Canola Oil Market Size, Share and Growth Insights 2034

The global canola oil market size was calculated at USD 34.58 million in 2024 and is anticipated to increase from USD 35.72 million in 2025 to an estimated USD 47.84 million by 2034, witnessing a CAGR of 3.30% during the forecast period from 2025 to 2034.

With the increase in health conscious consumers, there has been a climb towards plant-based diets and healthier cooking oils. Canola oil is lower in saturated fats and higher in unsaturated fats, making itself for regular cooking oil like vegetable oil and sunflower oil.

Canola Oil Market Overview

Canola oil, derived from the seeds of canola plants, is one of the most widely consumed edible oils globally due to its light flavor, high smoke point, and nutritional benefits. Known for being rich in omega-3 and omega-6 fatty acids while maintaining low saturated fat content, canola oil has gained a strong reputation as a heart-healthy option. Its versatility in cooking, frying, baking, and food processing has made it a staple across households, restaurants, and industrial food production.

Beyond the food sector, canola oil is also used in biodiesel production, cosmetics, and industrial lubricants, which further strengthens its market presence. Growing awareness of healthier diets, rising disposable incomes, and expanding foodservice industries are expected to drive significant market expansion in the coming years.

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Market Dynamics

Drivers

• Health and Nutrition Awareness: Increasing preference for heart-healthy oils with low saturated fat content supports demand.
• Versatility in Applications: Canola oil’s high smoke point and neutral taste make it suitable for multiple uses household cooking, processed foods, and industrial frying.
• Biodiesel Production: Rising emphasis on renewable energy sources positions canola oil as a valuable biofuel feedstock.
• Urbanization & Changing Food Habits: Demand for packaged, fried, and convenience foods has boosted canola oil consumption.

Restraints

• Price Fluctuations: Dependence on crop yields and climatic conditions can affect supply and pricing.
• Competition from Alternatives: Soybean, sunflower, and olive oils often compete with canola oil in different markets.
• Consumer Misconceptions: Concerns about genetically modified (GM) canola crops in certain regions may hinder adoption.

Challenges

• Shift Toward Cold-Pressed & Organic Oils: Growing demand for minimally processed, natural oils.
• Plant-Based Diet Expansion: Canola oil fits well within vegan and vegetarian diets.
• Sustainability in Cultivation: Focus on regenerative agriculture and eco-friendly farming methods.

Market Growth Factors

• Rising Prevalence of Cardiovascular Diseases: Consumers are adopting oils with lower saturated fat to support heart health.
• Growth in Processed Food Industry: Canola oil is widely used in snacks, bakery, and ready-to-eat meals.
• Expansion of Foodservice Industry: Restaurants, fast-food outlets, and catering services prefer canola oil due to its neutral flavor and frying stability.
• Biofuel Mandates: Government policies promoting renewable energy encourage biodiesel production from canola oil.
• Globalization of Cuisine: Increased experimentation with diverse recipes and cooking techniques sustains demand.

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Canola Oil Market Trends

• In April 2025, Australian Oilseeds Holdings Limited, based in the Cayman Islands, announced that Good Earth Oil’s premium canola oil has successfully integrated into JD.com’s supply chain, now available for purchase on the platform. Canola oil, known for being a healthy fat option, should be consumed in moderation as part of a balanced intake of healthy fats. It is important to include other nutritious fats in the diet, such as those found in avocados, olive oil, and nuts.
• In July 2024, Cargill reached the halfway point in constructing a new canola processing facility at the Global Transportation Hub West of Regina, Saskatchewan. A healthy diet should aim for a balance of omega-3 and omega-6 fatty acids, and cooking oils like olive oil and canola oil play key roles. Olive oil is ideal for salad dressings and cooking at lower temperatures, while canola oil is better suited for higher-temperature cooking.
• However, in April 2025, Canadian farmers braced for challenges as China imposed a 100% tariff on major agricultural exports, including canola oil, canola meal, and peas, with support from the federal government. To maintain a heart-healthy diet, it’s crucial to focus on whole, unprocessed foods like vegetables, fruits, lean proteins, and whole grains, which provide vital nutrients and help mitigate the potential downsides of consuming processed oils.

Which Type of Canola Oil is Consumed the Most?

The processed canola oil segment is expected to dominate the global canola oil market. Its low cost and versatile applications are driving its widespread consumption. With a high smoke point and neutral flavor, processed canola oil has become a staple in various food processing industries. Additionally, its affordability compared to virgin canola oil further accelerates its adoption.

On the other hand, the demand for virgin canola oil is projected to grow steadily in the coming years. As consumers become more health-conscious and seek minimally processed oils, the preference for virgin canola oil is expected to rise. The increasing focus on healthy eating and natural food products is likely to drive the growth of the virgin canola oil segment.

Which Distribution Channels Sell the Most Canola Oil?

Supermarkets and hypermarkets are expected to capture a significant share of the global canola oil market. The wide reach and convenience provided by these retail outlets make them a dominant force in canola oil sales. As retail infrastructure expands and more consumers turn to supermarkets and hypermarkets for their shopping needs, this segment is projected to maintain its leading position in the market.

However, the demand for canola oil through online channels is anticipated to grow rapidly. With the rise of internet penetration and the expansion of the e-commerce industry, online sales are opening up new growth opportunities for the canola oil market. The increasing consumer preference for online shopping is expected to further drive the growth of this segment in the coming years.

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Canola Oil: Health Benefits, Market Challenges, and Potential Drawbacks

While canola oil is often considered one of the healthiest oils available, it also carries potential health drawbacks. One such concern is its high calorie content, which, if consumed in excess without balancing physical activity, can lead to weight gain. This limitation may affect consumer adoption and hamper the growth of the canola oil market, particularly among those who are more calorie-conscious and prioritize weight management.

Additionally, the oil is often refined through processes that can strip it of some of its natural nutrients. This refining process, while increasing shelf life and stability, can potentially reduce the oil’s health benefits, making it less appealing to those seeking minimally processed food options. These factors, along with rising awareness about the importance of a well-rounded, whole-food-based diet, may limit the widespread adoption of canola oil.

Moreover, as more consumers turn to alternatives like olive oil, avocado oil, or coconut oil, which are perceived as more natural or better for specific health goals, canola oil’s growth potential in the market could face challenges. Its association with processed foods may also contribute to negative perceptions, especially as consumers increasingly prioritize unprocessed and organic options. Despite its health benefits, these factors may restrain its appeal among health-conscious individuals, limiting market expansion.

Canola Oil: A Versatile and Heart-Healthy Ingredient for Homes and Industries

• Canola oil is widely recognized as one of the healthiest cooking oils, featuring zero trans fats and the lowest level of saturated fat compared to other oils. Its affordability and versatility make it ideal for both home cooking and industrial applications. Derived from the canola plant, which produces small yellow flowers, the oil is extracted from the seeds of pods resembling pea pods. These seeds contain about 45% oil, which is released through crushing and then refined and bottled for consumer use.
• One of the key benefits of canola oil is that it contains half the trans-fat content of soybean or olive oil. It is also part of the same plant family as broccoli, cabbage, Brussels sprouts, and mustard, making it a natural, nutrient-rich oil. Canola oil is high in essential vitamins such as vitamin E and K, as well as plant sterols that contribute to its heart-healthy profile.
• In addition to its culinary uses, canola oil plays a crucial role in livestock and poultry production, where it serves as an important feed ingredient, helping to produce high-quality meat products. The growing demand for processed foods and the food industry’s reliance on canola oil have further boosted its market presence, as more consumers prioritize health-conscious diets.
• Technological advancements in the canola oil industry have also contributed to its growth. Known for its neutral flavor and versatility, canola oil is one of the most widely used vegetable oils globally, valued for its heart-healthy benefits and adaptability in various production processes, including industrial applications and biofuels.

Market Opportunities

• Biodiesel & Industrial Use: Expanding renewable energy initiatives create significant demand for canola oil as a sustainable biofuel feedstock.
• Functional & Fortified Products: Development of omega-3 enriched and cold-pressed canola oils presents premium opportunities.
• E-commerce Expansion: Direct-to-consumer and online grocery channels enable greater product reach and awareness.
• Emerging Markets Penetration: Growing urban populations in Asia, Africa, and Latin America present new consumer bases.
• Sustainable Sourcing: Investments in eco-friendly cultivation and traceability systems align with consumer preferences for ethical and sustainable products.

Canola Oil Market Top Key Players

• Bunge Ltd
• Cargill
• AWL Agri Business Limited
• Archer Daniels Midland Company
• Marico Limited
• Wilmar International
• CONAGRA FOODS INC
• Patanjali Foods
• Raj Oil Mills
• Gokul Agro Resources
• Manishankar Oils Private Limited
• Pansari Industries

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Segmentation Analysis

By Type

• Refined Canola Oil: Widely used in food processing and household cooking.
• Cold-Pressed/Organic Canola Oil: Niche, premium segment with rising demand among health-conscious consumers.
• Industrial-Grade Canola Oil: Used in biodiesel, lubricants, and other non-food applications.

By Application

• Food & Beverage: Cooking oil, bakery, snacks, processed foods.
• Foodservice/HoReCa: Restaurants, catering, and fast-food chains.
• Biofuel: Feedstock for biodiesel production.
• Cosmetics & Personal Care: Ingredient in lotions, creams, and hair products.
• Industrial: Lubricants, bioplastics, and other chemical applications.

By Distribution Channel

• Supermarkets & Hypermarkets
• Convenience Stores
• Specialty & Health Food Stores
• Online Retail/E-commerce
• Foodservice Distribution

Regional Insights

North America

• Dominant Market Share: High per-capita consumption of edible oils, strong biodiesel programs, and robust foodservice sector.
• Consumer Trends: Preference for cold-pressed, organic, and non-GMO canola oil varieties.

Europe

• Health-Conscious Market: Strong emphasis on clean-label and sustainable products supports demand.
• Biofuel Demand: EU renewable energy policies create opportunities for canola oil in biodiesel.
• Competition: Faces strong competition from olive and sunflower oils.

Asia-Pacific

• Fastest-Growing Region: Rising population, urbanization, and growing awareness of healthier diets drive demand.
• Key Drivers: Expanding middle class, growing foodservice industries, and increasing packaged food consumption.
• Production: Significant imports, though local cultivation is expanding.

Latin America

• Emerging Market: Growth supported by increasing use of cooking oils in households and restaurants.
• Agricultural Base: Potential for expanding local canola cultivation.

Middle East & Africa

• Rising Demand: Urbanization, changing food habits, and increasing packaged food demand drive growth.
• Import Dependence: Heavy reliance on imports creates opportunities for global suppliers.

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Future Outlook

The canola oil market is set for consistent growth, supported by its nutritional benefits, versatility in food applications, and expanding role in renewable energy production. While challenges such as price fluctuations and competition from other edible oils persist, opportunities in biodiesel, fortified oils, and emerging markets present strong growth potential. With increasing consumer awareness of health and sustainability, canola oil is expected to remain a preferred choice across households, foodservice, and industrial sectors worldwide.

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