Canola Oil Market Size

Canola Oil Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The Canola Oil Market is expected to reach a value of $ 3,728,000 by 2024 and $ 4,772,000 by 2032. This growth will be due to a CAGR of 2.95% between 2024 and 2032. The main reasons for this growth are the increasing awareness of the health benefits of canola oil, which are its unsaturated fatty acid profile and its low content of saturated fats, which drives the demand for this product in both the food and industrial fields. Also, the technological advancements in the extraction and refining processes contribute to the growth of the market, as they improve the quality and yield of the canola oil. The trend towards vegetarian diets, and the increasing popularity of canola oil as a healthier alternative to other cooking oils, are also pushing the market. Cargill, ADM, and Bunge are the leading companies in the industry, and are constantly strengthening their positions in the market through strategic alliances and investments in sustainable agriculture.

Regional Market Size

Regional Deep Dive

Canola oil is a market whose dynamics vary in different geographical regions, influenced by local agricultural practices, consumption habits and regulatory frameworks. In North America, and especially in Canada, canola oil is a dietary staple, because of its health benefits and its versatility in cooking. In Europe, the market for canola oil is growing, especially organic and non-GMO canola oil, which is driven by consumers’ growing interest in healthy eating. In the Asia-Pacific region, growing incomes and changing eating habits are driving demand, while the Middle East and Africa are relying on imports and local production to meet their growing demand. Latin America is slowly increasing its canola oil production, thanks to favourable weather conditions and government initiatives to boost agricultural exports.

North America

• In Canada, the canola crop is still the most important. The Canola Council of Canada promotes sustainable farming and innovations in oil extraction.
• The U.S. market is experiencing a rising demand for non-GMO canola oil, and companies such as Cargill and ADM are investing in non-GMO canola seed development.
• The biodiesel industry is expected to grow and develop, with the help of the Agricultural Development Act, which supports the production of biofuel from canola oil.

Europe

• The European Union has imposed stringent regulations on genetically modified organisms, causing a great demand for organic and non-GMO canola oil. Rapeseed Oil and Flora are the most successful companies in this field.
• Cold pressing is becoming more and more popular, especially because of the growing demand for healthier oils.
• Farm to Fork also plays a role in the European market, encouraging the local procurement of canola oil.

Asia-Pacific

• A great many people in India and China are becoming more health-conscious, and this is causing a marked increase in the consumption of canola oil as a healthier alternative for cooking.
• Cargill and Bunge are expanding their activities in the region and relying on local partners to develop their distribution networks.
• The canola industry is promoted by government policy and by the Australian Oilseeds Federation, in collaboration with the research institutes, to increase the domestic production.

MEA

• The Middle East is largely dependent on imports of canola oil, especially Saudi Arabia and the United Arab Emirates. The governments of these countries are therefore examining the possibilities of establishing a local industry.
• GCC is investing in the production of canola oil to reduce dependence on imports.
• Local companies such as Al Watania and Al Ain have reacted to the demand for healthy cooking oils, and they are now marketing canola oil as a healthy cooking oil.

Latin America

• Argentina and Brazil are increasing their production of canola oil, thanks to the favourable climate and the government's support for the oil crops.
• A new generation of consumers, health-conscious, is turning to canola oil. Brands in the country are now promoting its nutritional benefits.
• In the province of the Rhineland, there are now emerging between cooperatives and food manufacturers the necessary collaborations for the supply and marketing of canola oil.

Did You Know?

“Canola oil, derived from rapeseed, was first cultivated in Canada in the seventies, and has one of the lowest percentages of saturated fat of all cooking oils.” — Canola Council of Canada

Segmental Market Size

Canola oil is currently enjoying a stable growth period, driven by the rising demand for healthier cooking oils. This is mainly due to the increasing awareness of the health benefits of canola oil, such as its low saturated fat content and high content of omega-3 fatty acids. In addition, the use of healthier cooking oils is encouraged by legislation, particularly in regions such as North America and Europe, where consumers are becoming more health-conscious.

At present, the introduction of canola oil is in its mature stage. The market is dominated by the giants Cargill and Archer Daniels Midland. Their main application is in the food industry, for cooking and baking, where they are valued for their neutral taste and high smoke point. Plant-based diets and the demand for sustainable products are driving the development of canola oil. Also, technological advances in extraction and genetically improved canola crops are determining the development of this market, ensuring higher yields and better quality.

Future Outlook

From 2024 to 2032, the canola oil market is expected to increase from a volume of $ 0372 million to $ 0472 billion, resulting in a CAGR of 2.95%. Its growth is due to the increasing awareness of consumers of the beneficial properties of canola oil, its good fatty acid profile and the high content of omega-3 fatty acids. In view of the growing demand for saturated fat alternatives, the canola oil market is expected to increase its share of the cooking oil market and achieve a penetration rate of about 15% of households and food service establishments by 2032.

In the future, the canola industry will be benefited by the development of technological innovations, such as improved seed genetics and sustainable farming practices, which will increase yields and reduce the impact on the environment. Moreover, the use of biofuels and the development of sustainable agriculture should continue to increase the demand for canola oil for both food and non-food purposes. The growth of the plant-based diet and the increasing popularity of canola oil in the food industry will also contribute to the growth of the market. It will be up to the industry to remain agile to take advantage of these trends and adapt to changing consumer tastes.