Canola Oil Market Size, Share & Trends Analysis Report By Product (Processed Canola Oil, Virgin Canola Oil), By Application (Food Processing, Food Service, Retail), By Distribution, By Region, And Segment Forecasts, 2025 - 2030

Canola Oil Market Size & Trends

The global canola oil market size was estimated at USD 34.52 million in 2024 and is projected to grow at a CAGR of 3.2% from 2024 to 2030. The canola oil industry has experienced significant growth in recent years, driven by several key factors. One of the primary reasons for this growth is the increasing consumer awareness of the health benefits associated with canola oil. Canola oil is known for its low saturated fat content and high levels of omega-3 fatty acids, making it a preferred choice for health-conscious consumers seeking to reduce their risk of chronic diseases like cardiovascular conditions.

The nutritional profile of canola oil, which includes high levels of monounsaturated and polyunsaturated fats, has contributed to its popularity. Consumers are becoming more health-conscious and are actively seeking products that align with their dietary goals. As a result, the demand for healthier cooking oils like canola oil has increased, driving market expansion. The food industry's increasing use of canola oil in processed foods further boosts its demand as consumers increasingly prioritize their health and actively seek foods that contribute to a balanced diet.

Technological advancements in the canola oil industry have also played a crucial role in its growth. Developing advanced processing facilities and cutting-edge equipment has streamlined production processes, reducing energy consumption and costs. Moreover, canola oil's role in the biodiesel sector has become significant due to its environmentally friendly properties, making it an attractive option for sustainable energy solutions. This has led to increased innovation and investment in the industry, enhancing competitiveness and market trends.

North America, particularly Canada, dominates the global canola oil industry regionally due to favorable climate conditions, advanced agricultural practices, and strong international trade relationships. Europe is also experiencing significant growth, driven by stringent regulations promoting sustainable agriculture and a strong focus on health-conscious consumer preferences. The Asia Pacific region is expected to grow rapidly due to increasing demand for healthier food options and a rising population. In addition, Latin America is witnessing growth, with countries like Brazil and Argentina leading the way due to their agricultural potential and consumer preference for healthier oils.

Despite the growth, the canola oil industry faces challenges such as volatility in raw material prices due to weather conditions, crop diseases, and geopolitical factors. To mitigate these challenges, companies are adopting advanced agricultural techniques and investing in genetically modified crops that offer higher yields and disease resistance. This helps stabilize supply and enhances the oil quality of the oil. The market is also supported by government policies and subsidies that encourage the cultivation of canola crops, further boosting demand.

The canola oil industry is poised for continued growth, driven by increasing demand for healthier and sustainable products. Government policies supporting sustainable agriculture and biofuel production will further boost the market. Additionally, the expansion of canola oil into new applications, such as cosmetics and biodiesel, presents opportunities for market players to diversify and expand their offerings. As consumer preferences continue to shift toward healthier and more sustainable options, the canola oil industry is well-positioned to capitalize on these trends.

Product Insights

The processed canola oil segment led the market with the largest revenue share of 71.7% in 2024. The canola oil industry is primarily divided into processed and virgin canola oil. Processed canola oil holds a larger market share, while virgin canola oil accounts for around 30-40%. The dominance of processed canola oil is attributed to its lower cost and broader applications in processed foods, snacks, and biofuels. On the other hand, virgin canola oil is gaining popularity due to its health benefits and natural characteristics.

Several key factors drive the growth of processed canola oil. Its widespread use in processed foods, such as baked goods and snacks, is due to its neutral flavor and high smoke point, making it ideal for frying and baking applications. In addition, processed canola oil is generally cheaper than virgin canola oil, which makes it a preferred choice for large-scale food processing and manufacturing. The increasing demand for biofuels as a sustainable alternative to fossil fuels also contributes to the growth of processed canola oil, as it is used in biodiesel production.

Although smaller in market share, Virgin canola oil is experiencing rapid growth due to its health benefits and natural characteristics. Consumers increasingly seek natural and unprocessed products, driving demand for virgin canola oil due to its perceived health benefits. Its neutral flavor and high smoke point make it suitable for various cooking methods, including frying and baking. The absence of preservatives and dissolvent in virgin canola oil appeals to consumers looking for organic products, further boosting its demand.

Application Insights

Based on application, the food processing segment led the market with the largest revenue share of 37.2% in 2024. In the food processing sector, canola oil is a preferred choice due to its neutral flavor and ability to maintain a pleasing texture in various food products, such as baked goods, snacks, and salad dressings. The growth in this application is driven by the expanding food processing industry, which is fueled by consumer demand for convenient and healthy packaged foods. Canola oil's versatility and nutritional profile make it an excellent carrier for fat-soluble vitamins, enhancing the nutritional value of processed foods. In addition, advancements in agricultural practices and investments in canola processing capacity further support the growth of canola oil in this sector.

Canola oil is widely used in food service due to its health benefits, neutral flavor, and high smoke point, making it ideal for frying and baking. The growth in this application is driven by the expanding food service industry, which is adapting to changing consumer lifestyles by offering convenient dining options such as fast food, takeout, and food delivery services. Restaurants and food service providers increasingly opt for canola oil to cater to the growing demand for healthier menu options. This trend is further fueled by the cost-effectiveness and versatility of canola oil, which aligns with the industry's focus on improving nutritional quality while maintaining operational efficiency.

In the retail segment, canola oil is gaining popularity due to increasing consumer awareness of its health benefits and convenience for household cooking. The growth in this application is driven by shifting consumer preferences toward healthier cooking oils, with canola oil being a preferred choice due to its low saturated fat content and high levels of omega-3 fatty acids. The availability of canola oil in retail outlets and its versatility in cooking make it a preferred choice for health-conscious consumers seeking to incorporate healthier options into their diets. As awareness regarding health benefits continues to rise, the retail segment is likely to continue expanding.

Distribution Insights

Based on distribution, the supermarkets and hypermarkets segment led the market with the largest revenue share of 38.00% in 2024. Supermarkets and hypermarkets are experiencing growth in canola oil sales due to their extensive reach and the convenience they offer consumers. These retail formats provide a wide selection of canola oil products, making it easier for consumers to compare and purchase different brands. In addition, strategic pricing and promotions in these stores attract price-conscious consumers, further boosting sales. The availability of canola oil in these outlets aligns with consumer trends toward healthier cooking options, as canola oil is perceived as a healthier alternative to other oils.

As consumer behavior continues to evolve, both supermarkets/hypermarkets and online channels are expected to remain crucial distribution channels for canola oil. Integrating digital technologies into traditional retail formats, such as online ordering with in-store pickup, will further enhance the shopping experience and drive growth in these segments.

In addition, the expansion of e-commerce platforms into new markets and the increasing availability of canola oil products online will continue to boost sales in the online segment. Overall, the distribution landscape for canola oil is poised for continued growth, driven by consumer demand for convenience, health, and sustainability.

The online segment is expected to grow at the fastest CAGR of 3.7% from 2024 to 2030. The online segment is also witnessing significant growth in canola oil sales, driven by the increasing popularity of e-commerce and digital shopping platforms. Consumers are increasingly turning to online channels for convenience, flexibility, and the ability to compare prices and products easily. The growth in this segment is further fueled by the rise of health-conscious consumers who seek out natural and organic products, which are often readily available online. Moreover, online platforms offer a broader range of specialty and niche products, including organic and non-GMO canola oils, which appeal to consumers seeking specific health benefits or dietary preferences.

Regional Insights

The canola oil market in North America is anticipated to grow at the fastest CAGR during the forecast period. Several key factors drive the market growth. Firstly, there is a rising health consciousness among consumers, who are increasingly seeking healthier cooking oils with lower saturated fat content. Canola oil's nutritional profile, which includes high levels of monounsaturated and polyunsaturated fats, aligns well with these consumer preferences. Furthermore, government policies supporting sustainable agriculture and biofuel production also contribute to market growth in North America. The U.S. and Canada are significant markets, with the U.S. being a major consumer and Canada being a leading producer and exporter of canola oil. The increasing demand for biofuels, particularly in states like California with low-carbon fuel standards, further boosts the market for canola oil in this region.

U.S. Canola Oil Market Trends

The canola oil market in the U.S. is anticipated to grow at a significant CAGR during the forecast period. Another significant factor is the expanding food processing industry in the U.S., which widely uses canola oil in various packaged and processed foods due to its neutral flavor and high smoke point. In addition, government policies supporting sustainable agriculture and biofuel production contribute to the growth of canola oil in the U.S. The elimination of tariffs and subsidies under trade agreements has also facilitated the country's expansion of canola and canola oil production.

Asia Pacific Canola Oil Market Trends

Asia Pacific dominated the canola oil market with the largest revenue share of 36.51% in 2024. In the Asia Pacific region, the growth of the canola oil industry is driven by increasing demand for healthier food options and a rising population. Consumers in this region are becoming more health-conscious, leading to a higher demand for cooking oils that offer health benefits, such as canola oil. In addition, the expanding food service and food processing industries in countries like China and India contribute to the growth of canola oil, as these sectors require large quantities of versatile oils for various applications.

The economic growth and rising disposable incomes in many Asia Pacific countries also support the increased consumption of premium edible oils, including canola oil. Moreover, the region's focus on sustainable agriculture and biofuels provides additional opportunities for canola oil growth as countries seek to reduce their reliance on fossil fuels and promote environmentally friendly energy sources.

Key Canola Oil Company Insights

A high level of competition from established edible oils like soybean, palm, and sunflower oils characterizes the competitive landscape of the canola oil industry. These oils have well-established supply chains and customer bases, often benefiting from economies of scale, which can result in lower manufacturing costs and make it challenging for canola oil producers to compete on price.

Major players in the canola oil industry include Archer Daniels Midland Company (ADM), Bunge Limited, Cargill Inc., CHS Inc., Louis Dreyfus Company, and Richardson International Limited, among others. These companies leverage their extensive agricultural networks and advanced processing technologies to produce high-quality canola oil. They are heavily invested in research and development to improve crop yields and oil extraction processes, ensuring they meet the growing global demand for healthier oils.

Canola Oil Market Report Scope

Global Canola Oil Market Report Segmentation

This report forecasts revenue growth at the global, regional, and country levels and analyzes the latest industry trends and opportunities in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global canola oil market report by product, application, distribution, and region.

• Product Outlook (Revenue, USD Million, 2018 - 2030)

  • Processed Canola Oil

  • Virgin Canola Oil

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Food Processing

  • Food Service

  • Retail

  • Others

• Distribution Outlook (Revenue, USD Million, 2018 - 2030)

  • Supermarkets & Hypermarkets

  • Franchise Outlet

  • Specialty Stores

  • Online Retailers

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • Japan

    • India

    • Australia & New Zealand

    • South Korea

  • Central & South America

    • Brazil

  • Middle East & Africa

    • South Africa