Canola Oil Market By Nature (Organic, Conventional), By Application (Processed Food, Household, Personal Care, Others), By Sales Channel (Supermarkets/Hypermarkets, Departmental Stores, Online, Others), By Region, By Competition Forecast & Opportunities, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 35.52 Billion
CAGR (2026-2031)	5.96%
Fastest Growing Segment	Online
Largest Market	Asia Pacific
Market Size (2031)	USD 50.27 Billion

Market Overview

The Global Canola Oil Market will grow from USD 35.52 Billion in 2025 to USD 50.27 Billion by 2031 at a 5.96% CAGR. Canola oil is an edible vegetable oil derived from the crushed seeds of the canola plant and is distinguished by its low saturated fat content and high proportion of monounsaturated fats. The market is fundamentally supported by rising global consumer demand for products that support cardiovascular health and the increasing utilization of the oil as a renewable feedstock for biodiesel production. These drivers provide a stable foundation for growth that remains distinct from transient dietary trends or short-term pricing spikes and ensures sustained industrial demand.

A major obstacle facing the sector is the volatility of seed production due to irregular weather patterns which can severely constrain global supply chains. According to the Canola Council of Canada, in 2024, the sector contributed an annual economic impact of 43.7 billion Canadian dollars. This substantial figure underscores the critical importance of stabilizing agricultural yields against climatic risks to maintain consistent availability for international buyers and processors.

Key Market Drivers

The expansion of the Biodiesel and Renewable Energy Sector is a primary force propelling the Global Canola Oil Market. As governments worldwide enforce stricter environmental mandates to lower carbon emissions, canola oil has emerged as a preferred low-carbon feedstock for renewable diesel and sustainable aviation fuel (SAF). This industrial shift serves to diversify market applications, reducing the sector's reliance on food-grade consumption and securing consistent, high-volume uptake from energy producers. According to the USDA, May 2025, in the 'Oil Crops Outlook' report, canola oil utilization in biofuels for the 2024/25 marketing year was projected to reach 4.3 billion pounds, highlighting the sector's critical role in meeting renewable fuel targets.

Rising Consumer Demand for Heart-Healthy Cooking Oils further accelerates market expansion, driven by growing global awareness of cardiovascular wellness and nutrition. Consumers are increasingly substituting high-saturated fats with canola oil due to its favorable fatty acid profile and versatile culinary properties, which has stimulated international trade flows and necessitated higher processing volumes. According to Statistics Canada, March 2025, in the 'Crushing statistics of major oilseeds' report, Canadian exports of canola oil surged by 10.7% to 3.5 million tonnes in 2024, reflecting this intense global appetite. This dual pressure from both food and fuel sectors has intensified processing activity; according to Statistics Canada, in 2025, domestic processors crushed a record 11.4 million tonnes of canola in 2024 to meet these escalating requirements.

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Key Market Challenges

The volatility of seed production caused by irregular weather patterns constitutes a critical challenge hampering the growth of the Global Canola Oil Market. Climatic disruptions, such as prolonged droughts or excessive rainfall, directly impact agricultural yields, creating unpredictable fluctuations in the availability of raw materials. This instability compromises the supply chain, making it difficult for oil processors and biodiesel manufacturers to secure consistent feedstock volumes. Consequently, the inability to guarantee steady production leads to price volatility and logistical bottlenecks, which deter long-term investment and limit the industry's capacity to satisfy rising international demand.

The severity of this issue is evidenced by recent industry data showing production declines in key export regions. According to the Australian Oilseeds Federation, in 2024, canola production in Australia was projected to decrease to 5.44 million tonnes due to persistent dry conditions and reduced harvested areas. Such a contraction in supply from a major global exporter restricts the volume of seed available for processing, thereby increasing procurement costs and hampering the market’s overall expansion.

Key Market Trends

The rapid commercialization of high-oleic canola oil for industrial frying is transforming processing infrastructure as food service operators aggressively seek stable, trans-fat-free alternatives with extended fry life. This shift is compelling major processors to scale up dedicated food-grade refining capabilities to ensure reliable supply volumes for large-scale frying applications, moving beyond generic commodity processing. Emphasizing this capacity growth, according to The Western Producer, November 2024, in the 'Canola crush plant expands' article, Richardson International more than doubled the processing capacity at its Yorkton facility to 2.5 million tonnes of seed annually, solidifying its status as the world’s largest canola crusher dedicated to meeting these elevated global food-grade demands.

Simultaneously, there is a strategic shift toward traceable and single-origin supply chains, driven by downstream pressure for ingredients that offer verified sustainability attributes beyond simple volume availability. Major consumer goods companies are bypassing traditional commodity pools to establish direct partnerships with growers, focusing on regenerative practices that ensure soil health and transparent sourcing. Validating this movement, according to Unilever, September 2024, in the 'How Unilever is implementing regenerative agriculture practices across 1 million hectares' update, the company successfully expanded its regenerative farming contracts to cover 350,000 hectares globally, including key rapeseed supply sheds, to secure a resilient and transparent value chain for its food brands.

Segmental Insights

The Online segment is currently positioned as the fastest-growing distribution channel within the Global Canola Oil Market, driven by the rapid expansion of the e-commerce sector. This growth is fueled by increasing consumer preference for the convenience of home delivery and the ability to conduct efficient price comparisons across various brands. Furthermore, digital platforms provide access to a wider inventory of international and niche products that are often unavailable in physical retail outlets. Consequently, the shift toward contactless shopping and subscription-based purchasing models continues to drive significant momentum in this segment.

Regional Insights

Asia Pacific holds the leading position in the Global Canola Oil Market, primarily due to substantial consumption in major economies like China and India. This dominance is fueled by a significant shift in consumer preferences toward healthier cooking ingredients, as rising disposable incomes allow households to prioritize oils with low saturated fat content. Furthermore, the region’s rapidly growing food processing industry extensively utilizes canola oil for its versatility and high smoke point. Regulatory bodies such as the Food Safety and Standards Authority of India (FSSAI) support this growth by defining clear quality standards, which enhances market credibility and consumer adoption.

Recent Developments

• In November 2024, Richardson International completed a major expansion project at its canola processing plant in Yorkton, Saskatchewan, effectively doubling the site's annual crush capacity to 2.5 million tonnes. This milestone positioned the facility as the largest canola crushing plant in the world, significantly enhancing the company's ability to service the global canola oil market. The project included extensive upgrades to the site's receiving and shipping infrastructure to accommodate the increased volume of seed and finished products. The expansion was driven by the strong long-term global demand for canola oil and meal in both the food and biofuel sectors.
• In September 2024, Scoular officially opened its newly retrofitted oilseed crushing facility in Goodland, Kansas, marking a significant development for the regional canola sector. The company successfully upgraded the plant to a dual-capacity operation capable of processing 11 million bushels of canola and soybeans annually. This facility was established to supply vegetable oils to the rapidly expanding renewable fuels market and to produce protein meal for livestock producers. The opening underscored the company's strategic commitment to the global canola oil market by creating a robust local market for winter canola growers in the Southern Great Plains.
• In July 2024, Nuseed showcased its breakthrough canola-based omega-3 ingredient, Nutriterra, at the IFT FIRST trade show in Chicago. The company presented the product as the world’s first land-based source of long-chain omega-3 fatty acids, including DHA, EPA, and ALA, derived from genetically advanced canola. This innovation represented a significant research achievement in the global canola oil market, offering a sustainable, scalable alternative to marine-based oils. The launch highlighted the potential for canola to bridge the gap between growing human nutritional needs and limited ocean resources while providing new value-added opportunities for growers.
• In March 2024, Bunge and Chevron announced the approval of a final investment decision for their joint venture, Bunge Chevron Ag Renewables, to build a new oilseed processing plant in Destrehan, Louisiana. This strategic collaboration was designed to leverage Bunge’s expertise in oilseed processing and Chevron’s position in renewable fuels to meet the rising demand for lower-carbon fuel feedstocks. The new facility was planned with a flexible design to process both soybeans and softseeds, specifically including novel winter canola crops, thereby expanding the supply chain for the global canola oil market and supporting the energy transition.

Key Market Players

• Archer Daniels Midland (ADM) Company
• Bunge Limited
• Jivo Wellness Pvt. Ltd.
• Arla Foods AmbA
• Cargill Inc.
• Associated British Foods plc
• The J.M. Smucker Company
• Richardson International Limited
• Wilmar International Inc
• American Vegetable Oils

By Nature	By Application	By Sales Channel	By Region
Organic Conventional	Processed Food Household Personal Care Others	Supermarkets/Hypermarkets Departmental Stores Online Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Canola Oil Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Canola Oil Market, By Nature:

• Organic
• Conventional

• Canola Oil Market, By Application:

• Processed Food
• Household
• Personal Care
• Others

• Canola Oil Market, By Sales Channel:

• Supermarkets/Hypermarkets
• Departmental Stores
• Online
• Others

• Canola Oil Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE