Rapeseed Oil Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Rapeseed Oil Market is Segmented By Type(Processed, Virgin), By Application (Food Processing, Bio Fuel, Cosmetics and Personal Care, Others), By Distribution Channel (Supermarkets And Hypermarkets, Independent Retail Stores, Online Sales Channels, Other), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Report Overview

The Global Rapeseed Oil Market report analyzes the market shares, size, recent trends, future market outlook, and competitive intelligence. The demand for rapeseed oil is increasing due to its low saturated fat content, making it a healthy alternative to other cooking oils. The market is witnessing a surge in demand from the food processing industry, as well as the biodiesel industry in the Asia Pacific which is spiking. The competitive rivalry intensifies with major players such as Cargill, Archer Daniels Midland Company, Bunge Limited, and others actively operating in the market.

Rapeseed oil, also known as colza or canola oil is extracted from the black-red colored seeds of the rape plants.  This oil is pure, so it does not contain any protein or carbohydrate. It is a good source of healthy fat and fat-soluble vitamin. It is a great source of vitamin E, which is helpful for the eye and skin. This oil contains less saturated fat and is high in unsaturated fat, which is helpful for better health. Rapeseed oil is also high in omega-6 fats, which support overall health when consumed in moderate amounts.

Rapeseed Oil Market Scope

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Rapeseed Oil Market Dynamics

Increasing awareness about rapeseed oil health benefits

Rapeseed oil has various health benefits people are more health-conscious after the pandemic, and it also increases disposable income of people and drives the growth of the rapeseed oil market. Rapeseed oil is a large source of vitamin E, which plays an important role in skin and eye health and hair. This oil is a great source of omega 3 fat which provides great health benefits like it lowers body blood pressure and lowers the chance of heart attack. Rapeseed oil also promotes brain health. It enhances the permeability of brain cells and better communication between them. It is good for the respiratory system and circulatory systems of the body. It is a rich source of calcium, magnesium, and potassium, which act as an energy booster and perform a big role in the stabilization of blood sugar and digestion. Apart from the health benefits, this oil is used for personal care products like creams, lotions, and oil. Moreover, increasing usage of rapeseed oil in various industries, including food and beverages, chemicals, and biodiesel is expected to drive market growth.

COVID-19 Impact on Rapeseed Oil Market Growth

Negative impact on the global rapeseed oil market

At the initial stages of the lockdown, prices of all vegetable oils increased. Lockdown restrictions by the government closed restaurants, hotels, and cafes, which has significantly declined the demand for the rapeseed oil market across the world. Moreover, the closure of international borders affects the import-export of rapeseed oil. Also, due to the disruption in the supply chain, the unavailability of raw materials caused high oil prices and a shortage in the availability of rapeseed oil.

After the post-COVID-19 restriction recovery, the government released all the restrictions of lockdown and it boosted the supply chain of the food industry. After the COVID-19 crisis, people became more health-conscious and started adopting rapeseed oil in daily life as it contains less fatty acid fat which is the key factor driving the growth of this market.

Rapeseed Oil Market Segmentation

The processed rapeseed oil segment held the highest market revenue share of XX% in the year 2021

This dominance is attributed to the increase in adoption of the traditional processing techniques that help to extract high volumes of oils from the rapeseed. The widespread availability of processed rapeseed oil and the increase in penetration of traditional processing techniques across the globe significantly propel the growth of the processed segment. Processed rapeseed oil has various health benefits containing less saturated fatty acid, which reduces the cholesterol level of the body; hence it reduces the chances of a heart attack.

By distribution channel, the online segment is projected to be the fastest-growing segment in the forthcoming years. Online retailers and online groceries rapidly penetrating the market. The online sales channel is the fastest-growing technique in various developed and developing countries. Easy procedures of online shopping drive the growth of the market.

Rapeseed Oil Market Geographical Share

Asia Pacific is expected to dominate the global rapeseed oil market in the year 2021

The rising awareness of the health importance of rapeseed oil in APAC will facilitate the growth of the market in this region. Rapeseed contains a high amount of calcium, magnesium, and potassium, which have high importance in energy boosting. The major countries across the APAC region are adopting rapeseed oil for daily use. For instance, in 2018, the production of rapeseed oil in the Asia Pacific region increased by 3.2% 2017.  China, India, and Japan are the highest contributors to the production of rapeseed oil. China contributes around 59% of the total volume of rapeseed oil in the total production of the APAC region. Also, China is the largest rapeseed oil-consuming country in the world and it consumes approx.7.5 million tonnes of rapeseed oil. Followed by China, India (2.8M tonnes) and Japan (1.2M tonnes) are the second most consumers of rapeseed oil. Other countries include Pakistan and Australia comprising around 4.4% share of the total APAC consumer market.

Rapeseed Oil Companies and Competitive Landscape

The global market remains fragmented due to local and private-label brands in different regions. Technological advancements resulting in superior product quality are the key to the sustainable growth trajectory of rapeseed oil. Companies like the Cargill, Incorporated, CCS Estates, Ola Oils Ltd, and Mackintosh of Glendaveny among others are focusing on launching new products and expanding their production capacities to increase their prominence in the marketplace. For instance, in April 2021, Cargill built a new Canadian canola plant that cost 350 USD million to produce rapeseed oil as demand for vegetable oil and animal feed exceeded. The refinery is also planning to produce renewable diesel. This plant has the capacity of crushed 1 million tonnes of rapeseed annually. In July 2019, Cargill developed stable canola oil with low saturated fat and improved flavor.