India Cooking Oil Market Outlook 2030

India Cooking Oil Market Overview

• The India cooking oil market was valued at 24.4 Million Tons in 2023, driven by the large population, increasing disposable incomes, and growing health consciousness among consumers.
• Key players in the market include Adani Wilmar, Ruchi Soya Industries, Cargill India, Emami Agrotech, and Marico. These companies have extensive distribution networks and strong brand recognition.
• In 2022, Adani Wilmar acquired a 19.8% stake in Ruchi Soya Industries. This acquisition has boosted Adani Wilmar's market position and expanded its product range, making it more competitive in the Indian cooking oil market. This deal helps Adani Wilmar utilize Ruchi Soya's existing distribution network and brand presence effectively.

India Cooking Oil Current Market Analysis

• In 2024, the urban population in India has been steadily increasing, around 507 million. This urban shift has led to changes in dietary habits, with a preference for convenient and ready-to-use cooking oils. According to the Ministry of Urban Development, urbanization is driving the demand for packaged and branded cooking oils, as urban consumers seek healthier and premium options.
• Consumers are shifting towards healthier oils such as olive oil, canola oil, and rice bran oil. This trend is driven by growing health awareness and the perceived benefits of these oils in reducing cholesterol and improving heart health.
• The western region of India, including states like Maharashtra and Gujarat, dominates the cooking oil market. This dominance is due to the high population density, greater urbanization rates, and a higher disposable income compared to other regions. These states account for a significant share of the total market revenue.

India Cooking Oil Market Segmentation

The Indian Cooking Oil Market can be segmented by various factors like product, packaging and region.

• By Product Type: The Indian cooking oil market is segmented by product type into mustard, sunflower, soybean, and other. In 2023, Palm oil is the most affordable and widely used due to its cost-effectiveness and availability, making it a staple in households and the food industry. Other oils like rice bran, olive, coconut, sesame, and corn oil also have specific uses across different regions.

• By Packaging Type: The Indian cooking oil market is segmented by packaging type into bottles, pouches and cans. In 2023, bottled oils are convenient for household use and offer easy storage and handling, making them the preferred choice among consumers. They are available in various sizes and materials, ensuring suitability for both large-scale and daily kitchen applications.

• By Region: The Indian cooking oil market is segmented by region into north, east, west and south. In 2023, North region has a major share of the India edible oil market during the forecast period. The North region is known as one of the primary oilseed production hubs in India.

India Cooking Oil Market Competitive Landscape

• Emami Agrotech: The company has announced commencing production of edible oil from its new Rs 600 crore plant at Kandla, Gujarat. Emami Agrotech introduced a new range of fortified oils in 2023, catering to the increasing demand for health-oriented cooking oils.
• Cargill India’s Expansion: In 2023, Cargill India expanded its production capacity by setting up a new manufacturing plant in Karnataka. This expansion aims to meet the growing demand for cooking oils in southern India, as reported by the company.
• Marico's Supply Chain Upgrade: Marico upgrading its supply chain infrastructure in 2023 to improve distribution efficiency and market reach. This investment includes the implementation of advanced logistics and warehousing solutions, as reported in Marico's annual sustainability report.

India Cooking Oil Market Analysis

India Cooking Oil Market Growth Drivers

• Increasing Urbanization and Changing Lifestyles: The urban population in India has been increasing will cross 600 million by end of 2024. This urban shift has led to changes in dietary habits, with a preference for convenient and ready-to-use cooking oils. According to the Ministry of Urban Development, urbanization is driving the demand for packaged and branded cooking oils, as urban consumers seek healthier and premium options.
• Health Awareness and Dietary Preferences: With increasing awareness of health and wellness, there is a growing demand for cooking oils with health benefits. Reports from the Ministry of Health indicate that consumer preferences are shifting towards oils rich in unsaturated fats and omega-3 fatty acids, such as olive oil and canola oil.
• Expansion of Food Processing Industry: India food processing sector is one of the largest in the world and its output will cross $500 Bn in coming years. The growth of this industry has led to increased demand for various types of cooking oils used in food processing. According to the Food Safety and Standards Authority of India (FSSAI), the expansion of this sector is a major growth driver for the cooking oil market.

India Cooking Oil Market Challenges:

• Raw Material Price Volatility: The prices of raw materials such as oilseeds have been highly volatile. For instance, the price of soybeans increased in 2024 due to unpredictable weather patterns affecting crop yields. This volatility affects the production costs and pricing strategies of cooking oil manufacturers, as reported by the Indian Agricultural Research Institute (IARI).
• High Dependency on Imports: India imports over 60% of its edible oil requirements, primarily palm oil. In 2024, fluctuations in global palm oil prices and import tariffs have led to increased costs for Indian manufacturers. The Directorate General of Foreign Trade (DGFT) highlights that this dependency on imports poses a significant challenge to market stability and growth.
• Quality Control and Adulteration: Ensuring the quality and purity of cooking oils remains a challenge. According to the Food Safety and Standards Authority of India (FSSAI), frequent incidents of adulteration have been reported, affecting consumer trust. In 2024, the FSSAI conducted numerous raids and found that 20% of the samples collected were adulterated, posing a serious challenge to the industry.

India Cooking Oil Market Government Initiatives

1. National Mission on Edible & Oil Palm (NMEO-OP): Launched in 2021, the NMEO-OP aims to boost domestic production of palm oil by providing financial assistance and technical support to farmers. By 2024, the initiative has helped increase domestic palm oil production by 10%, reducing dependency on imports, according to the Ministry of Agriculture.
2. Pradhan Mantri Kisan Samman Nidhi (PM-KISAN): This income support scheme provides direct financial assistance to farmers, enhancing their ability to invest in better farming practices, including oilseed cultivation. As of 2024, over 100 million farmers have benefited from this scheme, leading to increased production of oilseeds, as reported by the Ministry of Agriculture and Farmers' Welfare.
3. Import Duty Revisions: The government has revised import duties on various cooking oils to stabilize domestic prices and support local producers. In 2024, import duties on refined palm oil were increased by 5%, as reported by the Directorate General of Foreign Trade (DGFT). This move aims to encourage domestic refining and reduce dependency on imports.

India Cooking Oil Future Market Outlook

The Indian cooking oil market is growing by continued urbanization, increasing health consciousness, and the rising popularity of premium and organic oils.

Future Trends

• Urbanization and Lifestyle Changes: Urban households are increasingly using branded oils to maintain good health, leading to a surge in the market for high-quality cooking oils. The growth of the food service sector, including restaurants and fast-food chains, is also boosting the demand for cooking oils that offer high smoke points and balanced fatty acid profiles​​.
• E-commerce and Distribution Networks: With the rise of online platforms, Indian consumers can now access a wider range of cooking oil products, including specialty and premium options, directly from their suppliers. E-commerce has also enabled the creation of new distribution channels, reducing dependence on traditional brick-and-mortar stores and improving supply chain efficiency.