Groundnut oil market size in India | Demand & Consumer Trends 2025

Q: What is the growth rate of the groundnut oil market in India?

The market is projected to grow at a CAGR of 6.8% during 2025–2031 due to increased preference for healthy edible oils.

Q: Which regions lead groundnut oil production and consumption?

Gujarat, Tamil Nadu, Andhra Pradesh, and Maharashtra are key contributors to production and market demand.

Q: What challenges affect the groundnut oil market in India?

Price volatility of groundnuts, weather-dependent crop yield, and rising competition from soybean and sunflower oils pose challenges.

Q: Is cold-pressed groundnut oil gaining popularity in India?

Yes, cold-pressed and organic variants are becoming popular among urban consumers for health and taste benefits.

Q: Are Indian brands investing in local sourcing of groundnuts?

Yes, many companies are entering into farmer contracts and backward integration to ensure seed quality and price stability.

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Code: MTA4594

Publication Date: Jun 2025

What is the growth rate of India Groundnut Oil Market?

According to 6Wresearch internal database and industry insights, the India groundnut oil market is expected to grow at a CAGR of 6.8% during the forecast period 2025–2031.

India groundnut oil market is witnessing growth due to rising demand for traditional edible oils, expanding urban consumption, and increased awareness of heart-healthy fats.

Key Growth Factors of the India Groundnut Oil Market

Growing health awareness favouring oils with low cholesterol and trans fats
Widespread use of groundnut oil in traditional Indian cooking and snacks
Increasing focus on self-reliance in edible oil production by government
Expansion of cold-pressed and unrefined oil segments
Rise of regional brands catering to local taste preferences
Seasonal increment in demand from food processing and hospitality sectors

India Groundnut Oil Market Trends

There are numbers of trends observed in the India groundnut oil market such as the old-pressed and organic groundnut oils are gaining traction, especially among urban and health-conscious consumers. E-commerce is emerging as a strong channel for retailing premium oil variants. The market is witnessing a shift toward cleaner labels, local sourcing, and sustainable packaging. States like Gujarat and Tamil Nadu remain strongholds for both production and consumption.

Emerging Developments in the India Groundnut Oil Market

India groundnut oil market is seeing some major developments such as the New-age brands are introducing fortified groundnut oils with added vitamins and immunity-boosting ingredients. Startups are entering the segment with subscription models and traceable sourcing. Technology is upgrading in the oil extraction and seed quality are improving yields and lowering production costs. Further, the collaborative farmer programs are strengthening domestic sourcing.