Groundnut Oil Market Size, Share, Growth, and Industry Analysis, By Types (Crude Type, Pressed Type), Applications (Food Industry, Catering, Retail) and Regional Forecast to 2033

GROUNDNUT OIL MARKET

The global groundnut oil market was valued at USD 12,180 million in 2024 and is expected to reach USD 20,708.79 million in 2025. By 2033, the market is projected to grow to USD 12,837.72 million, reflecting a compound annual growth rate (CAGR) of 5.4% during the forecast period from 2025 to 2033.

The U.S. groundnut oil market is experiencing growth due to increasing consumer demand for healthier cooking oils. Rising health-consciousness, coupled with the popularity of plant-based diets, drives the adoption of groundnut oil in households and food industries.

The groundnut oil market is witnessing significant growth globally due to increasing consumer demand for healthy cooking oils. Groundnut oil is renowned for its high smoke point, making it ideal for frying and sautéing. It is rich in monounsaturated fats, which promote heart health, contributing to its rising popularity among health-conscious consumers. The oil is widely used in various cuisines, especially in Asia, Africa, and the United States, owing to its neutral flavor and versatile applications. Furthermore, the growing adoption of groundnut oil in the cosmetic and pharmaceutical industries is enhancing its market presence. With evolving consumer preferences for natural and organic products, the demand for groundnut oil is projected to expand in the coming years.

GROUNDNUT OIL MARKET TRENDS

Groundnut oil is steadily gaining traction in the global edible oil market due to its nutritional benefits and versatile applications in cooking. The increasing health awareness among consumers, particularly in emerging markets, is driving the demand for healthier cooking oils. In countries like India, China, and the United States, groundnut oil is becoming a preferred choice for daily cooking due to its high content of monounsaturated fatty acids, antioxidants, and Vitamin E. Additionally, the growing preference for plant-based oils over animal fats is further boosting its demand.

The food processing industry is also utilizing groundnut oil as an ingredient in various products like snacks, salad dressings, and sauces. This is due to its neutral flavor, which complements other ingredients while enhancing the taste and texture of food. Furthermore, the increasing number of foodservice chains, particularly in Asia, has led to higher consumption of groundnut oil in commercial kitchens, where large quantities are used for deep-frying and cooking.

In the cosmetic and pharmaceutical industries, groundnut oil is increasingly used in the production of skin care products, soaps, and hair care formulations due to its moisturizing and nourishing properties. The trend towards natural and organic personal care products is driving the adoption of groundnut oil in these sectors. Additionally, its non-toxic and hypoallergenic qualities make it a favorable ingredient for beauty and wellness products.

GROUNDNUT OIL MARKET DYNAMICS

The groundnut oil market dynamics are shaped by various factors, including consumer health trends, price fluctuations, and regional preferences. With a surge in health-conscious consumers globally, there is a strong shift towards plant-based oils, leading to increased demand for groundnut oil. The growing awareness about the detrimental effects of trans fats found in hydrogenated oils is also influencing consumer choices, which further boosts groundnut oil consumption.

Simultaneously, regional market dynamics play a significant role in the growth of the groundnut oil market. In regions like Asia-Pacific, where groundnut oil has long been a staple, the demand continues to rise due to population growth and increased disposable incomes. Conversely, in North America and Europe, the market growth is attributed to shifting dietary habits and the increasing trend of using healthier oils for cooking and food preparation.

Groundnut oil manufacturers are also focused on innovations in extraction processes, such as cold-pressing, which preserves the oil’s nutritional properties and appeals to the growing segment of health-conscious consumers. These technological advancements are expected to influence the market dynamics positively by catering to the changing preferences for natural and minimally processed oils.

Drivers of Market Growth

"Rising Demand for Healthier Cooking Oils"

The increasing awareness of the health benefits of groundnut oil is a major driver of market growth. Groundnut oil, with its high content of monounsaturated fats and antioxidants, is considered healthier compared to other conventional cooking oils. As consumers shift towards more heart-healthy dietary habits, the demand for groundnut oil is rising. For instance, groundnut oil is increasingly being used in households, restaurants, and the foodservice industry, replacing oils high in saturated fats. The rise in demand for healthier oils is particularly strong in countries like India, China, and the U.S., where groundnut oil has become a preferred choice for cooking due to its benefits for heart health and weight management.

Moreover, as governments and health organizations advocate for better dietary practices, groundnut oil's popularity continues to expand due to its rich content of polyunsaturated and monounsaturated fats, which help reduce cholesterol levels.

Market Restraints

"Limited Production and Price Fluctuations"

One of the major restraints in the groundnut oil market is the limited availability of raw materials, as groundnut cultivation can be affected by climatic conditions such as droughts or floods. This volatility in groundnut production leads to price fluctuations, which can directly impact the pricing of groundnut oil in the market. For example, in years of low production, groundnut oil prices tend to rise, making it less affordable for some consumer segments, particularly in emerging economies where cost is a significant consideration.

Furthermore, the presence of alternative cooking oils such as palm oil, sunflower oil, and olive oil, which are often produced in larger quantities and at lower costs, poses a challenge for groundnut oil to maintain a competitive position in the market. These factors could restrict the growth of the groundnut oil market, particularly in price-sensitive regions.

Market Opportunities

"Growing Adoption of Natural and Organic Products"

The growing consumer preference for natural and organic products presents a significant opportunity for the groundnut oil market. As consumers become more health-conscious and aware of the potential health risks of consuming processed oils, there is an increasing demand for natural oils such as groundnut oil, which is extracted using minimal processing methods. Groundnut oil, especially when cold-pressed, retains its nutritional content and appeals to health-conscious individuals who prefer unrefined oils.

Additionally, with the rise in the demand for plant-based and organic products across global markets, manufacturers can capitalize on this trend by offering organic groundnut oil. The certification of groundnut oil as organic can further boost its appeal, especially in regions like North America and Europe, where organic food products are gaining significant popularity.

Market Challenges

"Environmental and Climate Change Risks"

A significant challenge to the groundnut oil market is the vulnerability of groundnut crops to climate change. Groundnut farming is highly susceptible to changes in weather patterns, including droughts, floods, and temperature fluctuations, which can directly impact crop yields. In regions heavily reliant on groundnut cultivation, such as India and parts of Africa, unpredictable weather patterns may result in poor harvests, causing supply shortages and driving up prices. This environmental risk can disrupt the availability of groundnut oil, leading to market volatility.

In addition, fluctuations in the price of raw groundnuts due to environmental factors can create uncertainty for both consumers and manufacturers. These challenges could hinder the growth of the groundnut oil market, particularly in areas where agricultural conditions are unpredictable.

SEGMENTATION ANALYSIS

The groundnut oil market is segmented based on type and application. The types include crude and pressed groundnut oil, while the applications span across the food industry, catering, and retail sectors. Each of these segments has distinct characteristics and demand patterns, with specific consumer preferences and regional influences impacting their growth. The segmentation provides valuable insights into the diverse ways groundnut oil is utilized, from household cooking to industrial use in food processing. Understanding these segments is crucial for market players aiming to target specific consumer needs and optimize product offerings accordingly.

By Type:

• Crude Type:Crude groundnut oil is unrefined oil obtained through mechanical extraction methods, which preserves the oil's natural flavor and nutritional properties. It is primarily used in households and in industries where minimal processing is desired. The crude oil retains the natural antioxidants, vitamins, and fatty acids of groundnuts, making it popular among health-conscious consumers who prefer unrefined, natural oils. As crude oil has a higher smoking point, it is commonly used for frying, grilling, and sautéing in various culinary applications. The increasing preference for organic and natural food products further boosts the demand for crude groundnut oil.

• Pressed Type:Pressed groundnut oil is produced through a mechanical pressing or cold-pressing process, which extracts oil without the use of heat or chemicals. This type of oil is preferred for its light flavor, higher quality, and the fact that it retains more nutrients, including omega-6 fatty acids and antioxidants. Pressed groundnut oil is often used in the food industry, particularly in high-end restaurants and gourmet cooking. It is also commonly available in retail markets targeting premium customers. As the demand for healthier and more refined oils increases, pressed groundnut oil continues to grow in popularity, especially among consumers looking for higher-quality, minimally processed cooking oils.

By Application:

• Food Industry:Groundnut oil is extensively used in the food industry due to its versatility, high smoke point, and neutral flavor, which makes it ideal for frying, baking, and salad dressings. It is a preferred choice for snack foods, ready-to-eat meals, and processed food products. The food industry relies on groundnut oil for its stable composition and ability to withstand high temperatures without breaking down, ensuring better food texture and longer shelf life. Additionally, groundnut oil is often used in the production of margarine, mayonnaise, and various processed foods. The food sector's ongoing demand for healthier cooking oils is expected to drive the continued growth of groundnut oil in this application.

• Catering:In the catering sector, groundnut oil plays a significant role due to its high smoke point, making it ideal for large-scale frying and cooking in commercial kitchens. Catering businesses, including restaurants, hotels, and food trucks, often use groundnut oil because it can withstand high temperatures without producing harmful compounds. Its cost-effectiveness and long shelf life further contribute to its widespread adoption in the catering industry. Additionally, groundnut oil’s neutral flavor ensures that it does not overpower the taste of dishes, making it a preferred choice in catering for diverse cuisines. The increasing number of catering businesses and foodservice chains, especially in emerging markets, continues to drive the demand for groundnut oil.

• Retail:Groundnut oil is commonly available in retail stores and supermarkets for household consumers. It is offered in various packaging sizes to cater to different customer needs, from small bottles for individual households to larger containers for commercial use. In retail, groundnut oil is marketed as a healthier alternative to other oils, often with a focus on its heart-healthy properties and suitability for various cooking methods. The growing trend of health-conscious eating and the increasing demand for organic and natural oils have boosted the retail sales of groundnut oil. Furthermore, retailers are expanding their groundnut oil offerings to meet the rising demand for premium, cold-pressed, and organic variants.

REGIONAL OUTLOOK

The global groundnut oil market is witnessing significant growth across various regions, each contributing to the market's expansion in unique ways. The Asia-Pacific region remains the dominant market, driven by high consumption in countries like India and China, where groundnut oil has been a staple for centuries. In North America and Europe, the rising awareness about the health benefits of groundnut oil has led to its increasing adoption. Additionally, the market in the Middle East and Africa is expanding as more consumers turn to groundnut oil due to its affordability and nutritional advantages. The regional dynamics are influenced by factors such as consumer preferences, economic growth, and agricultural production capacities.

North America

In North America, the groundnut oil market is growing due to increasing consumer interest in healthier cooking oils and plant-based products. Groundnut oil is gaining popularity among health-conscious consumers as an alternative to other oils high in saturated fats. The U.S. and Canada are major consumers of groundnut oil, particularly in cooking, food preparation, and the production of processed foods. As more consumers seek oils with a favorable fatty acid profile, groundnut oil is becoming a preferred choice for both home cooking and commercial use. Additionally, the growth of organic food markets and the increasing availability of premium groundnut oil products in retail stores further fuel the market's expansion in this region.

Europe

Europe’s groundnut oil market is experiencing steady growth, driven by the increasing trend of using healthier oils for cooking. Countries like the United Kingdom, Germany, and France are witnessing rising demand for groundnut oil due to its high nutritional value and versatility in cooking. The shift towards plant-based diets and a preference for oils with a higher content of monounsaturated fats have led to an increased adoption of groundnut oil in European households. Moreover, the demand for organic and cold-pressed groundnut oil is expanding as consumers become more focused on natural, minimally processed food products. Retail and foodservice sectors in Europe continue to embrace groundnut oil as part of their healthier product offerings.

Asia-Pacific

Asia-Pacific dominates the groundnut oil market, accounting for a large share of global consumption. Countries like India and China are the primary markets, where groundnut oil has been used for generations in cooking and traditional dishes. In India, groundnut oil is widely used in homes, restaurants, and the food industry for frying and sautéing. The growing middle class and the increasing disposable income of consumers in countries like India, China, and Southeast Asia are driving the demand for higher-quality oils, including groundnut oil. Additionally, the shift towards healthier cooking oils and increasing awareness of the benefits of groundnut oil, such as heart health, is contributing to its growing popularity in the region.

Middle East & Africa

The groundnut oil market in the Middle East and Africa is expanding as consumers are becoming more aware of the health benefits of groundnut oil, such as its rich content of antioxidants and healthy fats. Groundnut oil is widely used in cooking, especially in countries like Egypt, Nigeria, and South Africa, due to its affordability and versatility. In the Middle East, groundnut oil is commonly used in both home cooking and food processing industries. Africa is also seeing a rise in the adoption of groundnut oil, particularly as production increases in key growing regions. As consumer preferences shift towards more health-conscious choices, the demand for groundnut oil is anticipated to continue growing across this region.

LIST OF KEY GROUNDNUT OIL MARKET COMPANIES PROFILED

• ADM

• Bunge

The two top companies having the highest share in the groundnut oil market are:

1. ADM (Archer Daniels Midland Company):ADM holds a significant share of the global groundnut oil market, particularly in North America and Asia-Pacific, with an estimated market share of around 18%.

2. Bunge Limited:Bunge is another key player with a notable share in the global market, contributing approximately 15% of the total market share, particularly in regions such as South America and Asia.

INVESTMENT ANALYSIS AND OPPORTUNITIES

The groundnut oil market offers a wealth of investment opportunities, particularly driven by increasing consumer demand for healthier and plant-based oils. Investors are showing heightened interest in companies that focus on the production of organic and cold-pressed groundnut oil, as these segments are witnessing rapid growth. With rising health awareness, especially in developed regions like North America and Europe, the market for high-quality groundnut oil is expanding, making it an attractive target for investments. Additionally, the growing food processing industry, particularly in emerging markets in Asia-Pacific and Africa, further drives the need for bulk oil production.

Regions with high agricultural production of groundnuts, such as India and China, offer significant opportunities for both local and international investors to invest in groundnut oil production and processing facilities. With advances in extraction technology, such as cold pressing and minimal refining methods, there are opportunities to create higher-value products that cater to the growing demand for healthier, organic food products. This, combined with the increasing shift toward plant-based diets, positions the groundnut oil market as an attractive sector for long-term investments.

Investors are also looking into the packaging and distribution aspects, especially in regions where groundnut oil is a traditional cooking ingredient. As retail and e-commerce sales of cooking oils are increasing, businesses focusing on efficient distribution channels, particularly in emerging markets, are poised for success.

NEW PRODUCTS DEVELOPMENT

The development of new products in the groundnut oil market is playing a pivotal role in addressing the changing preferences of health-conscious consumers. Companies are focusing on introducing premium, cold-pressed groundnut oil, which retains more nutrients compared to refined oils. These oils, which are free from additives and preservatives, are becoming increasingly popular among consumers who prioritize natural, organic ingredients in their diets.

To meet the demand for healthier alternatives, brands are also introducing flavored groundnut oils, which can be used for dressings and seasoning. The introduction of groundnut oil-based cooking sprays has also gained traction in markets where convenience is a key consumer requirement. These products cater to a more health-conscious and time-sensitive demographic that prefers easy-to-use cooking solutions with nutritional benefits.

Furthermore, companies are exploring the potential of groundnut oil in other sectors such as personal care. With the growing demand for natural and organic skincare products, some manufacturers have started producing groundnut oil for use in cosmetics, particularly in moisturizing and anti-aging formulations. The application of groundnut oil in hair care products is also gaining attention due to its nourishing and strengthening properties.

In summary, the development of innovative products, particularly those that appeal to health-conscious consumers, is a key driver of market growth in the groundnut oil industry.

RECENT DEVELOPMENTS

• Expansion of Production Capacity: In 2023, Bunge announced the expansion of its groundnut oil processing plant in India to meet the growing demand in the domestic and export markets. The facility, equipped with state-of-the-art technology, is expected to increase production capacity by 30%, enhancing the company's supply chain efficiency.

• Sustainability Initiatives: ADM launched a new sustainable groundnut oil sourcing initiative in 2023, focusing on partnerships with farmers in regions like Africa and India. The company aims to promote sustainable farming practices and reduce the environmental impact of its oil production processes.

• Product Innovation: In 2024, Cargill introduced a new line of cold-pressed groundnut oil under its health-focused product portfolio. This premium range is targeted at the growing segment of health-conscious consumers and is available in both retail and foodservice channels.

• Strategic Partnerships: Wilmar International entered a strategic partnership with a leading agribusiness company in 2024 to expand its footprint in the groundnut oil market in Africa. This collaboration focuses on improving the supply chain and establishing processing plants to meet the increasing demand for groundnut oil in the region.

• Diversification into Cosmetics: Shandong Luhua expanded its product offerings in 2023 to include groundnut oil-based skincare products. The company leveraged its expertise in oil extraction to create a new range of organic beauty products, tapping into the growing demand for natural and chemical-free personal care items.

REPORT COVERAGE

The groundnut oil market report provides comprehensive insights into the dynamics, trends, and opportunities shaping the industry. It covers key factors influencing market growth, including consumer health trends, technological advancements in oil extraction, and the evolving demand for organic and cold-pressed groundnut oil. The report also examines the competitive landscape, profiling major players in the market and their strategies for growth, such as product innovation, partnerships, and expansion into new regions.

Additionally, the report provides a thorough analysis of market segmentation by type (crude and pressed oil) and application (food industry, catering, retail), highlighting key trends and demand patterns within these segments. Regional insights are also included, with a focus on the leading markets such as Asia-Pacific, North America, and Europe, as well as emerging markets in Africa.

The report also explores challenges faced by the groundnut oil industry, such as climate variability affecting crop production and price fluctuations. Finally, it highlights the investment opportunities in the groundnut oil market, especially in the production, packaging, and distribution sectors, as well as the growing interest in plant-based and organic food products.