Increasing consumer awareness of rapeseed oil’s health benefits and a shift away from animal products to vegetables are projected to boost the global rapeseed oil market.

According to a new market study by Fact.MR, the global rapeseed oil market was poised to reach nearly US$16.9bn by the end of 2022, growing at a steady compound annual growth rate (CAGR).

Europe was the most promising market for rapeseed oil producers and was set to maintain its dominance over other regions, while the Asia Pacific excluding Japan (APEJ) region was expected to become a growth market with high potential.

Online and specialty store sales were the highest growing distribution channel segments, with specialty stores being a step ahead in its growth path, expected to grow at a CAGR of 4.6%.

The modern trade segment was projected to experience a drop in its growth rate, but nonetheless remain as the market leading distribution channel for the time being.

“But, according to the report insights, it is obvious that the specialty stores segment or the online segment could grow at par with the modern trade segment to capture most of its revenue share by the end of 2022,” Fact.MR said in a statement.

In product types, the processed oil segment held a market share of 65% in 2017 and expected to grow further at the expense of the virgin oil segment, which Fact.MR expected to either grow at the current 2017 rate or remain the same.

The food services segment was poised to grow at an increasing rate in the end user category, reaching a CAGR of 4.3%.

However, stiff competition was expected between the food services and the retail segments, the latter of which was also poised to experience “remarkable” growth, although to nonetheless lag behind food services.

Leading players in the market included Adams Group, Adani Wilmar Group, American Vegetable Oils, Archer Daniels Midland, Associated British Foods, Borges International Group, Bunge, ConAgra Foods, Fuji Holdings, Grief, Louis Dreyfus Company, Marico and Ruchi Soya Industries.