Introduction
Rapeseed oil is extracted from the oilseed rape plant by pressing out transparent and translucent liquids. Rapeseed oil is a yellow-golden or yellow-brownish oil, and has a certain stimulating aroma known as the green smell. The smell holds a certain amount of mustard glucoside. Rapeseed oil contains no cholesterol, so consumers having high cholesterol levels can be at ease.
By nutrition, the digestion and absorption rate of a human body regarding rapeseed oil is as high as 99%, which is favorable for the functioning of the gallbladder. The formerly obscured oilseed rape plant is evolving exceptionally, and is providing significant growth to the rapeseed oil market.
Organic Rapeseed Oil to Edge Out Conventional Products over the Forecast Period
On the basis of nature, the rapeseed oil market is segregated into organic and conventional. The organic rapeseed oil segment is gaining wild popularity as a result of increasing health awareness among consumers. Organic rapeseed oil is known to be healthy, and many dietitians identify its nutritional benefits and the fact that it is growing to be a favorite of chefs. Although, the conventional rapeseed oil segment will lead the market by a fine margin in terms of revenue.
Predominant Use of Rapeseed Oil in Biodiesel Production Especially in Europe
On the basis of end use, the rapeseed oil market is segregated into food processing, cosmetics and personal care products, biodiesel, animal feed, and households/retail. Due to its high nutritional value and versatility, it has been used in marinating meals, fried and baked meals, mayonnaise, and other foods. The use of rapeseed oil is majorly done in food products.
Thus, the food processing segment is leading the market in terms of both, value and volume. Followed by biodiesel, in terms of revenue, the segment is expected to grow at a healthy rate, due to the rise in alternative fuel and new taxation challenges.
Cold Pressed Rapeseed Oil to Become the Favourite of Health Conscious Consumers
On the basis of extraction process, the rapeseed oil market is segregated into solvent-extracted rapeseed oil and cold-pressed rapeseed oil. These are the two kinds of methods of extraction used. The fact that differentiates them is the temperature used while extracting the oil.
The cold-pressed method is growing steadily because no chemicals and solvents are used in this extraction method, hence the oil produced is 100% organic. Although, the solvent-extracted method is more efficient and produces more oil than the cold-pressed method, thus leading the market by a reasonable margin.
Increasing Number of Speciality Stores Stocking Rapeseed Oil on Shelves
On the basis of sales channel, the rapeseed oil market is segregated into direct sales, hypermarkets/supermarkets, convenience stores, specialty retail stores, traditional grocery stores, and online retailers. The direct sales segment is expected to top the market share in terms of both, revenue and quantity, driven by foodservice providers. Meanwhile, the specialty retail stores segment is expected to witness spectacular growth, assisted by the hefty addition of these products on store shelves.
China to Set the Pace for Production of Rapeseed Oil
Regarding production, global rapeseed oil business is expanding at a rate of 3.5%, and reached a volume close to 28 million metric tons in 2017. The primary region for the output of rapeseed oil was Asia Pacific, at more than one-third of the total volume, with China leading the rapeseed oil market with a share of more than 65% in the region.
In revenue terms, the global rapeseed oil market is accelerating at a rate of 3.7%, and reached a value of around US$ 27,600 Mn in 2017. The region generating the highest revenue for rapeseed oil is Europe, with a share of more than 40%, assisted by the higher prices of rapeseed oil as compared to other regions.
At-home Consumption in Stiff Competition with Foodservice Providers
Despite the dominance of foodservice providers regarding the consumption of rapeseed oil, consumers are building a foundation for the growth of the households/retail segment. An inclination towards rapeseed oil instead of olive oil for cooking, frying, and other applications is being observed.
The Rise of Biodiesel, in Search of a New Alternative Fuel, is Impelling the Growth of Rapeseed Oil
One of the sectors that is assisting the growth of the rapeseed oil market is the biodiesel industry. In pursuit of new alternative fuel, biodiesel has been recognized as the perfect replacement for traditional diesel. Diesel has long been the pillar of the fuel industry, but new taxation policies and the damage it does to the environment by harmful emissions are some of the reasons that it is less preferred nowadays.
Conventional diesel is a product of refined crude oil, while biodiesel is made from traditional diesel and organic, renewable resources such as rapeseed oil. The need for biodiesel is increasing by the day, and is one of the major factors driving substantial growth in the rapeseed oil market.
Europe is the Leading Revenue Generating Region in the Global Rapeseed Oil Market
Region wise, the rapeseed oil market in Europe is growing well with increasing biodiesel prospects and also in food products such as baked goods. Changing consumer food patterns from animal to vegan products with the need for dietary fat oils have been helping the growth of the rapeseed oil market. Asia Pacific is just behind Europe, with revenue being most generated from the food processing segment. The rapeseed oil market in Latin America looks promising with expected annual growth rate of 4.8%.
Market segmentation
Global Rapeseed Oil Market – By Nature
- Organic
- Conventional
Global Rapeseed Oil Market – By End Use
- Food Processing
- Cosmetic and Personal Care Products
- Biodiesel
- Animal Feed
- Households (Retail)
Global Rapeseed Oil Market – By Extraction Process
- Solvent-Extracted
- Cold-Pressed
Global Rapeseed Oil Market – By Sales Channel
- Direct Sales
- Hypermarkets/Supermarkets
- Convenience Stores
- Specialty Retail Stores
- Traditional Grocery Stores
- Online Retailers
Global Rapeseed Oil Market – By Region
- North America
- Latin America
- Europe
- Japan
- The Asia Pacific excluding Japan
- Middle East & Africa
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by - Sudip Saha, Managing Director and Co-Founder of Future Market Insights
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