European biodiesel demand and health benefits to drive global rapeseed oil market

The rapeseed oil industry was valued at $23.76 billion (€21.83bn) in 2014, and is expected to reach $35.39 billion by 2021 at a compound annual growth rate of 6.9%.

Rapeseed oil is extracted from rape crop which is the third largest crop cultivated in Europe.

Credence Research forecasts in a new market study that the global industry for rapeseed oil is anticipated to witness rapid growth during the forecast period.

The growth will be driven by various health benefits and advantageous properties, such as rapeseed oil’s use in biodiesel production, as vegetable oil in food, and other applications.

The increasing demand for biodiesel in particular is expected to promote growth in the global rapeseed oil industry.

Frequent changes in food consumption habits of people globally have led to growing vegetable oil use.

The shift in food consumption patterns from animal products to vegetables, grains, and fruits is due to health awareness among major parts of the population.

The health benefits offered by rapeseed oil, such as low cholesterol and help in reducing the risk of cardiovascular diseases, is driving the consumption of rapeseed oil worldwide.

Competitive insights

Europe accounted to be the major rapeseed oil producing region, with rape being the third most cultivated crop in the UK.

Rapeseed oil is thereby consumed on a large scale in the region for the production of biodiesel due to growing concerns related to fossil fuels and in food applications.

Europe accounted for more than 30% share of the global rapeseed oil market in 2015 and it is expected to grow in the near future.

Asia-Pacific followed Europe in terms of demand for rapeseed oil and is projected to be the second fastest growing market in 2015.

China and India are expected to be the largest consumers of rapeseed oil among the countries in Asia-Pacific, with India accounting for more than 18% of the global market in 2015.

In addition, Middle East and Africa (MEA) and the rest of the world are also expected to boost demand for rapeseed oil.

Major players involved in the production of rapeseed oil are focusing on industrial strategies and new product launches to gain a stronger foothold in emerging economies globally.

To bolster their opportunities, both small and major players in the market are turning to mergers and acquisitions as their weapon of choice.

Increasing demand for rapeseed oil in a large number of applications is the major factor for new entrants to compete and gain foothold in the marketplace, Credence reports.