Castor Oil Pricing Report

Castor Oil Prices December 2023

In December of 2023, the price of castor oil for the fourth quarter in the United States was 1685 USD/MT. Due to increased energy prices and a limited supply of castor from exporting nations, the market saw a favorable price trend in the first month of the quarter. However, because there was a plentiful supply of downstream items and major castor oil exporting countries reduced their prices, prices fell in November and December.

The price trend for castor oil in China witnessed a decline in price trends in the first month of the quarter due to the economic slowdown in the country and low activity in industries that make use of castor oil. But the prices witnessed an increase towards the end of Q4 due to sudden product demand from industries, such as biodiesel, soaps, cosmetics, and lubricants, settling at 1550 USD/MT.

In the Netherlands, castor oil prices showcased a downward trend throughout Q4 2023. The lower castor oil prices from key exporting nations and reduced product demand from downstream industries were major factors that contributed to the dip in rates. Moreover, the ample supply of castor oil and the decline in the Consumer Price Index (CPI) points boosted the diminishing trend, reaching 1585 USD/MT.

Castor Oil Price Trend, Market Analysis, and News

IMARC’s newly published report, titled Castor Oil Pricing Report 2024: Price Trend, Chart, Market Analysis, News, Demand, Historical and Forecast Data, offers an in-depth analysis of castor oil pricing, covering an analysis of global and regional market trends and the critical factors driving these price movements.

It encompasses an in-depth review of spot prices at major ports, a breakdown of prices including Ex Works, FOB, and CIF, alongside a region-wise dissection of price trends across North America, Europe, Asia Pacific, Latin America, the Middle East and Africa.

The report examines the elements influencing castor oil price fluctuations, such as changes in raw material costs, supply-demand dynamics, geopolitical factors, and industry-specific developments. Additionally, it integrates the latest market news, providing stakeholders with up-to-date information on market shifts, regulatory changes, and technological advancements, thereby offering a comprehensive overview that aids in strategic decision-making and forecasting.

Castor Oil Market Analysis

The global castor oil market size reached 795 Kilo Tons in 2023. By 2032, IMARC Group expects the market to reach 887.2 Kilo Tons, at a projected CAGR of 1.10% during 2023-2032.

• Castor oil's unique chemical properties make it suitable for various industrial applications, including lubricants, cosmetics, pharmaceuticals, and the manufacturing of bioplastics and biofuels. As the market for lubricants expands, projecting a growth rate of 4.1% annually, the demand for castor oil will also rise. Moreover, the escalating use of lubricants in the automotive industry is also showcasing a positive trajectory for the market growth. As per IMARC Group, the passenger vehicle industry is growing at a rate of 7.17%, which is boosting the demand for automotive lubricants, projecting to reach US$ 104.7 billion by 2032.
• The castor oil demand is further amplified by its utilization in the cosmetic industries because of its anti-inflammatory, antimicrobial, and moisturizing properties. The market for cosmetics is projected to reach US$ 618.7 bn by 2032, showcasing an upward move in demand for castor oil. Regionally, Europe was valued at €88 billion at a retail sales price in the year 2022, with Germany accounting for €14.3 billion, France €12.9 billion, Italy €11.5 billion, the UK €10.5 billion, and Spain €9.3 billion., increasing the use of castor oil in Europe. 
• Castor oil is also becoming increasingly popular in the pharmaceutical sector for its therapeutic qualities and as a carrier or base for medicinal formulations. The demand for castor oil in India is growing as the country becomes the largest provider of generic medicines globally, occupying a 20% share. It hosts 500 active pharmaceutical ingredients (API) manufacturers that contribute about 8% to the industry. The country also manufactures approximately 60,000 different generic brands across 60 therapeutic categories.
• The castor oil market share is further being reinforced by rising environmental concerns and the search for sustainable energy sources. It has emerged as a viable option for biofuel production. Europe is consistently investing in biofuels to achieve a climate-neutral Europe by 2050. Biofuels are expected to contribute to reaching this target, accounting for 24.5 Mtoe in 2030 and 48.3 Mtoe in 2050. Similarly, the International Energy Agency (IEA) unveiled its latest insights on the future of biofuels, signaling a significant increase in demand for biofuels globally over the next five years. The report estimates an expansion of 38 billion liters (equivalent to 10.4 billion gallons) between 2023 and 2028, with the overall biofuel demand rising by 23% to reach 200 billion liters by 2028.
• In addition, castor oil production is showing an upward trajectory as governments worldwide increasingly support the use of bio-based materials through regulations and incentives. Castor oil, being a renewable resource, benefits from such policies, encouraging its adoption across industries. In June 2023, the Environmental Protection Agency (EPA) announced a final rule to establish biofuel volume requirements and associated percentage standards for cellulosic biofuel, biomass-based diesel (BBD), advanced biofuel, and total renewable fuel for the years 2023 to 2025.

Castor Oil News

The report covers the latest developments, updates, and trends impacting the global castor oil market, providing stakeholders with timely and relevant information. This segment covers a wide array of news items, including the inauguration of new production facilities, advancements in castor oil production technologies, strategic market expansions by key industry players, and significant mergers and acquisitions that shape the industry landscape.

Latest developments in the castor oil industry:

• In July 2022, Eni SpA announced the completion of its oilseed collection and pressing plant in Kenya and has started producing vegetable oil for the bio-refineries. The first agri-hub was constructed with a capacity of approximately 15,000 tons and an estimated production of about 2,500 tons in the financial year 2022. It will process castor, croton, & cotton seeds to extract vegetable oil.
• In May 2020, Jayant Agro Organics announced the launch of hydrogenated castor oil grades that are suitable for hot melt adhesives and sealants. These new grades provide high melting point and low viscosity. The company’s vision is to provide end-to-end solutions across the castor-based value chain to its customers.

Product Description

Castor oil is a vegetable oil pressed from the seeds of the castor oil plant. It is a pale-yellow liquid, distinguished by its versatility and unique chemical composition, primarily consisting of ricinoleic acid. Castor oil is available in multiple types, including cold-pressed, Jamaican black castor oil, and hydrogenated castor oil. Its viscosity, coupled with its ability to remain stable under a wide temperature range, makes it highly valuable across various industries.

Castor oil finds application in industrial machinery, cosmetics and skincare products, pharmaceuticals, leather, food, biodiesel production, pesticides, hair care products, textile, and art supplies. It aids in promoting skin and hair health, offering anti-inflammatory and antimicrobial properties, facilitating wound healing, enhancing immune function, providing relief from constipation, reducing pain associated with arthritis, and supporting overall health.

Regional Coverage

The report provides a detailed analysis of the castor oil market across different regions, each with unique pricing dynamics influenced by localized market conditions, supply chain intricacies, and geopolitical factors. This includes price trends and supply and demand trends for each region, along with spot prices by major ports. The report also provides coverage of ex-works, FOB, and CIF prices, as well as the key factors influencing the price trends. 

Global Castor Oil Price

The report offers a holistic view of the global castor oil pricing trends, reflecting the worldwide interplay of supply-demand balances, international trade policies, and overarching economic factors that shape the market on a macro level.

Europe Castor Oil Price

The European region experienced a bearish price trend owing to weakened price rates from the major exporters of crude oil, like India. In addition, the decreased activity in downstream sectors that compelled manufacturers to lower their price rates to empty stockpiles, contributed to the downfall. Moreover, the decreased use of castor oil in the food industry due to a dip in Consumer Price Index (CPI) points, favored the negative trend.

This analysis can be extended to include detailed castor oil price information for a comprehensive list of countries.

North America Castor Oil Price

In North America, the castor oil market witnessed growth in the first month of the quarter due to heightened awareness about castor oil’s application in the industrial sector and rising focus on environmental sustainability. Additionally, the constrained product supply from major oil exporting nations, led to a hike in prices. However, the following two months of the quarter witnessed a downward price trend due to lower demand from downstream industries and significant drop in price from exporting nations.

Specific data on castor oil prices within the United States and Canada can also be provided.

Middle East and Africa Castor Oil Price

The report explores the castor oil pricing trends in the Middle East and Africa, considering factors like regional industrial growth, the availability of natural resources, and geopolitical tensions that uniquely influence market prices.

In addition to region-wise data, information on castor oil prices for countries can also be provided.

Asia Pacific Castor Oil Price

Castor oil pricing in the Asia Pacific region encountered a mixed trajectory in Q42023. The first two months of the quarter experienced a decline due to lower demand from downstream industries and a lack of new inquiries. Along with this, the surplus stock and major cut in costs from key exporting nations, amplified the fall. However, the price rebounded towards the end of December owing to heightened demand for castor oil in biodiesel, soaps, cosmetics, and lubricants industries and increased purchase from international markets.

This analysis can be further extended to include detailed castor oil prices for a comprehensive list of countries within the region.

Latin America Castor Oil Price

The analysis of castor oil prices in Latin America provides a detailed overview, reflecting the unique market dynamics in the region influenced by economic policies, industrial growth, and trade frameworks.

This comprehensive review can be extended to include specific countries within the region.

Report Coverage

Key Benefits for Stakeholders:

• IMARC’s report presents a detailed analysis of castor oil pricing, covering global and regional trends, spot prices at key ports, and a breakdown of Ex Works, FOB, and CIF prices.
• The study examines factors affecting castor oil price volatility, including raw material costs, supply-demand shifts, geopolitical impacts, and industry developments, offering insights for informed decision-making.
• The competitive landscape review equips stakeholders with crucial insights into the latest market news, regulatory changes, and technological advancements, ensuring a well-rounded, strategic overview for forecasting and planning.
• IMARC offers various subscription options, including monthly, quarterly, and biannual updates, allowing clients to stay informed with the latest market trends, ongoing developments, and comprehensive market insights, ensuring they remain at the forefront of the castor oil industry.