Rapeseed, colza or mustard oil and fractions market in Japan

Earlier Report Observations

The Japanese market for rapeseed, colza, and mustard oil showed initial stability from 2018 to 2019, with volume and value each growing slightly to over 1.05 million tonnes and $2.3 billion. This was supported by steady consumer demand for healthier oils high in unsaturated fats. However, the market began facing upstream cost pressures as African Swine Fever in China reduced global soybean stocks, pushing up raw material prices for oilseeds. The situation shifted dramatically in 2020 when COVID-19 lockdowns severely reduced demand from the food service sector, leading to a contraction in market volume to 1.01 million tonnes and a sharp 23% drop in market value to $1.77 billion as consumer behavior changed and producers adjusted prices.

Market conditions remained challenging through 2021 and 2022, driven primarily by supply-side constraints and intense cost inflation. A poor rapeseed harvest in Canada, a key supplier, reduced import availability and contributed to a decline in domestic production. In response, major oil manufacturers implemented multiple price revisions. These factors, coupled with broader inflation, resulted in a market value recovery to nearly $2.0 billion in 2021 despite a slight volume dip. The pressure intensified in 2022 with historic surges in raw material and energy costs, compounded by a rapid depreciation of the Japanese yen. Repeated industry-wide price hikes followed, which supported the unit value of household cooking oil but contributed to a significant 10% reduction in market volume to 905 thousand tonnes and a drop in value to $1.78 billion.

The market contraction continued into 2023, with volume falling further to 861 thousand tonnes and value declining by 22% to $1.4 billion. This extended the downward trend observed since the pandemic, influenced by the sustained high price environment and its impact on consumption.

Production rapeseed, colza or mustard oil and fractions in Japan

In kind, 2018-2021, K t

From 2018 to 2021, Japan ranked as the world's fifth-largest producer of rapeseed, colza, or mustard oil and fractions.

Top producers of rapeseed, colza or mustard oil and fractions, 2018-2021

World map of production of rapeseed, colza or mustard oil and fractions, 2018-2021

Following a two-year decline, Japan's production of rapeseed, colza, or mustard oil and fractions saw an uptick. In 2021, output reached 994 K t, marking a modest increase of 1.8% from the previous year. Over the 2018–2021 period, production fell by 3.1%, averaging an annual decline of 1.1%. The lowest production level was recorded in 2020 at 976 K t, which also saw the steepest drop of 3.9%.

Annual dynamics of production in Japan in kind, 2018-2021, K t

In value, 2018-2021, M $ US

After a two-year decrease, Japan's production value for rapeseed, colza, or mustard oil and fractions rose. In 2021, the output was valued at 1 955 M $ US, reflecting a significant 12.6% increase compared to 2020. From 2018 to 2021, production value declined by 14.2%, with a compound annual growth rate of -5.0%. The minimum value occurred in 2020 at 1 736 M $ US, which also experienced the largest decline of 23.7%.

Annual dynamics of production in Japan in value, 2018-2021, M $ US

Exports rapeseed, colza or mustard oil and fractions from Japan

Exports in kind, t

Japan's exports of rapeseed, colza, or mustard oil and fractions grew for the third year in a row. In 2021, exports totaled 4 324 t, a 50.7% rise from the previous year. Between 2018 and 2021, exports surged by 242%, translating to an annualized growth rate of 50.7%.

Annual dynamics of product's exports from Japan in kind, 2018-2021, t

During 2018–2021, Vietnam, Malaysia, and China were the primary destinations for Japan's rapeseed, colza, or mustard oil and fractions exports in kind. Vietnam accounted for 37.0% of exports, Malaysia for 21.3%, and China for 15.9%, together making up 74.2% of the total.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Japan in kind, 2018-2021

Exports in value, K $ US

Japan's cross-border shipments of rapeseed, colza, or mustard oil and fractions increased for the third consecutive year. In 2021, exports amounted to 8 507 K $ US, up 66.7% from 2020. Over the 2018–2021 period, exports grew by 203.1%, with a compound annual growth rate of 44.7%.

Annual dynamics of product's exports from Japan in value, 2018-2021, K $ US

From 2018 to 2021, Vietnam, China, and Asia, not elsewhere specified, dominated Japan's export structure in value terms. Vietnam held a 38.0% share, China 17.3%, and Asia, not elsewhere specified 14.8%, collectively representing 70.0% of total export flows.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Japan in value, 2018-2021

Imports rapeseed, colza or mustard oil and fractions to Japan

Imports in kind, t

The market exhibited volatility during the observed period. Import volumes reached their lowest point in 2021 and peaked in 2019, with a 2.2-fold difference between these years. In 2021, Japan imported approximately 16 985 t of rapeseed, colza, or mustard oil and fractions, down 52.6% from the previous year. The highest volume was recorded in 2019 at 37 799 t, which also saw the largest increase of 100.1%.

Annual dynamics of product's imports to Japan in kind, 2018-2021, t

Between 2018 and 2021, Canada dominated Japan's imports in kind, accounting for 71.4% of total flows, while other partners held relatively minor shares.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Japan in kind, 2018-2021

Imports in value, K $ US

The data shows irregular changes, indicating a volatile market environment. Import values hit their lowest in 2018 and peaked in 2019, with a 1.7-fold difference. In 2021, Japan imported 27 024 K $ US of rapeseed, colza, or mustard oil and fractions, a 23.4% year-on-year decrease. The maximum value was recorded in 2019 at 35 584 K $ US, which also experienced the largest increase of 71.9%.

Annual dynamics of product's imports to Japan in value, 2018-2021, K $ US

From 2018 to 2021, Canada and Australia were the leading markets for Japan's imports in value terms, together accounting for 89.0% of total flows, with the remainder distributed among other destinations.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Japan in value, 2018-2021