Because of its unique characteristics, safflower oil is a specialty in both its linoleic and oleic varieties. The different markets for this oil include the gift market of Japan and the health market in both the United States and Europe. Safflower oil is also used as a food ingredient in baby formulas and as a frying medium for snacks. The linoleic variety has applications in the coating industry. Safflower seed is used in the bird market, whereas safflower meal is useful to the feed industry. The Pacific Vegetable Oil Corporation has played a significant part in the modern history of the agricultural and industrial development of safflower. The Japanese market, as well as the polyunsaturated boom in the United States and Europe, created sufficient demand for the consolidation of safflower as a regular crop in California. In Mexico, safflower developed as a commodity for the internal market; with the globalization of the economy, however, the Mexican production has played an important role in the international market. The combination of dry weather and good irrigation facilities has helped California and the Northwestern coast of Mexico to become important producers of safflower, Today, these two regions supply most of the specialty market, with Australia and Argentina supplying the balance. Because of the need for identity preservation and because of safflower's unique polyunsaturated nature, safflower seed, oil, and meal require specific; handling, processing, and storage. During the past years, the demand in Japan, the largest consumer of safflower, has been decreasing significantly, which has put stress on the producers. In the future, only the very competitive producers who have optimized their production and logistics will have a share of the safflower market.
