Sunflower, safflower or cottonseed oil and fractions market in China

Earlier Report Observations

From 2018 to 2020, the market volume for sunflower, safflower, and cottonseed oils in China expanded significantly, driven by policy support for oilseed cultivation and processing. Government emphasis on optimizing crop structure and increasing domestic oilseed yields boosted production capacity. At the same time, import channels diversified, reducing reliance on single-country rapeseed supplies and enabling higher shipments from Russia and Australia. This import growth, combined with rising consumer demand for functional and specialty oils, pushed market volume from 2.2 million tons in 2018 to 3.5 million tons in 2020.

The market contracted in 2021 and 2022 as imports fell sharply, despite continued growth in domestic oilseed output. In 2021, improved domestic supply capacity reduced import dependence, leading to a 34% drop in imported volumes. The trend intensified in 2022 when total oilseed imports declined by 5.8%, pulling market volume down to 2.2 million tons. However, consumer interest in high-oleic sunflower oil and other functional oils remained strong, supporting premium segments. In 2023, market volume rebounded to 3.1 million tons as import sources diversified further amid global shifts in oilseed production, and domestic companies accelerated promotion of high-end oil products.

Entering 2024, the market faced new regulatory and supply-chain influences. The cancellation of a 13% export tax rebate for chemically modified oils from December 1, 2024, is expected to alter export flows and market structure. Concurrently, global tightness in sunflower and rapeseed supplies, coupled with sustained consumer demand for healthy and functional oils, continues to shape China’s oil market dynamics.

Production sunflower, safflower or cottonseed oil and fractions in China

In kind, 2017-2020, K t

From 2017 to 2020, China held the third position globally in the production of sunflower, safflower, or cottonseed oil and fractions.

Top producers of sunflower, safflower or cottonseed oil and fractions, 2017-2020

World map of production of sunflower, safflower or cottonseed oil and fractions, 2017-2020

Following two years of growth, China's production of sunflower, safflower, or cottonseed oil and fractions experienced a decline. In 2020, production reached 1,517 thousand tonnes, marking a 1.4% decrease compared to 2019. Over the period from 2017 to 2020, overall production increased by 6.2%, translating to an average annual growth rate of 2.0%. The highest production level was recorded in 2019 at 1,539 thousand tonnes, with the most significant annual increase occurring in 2018 at 6.0%.

Annual dynamics of production in China in kind, 2017-2020, K t

In value, 2017-2020, M $ US

In 2020, the output value of sunflower, safflower, or cottonseed oil and fractions in China was valued at 2,176 million US dollars, reflecting a substantial 25.2% increase over the previous year. Between 2017 and 2020, the production value grew by 38.3%, corresponding to an average annual growth rate of 11.4%. The largest annual decline was observed in 2019 at 18.8%, while the most notable increase occurred in 2018 at 36.1%.

Annual dynamics of production in China in value, 2017-2020, M $ US

Exports sunflower, safflower or cottonseed oil and fractions from China

Exports in kind, K t

The data shows irregular fluctuations, pointing to a volatile market environment. Export volumes reached their lowest point in 2018 and peaked in 2019, with a 3.3-fold difference between these years. In 2020, China's exports of sunflower, safflower, or cottonseed oil and fractions amounted to 5 thousand tonnes, representing a 24.6% decrease compared to 2019. The minimum export volume was recorded in 2018 at 2 thousand tonnes, while the maximum was in 2019 at 7 thousand tonnes. The largest annual decline occurred in 2018 at 36.1%, and the most significant increase was in 2019 at 234.7%.

Annual dynamics of product's exports from China in kind, 2017-2020, K t

From 2017 to 2020, the largest buyers of sunflower, safflower, or cottonseed oil and fractions from China in terms of volume were Malaysia (accounting for 50.1% of exports), Singapore (24.0%), and North Korea (9.5%). Together, these three countries constituted 83.6% of China's total exports in kind during this period.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from China in kind, 2017-2020

Exports in value, M $ US

Market behavior during these years was marked by volatility. The lowest export value was recorded in 2018, while the highest was reached in 2019, with a peak-to-trough ratio of 2.7 times. In 2020, China's export value of sunflower, safflower, or cottonseed oil and fractions stood at 7 million US dollars, indicating a modest decline of 4.3% compared to the previous year. The minimum value was 3 million US dollars in 2018, and the maximum was 8 million US dollars in 2019. The largest annual decrease occurred in 2018 at 18.0%, and the most substantial increase was in 2019 at 167.3%.

Annual dynamics of product's exports from China in value, 2017-2020, M $ US

Throughout 2017 to 2020, Malaysia (42.5% of exports in value terms), Singapore (21.2%), and Thailand (12.0%) were the leading destinations for China's exports of sunflower, safflower, or cottonseed oil and fractions by value. Collectively, these three countries accounted for 75.6% of total export flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from China in value, 2017-2020

Imports sunflower, safflower or cottonseed oil and fractions to China

Imports in kind, K t

Market behavior during these years exhibited volatility. Import volumes reached their lowest point in 2018 and peaked in 2020, with a 2.8-fold difference between these years. In 2020, China's imports of sunflower, safflower, or cottonseed oil and fractions totaled 1,954 thousand tonnes, up by 59.0% compared to 2019. The minimum import volume was recorded in 2018 at 703 thousand tonnes. The largest annual decline occurred in 2018 at 5.6%, while the most significant increase was in 2019 at 74.8%.

Annual dynamics of product's imports to China in kind, 2017-2020, K t

From 2017 to 2020, Ukraine and Russia were the primary sources for China's imports of sunflower, safflower, or cottonseed oil and fractions in terms of volume, jointly representing 95.9% of total imports. Other countries contributed relatively minor shares during this period.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to China in kind, 2017-2020

Imports in value, M $ US

China's import value of sunflower, safflower, or cottonseed oil and fractions increased for the second consecutive year. In 2020, imports amounted to approximately 1,566 million US dollars, reflecting a 70.0% rise over the previous year. Over the 2017-2020 period, import value grew by 151.4%, with a compound annual growth rate (CAGR) of 36.0%. The minimum value was recorded in 2018 at 572 million US dollars. The largest annual decline occurred in 2018 at 8.1%.

Annual dynamics of product's imports to China in value, 2017-2020, M $ US

From 2017 to 2020, Ukraine and Russia clearly dominated China's import partner structure in value terms for sunflower, safflower, or cottonseed oil and fractions, while other countries collectively accounted for the remaining share.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to China in value, 2017-2020