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Canola Oil Market Size, Share & Industry Analysis, By Nature (Organic and Conventional), By Application (Food Processing, Foodservice, Households, and Others), and Regional Forecast, 2024-2032

Last Updated: May 06, 2024 | Format: PDF | Report ID: FBI102443



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The canola oil market size was valued at USD 36.09 billion in 2023 and is projected to grow from USD 37.47 billion in 2024 to USD 51.10 billion by 2032, exhibiting a CAGR of 3.95% during the forecast period.

Canola oil, also known as rapeseed oil, is produced by slightly heating the canola seeds and then crushing them later to extract the oil. They are available in different forms namely refined, unrefined, cold pressed, and also in blends. This is one of the oldest known vegetable oils and is suitable for both edible and industrial purposes. Moreover, rapeseed oil is recognized as one of the healthiest options for cooking due to its fatty acid composition. It comprises around 60% oleic acid, 20% linoleic acid, and nearly 10% alpha linoleic acid. In addition, when compared to the other vegetable oils, it has the lowest amount of saturated fatty acids (7% or less), compared to sunflower (12%). Owing to its unique properties, this oil can be widely used in various food preparations. Moreover, it is enjoying a strong market share globally and is increasingly penetrating both the food processing and foodservice industries.

The COVID-19 pandemic did not severely impact the global market in terms of demand and production. To meet the growing demand, manufacturers should focus on increasing the production of rapeseed oil. According to the “United States Department of Agriculture,” report for the 2020/21 period, the production of rapeseed oil increased by 3.70% (29.13 MMT).  However, the overall vegetable oil industry witnessed a decline in its growth in the first quarter of 2020, primarily due to disruptions in supply chain. Nevertheless, appropriate measures were taken to address these challenges and stimulate the global canola oil market share.

Canola Oil Market Trends

Growing Use of Rapeseed in the Production of Biodiesel is a Prominent Trend

Globally, rapeseed oil has emerged as one of the most preferred oil stocks for biodiesel production. Biodiesel produced from edible rapeseed crops usually gels at a lower temperature than biodiesel extracted from other feedstock. This characteristic makes it an excellent choice for fuels in colder regions. According to the research paper, “National Library of Medicine,” 2019, approximately 20% of biodiesel is produced from soybeans, wherein nearly 30% of biodiesel is composed of canola or even 100% is most common in Europe and Canada.

Canola seeds have a high oil content of around 40% oil and offer a higher oil yield per acre such as 127 to 160 gallons per acre, as compared to 48 gallons per acre for soybeans. Consequently, manufacturers are switching to more beneficial options, which is using rapeseed for producing biodiesel. Along with this, the main principle of using vegetable oil is to promote sustainable development and minimize the demand for petrochemical oil. Thus, this eco-friendly, natural alternative is capable of fulfilling the social needs of the global population without risking environmental health.

Manufacturers are launching new products in different packaging formats such as cold pressed rapeseed oil to meet the growing demand in the global market. For instance, in Europe, cold pressed rapeseed oil is sold in various exhibitions and fairs and the sales have grown in recent years.

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Canola Oil Market Growth Factors

Surging Use of Rapeseed Oil in Traditional Food Processing Augments the Market’s Potential

Rapeseed oil is one of the most well-known and third most consumed culinary oils globally. It is widely recognized for its high content of unsaturated fatty acids, particularly polyunsaturated fatty acids, which makes it of great nutritional value. Moreover, there is rising evidence that claims that a diet rich in unsaturated fatty acids offers numerous health benefits. Apart from these unsaturated fats, there are other nine functional components in rapeseed oil, such as Vitamin E, flavonoids, phospholipids, sterols, and others, which have several health-benefiting properties. Thus, many of the restaurateurs are also trying to include canola oil in their cooking routine, which will boost its market growth. For instance, in April 2019, Lucky Lee’s, a new Chinese-American restaurant in Manhattan, U.S., opened a “clean eating” restaurant for its food sensitive clients. The restaurant focuses on eating organic, avoiding the use of additives, and replacing olive oil with canola oil. In addition, in November 2019, PepsiCo Australia announced the change of its cooking oil to Australian canola oil for some of its snack brands such as Doritos, Twisties, Burger Rings, and Cheetos. By using this oil, around 86% of saturated fat has been reduced in many of their products. Thus, such instances will promote the overall industry’s growth in the coming years.

Strong Emphasis on Production of Rapeseed Oil Will Help in Generating More Profit

Rapeseed oil is one of the leading market-ready alternatives to unhealthy oils and has been widely grown in India for nearly 3,000 years and in Europe since the 13th century. Owing to the growing number of diet-conscious consumers, the demand for including such oils in a variety of food preparations has been immense. Every year, approximately 20 million acres of Canadian farmland is harvested to produce rapeseed oil, particularly in the western provinces of Ontario, Quebec, Alberta, and others. Moreover, the market is expected to witness a spike in growth due to the rising demand for high nutritional fats, which promotes production. According to the “United States Department for Agriculture,” the total production of rapeseed oil rose by 2.18% to 6.55 MMT from 6.41 MMT in the year 2021/22. Also, due to its health promoting factors, it is largely used in the production of personal care products, industrial lubricants, and others. Thus, the leading players are also investing in manufacturing high-quality oils that are organic and free of additives.

  • In May 2023, Germany-based Fraunhofer Center for Chemical-Biotechnological Processes CBP launched a pilot plant focused on the processing of rapeseed oil. The plant would provide high grade canola oil and other by products such as kernels and rapeseed hulls.


Surging Production of Other Varieties of Oils and Lack of Awareness Inhibit the Market’s Growing Momentum 

One of the major restrains faced by the rapeseed oil market is the strong production of other varieties of oils, which inhibits its large-scale adoption globally. The surging production of different variants of oils such as olive oil, palm oil, and others, owing to their easy affordability and availability, poses a strong challenge to the growth of this market. As compared to canola-based oil, palm oil witnessed a drastic rise in its production, which reached around 77.22 MMT (United States Department of Agriculture) in the year 2021/22. In addition, the key players are focusing on producing the oils that have a higher profit margin, such as olive and soybean oil, which, in turn, reduces their growth.

In addition, poor awareness regarding the health benefits of the oil as well as poor adoption rate of using this oil among consumers further impedes the market progress.

Canola Oil Market Segmentation Analysis

By Nature Analysis

Conventional is the Leading Segment Owing to its Strong Production

On the basis of nature, the market is segmented into organic and conventional. The conventional segment is leading the global market with the highest share. The demand for conventional rapeseed oil is largely growing owing to its high availability in the global marketplace. The high-cost effectiveness of conventional oil has helped this traditional product become more affordable, especially among low-income countries. This is also one of the prominent reasons for its dominance in the global market. Also, its tremendous use in producing renewable fuel, industrial pesticides, and other lubricants further fuels the segment’s growth.

Organic oil is also expected to witness a substantial growth in the forthcoming years due to the growing health benefits associated with the consumption of organic edible oils.

By Application Analysis

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Food Processing Holds Maximum Share due to its Rising Usage in Preparing Variety of Dishes 

Based on application, the market is divided into food processing, foodservice, households, and others. Some professional chefs prefer to use canola oil for cooking dishes which require a neutral flavor and high smoke point. The food processing segment held the prominent position in the market by generating the highest revenue in 2023. This segment remains one of the most popular end-use sectors for rapeseed oil, as this oil is utilized in a variety of processed food preparations globally. Over the past few years, this oil has been considered a clean and natural product that is made without the use of any preservatives or dissolving agents. Thus, it is used as a functional ingredient in the preparation of various products ranging from mayonnaise, cream cheese spreads, tartar sauce, and salad dressings among others.

The foodservice segment is gaining significant traction in the global culinary industry as the modern population seeks healthy eating alternatives. Nowadays, individuals are adopting safe eating habits at home or outside, which, in turn, contributes to its usage. In addition, the easy availability of oil in different pack sizes, such as drums, bottles, and pouches, also increases its affordability on a globe scale.


Asia Pacific Canola Oil Market Size, 2023 (USD Billion)

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Asia Pacific is one of the largest producers and consumers of canola oil, and the regional market was valued at USD 20.17 billion in 2022. In this region, a large number of consumers use rapeseed oil in their food. Also, the strong presence of a large number of food processing companies in China and India contributes to its growth. Moreover, the growing consumer awareness about healthy lifestyles and rising disposable income, especially in developing countries, such as China and India, are anticipated to favor the market growth.

Europe holds the second position in the market, as individuals are highly concerned about their health and nutritional intake, irrespective of the high prices. Moreover, it has been observed that the demand for canola oil is strongly growing in the biodiesel sector as well as the food processing industries. Thus, it is anticipated that Europe will hold a strong foothold across the market in the future.

North America is also witnessing substantial growth in this market, which is expected to proliferate in the near term. Canada and the U.S. are major consumers in the region with Canada being one of the key producers of rapeseed oil in North America. The improved living standards, augmented purchasing power, strong health benefits of canola oil, and large presence of the majority of food processing units in the U.S. will further propel its growth. Moreover, the rising acceptance of natural oilseeds in the daily routine as well as their enormous use in personal care products will have a positive impact on the market growth.

The market in South America and the Middle East & Africa is growing at a slow pace and is anticipated to accelerate in the upcoming years. Factors such as the expanding presence of giant key players in these markets, rising awareness about the role of this oil, and the strong production in the region will likely escalate its growth.

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List of Key Companies in Canola Oil Market

Key Players are Launching Innovative Products to Attract Huge Consumer Base

Some of the prominent players operating in the market include Cargill Incorporated, Louis Dreyfus Company, and Archer Daniels Midland Company, among others. Companies are placing significant emphasis on expanding their customer base through partnerships and joint ventures with other businesses. Furthermore, they are strongly committed to introducing novel and fortified oils that contain vital nutrients, such as cold pressed canola oil, thereby contributing to the overall global canola oil market growth.

List of Key Players Profiled:


  • April 2023: Cargill Incorporated, a U.S.-based company, announced its plans for investment of around USD 50 million to upgrade and expand their oilseed crushing facilities in Newcastle, Narrabri, and Footscray. This investment has helped the company cater to the growing demands of customers for omega-3 and omega-6 enriched rapeseed oil and cottonseed byproducts such as oil and meal.

  • April 2023: Louis Dreyfus Company, a global crop trader, disclosed its plans for expansion by opening new production plants, which will double the facility’s annual crushing capacity to around 2 million tons by the year 2025.

  • March 2023: Corteva Agriscience Inc., Bunge, and Chevron U.S. entered into a collaboration to produce winter canola hybrids, which are used to produce plant-based oil with a lower carbon profile. This has helped the company boost its profit, which will further strengthen its growth in the future.

  • April 2021: Cargill Incorporated, based in the U.S., announced the opening of its new canola processing facility in Regina to fulfill the rising demands for canola products. The company has invested around USD 350 million to build a similar plant design to that of the Camrose facility, with plans to be operational by 2024.

  • January 2020: Bunge India Private Limited, one of the leading agribusinesses, announced the relaunch of Hudson Canola Oil across the market. With its high percentage of healthy fats, high smoke point, non-greasy texture, and high smoke point, Hudson oil is one of the most reliable options for cooking.


An Infographic Representation of Rapeseed Oil Market

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The global canola oil market research report includes quantitative and qualitative insights into the market. The report also provides market overview at the regional level. Further, it offers a detailed global market analysis and growth rate for all possible market segments. Various key insights presented in the report are an overview of related markets, competitive landscape, recent industry developments such as mergers & acquisitions, regulatory scenario in critical countries, and market trends.

Report Scope & Segmentation



Study Period


Base Year


Estimated Year


Forecast Period


Historical Period



Value (USD Billion)

Growth Rate

CAGR of 3.95% from 2024 to 2032


By Nature, Application, and Region


By Nature

  • Organic

  • Conventional

By Application

  • Food Processing

  • Foodservice  

  • Households

  • Others

By Geography

  • North America (By Nature, Application, and Country)

    • U.S. (By Nature)

    • Canada (By Nature)

    • Mexico (By Nature)

  • Europe (By Nature, Application, and Country)

    • Germany (By Nature)

    • France (By Nature)

    • Belgium (By Nature)

    • U.K. (By Nature)

    • Rest of Europe (By Nature)

  • Asia Pacific (By Nature, Application, and Country)

    • China (By Nature)

    • India (By Nature)

    • Japan (By Nature)

    • Australia (By Nature)

    • Rest of Asia Pacific (By Nature)

  • South America (By Nature, Application, and Country)

    • Brazil (By Nature)

    • Argentina (By Nature)

    • Chile (By Nature)

    • Rest of South America (By Nature)

  • Middle East & Africa (By Nature, Application, and Country)

    • South Africa (By Nature)

    • UAE (By Nature)

    • Israel (By Nature)

    • Rest of Middle East & Africa (By Nature)

Frequently Asked Questions

Fortune Business Insights says that the global market size was valued at USD 36.09 billion in 2023.

The market is projected to grow at a CAGR of 3.95% during the forecast period (2024-2032).

The conventional segment is expected to be the leading segment in the global market.

Surging rapeseed oil demand in traditional food processing and strong emphasis on the production of the oil drive market growth.

Cargill Incorporated, Louis Dreyfus Company, and Archer Daniels Midland Company are a few of the top players in the global market.

China is expected to hold the highest market share throughout the forecast period.

Surging production of other varieties of oil and lack of awareness can result in impeding the market growth.

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