Global Canola Oil Market - 2023-2030

Overview:

Global Canola Oil Market reached US$ 33.2 billion in 2022 and is expected to reach US$ 43.7 billion by 2030, growing with a CAGR of 3.5% during the forecast period 2023-2030.

Due to the composition of fatty acids, canola oil is regarded as one of the healthiest options for cooking. About 60% of it is oleic acid, 20% is linoleic acid, and just under 10% is alpha linoleic acid. Additionally, compared to sunflower (12%), it has the least amount of saturated fatty acids (7% or less) when compared to the other vegetable oils. This oil can be used extensively in many different food preparations because of its special properties. Additionally, it has a sizable market share globally and is increasingly influencing the foodservice and food processing industries..

One of the major factors driving the growth of the global canola oil market is the rising prevalence of cardiovascular diseases, which coincides with an increase in personal health consciousness. Canola oil is increasingly used as a cooking oil and salad dressing because it contains a high amount of oleic acid, which helps to lower the body's cholesterol levels. Furthermore, because of its anti-aging qualities, which help to lessen fine lines, wrinkles, and blemishes, it is used in the personal care and cosmetics industries.

Aside from this, the residue left over after canola oil production contains a lot of amino acids and very few glucosinolates. As a result, it is used as livestock feed to give vitamins, minerals, and fibre to the animals, which is expected to support market growth in the years to come. According to "United States Department for Agriculture," the total production of canola oil increased by 2.18% to 6.55 MMT from 6.41 MMT in the years 2022-2023. It is also widely used in the production of personal care products, industrial lubricants, and other products due to its health-promoting qualities.

Dynamics:

Increasing Use of Canola Oil in Traditional Food Processing

One of the most well-known and third-most popular cooking oils worldwide is canola oil. It is well known for having a high concentration of polyunsaturated fatty acids, in particular, which gives it great nutritional value. Furthermore, there is mounting evidence that an unsaturated fatty acid-rich diet has many positive effects on health. Nine additional functional components, including Vitamin E, flavonoids, phospholipids, sterols, and others, are present in canola oil in addition to these unsaturated fats and have a variety of health-promoting qualities. As a result, many restaurant owners are attempting to use canola oil in their cooking, which will accelerate the market's growth.

For instance, Lucky Lee's, a brand-new Chinese-American restaurant in Manhattan, opened a "clean eating" restaurant in April 2019 for its customers who have dietary restrictions. The restaurant places a strong emphasis on using canola oil in place of olive oil and eating organic food without additives. Additionally, PepsiCo Australia announced in November 2019 that some of its snack brands, including Doritos, Twisties, Burger Rings, and Cheetos, would switch to Australian canola oil in their cooking. Many of their products now contain about 86% less saturated fat thanks to the use of this oil. As a result, such occurrences will encourage the industry's growth as a whole in the years to come.

Strong Focus on Canola Oil Production Will Aid in Increasing Profit

One of the most popular market-ready substitutes for unhealthy oils, canola oil has been grown extensively in India for almost 3,000 years and in Europe since the 13th century. The demand for using such oils in numerous food preparations has increased significantly as a result of the rise in the number of consumers who are concerned about their diets. Canola oil is produced on about 20 million acres of Canadian farmland each year, mostly in the western provinces of Ontario, Quebec, Alberta, and other places. The market is also anticipated to grow rapidly as a result of the increased demand for healthy fats, which encourages production. As a result, the major players are also making investments in the production of premium oils that are additive-free and organic.

Increasing Production of Other Varieties of Oils and Lack of Awareness

The strong production of other types of oils, which prevents canola oil from being used widely on a global scale, is one of the main obstacles the canola oil market must overcome. Due to their low cost and wide availability, the production of various oil varieties is on the rise. This poses a significant challenge to the expansion of this market. Palm oil production increased dramatically in comparison to canola-based oil, reaching 77.22 MMT (United States Department of Agriculture) in the years 2021-2022. Additionally, the major players are concentrating on producing oils with higher profit margins, like soybean and olive oil, which inhibits their growth. In addition, a lack of consumer adoption of using the oil and a lack of consumer awareness of the oil's health benefits hinder market growth.

Segment Analysis:

The global canola oil market is segmented based on type, packaging, distribution channel, application and region.

Due to its Increasing Use in the Preparation of a Variety of Dishes, Food Processing Holds the Largest Share.

By producing the most revenue in 2022, the market's food processing segment held a dominant position. Since canola oil is used in a variety of processed food preparations all over the world, this sector continues to be one of the most popular end-use markets for the oil. Canola oil has gained popularity in recent years as a pure, natural product that is produced without the use of preservatives or dissolvents. As a result, it serves as a functional ingredient in the creation of a variety of products, including salad, tartar sauce, dressings, mayonnaise, and cream cheese spreads. Canola oil is suitable for a variety of cooking techniques, including frying, baking, sauteing, and salad dressings. It also has a neutral flavour and a high smoke point. Due to its adaptability, it can be used in a variety of food products.

Geographical Penetration:

One of the Biggest Regions for Canola Oil Production and Consumption is Asia Pacific

Asia-Pacific has traditionally dominated the global market for canola oil, and its importance has only increased. Many consumers in this region cook with canola oil. Its expansion is also aided by the significant presence of numerous food processing businesses in China and India. Additionally, it is anticipated that rising disposable income and consumer awareness of healthy lifestyles, particularly in developing countries like China and India, will support market expansion. A growing middle-class population is a result of the area's significant economic growth.

East Asian, South Asian, and other culinary traditions are all represented in the Asia-Pacific region. Due to its mild flavour, canola oil is a versatile option for frying and cooking in these regions because it pairs well with a variety of cuisines. Government health initiatives and recommendations encourage the use of healthier cooking oils, such as canola oil, in some countries in the Asia-Pacific region, which further fuels market expansion. Some countries in the Asia-Pacific region produce canola oil and have started exporting it to other countries, which has helped the canola oil market expand both domestically and abroad.

COVID-19 Impact Analysis:

The COVID-19 pandemic had minimal effects on demand and production on the global market. Due to concerns about food safety, there has been a noticeable rise in the demand for edible oils with low fat contents in recent years. Additionally, the rise in illnesses during the pandemic, such as cardiovascular problems and digestive problems, caused many consumers to place a higher priority on their health. Consumers who are concerned with their health are more likely to incorporate canola oil into their daily diet because it contains a lot of unsaturated fats, which support a healthy lifestyle. The production of canola oil increased by 3.70% (29.13 MMT), according to the "United States Department of Agriculture," report for the 2020-21 period.

Russia-Ukraine War Impact Analysis

Along with the 25% that comes from Russia, the war in Ukraine supplies nearly half of the world's supply of sunflower oil. This has disrupted shipments and driven up the price of cooking oil. The war had disrupted vital grain shipments from Russia and Ukraine, setting a strain on the world's supply of fertilizer, and putting the food supply in particular danger. In Middle Eastern, African, and some Asian countries where millions rely on subsidised bread and cheap noodles, the loss of affordable supplies of wheat, barley, and other grains raises the possibility of food shortages and political instability. According to the U.N. Food and Agriculture Organisation, the price of vegetable oil reached a record high in February 2022 and then rose by an additional 23% in March.

Vegetable oils are highly traded; imports account for about 40% of global consumption, which is significant when compared to other commodities, such as grains, where this percentage is less than 20%. As a result, compared to cereals, which are less traded and in which many countries are generally self-sufficient, the majority of countries are more vulnerable to vegetable oil export shocks. Between 2019 and 2021, palm oil (58%), soybean oil (14%), sunflower oil (13%), and canola oil (7%) together make up 92% of the vegetable oils traded on global markets. Olive oil, cottonseed oil, peanut oil, safflower oil, and palm kernel oil are just a few of the numerous, locally significant oils that make up the remaining 8%. Despite an 8% increase in planted area, Canadian canola production for 2021-2022 decreased 35% from the previous year. Canola exports from Canada are predicted to decline by 50% as a result, and canola oil exports will decrease by 20% year over year.

By Type

• Processed
• Virgin

By Packaging

• Cans
• Drums
• Bottles
• Pouches
• Others

By Distribution Channel

• Supermarkets and Hypermarkets
• Convenience Stores
• E-Commerce
• Others

By Application

• Food Processing
• Foodservice
• Households
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico

• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe

• South America
  • Brazil
  • Argentina
  • Rest of South America

• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific

• Middle East and Africa

Key Developments

• In April, 2023, the U.S. company Cargill Incorporated revealed its intentions to upgrade and expand its oilseed crushing facilities in Newcastle, Narrabri, and Footscray with an estimated investment of USD 50 million. With this investment, the business has been able to meet the rising demand from customers for canola oil that has been enriched with omega-3 and omega-6 fatty acids as well as cottonseed meal and oil.
• In April, 2023, the opening of new production facilities is part of the Louis Dreyfus Company's plans for growth. By 2025, the facility's annual crushing capacity will have doubled to about 2 million tonnes.
• In March, 2023, a partnership was formed between Corteva Agriscience Inc., Bunge, and Chevron U.S. to develop winter canola hybrids, which are used to produce plant-based oil with a lower carbon profile. The company's profit has increased as a result, which will support its future growth.

Competitive Landscape

The major global 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 and Wilmar International Inc

Why Purchase the Report?

• To visualize the global canola oil market segmentation based on type, packaging, distribution channel, application and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of canola oil market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global canola oil market report would provide approximately 69 tables, 70 figures and 186 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies