NEW YORK, Aug. 5, 2024 /PRNewswire/ — The global rapeseed oil market size is estimated to grow by USD 10.10 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  4.5%  during the forecast period. Health benefits associated with rapeseed oil is driving market growth, with a trend towards consumer preferences toward opting for healthy substitutes and veganism engulf. However, certification challenges faced by producers  poses a challenge. Key market players include Alicorp SAA, Amazon.com Inc., Archer Daniels Midland Co., Bunge Ltd., Cargill Inc., COFCO Corp., Farrington Oils, Hillfarm Oils Ltd., Israbar Oils & Grains, KOYO KAIUN Co. Ltd., Littleseed, Louis Dreyfus Co. BV, Nisshin OilliO Group Ltd., NMGK Group, Ola Oils, OLVEA Vegetable Oils, Southern Oil (PTY) Ltd., Viterra Inc., Walter Rau Neusser, and Wilmar International Ltd..

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Market Driver

Rapeseed oil has gained notable popularity in various industries due to its high nutritional value and versatile applications. In the food sector, the increasing consumer preference for natural and health-conscientious ingredients has driven demand for rapeseed oil. Rich in polyphenols, antioxidants, vitamins, and minerals, these seeds offer numerous health benefits. The functional food market has witnessed significant growth due to this trend, leading to increased retail sales. Beyond food, rapeseed oil is also a key ingredient in personal care products. Its high content of Vitamin E and antioxidants makes it an effective ingredient in skincare, aiding in the repair of damaged hair and the reduction of scar tissue. Additionally, it is used to treat skin conditions such as itching, eczema, and acne. In cosmetics, rapeseed oil acts as a carrier oil, enhancing the absorption and effectiveness of other ingredients. The shift towards healthier and more natural options, as well as the rise of veganism, has led to a surge in the availability of rapeseed oil-based products in supermarkets. This trend is expected to continue, fueling the growth of the rapeseed oil market in the forecast period. 

The Rapeseed Oil Market is experiencing significant growth due to its versatility in various sectors. In the plastics industry, rapeseed oil is used as a raw material for bio-based chemicals. Organic rapeseed oil is popular in the food industry for specialty oils and healthy diets. Conventional rapeseed oil is widely used in food processing applications, including edible oils like sunflower oil and olive oil, and in the food service industry. Rapeseed oil also plays a role in bio-fuel production. With the increasing focus on sustainability initiatives and reducing carbon emissions, rapeseed oil is a viable alternative to fossil fuels. The distribution channels for rapeseed oil include online stores, specialty stores, and traditional retailers. Shelf life is a critical factor in the market, with testing opportunities available for suppliers to ensure quality. Rapeseed oil is also used in biosurfactant production and as a healthy food alternative for those following a diet to combat lifestyle diseases like obesity, diabetes, and chronic disorders. Smoked rapeseed oil adds flavor to dishes, while cold-pressed and refined rapeseed oil cater to different consumer preferences. The market faces competition from other edible oils like palm oil and soybean oil. However, rapeseed oil’s health benefits and sustainability initiatives make it a preferred choice for consumers. The Paris-Granville line and concerns over particulate pollution and CO2 emissions from diesel fuel further boost demand for rapeseed oil as a viable alternative. 

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Market Challenges

• Obtaining organic certification for rapeseed oil involves a costly and intricate process. Certification agencies require extensive documentation and on-site inspections to approve every ingredient and production method. The certification process includes lengthy government proceedings and international validation, which comes with additional expenses for reviews, assessments, and travel costs. Rapeseed oil producers must comply with organic standards set by authorities such as IOAS, ISO 65, and the USDA. The lack of supporting infrastructure facilities may cause delays in the certification process, adding to the challenges and expenses for producers. These certification hurdles increase the cost of organic rapeseed oil production, potentially hindering the growth of the global rapeseed oil market.
• The Rapeseed Oil Market faces several challenges in various sectors. In retail, independent stores struggle to compete with online retailers and business-to-business sales. Traditional processing techniques need to adapt to digital technologies for improved efficiency. Health concerns, such as high saturated fatty acids and erucic acid in some rapeseed oil varieties, pose challenges. Monounsaturated fats and omega-3 fatty acids in rapeseed oil are beneficial, but consumers are wary of bad cholesterol levels linked to saturated fats. In the food industry, rapeseed oil’s fatty acid composition makes it a heart-healthy alternative to saturated fats in salad dressings, margarines, and sauces. The low erucic variety is preferred for culinary applications, while high erucic varieties are used for industrial products like bio-degradable lubricating oil and biodiesel. The food processing sector and retail channels must cater to health-conscious consumers’ demand for natural ingredients and plant-based diets. The smoke point of rapeseed oil is high, making it suitable for cooking, but its polyunsaturated fat content can be sensitive to heat. The market’s future lies in addressing these challenges through innovation, such as developing low erucic acid varieties, improving processing techniques, and expanding online sales channels for business-to-business and consumer sales. Rapeseed oil’s versatility in various applications, from cooking oils to bio-fuels, keeps it a vital player in the market.

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Segment Overview 

This rapeseed oil market report extensively covers market segmentation by  

1. Distribution Channel
• 1.1 Offline
• 1.2 Online
2. Geography 
• 2.1 APAC
• 2.2 Europe
• 2.3 North America
• 2.4 South America
• 2.5 Middle East and Africa

1.1 Offline-  The offline distribution channel plays a significant role in the global rapeseed oil market. This segment primarily includes organized retailing outlets such as supermarkets, hypermarkets, discount stores, convenience stores, health stores, and grocery stores. These channels provide ample stock space for various rapeseed oil brands, offering consumers multiple choices. The penetration of offline distribution channels is increasing due to infrastructure developments and urbanization. Major countries like the US, UK, Germany, France, Italy, Australia, Japan, China, and Canada have high penetration rates. Leading organized retailers like J Sainsbury plc, Trader Joe’s, ALDI, Carrefour, Future Group, and Woolworths Group Ltd., offer a wide range of rapeseed oil products. Developing nations, including India, South Africa, and Brazil, have witnessed significant infrastructural growth, leading to increased penetration of organized retailing outlets. This trend positively impacts the growth of the rapeseed oil market in these countries. Consequently, the offline segment is expected to boost the expansion of the global rapeseed oil market during the forecast period.

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Research Analysis

Rapeseed oil, also known as Colza oil, is derived from the seeds of the Rapeseed plant, which is a member of the Brassicaceae family. The plant produces black-red colored seeds that contain an oil-rich property. Rapeseed oil is commonly used in food processing, particularly in the production of Canola oil. It is known for its health benefits, including high levels of Omega-3 fatty acids, Vitamin E, and antioxidants. These properties make rapeseed oil a popular choice among health-conscious consumers. In addition to food processing, rapeseed oil is also used in the production of bio-diesels. The Rapeseed plant is a hybrid of Brassica napus and Brassica rapa. Rapeseed oil is a good source of monounsaturated and polyunsaturated fats, making it a healthier alternative to saturated fats found in oils like sunflower oil and olive oil. The food service industry and retail channels are significant markets for rapeseed oil. Cold-pressed rapeseed oil and refined rapeseed oil are the two main types of rapeseed oil available in the market. Rapeseed oil is a versatile ingredient that can be used in various dishes and is an essential component of healthy diets.

Market Research Overview

Rapeseed oil, also known as Colza oil, is derived from the black-red colored seeds of the Rapeseed plant, which is rich in oil-bearing properties. This oil is a popular alternative to other vegetable oils like Soybean, Palm, and Sunflower oil, and is known for its health benefits. The oil is high in monounsaturated and polyunsaturated fats, including Omega-3 fatty acids, Vitamin E, and antioxidants. Rapeseed oil is used extensively in food processing for various applications such as salad dressing, margarines, sauces, and bio-degradable lubricating oil for bio-fuels. It is also used in industrial products like plastics, bio-based chemicals, and biodiesel production. The health-consciousness trend has led to an increase in demand for rapeseed oil as it is a heart-healthy alternative to saturated fats. The oil is low in saturated fatty acids and high in monounsaturated and polyunsaturated fats, which help lower bad cholesterol levels and reduce the risk of heart diseases and stroke. Rapeseed oil is available in various forms, including processed, virgin, organic, and specialty oils. It is sold through various channels such as independent retail stores, business-to-business, and online sales channels. Traditional processing techniques are used to extract the oil, but digital technologies are increasingly being adopted to improve the production process and ensure a longer shelf life. The oil’s fatty acid composition makes it suitable for various culinary applications, including plant-based diets and natural ingredients. Rapeseed oil is also used as a smoke point for cooking oils and is a popular choice for those following healthy diets. The oil’s versatility and health benefits make it a staple in the food processing sector and a preferred choice for retail channels, including e-commerce platforms and specialty stores. Rapeseed oil is also used in the production of bio-fuels and renewable energy sources. The oil’s high erucic acid and eicosenoic acid content make it an ideal feedstock for biodiesel production. Additionally, rapeseed oil is used in the production of industrial products such as lubricants and bio-based chemicals. The Rapeseed plant is of two main varieties, Brassica napus and Brassica rapa. The high erucic variety of rapeseed oil is rich in erucic acid and is used primarily for industrial applications, while the low erucic variety is used for edible oils and food processing. Rapeseed oil is also rich in monounsaturated and polyunsaturated fats, including Omega-3 fatty acids, Vitamin E, and antioxidants. These nutrients are essential for maintaining heart health and reducing the risk of heart diseases and stroke. The food processing sector is a significant consumer of rapeseed oil due to its versatility and health benefits. The oil is used in various applications such as salad dressing, margarines, sauces, and as a smoke point for cooking oils. The oil’s high smoke point makes it suitable for high-heat cooking applications and is a popular choice for those following healthy diets. The retail channels, including independent retail stores, business-to-business, and online sales channels, are significant contributors to the rapeseed oil market. The convenience of online shopping and the availability of various forms of rapeseed oil, including processed, virgin, organic, and specialty oils, have made it a preferred choice for consumers. The food service industry is another significant consumer of rapeseed oil. The oil’s versatility and health benefits make it an ideal choice for restaurants and food service establishments. The oil’s high smoke point makes it suitable for high-heat cooking applications, and its nutrient-rich composition makes it a healthy alternative to other cooking oils. The production of rapeseed oil involves traditional processing techniques, including crushing and pressing the seeds to extract the oil. However, digital technologies are increasingly being adopted to improve the production process and ensure a longer shelf life. The use of digital technologies also helps to reduce the production cost and improve the overall efficiency of the process. The fatty acid composition of rapeseed oil makes it suitable for various culinary applications. The oil is rich in monounsaturated and polyunsaturated fats, including Omega-3 fatty acids, Vitamin E, and antioxidants. These nutrients are essential for maintaining heart health and reducing the risk of heart diseases and stroke. Rapeseed oil is also used in the production of bio-fuels and renewable energy sources. The oil’s high erucic acid and eicosenoic acid content make it an ideal feedstock for biodiesel production. Additionally, rapeseed oil is used in the production of industrial products such as lubricants and bio-based chemicals. The health benefits of rapeseed oil have made it a popular choice for those following plant-based diets and natural ingredient lifestyles. The oil’s versatility and health benefits make it a staple in the food processing sector and a preferred choice for retail channels, including e-commerce platforms and specialty stores. The rapeseed oil market is expected to grow significantly in the coming years due to the increasing demand for healthy and natural ingredients in the food industry and the growing trend towards renewable energy sources. The market is also expected to be driven by the increasing awareness of the health benefits of rapeseed oil and the growing demand for plant-based diets. In conclusion, rapeseed oil is a versatile and nutrient-rich oil that is widely used in various applications, including food processing, industrial products, and bio-fuels. The oil’s health benefits, including its high content of monounsaturated and polyunsaturated fats, Omega-3 fatty acids, Vitamin E, and antioxidants, make it a popular choice for those following healthy diets and natural ingredient lifestyles. The rapeseed oil market is expected to grow significantly in the coming years due to the increasing demand for healthy and natural ingredients and the growing trend towards renewable energy sources.

Table of Contents:

1 Executive Summary

2 Market Landscape

3 Market Sizing

4 Historic Market Size

5 Five Forces Analysis

6 Market Segmentation

• Distribution Channel
• Offline
• Online
• Geography
• APAC
• Europe
• North America
• South America
• Middle East And Africa

7 Customer Landscape

8 Geographic Landscape

9 Drivers, Challenges, and Trends

10 Company Landscape

11 Company Analysis

12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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