Market Trends of Rapeseed Industry
Changing Consumer Preferences Towards Opting Healthy Substitutes and Veganism Engulfs
Rapeseed's popularity as an ingredient has grown significantly, with numerous product launches catering to consumers seeking natural and wholesome options. These products offer superior nutritional value, being rich in polyphenols, antioxidants, vitamins, and minerals. The market is driven by consumer preference for functional and health-oriented, naturally derived products. Retail consumption of rapeseed has also increased, with the seeds readily available in grocery stores due to high global demand. Rapeseed contains substantial amounts of calcium, magnesium, and potassium, and is believed to boost energy, stabilize blood sugar, and aid digestion.
Rapeseed oil is generally more affordable than other healthy oils such as olive oil, providing a cost-effective option for everyday cooking. Its combination of affordability and health benefits makes it appealing to many consumers. The healthy fats in rapeseed oil may contribute to feelings of fullness, potentially aiding in weight management when consumed as part of a balanced diet. Furthermore, rapeseed oil is naturally gluten-free, making it suitable for individuals with gluten sensitivities or celiac disease.
Veganism has been steadily growing in popularity worldwide. According to the Vegan Society, there were 3.1 million vegetarians in the UK in 2023, comprising about 5.8% of the population, compared to 2.2 million in 2021. Rapeseed oil is a valuable component of the vegan diet due to its health benefits and versatility in cooking. As a plant-based oil, it aligns with vegan principles, offering a source of healthy fats without animal-derived ingredients.
Rapeseed oil has significant applications beyond the food industry, particularly in personal care products such as oils, creams, and lotions. Its high content of Vitamin E and antioxidants in cosmetic formulations aids in reducing scar tissue, repairing damaged hair, and alleviating skin conditions like itching, eczema, and acne, thus promoting skin health. Additionally, rapeseed oil serves as a carrier oil for topical applications. Changing consumer preferences due to health concerns and the rise of veganism have increased the availability of rapeseed-based products in supermarkets, contributing to overall market growth worldwide. The versatile applications of rapeseed across various industries are projected to drive market expansion during the forecast period.
North America Dominates the Market
North America's leadership in the rapeseed market stems from several key factors. Canada's Prairie Provinces - Alberta, Saskatchewan, and Manitoba - provide ideal climate and soil conditions for rapeseed cultivation. The region's long summer days and cool temperatures enhance both yield and quality. In 2023, Canada's rapeseed production reached 18.6 million metric tons, an increase from 14.2 million metric tons in the previous year, according to FAOSTAT. The majority of Canadian rapeseed production is concentrated in Saskatchewan, Alberta, and Manitoba, collectively accounting for approximately 80% of the total output. Saskatchewan leads with 55% of production, followed by Alberta at 28% and Manitoba at 16%. Canada's rapeseed industry thrives due to advanced agricultural techniques, favorable environmental conditions, and robust export markets.
Canada maintains its position as the world's leading rapeseed exporter, with exports increasing from 5.6 million metric tons in 2022 to 7.0 million metric tons in 2023, according to ITC Trade Map estimates. In 2023, China emerged as the primary market, importing 4.5 million metric tons of rapeseed, accounting for 63.8% of the export value. Other significant markets include Mexico, South Korea, and Chile. The Canadian government is actively working to ensure stable and diverse market access for its high-quality canola products. In 2022, the Minister of Agriculture and Agri-Food announced an investment of over USD 1.8 million to the Canola Council of Canada under the AgriMarketing Program. This investment aims to enhance export opportunities and maximize market access globally. The government has established ambitious targets, including achieving 26 million tonnes of rapeseed production by 2025 and expanding agri-food exports to USD 75 billion in the same year.
Agricultural research investments have resulted in the development of robust, disease-resistant rapeseed varieties. North America leads in biotechnology, particularly in genetically modified (GM) canola, which enhances crop durability and production. In 2022, Syngenta Seeds (Canada) partnered with CANTERRA SEEDS to share Pelta technology and develop high-yielding canola hybrids.
Advanced farming equipment, precision agriculture techniques, and efficient management practices, including Integrated Pest Management (IPM), enhance productivity and minimize crop losses in rapeseed cultivation. The United States and Canadian governments support the industry through subsidies, research grants, and infrastructure improvements. Trade agreements, such as the USMCA, promote export expansion. Strong demand for rapeseed oil, recognized for its health benefits and culinary versatility, fuels market growth. A comprehensive transportation and export network ensures widespread distribution of rapeseed products.
