Rapeseed Oil Market Report

In the rapeseed oil market, processed oil stands out as the leading segment due to its versatility and superior characteristics. Through refining, bleaching, and deodorization, processed rapeseed oil gains a neutral flavour, high smoke point, and enhanced stability, making it ideal for diverse applications such as food processing, biofuels, and cosmetics. Its widespread availability in various packaging formats, combined with cost efficiencies from large-scale processing, makes it more economical than virgin or unrefined options. Furthermore, its high monounsaturated fat content, which is beneficial for heart health, adds to its demand, driving significant market presence.

The rapeseed oil market presents notable opportunities driven by its environmental advantages and technological advancements. The lower water and pesticide requirements of rapeseed cultivation appeal to eco-conscious consumers and businesses. Innovations in extraction and refining processes, along with genetically modified rapeseed varieties that offer higher yields and enhanced disease resistance, are boosting production efficiency. For instance, in May 2024 introduction of ADAMA Ltd’s EDAPTIS herbicide in Poland, which uses rapeseed oil for improved environmental sustainability, highlights rapeseed’s growing role in sustainable agriculture. This development underscores rapeseed oil’s potential to meet increasing demand for environmentally friendly agricultural solutions across Europe.

In March 2024, the Russian government reinstated a temporary ban on rapeseed oil exports, effective until August 31, 2024. This measure aims to enhance the utilization of domestic rapeseed oil production facilities and support livestock farms with essential processed products. The ban, initially imposed from April to August 2022 and subsequently extended, excludes exports to the Eurasian Economic Union, Abkhazia, South Ossetia, and shipments under international agreements or humanitarian aid. Such export restrictions disrupt global supply chains and impact market dynamics by limiting availability and increasing uncertainty in the rapeseed oil market.

By using more sustainable or healthier alternatives like olive, sunflower and palm oil that have become increasingly popular among consumers could cause less demand on rapeseed oil. Moreover, rapeseed yields are particularly susceptible to weather variations; extreme temperatures such as droughts or torrential rains may adversely affect crop production, which may subsequently lead to scarcity in oils and higher prices. Also, rapeseed plants are highly susceptible to predation by pests and diseases such as the blackleg fungus or the cabbage seedpod weevil that may reduce both quality and quantity of yields resulting into restrictions of availability.

Major industry leaders utilize strategies that focus on launching new products, merging with competitors, and purchasing companies to grow their customer base and enhance their range of products. In March 2023, Chevron Corp. made an announcement about their collaboration with agribusiness majors Corteva Inc. and Bunge Ltd., which seeks to produce renewable fuels from rapeseed crops. The partnership will focus on bringing certain types of winter hybrid rapeseeds to the southern parts of America, where the harvested crop will be bought by the joint venture Bunge Chevron Ag Renewables. One of the major usage areas of this oil extracted from rapeseeds is renewable fuel manufacturing for state-achieving programs like California’s LCFS. Through this step, farmers can have a sustainable crop rotation alternative, and it also meets growing interest in using less environmentally harmful fuels.

Furthermore, Cargill disclosed a US$50 million investment to grow their oilseed crush facilities in Newcastle, Narrabri, and Footscray, Australia, in April 2023. This strategic decision is intended to address the increasing need for rapeseed and cottonseed products by increasing production and improving entry into worldwide markets. The enhancement involves restarting the Narrabri plant solely for cottonseed dehulling and improving Newcastle's ability to process rapeseed and cottonseed. Footscray will also see increased rapeseed crush capacity, optimizing processing efficiency and customer service.

In Europe, France stands out as a leading producer of biodiesel, with growth driven by heightened sales of zero-emission vehicles and stringent greenhouse gas reduction measures. This surge in biodiesel production is bolstered by rapeseed oil, a key ingredient, which is expected to boost market activity. The European market for rapeseed oil, encompassing rapeseed oil, holds a substantial share due to rising demand for its culinary and animal feed applications. Germany leads in market share, while the United Kingdom emerges as the fastest-growing sector in the region. This growth is fuelled by increased health awareness and demand for rapeseed oil's benefits. Additionally, as per NASA Earth Observatory, while the European Union contributed 23% of global rapeseed production in 2023, China and Canada are leading producers, with China’s production peaking earlier in the year.

In the Asia-Pacific region, which includes the most populous nations China and India the rapeseed oil market is experiencing faster growth. As per USDA, China is forecasted to produce 15.8 million metric tons of rapeseed oil for MY 24/25, driven by increased acreage and yield improvements. This demand is fuelled by an increasing middle class, rising health consciousness, and expanding food processing sectors. India’s rapid urbanization and evolving dietary preferences further boost rapeseed oil consumption.