Canola Oil Market is Growing at CAGR of 3.7% to Achieve USD 657.8 Million by 2035

Canola oil market grows steadily, driven by demand for heart-healthy, plant-based oils and rising use in foodservice, biodiesel, and clean-label products. ROCKVILLE, MD, UNITED STATES, June 30, 2025 /EINPresswire.com/ -- Global canola oil market is set to reach USD 657.8 million by 2035, rising from USD 443.2 million in 2024. Between 2025 and 2035, it is projected to grow at a CAGR of 3.7%.

Canola oil holds a key position in the edible oils market due to its adaptability, cardiovascular benefits, and growing preference for plant-based cooking oils. With low saturated fats and rich omega-3 content, it attracts health-focused consumers. Market expansion is driven by evolving eating habits and increased usage in food processing, particularly in emerging economies and sustainable food production systems.

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What’s Driving Growth in the Canola Oil Market?

The canola oil market is progressing steadily, driven by its expanding use in nutrition, foodservice, and industrial innovation. Beyond traditional culinary uses, canola oil is gaining traction in the nutraceutical and functional food sectors due to its high content of alpha-linolenic acid and tocopherols, known for their cardiovascular and antioxidant benefits. These health-promoting attributes make canola oil a key ingredient in the development of health-focused food products.

Additionally, demand from the institutional and foodservice sectors—especially quick-service restaurants (QSRs)—is increasing. These establishments favor canola oil for its oxidative stability, neutral flavor, and cost-effectiveness, particularly in high-volume frying operations. Its ability to reduce waste and improve frying performance makes it an operationally efficient and preferred choice across commercial kitchens.

What Are the Regional Trends in the Canola Oil Market?

Regional demand for canola oil is shaped by a blend of culinary preferences, industrial capabilities, and regulatory policies. In North America, particularly Canada, the market benefits from proximity to large-scale canola cultivation and advanced processing infrastructure, supporting both domestic use and strong export capacity.

In Europe, canola oil plays a dual role—used as both a cooking oil and a renewable feedstock. Significant volumes are allocated for second-generation biodiesel production, especially in Germany and the Netherlands, under the EU’s Renewable Energy Directive II (RED II). This integration of food and fuel sectors helps maintain steady demand, reinforcing the oil's strategic importance in meeting both sustainability targets and consumer needs.

Competitive Analysis

Leading players in the global canola oil market include Adani Wilmar Ltd., Ruchi Soya Industries Ltd., Associated British Foods, Archer Daniels Midland Company, Bunge Limited, Borges Mediterranean Group, Cargill Inc., Fuji Vegetable Oil, Inc., Adams Group, and American Vegetable Oils, Inc.

The market is growing steadily, driven by rising demand for heart-healthy, low-saturated-fat oils and an increasing shift toward non-GMO and organic products. Innovations in cold-pressed methods, fortified formulations, and advanced extraction techniques are shaping product differentiation across the industry.

To remain competitive, companies are heavily investing in sustainable practices, including carbon footprint reduction, eco-friendly packaging, and clean-label solutions. Strategic efforts such as vertical integration, regional expansion, and partnerships are helping players enhance market access and optimize supply chains.

Recent Development:

In January 2025, Neste and Bayer signed a memorandum of understanding to establish a winter canola ecosystem in the U.S. under a regenerative agriculture initiative. Winter canola, when used as a rotational crop, supports lower-carbon oil production, improves soil health, enhances biodiversity, and provides feedstocks for renewable diesel and sustainable aviation fuels, reflecting a strong industry shift toward climate-conscious innovation.

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Segmentation of Canola Oil Market

By Product Type :
Processed
Virgin
Refined
Cold-Pressed
Blended Oils
Others
By End Use :
Foodservice
Food Processor
Retail
By Packaging Type :
Bottles
Pouches
Cans
Tins
Drums
By Distribution Channel :
Modern Trade
Franchise Outlets
Specialty Stores
Online
By Region:
North America
Latin America
Western Europe
Eastern Europe
East Asia
South Asia & Pacific
Middle East & Africa

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