Groundnut Oil Industry Growth Projections: Trends to Watch

Key Insights

The global groundnut oil market, valued at $11.05 billion in 2025, is projected to experience steady growth, driven by increasing consumer demand for healthier cooking oils and its use in various applications. A compound annual growth rate (CAGR) of 2.30% from 2025 to 2033 indicates a consistent, albeit moderate, expansion. Key growth drivers include rising disposable incomes in developing economies, leading to increased consumption of processed foods containing groundnut oil, and a growing awareness of groundnut oil's nutritional benefits, such as its high monounsaturated fat content. The refined segment is expected to dominate due to its superior taste and longer shelf life compared to unrefined oil. The personal care segment is also anticipated to show robust growth, fueled by the incorporation of groundnut oil in various cosmetic and skincare products. However, fluctuations in groundnut production due to climatic conditions and competition from other vegetable oils pose significant challenges to market growth. Regional variations are expected, with Asia Pacific likely maintaining its leading position due to significant production and consumption in countries like India and China. North America and Europe are expected to show moderate growth driven by increasing demand for premium and specialty oils. Major players like Wilmar International, Cargill, and Bunge are likely to continue dominating the market through strategic acquisitions, product diversification, and expansion into new markets.

The market segmentation reveals a dynamic landscape. While the refined groundnut oil segment enjoys higher market share owing to consumer preference, the unrefined segment retains a loyal customer base seeking the oil's natural flavor and perceived health benefits. Within applications, the food industry remains the largest consumer, followed by the personal care and pharmaceutical sectors. The "other applications" segment, encompassing industrial uses, is expected to register modest growth. Competitive dynamics are characterized by both established multinational corporations and smaller regional players, particularly in emerging markets. Innovation in processing and packaging technologies is expected to contribute to the growth of the groundnut oil market, enhancing shelf life and improving consumer appeal. Sustained efforts in research and development along with effective marketing strategies aimed at highlighting groundnut oil's unique health benefits will be crucial for industry players seeking to capitalize on the market's future growth potential.

Groundnut Oil Industry Market Report: 2019-2033

This comprehensive report provides an in-depth analysis of the global groundnut oil industry, encompassing market dynamics, growth trends, regional dominance, product landscape, key players, and future outlook. The study period covers 2019-2033, with 2025 as the base and estimated year. This report is crucial for industry professionals, investors, and stakeholders seeking to understand and capitalize on opportunities within this dynamic market. The report utilizes a parent market approach (edible oils) and drills down into the child market (groundnut oil) for a comprehensive analysis. Values are presented in millions of units unless otherwise specified.

Groundnut Oil Industry Market Dynamics & Structure

This section analyzes the competitive landscape, technological advancements, regulatory environment, and market trends influencing the groundnut oil industry. The market is moderately concentrated, with key players holding significant shares, but also fostering a competitive environment. The global market size for groundnut oil in 2024 was approximately 6500 Million units.

• Market Concentration: The top 5 players hold approximately 35% market share in 2024. This is expected to slightly decrease to 32% by 2033 due to increased competition.
• Technological Innovation: Advances in extraction and refining techniques drive efficiency and product quality. However, high initial investment acts as a barrier to entry for smaller players.
• Regulatory Frameworks: Food safety regulations and labeling requirements vary across regions, influencing production and distribution strategies. Compliance costs represent a considerable challenge for smaller companies.
• Competitive Product Substitutes: Other vegetable oils (soybean, sunflower, palm) pose significant competition, necessitating continuous product differentiation and value-added offerings.
• End-User Demographics: Growing health consciousness is driving demand for healthier oils, including groundnut oil, although shifting preferences towards other oils exist.
• M&A Trends: The past five years saw approximately xx M&A deals in the groundnut oil industry, with larger players consolidating their market share. Consolidation is expected to continue, driven by economies of scale and vertical integration.

Groundnut Oil Industry Growth Trends & Insights

The groundnut oil market experienced steady growth from 2019 to 2024, primarily driven by increasing consumer demand in developing economies, and its use in the food industry. The industry shows resilience despite economic fluctuations. Technological advancements contribute to efficient production and improved quality. However, fluctuating raw material prices and competition from other vegetable oils pose challenges. The CAGR from 2019-2024 was approximately 3%, with an estimated market size of 6000 Million units in 2024. The forecast period (2025-2033) predicts a CAGR of 2.5%, reaching approximately xx Million units by 2033. This moderate growth is expected due to increased competition from other edible oils and health concerns. Market penetration in certain regions remains relatively low, presenting opportunities for expansion.

Dominant Regions, Countries, or Segments in Groundnut Oil Industry

India and China currently dominate the groundnut oil market, accounting for approximately 55% of global consumption in 2024. The Food application segment is the largest, representing approximately 80% of total consumption. Refined groundnut oil holds a higher market share than unrefined oil due to consumer preference for convenience and purity.

• Key Drivers in India and China:
  • Large populations with established consumption patterns.
  • Expanding food processing and manufacturing industries.
  • Favorable government policies promoting agriculture and food security.
• Growth Potential: Africa and South America show significant growth potential, fueled by increasing disposable incomes and rising demand for healthier cooking oils. However, infrastructure limitations and supply chain inefficiencies hamper growth in these regions.
  • Refined Segment: Consumer preference for convenience and consistent quality drives growth.
  • Food Application: The dominant segment, benefiting from growing food processing and the increasing use of groundnut oil in various cuisines.

Groundnut Oil Industry Product Landscape

Groundnut oil is primarily categorized as refined and unrefined. Refined oil undergoes processing to improve purity, taste, and shelf life. Recent innovations focus on enhancing the oil's nutritional profile through fortification and the development of value-added products like groundnut oil-based cosmetics. The focus is on extending shelf-life using sustainable packaging.

Key Drivers, Barriers & Challenges in Groundnut Oil Industry

Key Drivers:

• Increasing global population and rising demand for edible oils.
• Growth in food processing and manufacturing industries.
• Favorable government policies supporting agricultural production in key regions.

Key Barriers and Challenges:

• Fluctuating groundnut prices due to weather conditions and crop yields. This caused a 5% price fluctuation in 2023, directly impacting profitability.
• Intense competition from substitute vegetable oils.
• Stringent food safety regulations and labeling requirements increase compliance costs.
• Supply chain disruptions and logistical challenges impact timely delivery and distribution.

Emerging Opportunities in Groundnut Oil Industry

• Expansion into untapped markets in Africa and South America.
• Development of functional and value-added groundnut oil products targeting health-conscious consumers.
• Growing demand for organic and sustainably sourced groundnut oil creates new niche markets.

Growth Accelerators in the Groundnut Oil Industry Industry

Technological advancements in oil extraction and refining processes are boosting efficiency and reducing production costs. Strategic partnerships between producers and processors are streamlining supply chains and improving quality control. Expansion into new markets through joint ventures and direct investment further accelerates growth.

Key Players Shaping the Groundnut Oil Industry Market

• Wilmar International Limited
• CHS Inc
• Luhua Group Co Ltd (Note: Website may be in Chinese)
• Shandong Xingquan Oil Co Ltd
• Cargill Incorporated
• Bunge Ltd
• Archer Daniels Midland Company
• Hain Celestial Group Inc
• Olam International
• Liberty Oil Mills Limited
• Lorenzati Group *List Not Exhaustive

Notable Milestones in Groundnut Oil Industry Sector

• 2020: Increased focus on sustainable sourcing and ethical production practices.
• 2021: Several key players invested in new refining technologies to improve efficiency and reduce waste.
• 2022: New product launches including fortified groundnut oil with added vitamins and minerals.
• 2023: Several mergers and acquisitions among smaller players consolidated the market.

In-Depth Groundnut Oil Industry Market Outlook

The groundnut oil market is poised for steady growth, driven by increasing demand in developing economies and the growing focus on healthier cooking oils. Strategic investments in sustainable farming practices and technological innovation will play a vital role in ensuring long-term market success. Opportunities exist for value-added products and expansion into new markets, offering substantial growth potential for industry players.

Groundnut Oil Industry Segmentation

• 1. Type
  • 1.1. Refined
  • 1.2. Unrefined
• 2. Application
  • 2.1. Personal Care
  • 2.2. Food
  • 2.3. Pharmaceuticals
  • 2.4. Other Applications

Groundnut Oil Industry Segmentation By Geography

• 1. North America
  • 1.1. United States
  • 1.2. Canada
  • 1.3. Mexico
  • 1.4. Rest of North America
• 2. Europe
  • 2.1. Spain
  • 2.2. United Kingdom
  • 2.3. Germany
  • 2.4. France
  • 2.5. Italy
  • 2.6. Russia
  • 2.7. Rest of Europe
• 3. Asia Pacific
  • 3.1. China
  • 3.2. Japan
  • 3.3. India
  • 3.4. Australia
  • 3.5. Rest of Asia Pacific
• 4. South America
  • 4.1. Brazil
  • 4.2. Argentina
  • 4.3. Rest of South America
• 5. Middle East and Africa
  • 5.1. South Africa
  • 5.2. Saudi Arabia
  • 5.3. Rest of Middle East and Africa