Canola Oil Market Booms on Nutritional Appeal and Low Saturated Fat Content

The global canola oil market is projected to reach USD 41.70 million by 2030, growing at a CAGR of 3.2% from 2025 to 2030. This growth is primarily driven by increasing consumer awareness of the nutritional benefits of canola oil, including its low saturated fat content and rich supply of omega-3 fatty acids, making it a preferred choice for health-conscious individuals seeking to lower their risk of chronic illnesses, particularly cardiovascular disease.

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Product Insights

In 2024, processed canola oil dominated the market, capturing 71.7% of total revenue. This segment benefits from:

  • Cost efficiency in mass production

  • Widespread industrial applications in food processing and snack manufacturing

  • Use in biofuel blending, especially in low-emission energy initiatives

Virgin canola oil, although a smaller segment, is gaining momentum due to:

  • Rising demand for natural, unrefined oils

  • Higher nutritional retention and appeal among premium health-focused consumers

Application Insights

The food processing segment led the application market in 2024, accounting for 37.2% of total revenue. Key drivers include:

  • Canola oil’s neutral flavor and high heat tolerance, making it ideal for baked goods, snacks, and dressings

  • Its role as a carrier for fat-soluble vitamins, enhancing the nutritional value of processed foods

  • Ongoing innovation in healthy packaged food products

Growth in this segment is further supported by advancements in canola cultivation and processing technologies, enabling consistent quality and increased output.

Distribution Channel Insights

Supermarkets and hypermarkets remained the dominant distribution channels in 2024, holding approximately 38% market share. Growth in this channel is attributed to:

  • Wide product visibility and brand comparisons in physical stores

  • Promotional pricing strategies and discounts attracting health-conscious, budget-sensitive consumers

  • Rising alignment between consumer wellness trends and on-shelf product offerings

Other growing channels include online retailers, which are benefitting from:

  • Increased digital grocery shopping

  • Accessibility to niche and specialty canola oil brands

  • Delivery convenience for health-oriented households

Regional Insights

North America

North America remains a significant contributor to global canola oil revenue, driven by:

  • Strong demand for heart-healthy oils among U.S. and Canadian consumers

  • Supportive regulatory landscape promoting sustainable agriculture and biofuel development

  • Canada’s leadership as a key producer and exporter of canola oil

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