Rapeseed, colza or mustard oil and fractions market in Canada

Earlier Report Observations

The Canadian market for rapeseed, colza, and mustard oil grew steadily from 869 thousand tonnes in 2018 to 1 105 thousand tonnes in 2020. This expansion was primarily driven by the September 2018 prohibition on adding trans fats to food products in Canada, which boosted demand for canola oil as a healthier alternative in the food industry. The introduction of new genetically modified canola varieties, assessed as safe for food use, also supported supply and innovation during this period.

Market volume stabilized at around 1 092 thousand tonnes in 2021 as significantly higher canola prices, linked to strong global demand and production conditions, moderated consumption growth. Concurrently, the industry invested in expanding domestic crushing capacity to meet anticipated demand. A decline to 1 025 thousand tonnes followed in 2022, coinciding with a notable drop in domestic production, although specific explanatory factors for this contraction were not highlighted in the sources.

A strong recovery pushed the market volume to 1 183 thousand tonnes in 2023. This rebound was supported by the regulatory approval of rapeseed oil for use as an insect control agent in agriculture, creating a new demand segment. Continued consumer interest in high-oleic, trans-fat-free oils further sustained demand within the food sector.

Production rapeseed, colza or mustard oil and fractions in Canada

In kind, 2017-2020, K t

From 2017 to 2020, Canada ranked as the world's top producer of rapeseed, colza, or mustard oil and fractions by volume.

Top producers of rapeseed, colza or mustard oil and fractions, 2017-2020

World map of production of rapeseed, colza or mustard oil and fractions, 2017-2020

Canada's production of rapeseed, colza, or mustard oil and fractions grew for the third year in a row. In 2020, output reached 4 495 K t, marking a modest year-over-year increase of 7.4%. Over the 2017-2020 period, production rose by 11.1%, with a compound annual growth rate of 3.6%.

Annual dynamics of production in Canada in kind, 2017-2020, K t

In value, 2017-2020, M $ US

In 2020, the value of rapeseed, colza, or mustard oil and fractions produced in Canada was 3 721 M $ US, showing a 9.2% improvement from the previous year. Between 2017 and 2020, production value increased by 7.8%, translating to an annualized rate of 2.5%. The lowest value was recorded in 2019 at 3 407 M $ US, which also saw the largest decline of 1.4%.

Annual dynamics of production in Canada in value, 2017-2020, M $ US

Exports rapeseed, colza or mustard oil and fractions from Canada

Exports in kind, K t

In 2020, Canada exported 3 410 K t of rapeseed, colza, or mustard oil and fractions, up 6.6% from the year before. From 2017 to 2020, exports grew by 10.1%, with an annualized rate of 3.3%. The largest decline occurred in 2019, at 1.9%.

Annual dynamics of product's exports from Canada in kind, 2017-2020, K t

Between 2017 and 2020, the United States and China were the main destinations for Canada's exports in kind, together accounting for 85.4% of total flows. The United States held a 55.9% share, while China made up 29.5%, with other partners covering the remainder.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Canada in kind, 2017-2020

Exports in value, M $ US

In 2020, the value of rapeseed, colza, or mustard oil and fractions exported from Canada was 2 823 M $ US, reflecting a moderate 8.4% increase compared to the previous year. Over the 2017-2020 period, export value rose by 6.8%, with a compound annual growth rate of 2.2%. The lowest value was in 2019 at 2 604 M $ US, which also experienced the largest decline of 4.9%.

Annual dynamics of product's exports from Canada in value, 2017-2020, M $ US

From 2017 to 2020, the United States and China led Canada's exports in value terms, together representing 86.4% of total flows. The rest was distributed among other countries.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Canada in value, 2017-2020

Imports rapeseed, colza or mustard oil and fractions to Canada

Imports in kind, K t

Canada's imports of rapeseed, colza, or mustard oil and fractions increased for the second consecutive year. In 2020, import volume stood at 20 K t, a substantial 15.3% rise from the previous year. Between 2017 and 2020, imports grew by 11.8%, equating to an annualized rate of 3.8%. The lowest volume was in 2018 at 15 K t, which saw the largest decline of 16.9%. The largest increase occurred in 2019, at 16.7%.

Annual dynamics of product's imports to Canada in kind, 2017-2020, K t

During 2017-2020, the United States dominated Canada's imports in kind, capturing 87.0% of total flows, while other countries accounted for the rest.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Canada in kind, 2017-2020

Imports in value, M $ US

Canada's imports of rapeseed, colza, or mustard oil and fractions in value terms rose for the second year in a row. In 2020, imports totaled 25 M $ US, a 9.8% gain from the year earlier. Over the 2017-2020 period, import value increased by 6.5%, with a compound annual growth rate of 2.1%. The lowest value was recorded in 2018 at 21 M $ US, which also had the largest decline of 8.9%.

Annual dynamics of product's imports to Canada in value, 2017-2020, M $ US

From 2017 to 2020, Canada's import structure in value terms was heavily concentrated on the United States, which accounted for 82.8% of total flows, with other partners making up the remaining share.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Canada in value, 2017-2020