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The increasing demand for sunflower oil in Spain presents significant growth opportunities, as consumers find it harder to afford olive oil, which is becoming more expensive. The Asociación Nacional de Industriales Envasadores y Refinadores de Aceites Comestibles (Anierac) reports that sales of sunflower oil increased by 24.5% between October 2023 and March 2024, while sales of olive oil decreased by 17.5%. This follows a 61% increase in olive oil prices from May 2023 to May 2024, alongside a second consecutive year of reduced production. Meanwhile, sunflower oil experienced a decline of 35%, which is relatively cheaper compared with quality cooking oils offered to households.
Due to the availability of economical substitutes, sunflower oil is expected to capture a larger market share among Spanish consumers. If olive oil production levels off in 2024/25, the current price difference will provide sunflower oil producers with a crucial opportunity to strengthen their market position while adapting to changing consumer preferences.
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The European Union currently faces a major problem with the edible oil supply. The European Commission, in collaboration with Agrarmarkt-Informations-Gesellschaft, has announced that rapeseed production is expected to decline by 1.3 million tons compared to the supply in 2023. The total production for 2024 is projected to be approximately 18.4 million tons. This is very sharp, and it is due to poor yield potential caused by high rainfall. The major producers have reported significant declines in their forecasts, with France seeing particularly large decreases. Additionally, Romania, Hungary, Latvia, and the Czech Republic have also revised their projections downward. In contrast, Slovakia, Ireland, and Denmark have made slight increases to their estimates; however, these gains do not offset the losses reported by the other countries.
The European Union currently faces a major problem with the edible oil supply. The European Commission, in collaboration with Agrarmarkt-Informations-Gesellschaft, has announced that rapeseed production is expected to decline by 1.3 million tons compared to the supply in 2023. The total production for 2024 is projected to be approximately 18.4 million tons. This is very sharp, and it is due to poor yield potential caused by high rainfall. The major producers have reported significant declines in their forecasts, with France seeing particularly large decreases. Additionally, Romania, Hungary, Latvia, and the Czech Republic have also revised their projections downward. In contrast, Slovakia, Ireland, and Denmark have made slight increases to their estimates; however, these gains do not offset the losses reported by the other countries.
Source: Online/OFA
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