Canola oil market seen reaching $49.55 billion by 2031

Mordor Intelligence projects the global canola oil market will rise from $41.04 billion in 2026 to $49.55 billion by 2031, driven by renewable diesel demand, neutral-flavored food uses and premium product demand. Asia-Pacific leads the market in 2025, while North American biofuel demand is reshaping trade flows and processor buying patterns.

Why it matters: - The canola oil market is expanding beyond cooking oil demand. - Renewable diesel is creating a second major demand channel for canola oil, especially in North America. - Food manufacturers are still relying on canola oil for neutral flavor, stability and processing performance. - Premium variants are helping producers defend margins as commodity volatility and sustainability requirements intensify.

What happened: - Mordor Intelligence projected the global canola oil market will grow from $41.04 billion in 2026 to $49.55 billion by 2031. - The forecast implies a 3.84% compound annual growth rate from 2026 through 2031. - The report said Asia-Pacific held a 37.17% market share in 2025. - The market is being supported by demand across packaged snacks, quick-service restaurant frying and plant-based foods.

The details: - Renewable diesel production is adding demand for canola oil outside traditional food uses. - U.S. regulatory developments have encouraged greater use of renewable feedstocks. - After EPA approval, U.S. imports of canola oil increased, and the U.S. share of Canadian canola oil exports rose from about 50%-60% to 91% in 2024. - Neutral-flavored canola oil continues to gain use in packaged foods, snacks, foodservice and plant-based products. - Food makers value canola oil because it supports frying and preparation without materially changing product flavor. - Quick-service restaurant growth and broader convenience food consumption are lifting demand for oils that perform consistently at scale. - In Asia-Pacific, processors in China and India are increasingly choosing refined, bleached and deodorized canola oil over soybean and palm oils for oxidative stability and processing performance. - Rising urbanization, packaged food demand and modernization of food manufacturing are supporting that shift. - High-oleic and organic canola oil variants are supporting premium positioning. - Expanded processing capacity and vertical integration are improving supply resilience. - Weather-related price swings and tighter sustainability requirements are making traceability and sourcing control more important. - The report listed product types including RBD, high-oleic refined and others. - The report listed nature categories including organic and conventional. - The report listed end-user segments including industrial, foodservice/HoReCa and retail.

Between the lines: - Canola oil is becoming more strategically important because food and fuel demand are now competing for the same feedstock. - North American processors appear to be balancing food-market supply with renewable diesel needs, which can tighten availability. - The FDA's revised definition of a