United States Rapeseed Oil Market Outlook, 2028

Innovation, sustainability, and the demand for biodiesel drive the positive outlook for the United States' rapeseed oil market by 2028.

Rapeseed oil, particularly the canola variety, plays a substantial role in the United States' edible oil industry. Canola oil, derived from low-erucic acid rapeseed, has gained popularity for its health benefits, including its low levels of saturated fat and high content of heart-healthy unsaturated fats. Rapeseed oil is one of the most widely used cooking oils in the United States. The United States is a notable producer of rapeseed oil, with its production primarily associated with the American Oil Chemists' Society (AOCS). The AOCS plays a pivotal role in advancing the science and technology related to vegetable oils, including rapeseed oil, within the United States and globally. This association comprises professionals and experts from various fields, including chemistry, engineering, and agriculture, who collaborate to promote research, innovation, and quality standards in the rapeseed oil industry. The U.S. Canola Association (USCA) works to support and advance U.S. canola production, marketing, processing and use through government and industry relations. U.S. Canola Oil Suppliers are Archer Daniels Midland Company, Bunge Oils, Cargill, Inc., CHS, Inc. and similarly the Canola Biodiesel Supplies are Archer Daniels Midland Company, and Red Birch Energy, Renewable Energy Group. In addition to cooking oil, alternative fuel and animal feed, companies are exploring other uses for canola oil and meal from tires to plastics and adhesives. According to the research report "United States Rapeseed Oil Market Outlook, 2023-28," published by Bonafide Research, is predicted to expand significantly during the course of the forecast year 2023-2028. The rapeseed oil market in the United States is experiencing notable expansion and growth. This upward trend can be attributed to several key factors. First and foremost, there is a growing awareness among consumers about the health benefits of rapeseed oil, particularly its low levels of saturated fat and high content of heart-healthy monounsaturated and polyunsaturated fats. As health-conscious consumers seek out healthier cooking alternatives, the demand for rapeseed oil has surged. The versatility of rapeseed oil has contributed to its market expansion. Furthermore, the United States has made significant strides in increasing domestic rapeseed production, with North Dakota being the leading state in rapeseed cultivation and oil production. North Dakota's vast expanses of fertile land, cool temperatures, and ample rainfall during the growing season provide an ideal environment for canola cultivation. In recent years, the state has witnessed a substantial increase in rapeseed acreage, reflecting its status as the epicenter of rapeseed oil production in the United States. The growth of the rapeseed industry in North Dakota has been supported by local agricultural research and the adoption of modern farming practices, which have resulted in higher yields and improved oil quality. Other states in the Northern Plains region, such as Montana and Minnesota, also contribute to rapeseed oil production but to a lesser extent compared to North Dakota.

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According to the report, the Rapeseed oil market is segmented on the basis of Nature of oil, which is Conventional and Organic type. Farmers in the United States have adopted modern techniques to boost crop yields and improve the overall quality of rapeseed oil. Additionally, the increasing awareness among consumers regarding the health benefits of using rapeseed oil over other cooking oils has contributed to its popularity. In 2022, the United States' rapeseed oil market was largely dominated by the conventional variety. However, a significant shift in consumer preferences towards healthier and more sustainable options is expected to reshape the market landscape in the coming years. The organic type of rapeseed oil is anticipated to emerge as the dominant force in the market. This shift can be attributed to an increasing awareness among consumers about the benefits of organic products, which includes a perception of higher quality and reduced exposure to pesticides and synthetic chemicals. Furthermore, the organic rapeseed oil segment is forecasted to exhibit the largest CAGR in the years spanning 2023 to 2028. This projection underscores the growing demand for organic and healthier alternatives in the food and cooking oil industry. Consumers are becoming more conscientious about their dietary choices and are willing to pay a premium for products that align with their health and environmental concerns. By End-Users the report has been distinguished into households, industries, and Food and services. Rapeseed oil's popularity among households is a result of its adaptability in regular cooking. Its neutral flavor profile and high smoke point make it a popular choice for frying, sautéing, baking, and salad dressings. Its heart-healthy attributes, like its minimal saturated fat content and high quantities of advantageous omega-3 fatty acids, are valued by many households. The industrial sector makes up another sizable market for rapeseed oil after homes. Its lubricating properties and high heat tolerance make it suitable for industrial processes, such as metalworking and biofuel production. As sustainability becomes a more significant concern, rapeseed oil's potential as a biodiesel feedstock has gained attention, contributing to its rising demand in the industrial sector. Moreover, the growing awareness of health-conscious consumers has driven the food service industry to shift towards healthier cooking oils like rapeseed oil. Restaurants and food manufacturers are increasingly using it in their recipes to meet customer demands for healthier menu options. In the United States rapeseed oil market, segmentation based on distributional channels reveals a notable pattern in consumer preferences. Conventional stores have traditionally held the largest market share, reflecting the convenience and accessibility of rapeseed oil products through local grocery stores and specialty food shops. Following closely behind are hypermarkets and supermarkets, which cater to the needs of consumers seeking a wide range of grocery items, including rapeseed oil. However, the most significant and promising trend for the years 2023 to 2028 is the rapid growth of online sales. Online sales channels are experiencing an unprecedented surge in popularity, driven by the convenience of e-commerce platforms and the increasing willingness of consumers to purchase food and cooking essentials online. This channel is expected to witness the largest CAGR during this period, indicating a shift in consumer behavior and their inclination towards online shopping for rapeseed oil and related products. As technology continues to shape the retail landscape, the convenience of online shopping, coupled with the ability to access a wide variety of rapeseed oil brands and product options, is likely to drive this upward trajectory in online sales.

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Manmayi Raval

Manmayi Raval

Research Consultant

According to the United States Department of Agriculture, around 1.9 billion liters of rapeseed oil were sold in the United States in 2020. This represents a decrease of about 10% from 2019. The decline in sales was due to a number of factors, including the COVID-19 pandemic, which disrupted supply chains and increased prices, and the availability of other oils, such as soybean oil. However, as the pandemic continued, the market dynamics evolved. The closure of restaurants, hotels, and catering services, as well as changes in consumer behavior, led to a decrease in demand for rapeseed oil in the foodservice sector. On the other hand, there was a sustained increase in demand for cooking oils in households, as more people cooked and baked at home due to lockdowns and restrictions. This shift in consumption patterns benefited the retail segment of the rapeseed oil market. Furthermore, the pandemic affected supply chains, causing some disruptions in the production and distribution of rapeseed oil. Considered in this report: • Geography: United States • Historic year: 2017 • Base year: 2022 • Estimated year: 2023 • Forecast year: 2028 Aspects covered in this report: • United States Rapeseed Oil Market with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation

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Manmayi Raval

By Nature: • Conventional • Organic By End User: • Household • Industrial • Food Service By Distributional Channel: • Conventional Store • Hypermarket/Supermarket • Direct Sales • Online • Others The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources. Intended audience: This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Rapeseed Oil Market industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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United States Rapeseed Oil Market Outlook, 2028

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