Canola Oil Market Size (2024 – 2030)

The Canola Oil Market was valued at USD 36.14 billion in 2023. Over the forecast period of 2024-2030, it is projected to reach USD 47.21 billion by 2030, growing at a CAGR of 3.89%.

Key Market Insights:

Canola oil, derived from rapeseed, is a consumable oil with a distinctive golden or brownish hue and a specific pungent aroma. The presence of a certain quantity of mustard meal contributes to this scent; however, the superior variety of rapeseed is devoid of this particular substance.

Canola Oil Market Drivers:

Increasing health awareness drives the market.

The burgeoning awareness surrounding health and wellness within the populace emerges as a key driver fueling market expansion. Additionally, the increasing inclination of individuals towards food products aligning with their dietary objectives is a contributing factor. Canola oil, recognized for its low saturated fat content, is acknowledged as a heart-healthy choice. It boasts a significant proportion of monounsaturated and polyunsaturated fats, including omega-3 fatty acids. Furthermore, the oil's elevated smoking point and neutral taste render it a versatile ingredient in the culinary domain. Its adaptability extends to various cooking methods, such as frying, sautéing, and baking, without compromising stability or introducing undesirable flavors to the prepared dishes. Concurrently, the surging demand for non-genetically modified organisms (non-GMO) and organic variants of canola oil is reinforcing market growth. These products resonate with consumers seeking natural and sustainable alternatives, thereby propelling market expansion. Moreover, the increasing prevalence of cardiovascular diseases stemming from unhealthy dietary practices is fostering a heightened demand for canola oil.

Canola Oil Market Restraints and Challenges:

The market's burgeoning momentum encounters obstacles due to the increased production of alternative oil varieties and a lack of awareness.

A significant constraint faced by the rapeseed oil market is the prolific production of other oil variants, hindering its widespread global adoption. The heightened production of diverse oils like olive oil and palm oil, driven by their affordability and widespread availability, presents a formidable challenge to the expansion of the rapeseed oil market.

Canola Oil Market Opportunities:

The use of Canola Oil in Traditional Food Processing creates opportunities in the market.

Canola oil stands out as one of the globally recognized and third-most popular cooking oils. Its distinction lies in the notable concentration of polyunsaturated fatty acids, particularly, providing it with significant nutritional value. Moreover, a growing body of evidence underscores the manifold positive health effects associated with a diet rich in unsaturated fatty acids. Beyond these essential fats, canola oil encompasses nine additional functional components, including Vitamin E, flavonoids, phospholipids, and sterols, among others, each contributing diverse health-promoting qualities. Consequently, there is a notable trend among restaurant proprietors to incorporate canola oil into their culinary practices, anticipating an acceleration in market growth.

An illustrative example of this trend is Lucky Lee's, a recently established Chinese-American restaurant in Manhattan. This switch resulted in a substantial reduction of approximately 86% in saturated fat content across many of their products. Such instances are poised to stimulate the overall growth of the industry in the foreseeable future.

CANOLA OIL MARKET REPORT COVERAGE:

Canola Oil Market Segmentation: By Application

• Cooking

• Processed Foods

• Lubricants

• Personal Care

• Biofuels

• Others

The cooking segment commands a substantial portion of the market share, with canola oil being widely embraced for its application in culinary endeavors. Its elevated smoking point and neutral flavor position it as a preferred choice for various cooking methods, including frying, sautéing, and baking. Renowned for its low saturated fat content and heart-healthy attributes, canola oil resonates well with health-conscious consumers, solidifying its status as a popular option. The versatility it offers across diverse culinary applications establishes it as a staple in kitchens worldwide. Within the food processing industry, canola oil assumes a pivotal role as a valuable ingredient in the formulation of products such as snacks, salad dressings, and margarine. Its neutral taste seamlessly integrates with other ingredients, and its health benefits align with the growing demand for healthier processed foods. Canola oil's lubricating properties extend its utility to industrial and mechanical applications, presenting itself as a biodegradable and environmentally friendly substitute for traditional petroleum-based lubricants. This is particularly pertinent in sectors like agriculture and automotive industries.

In the realm of personal care products, including cosmetics, skincare, and haircare, canola oil finds applications owing to its moisturizing and skin-nourishing attributes. It serves as a constituent in various beauty formulations, contributing to its presence in the personal care sector.

Canola oil further contributes to the biofuels industry as a feedstock for biodiesel production. Undergoing a conversion process into biodiesel, it emerges as a renewable and sustainable energy source, playing a role in reducing greenhouse gas emissions in the transportation sector.

Canola Oil Market Segmentation: By Packaging

• Cans

• Drums

• Bottles

• Pouches

• Others

The market is predominantly led by drums, holding the largest share. Canola oil packaged in cans is a prevalent choice, especially for bulk and commercial purposes. These cans come in various sizes, ranging from small to industrial containers, catering to both household and food service applications. Cans offer effective protection against light and air, ensuring the preservation of oil quality and shelf life. Their popularity stems from the convenience they provide, coupled with their recyclability, making them an environmentally friendly packaging option.

Pouches represent a flexible and lightweight packaging alternative gaining traction in the canola oil market. Particularly favored by consumers seeking single-use or travel-sized portions of canola oil, pouches are convenient, easy to store, and portable, catering to on-the-go usage. Furthermore, their resealable feature aids in maintaining oil quality and preventing spills.

Canola Oil Market Segmentation- by Region

• North America

• Europe

• Asia Pacific

• South America

• Middle East & Africa

Europe asserts a notable dominance, holding the largest share of the canola oil market. The adoption of canola oil is on the rise in European countries, such as Germany and France, driven by increasing awareness of its health benefits, particularly its heart-healthy attributes and versatile applications in cooking. Regulatory support for sustainable agriculture and transparent labeling further bolsters the market for certified sustainable canola oil. The growing preference for non-genetically modified organisms (GMO) and organic options diversifies product offerings. With a continual surge in health consciousness, the European market is anticipated to sustain its upward trajectory, aligning with the trend of choosing healthier cooking oils.

In the Asia Pacific region, encompassing populous countries like China and India, canola oil holds significant sway in the global market. The surge in health consciousness and a quest for healthier dietary options drive increased consumption in these nations. Rapid urbanization, evolving lifestyles, and versatile culinary applications contribute to the escalating demand. Asia Pacific's canola oil market is characterized by a blend of domestic production and imports, with consumers favoring this heart-healthy oil for its neutral taste and high smoking point. As the region continues its economic growth, the canola oil market is poised for expansion, particularly in emerging markets.

North America, notably Canada, emerges as a key global producer and exporter of canola oil. The vast canola fields spanning the Canadian prairies solidify the nation's position as a major supplier. The North American market experiences sustained demand for canola oil in households and the food processing industry. Health-conscious consumers value its low saturated fat content and suitability for diverse cooking methods. The region's growing emphasis on sustainable and responsible sourcing practices aligns with the trend towards environmentally friendly products. A continued focus on quality and innovation ensures a robust presence for canola oil in both domestic and international markets.

In the Middle East and Africa, the canola oil market witnesses growth as consumers shift towards healthier cooking alternatives. Canola oil is gradually replacing traditional cooking oils, propelled by heightened health awareness and urbanization. The region presents significant investment opportunities, with the potential for local production to meet rising demand. Canola oil's mild flavor and high smoking point make it well-suited for the diverse cuisines of the region. As dietary preferences evolve and health takes precedence, the Middle East and Africa are emerging markets in the canola oil industry.

COVID-19 Pandemic: Impact Analysis

The global market experienced minimal impacts from the COVID-19 pandemic in terms of both demand and production. In recent years, there has been a discernible increase in the demand for edible oils with low-fat contents, primarily driven by concerns about food safety. The pandemic further intensified health-conscious behaviors among consumers, with a noticeable uptick in illnesses such as cardiovascular and digestive problems, prompting individuals to prioritize their health. Those mindful of their well-being are more inclined to include canola oil in their daily diet due to its abundant unsaturated fats, aligning with their commitment to maintaining a healthy lifestyle.

Latest Trends/ Developments:

• In May 2023, Bunge Limited and Chevron’s Renewable Energy Group Inc., a Chevron Corporation subsidiary, successfully acquired Chacraservicios S.r.l., a company based in Argentina, from the Adamant Group headquartered in Italy. This strategic move is aimed at introducing a new oil source into the global supply chains of Bunge and Chevron, addressing the escalating demand for lower-carbon renewable feedstocks.

• In May 2023, Archer Daniels Midland (ADM) Company made a notable announcement regarding the acquisition of Prairie Pulse Inc. This acquisition involves gaining ownership of a pulse crop cleaning, milling, and packaging facility situated in Vanscoy, Saskatchewan, Canada.

• In April 2023, Cargill Inc. disclosed its commitment to enhancing and expanding its oilseed crush facilities in Newcastle, Narrabri, and Footscray. This substantial investment, totaling US$50 million, is intended to meet the increasing customer demand for canola and cottonseed products.

Key Players:

These are the top 10 players in the Canola Oil Market: -

1. Cargill Inc.

2. Archer Daniels Midland (ADM) Company

3. Wilmar International Inc.

4. Arla Foods AmbA

5. Bunge Limited

6. Jivo Wellness Pvt. Ltd.

7. Associated British Foods plc.

8. The J.M. Smucker Company

9. Viterra

10. Richardson International Limited