Canola Oil Market Size, Share, Growth, Trends, and Forecast 2025–2035

The global Canola Oil Market is poised for steady growth, valued at USD 443.2 million in 2024 and projected to reach USD 657.8 million by 2035, reflecting a compound annual growth rate (CAGR) of 3.7%. This expansion is driven by rising health consciousness, the oil’s versatile applications in food and non-food industries, and increasing demand in emerging markets. Canola oil, derived from the seeds of the canola plant (a cultivar of rapeseed, Brassica napus), is prized for its low saturated fat content (7%), high levels of omega-3 and omega-6 fatty acids, and neutral flavor, making it a preferred choice for health-conscious consumers and food processors.

The market’s significance lies in canola oil’s role as a heart-healthy cooking oil, endorsed by organizations like the American Heart Association for reducing LDL cholesterol and cardiovascular disease risk. Its applications extend beyond culinary uses to cosmetics, biofuels, and industrial products, driven by its moisturizing properties and eco-friendly profile. Innovations in high-oleic and cold-pressed variants, along with sustainable agricultural practices, further enhance its market appeal.

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Market Analysis

The canola oil market is propelled by growing consumer awareness of its health benefits, including low saturated fat and high monounsaturated fat content, which reduce cholesterol levels and support heart health. The food industry’s increasing use of canola oil in processed foods, such as snacks and baked goods, drives demand due to its high smoke point and neutral taste. The biodiesel sector is another key driver, with canola oil holding a 22.5% share of biodiesel feedstock in 2024, generating USD 26.2 billion in revenue. Technological advancements, such as cold-pressing and high-yield canola varieties, improve oil quality and production efficiency, particularly in major producers like Canada and Australia. The rise of e-commerce has transformed distribution, with online platforms accounting for a growing share of retail sales in 2024, especially in urban areas. However, challenges include price volatility due to fluctuating raw seed costs, influenced by weather, crop yields, and geopolitical factors.

Segment Analysis

The canola oil market is segmented by nature, product type, application, and distribution channel. By nature, conventional canola oil dominates with a 64.2% share in 2024, valued at USD 284.5 million, due to its cost-effectiveness and widespread use in food processing. The organic segment is the fastest-growing, driven by demand for sustainable, non-GMO products, with a projected CAGR of 4.5%. By product type, cold-pressed canola oil leads with a 71.4% share, favored for retaining natural flavors and nutrients like omega-3 and vitamin E. Extracted canola oil is growing steadily for industrial applications. By application, the food industry holds the largest share at 34.7%, driven by its use in cooking, baking, and frying, while biofuels are expanding rapidly due to sustainability mandates.

Country-wise Insights

In the United States, the canola oil market is valued at USD 126.5 million in 2025, with a projected CAGR of 4.1% through 2035, reaching USD 203.5 million. The U.S. benefits from high health awareness, with canola oil accounting for 16.4% of vegetable oil use in biofuels in 2023, up from 5.8% in 2022, and robust non-biofuel demand, which grew 50% year-over-year. Canada dominates globally as the largest exporter, supported by government investments of over USD 1.8 million to boost production to 26 million tonnes by 2025. In the United Kingdom, the market is expected to grow at a CAGR of 3.5%, reaching USD 60 million by 2035, driven by health-conscious consumers and a 5% CAGR in Europe’s regional market.

Key Players

  • Bunge Limited
  • Archer Daniels Midland Company (ADM)
  • Louis Dreyfus Company
  • Cargill Incorporated
  • Adani Wilmar Ltd.
  • Fuji Vegetable Oil Inc.
  • Ruchi Soya Industries Ltd.

Strategic Outlook and Industry Trends

The canola oil market is evolving through innovation and sustainability. High-oleic canola oil, with extended shelf life and frying stability, is gaining traction in fast-food chains and snack production. The shift toward organic and non-GMO variants, supported by consumer demand for clean-label products, is a key trend, with companies like Bunge investing in sustainable sourcing. The biodiesel sector’s growth, driven by policies like the U.S. Renewable Fuel Standard, boosts canola oil’s industrial applications. E-commerce expansion enhances market accessibility, particularly in Asia Pacific. Challenges include raw material price volatility, competition from soybean oil, and regulatory hurdles like EU GMO restrictions.

Segmentation of Canola Oil Market

By Nature:

    • Organic
    • Conventional

By Product Type:

    • Cold-Pressed Canola Oil
    • Extracted Canola Oil

By Application:

    • Food Industry
    • Biofuels
    • Oleo Chemicals
    • Cosmetics
    • Others

By Distribution Channel:

    • Third-Party Online Channels
    • Specialty Stores
    • Modern Trade
    • Franchise Outlets
    • Others

By Region:

    • North America
    • Latin America
    • Western Europe
    • Eastern Europe
    • East Asia
    • South Asia & Pacific
    • Middle East & Africa

Contact

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