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The canola oil market size is projected to increase by USD 5.54 billion, at a CAGR of 3.04% between 2023 and 2028.
The canola oil market in the Asia-Pacific (APAC) region is experiencing substantial growth, with key contributors being China, India, Australia, Thailand, and South Korea. China and India lead in canola oil consumption due to increasing awareness of a healthy lifestyle. Japan, Australia, Thailand, and Pakistan also significantly contribute to canola oil consumption. The region, including China, India, Japan, and Australia, accounts for 40% of global canola production. Australia plays a vital role as a major exporter of canola oils, primarily to European countries. Moreover, the use of canola oil in biodiesel applications for motor vehicles is growing, driven by its excellent cold-flow properties, further propelling regional market growth. American Vegetable Oils Inc. offers canola oil products like AVO Canola Clear Fry Oil and AVO Canola Oil, sourced from rapeseed plants, suitable for various culinary applications. This market is expected to grow significantly, driven by factors such as convenience, changing consumer preferences, and global industry trends, with a focus on benefits like freshness and health.
The market shows an accelerated CAGR during the forecast period.
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Increasing emphasis on environmentally friendly and sustainable product packaging is notably driving market growth. The companies operating in the market are adopting sustainable packaging and eco-friendly packaging solutions to reduce environmental issues such as pollution caused by plastic waste. Hence, they are increasingly using recyclable and compostable packaging materials for their products. Bag-in-box containers and pouches are also gaining popularity among the major players in the market as these solutions offer a flexible option for packaging edible oils, including canola oil, and keeping them fresh and safe right from filling to final dispensing.
Furthermore, vendors have been focusing on using unique selling points, such as attractive labeling and brand differentiation, to attract customers and increase their profits and market shares. Therefore, packaging innovations that focus on technological advances and environmental sustainability will be major factors that will drive the growth of the market during the forecast period.
The growing influence of online retailing is an emerging trend shaping market growth. With the growth of e-commerce businesses worldwide, vendors have the potential to enhance their profitability. There has been a rise in e-commerce sales amid the lockdown restrictions induced by COVID-19 in 2020. Online retail sales across the world contributed around 18% to the total retail sales in 2020. Online and e-commerce channels support both business-to-business (B2B) and business-to-consumer (B2C) operations. Further, customers prefer online shopping and pay for their orders using credit or debit cards, which helps them avoid time-consuming journeys and billing queues.
Furthermore, online shopping portals have incorporated enhanced security features for efficient customer service and payments and customer-friendly website designs that offer enhanced product visibility. This trend is encouraging various manufacturers to concentrate on the internet-savvy customer segment and explore the new online retail format. Thus, the growing influence of online retailing will have a positive impact on the growth of the market during the forecast period.
Limitations associated with genetically modified canola seeds are a significant challenge hindering market growth. Genetically modified canola seeds have witnessed an increase in their production as they are resistant to various herbicides. Two types of genetically modified canola seeds are developed in Australia, namely Roundup Ready and InVigor canola, where each variety is resistant to a different kind of herbicide. However, these genetically modified variants face serious concerns with product labelling and complying with various stringent regulations.
Also, though the federal Gene Technology Regulator, Australia, has approved the use of genetically modified canola oil as safe, it still lacks a sufficient number of studies and proofs to support the claim. Besides, recent studies have shown that genetically modified canola is associated with health problems. With such rising concerns about genetically modified foods, many countries have banned the production, transport, and sale of genetically modified canola seeds. This, in turn, is expected to limit the market's growth during the forecast period.
Canola oil is mainly used for cooking purposes and has a higher smoke point (the temperature at which the oil breaks down and starts to smoke) than most other oils. As it is flavorless, odorless, and versatile, canola oil is suitable for multiple cuisines, especially Italian, Mexican, Chinese, American, Canadian, and Japanese. It can also be used for baking, cooking, stir-frying, deep-frying, and grilling. One of the advantages of using canola oil for baking is that the baking temperature does not affect the unsaturated fat content nor results in the development of any trans fatty acids. However, only a small amount of trans fatty acids is lost during deep frying. Manufacturers are ramping up their production capacity of canola oil owing to the shifting preferences of consumers toward healthier food products. Therefore, the applications of canola oil as a cooking oil are expected to drive the growth of this segment of the market during the forecast period.
The market share growth by the conventional segment will be significant during the forecast period. Conventional canola oil is produced from genetically modified (GMO) rapeseed and, therefore, cannot be certified as organic. The rapeseed is collected from the plant and undergoes the solvent-extraction process. The most commonly used chemical solvent in this process is hexane.
The conventional segment was the largest and was valued at USD 29.06 billion in 2018
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The solvent process draws the oil out of the seed rather than physically squeezing/pressing it out. The oil is then processed using the refined, bleached and deodorized (RBD). Conventional canola oil is priced lower than organic canola oil, and it is more affordable for the average consumer when compared to organic canola oil. Moreover, conventional canola oil is more popular among consumers due to its affordability and widespread availability. Thus, all these factors will result in an increased demand for conventional canola oil among consumers, thereby driving the growth of this segment during the forecast period.
APAC is estimated to contribute 42% to the growth of the global market during the forecast period
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Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional market trends and analysis, and drivers influencing the market's trajectory throughout the forecast period. The increased rate of health issues and chronic diseases caused due to the consumption of high-fat oil and butter has increased the demand for healthy oils. Also, a large number of domestic edible oil brands in the region have started selling canola oil, which will propel the market. Additionally, the increasing disposable income of consumers and the rising number of organized retailing outlets that offer canola oil are the major drivers that are estimated to impact the growth of the regional market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market forecasting growth and analysis.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including Adams Group, American Vegetable Oils Inc., Archer Daniels Midland Co., Associated British Foods Plc, B and G Foods Inc., Borges International Group SLU, Bunge Ltd., Cargill Inc., CHS Inc., GrainCorp Ltd., Highwood Crossing Foods Ltd., Jivo Wellness Pvt. Ltd., Louis Dreyfus Co. BV, Parrish and Heimbecker Ltd., Paterson GlobalFoods Inc., Richardson International Ltd., Sunora Foods Inc., TITAN OILS Inc., Viterra Ltd., and Wilmar International Ltd.
The market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research and growth report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Canola Oil Market Scope |
|
Report Coverage |
Details |
Page number |
165 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.04% |
Market Growth 2024-2028 |
USD 5.54 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
2.78 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 42% |
Key countries |
US, Canada, China, India, and Russia |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Adams Group, American Vegetable Oils Inc., Archer Daniels Midland Co., Associated British Foods Plc, B and G Foods Inc., Borges International Group SLU, Bunge Ltd., Cargill Inc., CHS Inc., GrainCorp Ltd., Highwood Crossing Foods Ltd., Jivo Wellness Pvt. Ltd., Louis Dreyfus Co. BV, Parrish and Heimbecker Ltd., Paterson GlobalFoods Inc., Richardson International Ltd., Sunora Foods Inc., TITAN OILS Inc., Viterra Ltd., and Wilmar International Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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