Canola Oil Market

Market Overview:

The global canola oil market size reached 28.8 Million Tons in 2023. Looking forward, IMARC Group expects the market to reach 32.2 Million Tons by 2032, exhibiting a growth rate (CAGR) of 1.1% during 2024-2032. The rising health awareness, culinary versatility, sustainability, industrial applications like biodiesel production, and the growing trend of plant-based diets are some of the major factors propelling the industry.

Canola oil is a vegetable oil derived from the seeds of the canola plant, scientifically known as Brassica napus or Brassica rapa. It is widely used in cooking and food preparation due to its mild flavor and high smoke point. Canola oil is low in saturated fat and contains a high percentage of unsaturated fats, particularly monounsaturated and polyunsaturated fats, including omega-3 and omega-6 fatty acids. This composition makes it a heart-healthy choice, promoting good cholesterol levels and reducing the risk of cardiovascular diseases. Canola oil is versatile, and commonly used for frying, baking, sautéing, and salad dressings, making it a popular cooking oil worldwide.

The global canola oil industry is experiencing significant growth, driven by the increasing awareness of the health benefits associated with its consumption. Canola oil is renowned for its low saturated fat content and high levels of heart-healthy monounsaturated and polyunsaturated fats, making it an attractive choice for health-conscious consumers. Additionally, the growing trend of health and wellness, coupled with rising concerns about cardiovascular diseases and obesity, has led consumers to seek healthier cooking oil alternatives, further boosting the canola oil market. Moreover, the expanding food industry and changing dietary preferences, combined with the canola oil's neutral flavor and high smoke point making it suitable for a wide range of culinary applications, including frying, baking, and salad dressings, have contributed to the market's growth. Furthermore, the versatility and renewable and sustainable nature of canola oil extends its applications in biofuel production, which is bolstering the market growth.

Canola Oil Market Trends/Drivers:

Health and wellness trends

One of the primary drivers of the global canola oil industry is the increasing awareness of health-conscious consumers regarding the nutritional benefits of canola oil. Canola oil is renowned for its heart-healthy attributes, primarily due to its low saturated fat content and its composition rich in monounsaturated and polyunsaturated fats, including essential omega-3 and omega-6 fatty acids. These characteristics make it an attractive choice for individuals looking to adopt a healthier diet and reduce the risk of cardiovascular diseases. As consumers become more health-conscious and seek to make informed dietary choices, the demand for canola oil as a healthier cooking oil alternative continues to rise.

Versatility and culinary applications

Canola oil's versatility in various culinary applications is another significant driver of its market growth. With a neutral flavor profile and a high smoke point, canola oil is suitable for a wide range of cooking methods, including frying, sautéing, baking, and salad dressings. This versatility appeals to both home cooks and professional chefs, as it enhances the taste and texture of dishes while maintaining the integrity of the ingredients. In confluence with this, as consumer preferences evolve and convenience becomes paramount, the adaptability of canola oil in diverse culinary preparations has contributed to its sustained demand. This trend is particularly evident in the food service industry, where canola oil is extensively used in restaurants, fast-food chains, and catering services.

Industrial applications and sustainability

Beyond its role in the kitchen, canola oil has found applications in various industrial sectors, with sustainability playing a pivotal role. Canola oil is a renewable and sustainable resource, making it an attractive feedstock for biodiesel production. As the world continues to focus on reducing greenhouse gas emissions and transitioning to cleaner energy sources, the demand for biodiesel derived from canola oil has grown. This intersection of agriculture and energy industries has spurred investments in canola oil production, benefiting both sectors and contributing to the global market's expansion. Apart from this, canola cultivation practices, such as reduced tillage and crop rotation, align with sustainable agricultural principles, further enhancing its appeal in environmentally conscious markets.

Canola Oil Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global canola oil market report, along with forecasts at the global and regional levels for 2024-2032. Our report has categorized the market based on application and packaging.

Breakup by Application:

• Cooking
• Processed Foods
• Lubricants
• Personal Care
• Biofuels
• Others
   

Cooking dominates the market

The report has provided a detailed breakup and analysis of the market based on the application. This includes cooking, processed foods, lubricants, personal care, biofuels, and others. According to the report, cooking represented the largest segment.

The canola oil’s excellent shelf life and resistance to oxidation contribute to its popularity among consumers and food manufacturers. In line with this, its ability to retain its quality for an extended period, ensuring that culinary creations maintain their freshness and flavor is contributing to the market’s growth. Furthermore, the growing trend of plant-based and vegan diets has boosted the demand for canola oil, as it is plant-derived and fits seamlessly into these dietary preferences. Moreover, the oil's light texture and ability to blend well with other ingredients in recipes make it an ideal choice for a wide range of culinary applications, thereby bolstering the market growth. Apart from this, canola oil's neutral taste allows it to enhance the natural flavors of ingredients without overpowering them, making it a versatile and sought-after ingredient.

Breakup by Packaging:

• Cans
• Drums
• Bottles
• Pouches
• Others
   

Drums hold the largest share of the market

A detailed breakup and analysis of the market based on the packaging has also been provided in the report. This includes cans, drums, bottles, pouches, and others. According to the report, drums accounted for the largest market share.

The industrial applications of canola oil, particularly in the biodiesel production sector, necessitate the use of bulk packaging options such as drums. As industries seek to meet sustainability targets and reduce carbon emissions, canola oil's renewable and eco-friendly nature makes it an attractive choice as a biodiesel feedstock. Additionally, the food processing industry, which often requires sizable quantities of cooking oil for various applications, including frying and baking, also relies on drum packaging for efficiency and convenience, creating a favorable outlook for market expansion. Concurrent with this, the stability and long shelf life of canola oil make it a preferred choice for bulk storage and distribution, ensuring its availability for both industrial and commercial applications. Furthermore, the cost-effectiveness of bulk packaging in drums is appealing to businesses seeking economical solutions while maintaining the quality and integrity of the oil, catering to the diverse needs of various industries.

Breakup by Region:

• Asia Pacific
• North America
• Europe
• Middle East and Africa
• Latin America
   

Europe exhibits a clear dominance, accounting for the largest canola oil market share

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America, Asia Pacific, Europe, Latin America, and the Middle East and Africa. According to the report, Europe accounted for the largest market share.

The introduction of stringent regulations in Europe and consumer preferences for healthier dietary options have led to a shift away from oils with higher saturated fat content, presenting remunerative opportunities for market expansion. Moreover, canola oil, with its heart-healthy profile and lower saturated fat levels, has gained traction among European consumers, creating a positive outlook for market growth. In addition to this, the European Union's emphasis on sustainable agriculture and responsible sourcing has propelled the demand for canola oil. Concurrently, canola cultivation methods, such as reduced tillage and crop rotation, align with these sustainability objectives, making canola oil an environmentally friendly choice. Apart from this, the increasing popularity of plant-based diets and the rise of veganism in Europe have further boosted the demand for canola oil, as it is plant-derived and fits seamlessly into these dietary choices, thereby bolstering the market growth.

Competitive Landscape:

The competitive landscape of the global canola oil industry is characterized by a dynamic interplay of key players striving to gain a competitive edge in a highly diverse and evolving industry. Leading companies dominate the market, primarily due to their extensive production capacities, global reach, and diversified product portfolios. Additionally, the market is witnessing an increasing number of regional and smaller players that cater to niche markets or emphasize organic and non-GMO canola oil production. The competitive landscape is also shaped by innovations in canola oil production techniques, including low-linolenic and high-oleic canola varieties, which cater to specific consumer preferences and industrial requirements. Moreover, sustainability practices and certifications, such as Non-GMO Project Verified and organic labels, play a crucial role in differentiating products and appealing to environmentally conscious consumers.

The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Archer Daniels Midland (ADM) Company
• Bunge Limited
• Cargill Inc.
• Associated British Foods plc
• Jivo Wellness Pvt. Ltd.
• Arla Foods AmbA
• Richardson International Limited
• The J.M. Smucker Company
• Wilmar International Inc

Recent Developments:

• In May 2023, Bunge and Chevron’s Renewable Energy Group Inc., a subsidiary of Chevron Corporation, acquired Chacraservicios S.r.l., based in Argentina, from the Italian-based Adamant Group to add a new oil source in Bunge and Chevron’s global supply chains. This, in turn, is anticipated to help both companies meet the growing demand for lower carbon renewable feedstocks.
• In May 2023, ADM announced the acquisition of Prairie Pulse Inc., owners of a pulse crop cleaning, milling, and packaging facility in Vanscoy, Saskatchewan, Canada.
• In April 2023, Cargill announced an investment of US$50 million to upgrade and expand its Newcastle, Narrabri, and Footscray oilseed crush facilities to meet the rising demand from customers for canola and cottonseed products.

Canola Oil Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the canola oil market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global canola oil market.
• The study maps the leading, as well as the fastest-growing, regional markets.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the canola oil industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.