APAC groundnut oil market report size, share, growth drivers, trends, opportunities & forecast 2025–2030

APAC Groundnut Oil Market Overview

• The APAC Groundnut Oil Market is valued at USD 4.8 billion, based on a five-year historical analysis. This growth is primarily driven by increasing consumer demand for healthy cooking oils, rising awareness of the health benefits associated with groundnut oil, and the expansion of the food processing industry across the region. The market is further supported by advancements in extraction technologies, such as cold pressing, which improve product quality and efficiency, and a strong cultural preference for groundnut oil in local cuisines.
• Key players in this market include India and China, which dominate due to their large agricultural sectors and high production capacities. India is the largest producer and consumer of groundnut oil, while China has a significant market presence due to its vast population and growing middle class, leading to increased consumption of edible oils. China accounts for approximately 39% of both consumption and production in the region, followed by India and Pakistan.
• In 2023, the Indian government implemented the "National Edible Oil Mission – Oil Palm" (NEOM-OP), issued by the Ministry of Agriculture & Farmers Welfare, Government of India. This policy promotes the use of edible oils derived from domestic sources, including groundnut oil. The initiative aims to reduce dependency on imported oils and enhance local production capabilities, thereby supporting farmers and boosting the agricultural economy. Operationally, NEOM-OP sets targets for domestic oilseed production, provides financial incentives for farmers, and mandates compliance with quality standards for edible oils.

APAC Groundnut Oil Market Segmentation

By Type:The market is segmented into various types of groundnut oil, including refined, unrefined, organic, cold-pressed, hot-pressed, and others. Among these,refined groundnut oilis the most popular, accounting for the largest revenue share due to its longer shelf life and versatility in cooking. Refined groundnut oil held a revenue share of approximately 64% in recent years.Organic groundnut oilis gaining traction as consumers become more health-conscious and prefer products with fewer chemicals. The demand forcold-pressed oilis also rising, driven by the trend towards natural and minimally processed food products.

By Application:The groundnut oil market is utilized across various applications, including the food industry, cosmetics and personal care, pharmaceuticals, industrial uses, and others. Thefood industryis the largest segment, accounting for approximately 70% of market share, driven by the increasing use of groundnut oil in cooking and food processing. Thecosmetics sectoris also expanding, as groundnut oil is recognized for its moisturizing properties and is used in various personal care products. Pharmaceutical and industrial uses remain smaller segments but are growing steadily due to the oil’s functional properties.

APAC Groundnut Oil Market Competitive Landscape

The APAC Groundnut Oil Market is characterized by a dynamic mix of regional and international players. Leading participants such as Adani Wilmar Ltd., Cargill India Pvt. Ltd., Ruchi Soya Industries Ltd. (now Patanjali Foods Ltd.), Marico Ltd., Bunge India Pvt. Ltd., Mahindra Agri Solutions Ltd., Gokul Agro Resources Ltd., Gemini Edibles & Fats India Ltd., Wilmar International Ltd., Olam International Ltd., Vimal Oil & Foods Ltd., Sree Gokulam Group, Satyam Oils, Sree Murugan Oil Mills, Dharmani Oil Mills contribute to innovation, geographic expansion, and service delivery in this space.

APAC Groundnut Oil Market Industry Analysis

Growth Drivers

• Increasing Health Consciousness:The APAC region has seen a significant rise in health consciousness, with the health and wellness food market projected to reach $1.1 trillion in future. This trend is driving consumers towards healthier cooking oils, including groundnut oil, which is rich in monounsaturated fats and antioxidants. The World Health Organization reports that 39% of adults in the region are actively seeking healthier dietary options, further boosting the demand for groundnut oil as a preferred cooking medium.
• Rising Demand for Natural Oils:The global shift towards natural and organic products is evident in the APAC groundnut oil market, where the demand for natural oils is expected to increase by 15% annually. According to the Food and Agriculture Organization, the consumption of natural oils in the region has surged, with groundnut oil being favored for its health benefits and culinary versatility. This trend is supported by a growing number of consumers prioritizing clean-label products, which enhances market growth prospects.
• Expanding Food Processing Industry:The food processing industry in APAC is projected to grow at a rate of 8% annually, reaching a market value of $1.5 trillion in future. This expansion is driving the demand for groundnut oil as a key ingredient in various processed foods, including snacks and sauces. The Indian Ministry of Food Processing Industries reported that groundnut oil accounts for approximately 20% of the total edible oil consumption, highlighting its critical role in the sector's growth and sustainability.

Market Challenges

• Price Volatility of Raw Materials:The groundnut oil market faces significant challenges due to the price volatility of raw materials. In future, the price of groundnuts fluctuated between $800 and $1,200 per ton, influenced by factors such as climate change and supply chain disruptions. The International Monetary Fund noted that such volatility can lead to increased production costs, impacting profit margins for manufacturers and potentially leading to higher consumer prices.
• Competition from Alternative Oils:The APAC groundnut oil market is increasingly challenged by competition from alternative oils, such as palm and sunflower oil. In future, palm oil consumption in the region reached 10 million tons, while sunflower oil saw a rise to 5 million tons. This competition is intensified by aggressive pricing strategies and marketing efforts from alternative oil producers, which can undermine the market share of groundnut oil and affect its growth trajectory.

APAC Groundnut Oil Market Future Outlook

The future of the APAC groundnut oil market appears promising, driven by increasing health awareness and a shift towards natural products. As consumers continue to prioritize health and sustainability, the demand for organic and cold-pressed groundnut oils is expected to rise. Additionally, the expansion of e-commerce platforms will facilitate greater access to groundnut oil products, enhancing market penetration. Companies that innovate and adapt to these trends will likely capture significant market share in future.

Market Opportunities

• Expansion into Emerging Markets:Emerging markets in Southeast Asia present significant opportunities for groundnut oil producers. With a growing middle class and increasing disposable incomes, the demand for premium cooking oils is expected to rise. The Asian Development Bank projects that the region's GDP will grow by approximately 6% in future, creating a favorable environment for market expansion and product introduction.
• Product Innovation and Diversification:There is a notable opportunity for product innovation in the groundnut oil sector, particularly in developing flavored and fortified oils. The market for specialty oils is projected to grow by 12% annually, driven by consumer interest in unique culinary experiences. Companies that invest in research and development to create innovative products can differentiate themselves and capture a larger share of the market.