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Growing Biodiesel Demand Fuels Expansion In Rapeseed Oil Market: Strengthening the Growth Trajectory of the Rapeseed Oil Market
Stay ahead with our updated market reports featuring the latest on tariffs, trade flows, and supply chain transformations.What Is the Expected CAGR for the Rapeseed Oil Market Through 2025?
Recently, there has been a substantial growth in the rapeseed oil market size. This market will expand from $26.27 billion recorded in 2024 to reach around $27.81 billion in 2025, with a compound annual growth rate (CAGR) of 5.9%. The increase in the previous period can be credited to factors such as rising demand for consumable oils, the health-conscious perception of oil, production of biodiesel, expansion of rapeseed farming, manifold uses, nutritional advantages, and preference for using it as a cooking oil.
What's the Projected Size of the Global Rapeseed Oil Market by 2029?
Predictions indicate a robust upswing for the rapeseed oil market in the coming years, with an anticipated valuation of $34.58 billion by 2029, representing a compound annual growth rate (CAGR) of 5.6%. The growth drivers for the projected period include a move towards plant-based diets, an increase in health awareness, customers' preference for clean labels, worldwide population expansion, as well as trade deals and tariffs. The forecast period is also likely to see several trends such as technological advances, sustainable and organic manufacturing methods, advances in processing technologies, quality assurance and traceability, along with market competition from other types of oil.
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Top Growth Drivers in the Rapeseed Oil Industry: What's Accelerating the Market?
The upward trajectory of the rapeseed oil market can be attributed to the rising demand for biodiesel. Biodiesel, a clean, renewable energy source, is domestically produced from plant-based oils, fats from animals, or reused cooking oil. This biofuel is typically manufactured using oil extracted from either rapeseed or canola seed, both of which are edible crops. The appealing factor about biodiesel produced from canola or edible rapeseed is its ability to remain in a liquid state at lower temperatures compared to biodiesel made from other sources, making it a suitable fuel choice for chillier climates. An article by Germany's Union for the Promotion of Oil and Protein Plants (UFOP) which oversees the cultivation, processing, and marketing of oil and protein crops, states that the usage of biodiesel and hydrotreated vegetable oil blends exceeded 1.23 million tons in the first half of 2022 itself. This figure is a 6.3% rise from the same time frame in the preceding year. Consequently, escalating demand for biodiesel is positively impacting the rapeseed oil market progression.
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What Trends Will Shape the Rapeseed Oil Market Through 2029 and Beyond?
One notable trend emerging in the rapeseed oil market is a focus on product innovations. Major market players are keen on introducing cutting-edge products as a strategy to outdo their competitors. One such company is Belgium's Solvay S.A., a chemical firm, which in June 2022, launched Mirasoft SL L60 and Mirasoft SL A60, two next-gen biosurfactants. These biosurfactants, formulated using rapeseed oil and sugar, promote the production of eco-friendly beauty products while keeping a minimal carbon and environmental footprint. They find application in a range of beauty care products such as shampoos, conditioners, shower gels, face washes, and creams. Interestingly, they function like synthetic chemicals, yet they pose no harm to the environment. Their biodegradability and 100% bio-based nature, leveraging green chemistry, reflect Solvay's commitment to sustainability and the pursuit of a circular, regenerative economy.
What Are the Main Segments in the Rapeseed Oil Market?
The rapeseed oil market covered in this report is segmented -
1) By Type: Processed, Virgin
2) By Nature: Organic, Conventional
3) By Extraction Process: Aqueous Process, Enzyme Based Process
4) By Distribution Channel: Super markets And Hyper markets, Online Stores, Specialty Stores, Retail Stores, Other Distribution Channels
5) By End-Use: Food And Beverage, Cosmetics And Personal Care Products, Biodiesel, Animal Feed, Household (Retail)
Subsegments:
1) By Processed: Refined Rapeseed Oil, Hydrogenated Rapeseed Oil, Deodorized Rapeseed Oil
2) By Virgin: Cold-Pressed Virgin Rapeseed Oil, Expeller-Pressed Virgin Rapeseed Oil
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Which Top Companies are Driving Growth in the Rapeseed Oil Market?
Major companies operating in the rapeseed oil market include Bunge Limited, Ola Oils Ltd., Yorkshire Rapeseed Oil Ltd., Archer Daniels Midland Company, Mackintosh of Glendaveny Ltd., Louis Dreyfus Company BV, Sodrugestvo Group SA, Abu Dhabi Vegetable Oil Company LLC, Gujarat Ambuja Exports Limited, K. S. Oils Limited, Cargill Incorporated, ConAgra Foods Inc., RISOIL S.A., Sodrugestvo, American Vegetable Oils Inc., Ruchi Soya Industries Limited, Perdue Agribusiness LLC, Natures Crops International Limited, ViOil Industrial Group, Viterra Inc., Associated British Foods plc
Which Regions Will Dominate the Rapeseed Oil Market Through 2029?
Asia-Pacific was the largest region in the rapeseed oil market in 2024 and is expected to be the fastest-growing region in the forecast period. The regions covered in the rapeseed oil market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
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