Canola oil refers to a vegetable oil which is acquired from a bright yellow flower of rapeseed. Its emergence can be accredited to the rising need of a cost-effective and healthy oil, particularly in the food industry. This is due to the fact that, in comparison with other oils, canola oil encompasses a significant amount of monosaturated fats. Moreover, canola oil is regarded as a great source of biodiesel. A new research report by IMARC Group, titled “Canola Oil Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2019-2024”, estimates that the global canola oil market reached a volume of 31.7 Million Tons in 2018. The report further projects the market to reach a volume of 44.4 Million Tons by 2024, growing at a CAGR of 5.8% over the forecast period.
Global Canola Oil Market Drivers/Constraints:
- Canola oil is trans-fat free in nature and encompasses only small amounts of saturated fats. As a result, it offers various health benefits such as lowering cholesterol, boosting heart health, improving brain function and preventing type-2 diabetes. This represents a major catalyst for the growth of the global canola oil market.
- There has been an expansion in the applications of canola oil in the food industry where it is used for stir-frying, grilling, baking, sautéing, salad dressing and shortening. This is augmenting the demand for canola oil across the globe.
- Moreover, canola oil also finds applications in the non-food sector which is further proliferating the market growth. Canola oil is used for preparing plasticisers so as to provide higher velocity as well as in skincare and hair care products for imparting softening properties.
- However, excess consumption of canola oil can increase the intake of unhealthy trans-fat. Apart from this, canola oil has a higher price point in comparison with other oils. This acts as one of the vital factors which is hindering the growth of the canola oil market.
Based on application, the market has been segregated as cooking, processed foods, lubricants, personnel care, biofuels and others. Presently, cooking and processed foods exhibit a clear dominance in the market, followed by the non-food applications.
On the basis of packaging, the market has been segregated as cans, drums, bottles, pouch and others. Amongst these, drums account for the majority of the market share.
On a geographical front, Europe enjoys a leading position in the global canola oil market, on account of a strong demand in the region. Europe is followed by Asia-Pacific, North America, Middle East and Africa, and Latin America.
The market is moderately fragmented with the presence of both small as well large manufacturers who are competing in terms of prices and quality. There is a tough competition in the market which makes it difficult for small players to enter. Some of the leading players operating in the market are:
- Archer Daniels Midland
- Bunge Limited
- Cargill Inc.
- James Richardson International
- Louis Dreyfus Company
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