable agricultural practices.
• Integration of Digital Farming Solutions: The integration of digital farming solutions with crop oil applications is anticipated to enhance precision agriculture practices. By 2028, it is expected that over 60% of farmers will utilize digital platforms and IoT devices to optimize crop oil application rates, improving pest control efficiency and resource management in agriculture.