Global canola oil market could reach $49.55 billion by 2031
The global canola oil market is projected to grow from $41.04 billion in 2026 to $49.55 billion by 2031, according to Mordor Intelligence. The market is expected to expand at a compound annual growth rate of 3.84%, with growing use of canola oil in renewable diesel production emerging as one of the key demand drivers.
The impact of biofuel demand is particularly significant in North America. Regulatory changes in the US have encouraged the use of canola oil as a renewable diesel feedstock, creating an additional source of demand alongside the traditional food sector. Following EPA approval, the US share of Canadian canola oil exports increased from around 50–60% to 91% in 2024.
The food industry remains another important source of growth. Canola oil is widely used in packaged foods, snacks, foodservice and plant-based products due to its neutral flavor and versatile cooking characteristics. Growing consumption of convenience foods and the expansion of quick-service restaurants are providing additional support to demand.
Significant growth potential also remains in the Asia-Pacific region, which accounted for 37.17% of the global market in 2025. Processors in China and India are increasingly using refined canola oil due to its oxidative stability and processing performance in food manufacturing.
Mordor Intelligence expects growing competition between the food and biofuel sectors for feedstocks to increase the strategic importance of access to canola and processing capacity. Major companies are expanding processing and vertical integration to secure supplies and reduce their exposure to commodity price volatility.
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