Entering the European market for sesame oil for food

What is the most interesting channel for you?

Be flexible in who you choose to work with. You can start by approaching oil mills and importers and build on their experience. If you produce toasted sesame oil, you can also target Asian food buyers. By offering a consistent and reliable supply, you can try building long-term partnerships with known oil brands. The most challenging will be selling your own sesame oil brand in Europe. Brand marketing takes a lot of investment – this market is currently dominated by European and a few Asian brands.

3. What competition do you face on the European sesame oil market? 

The vegetable oil sector is very competitive, with lots of domestic oil milling and processing activities. But for a specialty such as sesame oil, different countries are filling some gaps in the European demand. Important to note: the level of potential or future competition in sesame oil may be just as high as the actual competition. 

Which countries are you competing with?

Mexico is the main supplier to Europe, followed by a number of Asian countries. The largest sesame oil producers are China, Myanmar, India and Nigeria. However, looking at the sesame production in Africa, countries like Sudan, Tanzania, Nigeria, South Sudan and Uganda also have potential to enter the sesame oil market.

Source: ITC Trade Map (2024)

Mexico: Europe’s main supplier

Mexico has established a strong position in the sesame oil sector in Europe. Their main exports come from the Mexican state of Jalisco. There are several well-developed enterprises with modern infrastructure and longtime experience in processing, like Sesajal and Dipasa. This has enabled Mexico to build a good reputation with European buyers. 

The sesame oil industry increased its international sales by 60% over 2018-2023. According to the Mexican Ministry of Economy, trade was valued at US$69 million in 2023 (see figure 11). A large part of this growth was realised by the European demand, which reached €30.9 million in 2023 (see figure 10). The main market for Mexican sesame oil remains the United States. Because Mexico has such a big market nearby, it is easier for other supply countries to compete on the European market.

Figure 11: Nett annual international trade of sesame oil according to customs data,
in US$ million

Source: Ministry of Economy, Mexico (2024)

China: Number one sesame oil producer

China is the biggest producer, and possibly also the largest consumer, of sesame oil. The last known production figure (Faostat) was 268 thousand tonnes in 2021. Besides having a strong domestic demand, China is also the second-largest supplier of sesame oil to Europe after Mexico.

Enormous volumes of sesame seeds are imported to China. With an import volume of around 1 million tonnes annually, China is responsible for nearly half of the global sesame import. Another 435 thousand tonnes are being produced in the country. The scale of China’s operation makes it a competitive source for sesame oil production.

Singapore: Marketing sesame oil brands

Singapore does not have the same production capacity as China, but it is among Europe’s main suppliers of sesame oil. 

Singapore seems to play a role in trading and branding sesame oil. There is a combined import volume of 3.2 thousand tonnes from Japan, China, Malaysia and India. A similar volume is exported, including to European buyers in the UK, Netherlands and France. Unlike China and Malaysia, Singapore has a free trade agreement with the EU, which allows them to export with 0% custom duties.

Surprisingly, in the trade statistics the trade is mainly documented as refined sesame oil, while the oil brands mentioned above mainly market pure toasted sesame oil. 

India: Sesame oil commercialists 

Sesame oil is a popular product in India. India is the largest sesame producer after Sudan, and one of the principal producers of sesame oil. There is a growing import from Europe that reached a value of €5.5 million in 2023. There is import to the Netherlands, France, the UK and Italy, but India’s main trade partners are the USA and Mexico.

Sesame oil producers in India generally use a higher-temperature extraction method. This amber-coloured sesame oil is known as gingelly oil. Under this name it is a niche product in Europe, and very attractive for Indian food enthusiasts. 

Indian sesame oil manufacturers are notably putting a lot of effort into commerce. Companies like B.N. Exports Private Ltd. and Idhayam use online shops or platforms such as Amazon to reach potential consumers directly. 

Other upcoming competitors: Myanmar and Africa

Europe has no official or direct import of sesame oil from Myanmar, but the country is worth mentioning as a potential competitor. Myanmar is the world’s second largest producer of sesame oil (131 thousand tonnes) and the third largest producer of sesame seeds (761 thousand tonnes in 2022). Oil extraction technology is poorly developed, and most sesame oil is produced on a small scale for local consumption. The current export goes to other Asian countries, mainly China.

The European import of sesame oil from the African continent is still small. Considering the scale of sesame production and the potential for organic farming, several African countries have the opportunity to position themselves as organic sesame oil suppliers. European buyers recognise the production capacity of sesame in Africa, but only few companies seem to have succeeded tapping into the sesame oil market.

Sudan is the world’s largest producer of sesame seeds. Other African countries like Tanzania, Nigeria, South Sudan, Ethiopia and Uganda are also among the top-10 producers. The sesame oil production in these countries is much lower than that of China, Myanmar and India. At the same time, organic import data shows that Burkina Faso and Kenya are the main suppliers of organic sesame oil to Europe after Mexico. 

Burkina Faso only produced 534 tonnes of sesame oil, according to the latest Faostat data in 2021. In the same year, the EU imported 353 tonnes of organic sesame oil from there. The EU import of organic sesame oil is gradually growing, supported by integrated companies like Olvea. Other countries could also compete through this type of supply chain integration.

Source: Faostat (2024) (*Ethiopia not included; sesame oil production unknown)

Source: ITC Trade Map (2024)

Which companies are you competing with?

The companies you compete with include specialised producers of sesame oil, multinational commodity suppliers and foreign brands. Despite the potential competition, there is room for differentiation or specialisation. 

Sesajal: specialised in sesame products

The Mexican company Sesajal has developed products derived from oilseeds grown in Mexico. Among their specialisation is a variety of organic, virgin, toasted and flavoured sesame oil for the national and international market. For the local market they have their own brands, but their investment in innovative technology makes them competitive at an international level. Besides sesame oil, Sesajal is also one of the biggest tahini suppliers to Europe. 

The company has its own sustainability programme, in which they give attention to the environment, their workers and the community. Initiatives like these are good for building a positive reputation in Europe.

Wilmar: A sesame/vegetable oil giant

Based in Singapore, Wilmar is one of the biggest multinationals in tropical oils. They are mainly active in Asia, but their presence extends to Europe and Africa with over 1,000 manufacturing plants worldwide. In Europe, Wilmar is the largest refiner of tropical oils. Market coverage, size and capital power are big advantages in the oil industry. This also helps to streamline certifications: Wilmar works with FSSC22000 for food safety and ISO14001 for environmental management, among others.

With large-scale operations, this company competes on different levels, from processing to consumer brands. In Europe you can expect competition as well. However, sesame oil remains a specialty oil and the main focus of Wilmar is the Asian market. Specialisation in smaller markets and specific products is a way to compete with these commodity multinationals.

Lee Kum Kee: The international brand from China

One of the successful sesame oil brands is Lee Kum Kee from China, selling their oil to over 100 countries. The company promotes Chinese cuisine worldwide. They provide a multitude of cooking tips and recipes. Being a traditional Asian brand makes them popular in the ethnic food channels of Europe.

Which products are you competing with? 

Sesame oil is a specialty in Europe. It is a popular culinary oil, especially in Asian cuisine. For flavouring, sesame is preferred over many other oils. For functional purposes there is more competition from other vegetable oils.

Finishing or flavouring oil

For Asian food, toasted sesame oil is the preferred flavour-maker. Toasted sesame oil is ideal as a finishing oil for noodles or salads. As an ingredient, sesame oil is ideal for use in marinades, salads, soups or sauces. Olive oil and butter are also popular ingredients for sauces. Overall, one of the main oils for flavouring in Europe is virgin or extra virgin olive oil, especially in the Mediterranean region. Other oils that may compete with sesame oil are walnut oil, avocado oil and flavoured oils such as truffle-flavoured olive oil and garlic-infused sunflower oil.

Cooking oil

Virgin sesame oil can be used for sautéing and frying. But for high-temperature frying and stir-frying, oils tend to be refined. This is where sesame oil loses some of its competitive advantage because the flavour becomes more neutral. In Europe, popular oils for frying are refined olive oil, sunflower oil and rapeseed oil (canola). Groundnut oil is a popular frying oil for Asian dishes instead of sesame because of its high smoking temperature. Alternatives for high-temperature cooking are ghee or special frying products that contain mixtures of oils, including soybean oil and palm oil.

Industrial ingredient

The food industry often uses other oils that are cheaper than sesame oil. As a functional oil, sesame oil has a lot of competitors. However, you can find some volumes of highly refined sesame oil in skin or hair cosmetic products and in pharmaceutical formulations of lipophilic drugs, injectables and syrups.

As a healthy oil

Sesame has some health benefits, or at least it is sometimes promoted as such. Sesame oil contains the antioxidants sesamol and sesaminol and has anti-inflammatory properties. In the healthy oil segment you can expect competition from products like coconut, linseed, avocado and chia seed oils.

4. What are the prices of sesame oil on the European market? 

The prices for sesame oil have increased in recent years (2022-2023). This is mainly due to the higher costs of sesame seeds and recently also due to high transport costs because of conflicts in the Suez Canal. The average import price in Europe was around €5.50 per litre in 2023. The trade price difference between crude sesame oil and processed or refined oil is around €1 per kg. 

The margins in the supply chain vary greatly. Quality, type of process, brand and package size have a major influence on the final consumer price. Figure 15 provides only an indication of how margins are divided. It is safe to say that the costs are roughly divided into one-third in origin and two-thirds in destination. At the end of the supply chain the consumer may pay €15 per kg for a private label bottle (250ml), or €25 per kg for a branded label. For organic sesame oil the price can be higher. The larger the packaging, the lower the price. For example, the wholesaler Oliemeesters sells 190kg drums of organic and refined sesame oil for €9 per kg (price level June 2024).

Figure 14: Calculated import prices in Europe

Source: ITC Trade Map, calculations by ICI Business (2024)

Source: Industry sources, ITC Trade Map, calculations by ICI Business (2024)

ICI Business carried out this study on behalf of CBI.

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