Poland and Europe: Rapeseed oil | Analysis and Market | Outlook

As a valuable ingredient in the kitchen and food industry, rapeseed oil plays a key role in European markets, especially in Poland and throughout Europe. Looking at the market outlook in 2024, the analysis highlights not only the importance of production, exports and imports, but also the dynamics of competition and international dependence. Not without significance is the prevailing geopolitical situation and relations between Poland, the European Union, Ukraine, Belarus, Russia…

The same is true of unrefined oil, as it is widely used in the food industry for food production, in the pharmaceutical industry for cosmetics and dietary supplements, and as a raw material for biofuels, meeting a variety of health, nutritional and ecological needs. Its natural nutritional properties make it valued by manufacturers as an ingredient in high-quality products, while its lack of refining can affect the intensity of flavor and aroma, as well as its nutritional content.

Refined rapeseed oil

Europe, which is both a large importer and exporter, is showing stability in canola oil trade. Imports reach about 1 million tons per year, with Germany, the Netherlands and the UK as the main importers. Germany accounts for about 30% of imports, while France and Poland play significant roles as exporters, contributing more than 20% of exports. Europe as a whole exports about 5 million tons per year, maintaining its position as the world’s largest exporter of rapeseed oil.In Poland, the market picture is equally impressive. The country is not only the largest producer of rapeseed oil in Europe, but also the second largest in the world. Production in 2023 reached about 6 million tons, covering as much as 80% of domestic demand.

The rest is imported, mainly from Germany, the Czech Republic and Ukraine. Poland also exports extensively, producing about 4 million tons a year, making it the world’s market leader in rapeseed oil. Germany, the Netherlands and the UK are the main buyers of Polish rapeseed oil.Analyzing these figures, we see that Poland and Europe maintain their dominant position in the global rapeseed oil market.

Poland particularly stands out as a manufacturing and export powerhouse, decisively shaping the global dynamics of the sector. The value of this raw material to the economy and the food supply chain is undeniable, and the stability and sustainability of this market remain key to its continued success and growth.The value of the rapeseed oil market in Europe and Poland is significant. It is estimated that the European market is worth about 10 billion euros a year, while the Polish market reaches about 10 billion zlotys a year. These figures reflect the importance of this raw material to the region’s economy, both nationally and internationally.

However, while the market volume is impressive, Poland faces the challenge of a trade deficit in canola oil. In 2023, the deficit reached about 2 billion zlotys. The deficit is expected to narrow in 2024, mainly due to a decline in imports from Ukraine. This change may affect Poland’s trade balance and contribute to a more balanced situation in the rapeseed oil market.

In terms of volume, the European rapeseed oil market reaches about 6 million tons per year, while the Polish market is estimated at about 7 million tons per year. These figures confirm Poland’s dominant position as a key producer and exporter of this raw material in the region.

  • In Poland, the value of the refined oil market is estimated at about 8 billion zlotys a year, confirming the importance of this raw material to the national economy. Poland leads in both production and consumption in Europe, producing about 80% of the refined oil consumed in the country. Despite this, the country imports about 20% of its demand mainly from Germany, the Czech Republic and Ukraine. Poland also exports refined oil, mainly to Germany, the Netherlands and the UK, confirming its position in the European market.
  • On a European scale, the value of the refined oil market reaches about 50 billion euros a year, with Europe being the world’s largest producer and consumer of this raw material. More than 70% of the refined oil consumed in Europe is domestically produced, and the rest is imported, mainly from Asia. Nevertheless, Europe is also an active exporter, especially to Asian countries.
  • Globally, the value of the world market for refined oil is about $200 billion a year, with Asia dominating as the world’s largest market for this commodity. China, India and Japan are major importers, while Singapore, Malaysia and Indonesia are major exporters, underscoring the importance of the Asian region to global refined oil trade.

Rapeseed oil plays a key role in Poland’s agricultural and industrial sectors, being both an important feedstock for food and biofuel production. Poland, being the leader in rapeseed production in Europe and the second in the world, has a significant share of the global rapeseed oil market. However, the presence of various risk factors can affect the stability of this sector and requires constant monitoring and appropriate management. This article will look at the main aspects of production, threats and challenges facing the Polish canola oil market.

  • Poland is the leading producer of rapeseed in Europe and a global player in this field, generating about 10 million tons of it in 2023.
  • Rapeseed production is used to produce rapeseed oil, feed and biofuels, which is an important part of Poland’s agro-industrial sector.
  • The main threat to the Polish rapeseed oil market is the current war in Ukraine. Ukraine is an important importer of Polish rapeseed oil, and an escalation of the conflict could lead to a drop in demand and lower prices on the market.
  • An additional risk factor is the growing competition from other large rapeseed oil producers, such as Canada and China, which could negatively affect Polish producers through price pressure and competition for markets.

In the face of these challenges, the key task for Poland’s rapeseed oil sector is to monitor the market situation and take appropriate measures to minimize potential negative effects and ensure the stability of the sector in Poland. Through a balanced approach to production, technological innovation and the search for new markets, Polish manufacturers can counter threats and seize opportunities to develop this important segment of the economy.

Unrefined rapeseed oil

Technical rapeseed oil, which is an important raw material in the food and fuel industry, plays an important role in European markets, especially in Poland. The 2024 market analysis sheds light on the dynamics of production, trade and the challenges facing the sector.

European perspective:

  • Imports: Europe imports relatively small amounts of unrefined rapeseed oil, estimated at about 0.5 million tons per year. Germany, the Netherlands and France are the main importers, with Germany leading the way, accounting for about 30% of imports.
  • Exports: Europe exports about 2 million tons of unrefined rapeseed oil annually, mainly to Asian countries such as China, Japan and South Korea. Germany and France are the largest exporters, with Poland ranking third, exporting about 20% of its production.

A Polish Perspective:

  • Production: Poland is one of the main producers of unrefined rapeseed oil in Europe, producing about 1 million tons per year. This raw material is used both in the domestic food market and for biofuel production.
  • Imports: Poland imports relatively small amounts of unrefined rapeseed oil, mainly from Germany, the Czech Republic and Ukraine. However, a drop in imports from Ukraine could affect Poland’s trade balance.
  • Exports: Poland exports about 0.5 million tons of unrefined rapeseed oil annually, primarily to Asian countries. Germany, the Netherlands and the United Kingdom are the main buyers of Polish rapeseed oil.

Value, account and volume:

  • The value of the unrefined rapeseed oil market in Europe is estimated at about €2 billion a year, with the Polish market worth about PLN 2 billion a year.
  • Poland’s trade account for unrefined rapeseed oil is slightly negative, with a deficit of about PLN 0.1 billion in 2023. It is expected that a decline in imports from Ukraine could reduce the deficit in 2024.
  • The volume of the unrefined rapeseed oil market in Europe is estimated at about 3 million tons per year, with the Polish market at about 1.2 million tons per year.

The main threat to the Polish unrefined rapeseed oil market is the war in Ukraine, which could affect demand and prices. In addition, growing competition from other producers, such as Canada and China, poses an additional challenge for Polish producers.In summary, the unrefined rapeseed oil market in Poland and Europe is a dynamically developing sector, albeit a relatively small one.

Poland has a strong foundation as a producer and exporter of the commodity, but must confront the challenges posed by the situation in Ukraine and growing competition. The key to future growth will be to monitor changes in the market and take appropriate action to address threats and capitalize on growth opportunities in this segment of the economy.

Refined and unrefined rapeseed oil: analysis and summary

The market for rapeseed oil, both refined and unrefined, plays a key role in Poland and Europe, being an important component of the kitchen and food industry. Poland stands out as one of the largest producers and exporters of rapeseed oil, giving the region a prominent position in the global rapeseed market. The value of rapeseed oil markets in Poland and Europe is impressive, exceeding 8 billion zlotys and 10 billion euros a year, respectively, underscoring the importance of the sector to the economy.

Despite its dominant position, Poland faces challenges, such as the current war in Ukraine, which could affect market stability by reducing demand and prices. In addition, growing competition from other producers, especially from Canada and China, poses additional challenges for Poland’s rapeseed oil sector. The key to continued success will be conscious monitoring of market developments and appropriate management to address threats and seize opportunities for the development of this strategic segment of the economy.