Wheat Germ Oil Market: High Nutritional Value Contributes to Popularity as a Food Additive
Wheat germ oil has garnered increased interest in recent years, due to its high nutritional value. Its high vitamin C, A, and D content has contributed significantly to its popularity for use across industries – from food and beverages to cosmetics and more. It is primarily consumed for its healthy fats and high antioxidant value, and is generally used as an additive in foods to enhance their nutritive value. With consumer preference for food ingredients now shifting to include foods and ingredients with a broader nutrition value, wheat germ oil has gained increased traction, globally, in recent years.
Recognised as a substitute for synthetic antioxidants, its widespread adoption led the wheat germ oil market witnessing sales of ~92 thousand tons in 2018. Over the forecast period, the global wheat germ oil market is expected to expand at a volume CAGR of 6.5%, and hit the ~172 thousand ton mark by 2027.
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Conventional vs. Organic Wheat Germ Oil
The wheat germ oil market can be divided based on how it is grown, into conventional and organic production. By both, market share and volume, not much change is anticipated during the forecast period, with conventional wheat germ oil likely to hold majority share. By volume, in 2018, the sales of conventional wheat germ oil accounted for a lion’s share of the total, amounting to a figure of ~83 thousand tons, which is expected to double by the end of the forecast period to hit the ~155 thousand ton mark.
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Organic – a buzz word in the F&B industry, has had an indisputable influence on the wheat germ oil market, as production and processing have been significantly impacted by this megatrend. Consumers shifting from conventional to organic wheat germ oil in recent years has led to growth in the non-conventional method of oil production, which is expected to grow over the forecast period. Organic wheat germ oil is expected to be valued at ~US$ 58 Mn in 2019, and anticipated to expand 2X at a CAGR of ~19% by the end of 2029.
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Significant Opportunities for Wheat Germ Oil Manufacturers in Cosmetics
The application of wheat germ oil also extends to cosmetics and personal care products, where it has become extremely popular in recent years. Due to the presence of antioxidants, coupled with high content of vitamin E, wheat germ oil is being used extensively as an ingredient in skin care products. The benefits of wheat germ oil that contribute to its popularity include a high concentration of fatty acids, which can be applied directly into the hair as well, along with the skin.
Wheat germ oil also finds application in animal feed for its nutritive value, pharmaceuticals and dietary supplements for its increased use in functional foods, and even in foods as an additive to enhance the total nutritional value of the food product.
North America & Europe to Remain Lucrative; APEJ Market to Expand Rapidly
The rising demand for wheat germ oil from North America and Europe has had a significant impact on the growth of the landscape. In 2018, Europe accounted for one-fourth of the global wheat germ oil market share by value. This region is expected to remain prominent during the forecast period, with its value set to increase at a ~7% CAGR. This can be attributed to the application of wheat germ oil in cosmetics and personal care products, which is likely to boost the growth of the wheat germ oil market in the region. A similar growth trajectory applies to North America, which, in 2018, accounted for the largest share of the global wheat germ oil market, and is expected to remain a prominent market throughout the forecast period.
However, the market of Asia Pacific Excluding Japan (APEJ), which is growing the fastest, is expected to be valued at ~US$ 98 Mn in 2019. It is set to double by the end of the forecast period in 2029, expanding at a CAGR of ~8% by revenue. This can be attributed to the presence of a significant number of stakeholders of the wheat germ oil market in the region, which is likely to contribute to the growth of the landscape.
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Analysts’ Overview
According to analysts at Transparency Market Research, the global wheat germ oil market is set to grow at a fairly high pace during the forecast period. The landscape is considered fairly consolidated, with Grupo Plimon, Hebei Jiafeng Plant Oils, VIOBIN USA., General Nutrition Centers, Inc, and ConnOils LLC, accounting for ~40% of the total market share.
The demand for wheat germ oil has been fairly steady in recent years around the world, particularly from the cosmetics, dietary supplements, and feed industries. Players in the market focusing on catering to the demand from these industries, based on nature and type, are likely to gain a competitive edge in the global market.
With the production of wheat germ oil concentrated in APEJ and North America, and smaller pockets in Europe, manufacturers should focus on expanding into smaller and developing markets in Japan and Oceania, which are likely to offer lucrative prospects in the foreseeable future
Wheat Germ Oil Market: Overview
- According to Transparency Market Research’s latest market report on the global wheat germ oil market for the historical period of 2014 – 2018 and forecast period of 2019 – 2029, globally, revenue generated by the wheat germ oil market has been estimated to be ~US$ 530 million in 2019.
- The wheat germ oil market it is expected to expand at a CAGR of ~7% in terms of value throughout the forecast period, and reach a valuation of ~US$ 1 Bn by 2027.
Demand from Animal Feed Industry to Propel Growth of Wheat Germ Oil Market
- Wheat germ oil is gaining recognition for use in the global animal feed market as a result of its nutritional content. Increasing demand for high-quality feed ingredients in feed drives manufacturers to incorporate wheat germ oil into their feed products. The addition of wheat germ oil adds antioxidants into the feed, which plays a vital role in enhancing the quality and stability of meat products.
- Wheat germ oil is also used in pet dietary supplements for improving the skin health of pets. Wheat germ oil contains vitamin E, which is known to be responsible for improving and healing the skin, and ensuring that shedding, scratching, and flaking of the skin is controlled.
Thriving Food Industry to Boost Demand for Wheat Germ Oil
- Wheat germ oil has registered remarkable growth in the food industry over the last decade. Wheat germ oil is pale yellow in color, and a viscous, odorless, oily liquid, which makes it attractive for food manufacturers, as it does not distort the desired taste or smell of the end products.
- Wheat germ oil is recognized as a potential substitute for synthetic antioxidants, which were used to extend the shelf life of food products, especially bakery ingredients that have a shorter shelf life.
- Wheat germ oil is used as an antioxidant is bakery, snacks, and processed food to extend their shelf life. All these industries have been thriving over the last decade, creating high growth opportunities for wheat germ oil manufacturers in the foreseeable future.
- As such, the global wheat germ oil is projected to expand at a high rate over the period of forecast.
Wheat Germ Oil to Gain Traction in Cosmetic Industry
- Veganism is being promoted across the globe. This trend is evolving into a lifestyle for consumers, and is not restricted only to food choices. Vegans demand products free from animal ingredients, including makeup, clothing, and shoes.
- Manufacturers in the cosmetic industry who are producing only vegan products are growing at exponential rate. This has led to a rise in the demand for alternative animal-derived ingredients. For instance, various shark-sourced ingredients are being used in cosmetic products. These are being replaced by other ingredients that are rich in squalene, such as wheat germ oil as well as cruelty-free ingredients.
- Wheat germ is used more in the cosmetics segment out of all the end uses, with an estimated market share of around 30% in the year 2019.
Wheat Germ Oil Market: Competitive Landscape
- The wheat germ oil market has a relatively low number of market players who control a large share of the overall output/sales. The consolidation of the wheat germ oil market has put large-scale industries.
- Grupo Plimon, Hebei Jiafeng Plant Oils, VIOBIN USA., General Nutrition Centers, Inc., ConnOils LLC are the tier-I players in the wheat germ oil market, with a wide global presence and a wide range of offerings. These companies have a large share in the wheat germ oil market.
- Mid-level players are – NOW Foods, Swanson Health Products, Kunhua Biological Technology Co., Ltd, Agroselprom, and Gustav Heess GmbH, which are mainly focusing on expanding their global presence to reach a larger consumer base in the wheat germ oil market space.
Wheat Germ Oil Market: Key Developments
Some of the key developments seen in the wheat germ oil market during the past few years are as follows:
- In February, 2019, Rivona Naturals launched a rose soap, which contains wheat germ oil as the key ingredient. The key function of wheat germ oil in the soap is to reduce skin damage and support healthy collagen formation.
- In August 2018, Well Within Company launched the Berry Oil Blend supplement, which is made with wheat germ oil and other ingredients such as Sea Buckthorn Fruit Oil, Blackcurrant Oil, etc. This blend is an oil-based lipid-rich antioxidant that boosts skin health.
- In September 2018, Bunge Loders Croklaan launched a liquid margarine that is clean label and made from plant-based ingredients, which include wheat germ oil, corn oil, and linseed oil. The product is named Delica Pro Gold, and is non-hydrogenated.
