Rapeseed Oil and Meal Market Overview
Rapeseed yields around 40 percent of oil, which makes it one of the most important oilseed crops after soybean. The process of oil extraction also gives by-products like lecithin and rapeseed meal. Lecithin is used in the food and nutraceutical industries as an additive, and rapeseed meal is used as cattle fodder. The European Union is a major producer of rapeseed, however, Canada leads the global exports and contributes to more than 50 percent of the total exports for both rapeseed oil and meal.
The demand for rapeseed oil is primarily driven by both food and industrial application. In addition to this, any major increase in the palm oil and other vegetable oils is expected to further drive the demand for rapeseed oil production. The report also provides a detailed supply-demand analysis of rapeseed oil and rapeseed meal across different geographic regions such as North America, Europe, and Asia. In addition to this, the report also gives a comprehensive industrial analysis, including procurement insights, Porter's five forces analysis, and the impact of macroeconomic factors. The report also explores the cost and pricing of rapeseed and meal across different industrial segments, along with detailed profiles of chief suppliers and rapeseed oil producers.
Beroe gathers intelligence through primary sources that include industry experts, researchers, and consultants, as well as current suppliers, producers and distributors. Secondary sources can include business journals, newsletters, magazines, market research data, company sources, and industry associations. Following data collation, analysis, and strategic review, the Final Research Report is published on Beroe LiVE.
Rapeseed Oil and Meal Market Trends
Category Intelligence on Rapeseed Oil and Meal covers the following
- Information relating to market, supply, cost, and pricing analysis
- Hard to find data on cost and TCO models, supplier details, and performance benchmarks
- Macroeconomic and regional trends impacting cost, supply, and other market dynamics
- Category-specific negotiation and sourcing advice
Industry Outlook & Drivers
Global Market Outlook on Rapeseed Oil and Meal
The global rapeseed seed market is expected to witness a short supply scenario during 2017–2018F. Despite a record harvest in Canada and Australia, heavy crop damage in the UK (major producing country in the EU) is likely to weigh on global supply .The EU is the major producer of rapeseed in the world. However, Canada leads the global exports contributing to more than 50 percent of the total exports, for both rapeseed oil and meal
- The harvest period for summer varieties of rapeseed (largely grown in Canada) is between June last week and August, whereas for winter varieties (grown in the EU and parts of China), it is at the end of August–September
- Usually, contracts are for four months, and the best months to lock in the rapeseed oil prices are June and rapeseed meal is March/April
- The rapeseed oil price are expected to trend around $825–840 during Q3 2019.
- Tight supply of vegetable oils other than palm is likely to ensure that the rapeseed price pressure continues.
- Rapeseed meal price is expected to trend downwards in the coming quarter.
- Rapeseed price will vary with the prices of substitute oil seed meals.
- Rapseed oil market volatility opens huge export opportunities for farmers in Canada and Australia.
- Possible drop in prices of substitute products and reduce in demand for rapeseed can bring down the rapeseed price, affecting the sale of stock held by the Canadian producers.
- Competition from cold-pressed segment (niche market) is likely to increase with increasing consumer awareness
- Reduced chances for product differentiation will ensure equal opportunity to all the major manufacturers.
- The intensity of rivalry is expected to be high in the rapeseed oil market.
- Level of production from major supplying region (EU) is less than expected to reduce, since the oil seed sowing in the UK has reduced to a 13-year low.
- The global demand for edible oil is expected to increase by around 54 percent by 2020.
- Easy availability of substitutes in the market will give the buyers more choices, and in turn, more power.
- Availability of substitutes with unique properties is very high in the edible oil market.
- Palm oil can replace canola oil for the industrial uses (baking, extrusion, etc.).
- The threat posed by substitutes is high, unless the price difference is competitive.
Rapeseed Oil and Meal - Value Chain
- Rapeseed yields around 40 percent of oil, which makes it as one of the most important oilseed crops after soybean
- By-products, like rapeseed meal and lecithin, are also produced during the process
- Rapeseed meal is widely used as cattle fodder, whereas lecithin is used in the food and nutraceutical industries as additives
Rapeseed Oil - Global Supply–Demand Analysis
- The major producers of soybean oil are the EU, China, and Canada, and they contribute to around 74 percent of the total world's production
- Meanwhile, Australia and India have witnessed a record yield
- Crushing in Canada have witnessed a decrease since the exports are projected to decrease by 3.1 MMT
Global Production Share (2010–2011 and 2018–2019 F)
- Rapeseed oil demand is expected to increase steadily to reach 29.15 MMT in 2017–2018, and it is expected to be around 28.92 in 2018–2019
- Its demand is primarily driven by both food and industrial uses. Any major increase in demand for palm oil, which is used in biofuel, is also expected to impact the rapeseed oil. Likewise, price trends in other major vegetable oils are also expected to drive the demand
- Demand EU is estimated to be less, owing to anticipation in price rise, driven by reduced acreage
Rapeseed Oil - Trade Dynamics
Record yield and production increased the Canadian rapeseed exports in the harvest period of 2016–2017. This trend continued in 2017–2018, and it is likely to continue in 2018–2019
Rapeseed oil production is highly influenced by the crush margins vs. soybean in the EU
Why Should You Buy This Report
- Information about the rapeseed oil market size, value chain analysis, supply-demand analysis and trade dynamics.
- Regional market snapshot and analysis of North America, Europe, and Asia.
- Porter’s five force analysis of the global rapeseed oil market.
- Rapeseed oil and rapeseed meal price analysis, cost structure analysis, rapeseed price outlook, etc.
- Supplier profiles of key players.