Rapeseed, also known as rape, canola and oilseed rape is a bright yellow flower which belongs to the family Brassicacea. Rapeseed is often known to be the third most significant edible oilseed crop after soybean and oil palm. It is mostly cultivated to extract rapeseed oil and it’s by product rapeseed meal. Rapeseed oil has high demand in the market for various applications such as biodiesel, food, lubricants and others which include soap, cosmetics etc. Growing demand for biodiesel in developing as well as developed economies is the major factor promoting growth of global rapeseed oil market. In addition, growing awareness regarding the benefits of rapeseed oil to in terms of human nutrition and health has also boosted market growth.
Impact of rapeseed oil production–
Every product that is introduced to the economy creates its benchmark by is impact on the market. Rapeseed oil is one among those products due to the following reasons.
The rapeseed oil production has enormously contributed to the development of emerging economies such as Asia Pacific, South Africa etc. It has benefited the producers and consumers in worldwide markets. The benefits and reasons for growth include:
Expansion of food and product supply- Rapeseed oil is the healthiest oil among others such as soybean, olive oil, etc. It has the lowest amount of saturated fat and it reduces the risk of cardiovascular diseases. These benefits have led to its use in food industry. Rapeseed oil is used on a large scale in food products and coking processes globally, providing reasonable nutrition to millions of people worldwide. Moreover, rapeseed oil is also used for various other applications such as cosmetics, lubricants, soaps, etc. Changing lifestyles of people have therefore promoted the growth of rapeseed oil and its demand is expected to grow during the forecast period.
Pollution free environment- Rapeseed oil is used to produce biofuels. As rapeseed oil is a renewable resource, it is used in the production of biodiesel. Due to strict regulations regarding pollution free environment, fossils fuels are now replaced by biofuels. Biofuels reduces the carbon footprint thus limiting the amount of pollution. Therefore, high demand for biodiesel globally has led to increased rapeseed oil production in the market and the demand will continue to be high during the forecast period.
Employment and income– Rapeseed oil production has led to direct employment opportunities for many people of Asia Pacific and South Africa. It indirectly has been proven to provide livelihood for a number of people.
Development in the infrastructure– The expansion of rapeseed oil industry has led to development of infrastructure in remote areas which lack technological support. Growing rapeseed oil industry has created growth opportunities for the local owners of rapeseed plantations to grow and expand its presence globally. Due to these factors, development in infrastructure such as schools, roads, hospitals, etc have been experienced in the poor and remote areas.
The above mentioned factors have therefore created a strong demand for rapeseed plantations worldwide, thereby creating awareness and demand for rapeseed oil in the market.