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The global canola oil market is on track to expand from $41.04 billion in 2026 to $49.55 billion by 2031, according to fresh projections from Mordor Intelligence. The forecast translates into a compound annual growth rate of 3.84%, with the rising use of canola oil in renewable diesel production identified as one of the most powerful demand drivers.
The pull from the biofuel sector is most visible in North America. New US regulatory measures have positioned canola oil as a favored feedstock for renewable diesel, layering a second source of demand on top of its established role in the food industry. After the US Environmental Protection Agency approved canola-based feedstock pathways, Washington's share of Canadian canola oil exports climbed sharply, from a historical range of around 50–60% to 91% in 2024.
The food industry continues to provide a sturdy foundation for growth. Canola oil remains a staple in packaged foods, snack manufacturing, foodservice operations and plant-based product lines, prized for its neutral flavor and versatile cooking performance. Rising consumption of convenience foods and the global expansion of quick-service restaurant chains are reinforcing this demand stream.
Significant upside remains in Asia-Pacific, which captured 37.17% of the global canola oil market in 2025. Processors in China and India are turning increasingly to refined canola oil for its oxidative stability and processing performance in food manufacturing applications.
Mordor Intelligence anticipates that intensifying competition between the food and biofuel sectors for feedstocks will elevate the strategic importance of secure canola access and processing capacity. Major industry players are responding by expanding processing capabilities and pursuing vertical integration to lock in supply and reduce their exposure to commodity price volatility.
Source: Mordor Intelligence via ukragroconsult.com