The India edible oil market is expected to witness a steady growth rate of around 2.5% during the forecast period. The market growth is primarily attributed to the increasing per capita edible oil consumption, significant government push to focus on the in-house production of edible oils, increasing demand from the growing population, increasing health concerns, rising urbanization, and increasing disposable income. India is currently the largest importer of edible oil globally as it is one of the largest producers of oilseeds across the globe. This sector occupies an important position in the agricultural economy, accounting for around the production of 36.56 million tons of nine cultivated oilseeds during the year 2020-21, according to the Department of Food & Public Distribution. Despite significant in-house production, India relies heavily on imports of edible oil to meet its consumption demand. Thereby, the government is pushing regional and local manufacturers to increase production capacity, which is augmenting the market growth.
Palm oil holds a significant share in the India edible oil market
Palm oil is dominating the India edible oil market and is expected to dominate in the upcoming years as well. Palm oil accounted for a prominent share of the total imports followed by soya oil and sunflower oil. In addition, there is a significant increase in the share of soya oil and sunflower oil in the import basket. Palm oil is usually sourced from Indonesia and Malaysia, sunflower oil from Ukraine and Argentina, whereas Brazil and Argentina, are the major suppliers of soya oil to India. Therefore, a shortage in global production and an increase in trade taxes and levies by the exporting nations affect the edible oil prices in India. Moreover, according to the 2nd Advance Estimates published by the Department of Agriculture and Farmers Welfare, India would produce an estimated 37.14 million tonnes of nine cultivated oilseeds in 2021–2022, making it one of the top producers of oilseeds in the world.
In South India, Andhra Pradesh, Telangana, and Kerala are the major oil palm-growing states
Geographically, the India edible oil market is segmented into North India, West and Central India, East India, and South India. West and Central India are dominating the India edible oil market in 2021. People in East and North India preferred mustard oil while people in South and West use groundnut oil. Inhabitants of the northern plain are consumers of fats and prefer hydrogenated edible oil which is a mixture of soybean, sunflower, rice bran, and cotton seeds oil. Furthermore, with the help of modern technology such as physical refining, bleaching, and de-odorization all oils have been rendered practically colorless, odorless, and tasteless and therefore become easily interchangeable in the kitchen. Additionally, Andhra Pradesh, Telangana, and Kerala are the major palm oil growing States and account for 98% of the total production. Karnataka, Tamil Nadu, Odisha, Gujarat, and Mizoram also have a sizable area under oil palm cultivation. Recently Arunachal Pradesh, Assam, Manipur, and Nagaland have also initiated Oil palm plantation programs. In addition, according to the government of India, people in the East and North prefer mustard oil while people in the South and West use groundnut oil.
Market Structure and Competitive Landscape
Some of the prominent players in the India edible oil market include Adani Wilmar Ltd., Mother Dairy Fruits and Vegetables Pvt. Ltd., Cargill India, Patanjali Ayurved Ltd.., Emami Agrotech Ltd., BCL Industries Ltd., Gemini Edibles & Fats India Ltd., Indian Broiler Group Pvt. Ltd., Liberty Oil Mills Ltd., Vijay Solvex Ltd., ADM Agro Industries India Pvt. Ltd., Gokul Agro Resources Ltd., and others. These players adopt various strategies in order to reinforce their market share and gain a competitive edge over other competitors in the market. Mergers and acquisitions, partnerships, and collaborations are some of the strategies followed by industry players. Some of the key developments in the India edible oil market include,
- In January 2022, Adani Wilmar announced to acquire southern players in edible oil with a corpus of INR 450 crores. The reason behind this plan is to grow its geographical presence in South India.
- In December 2021, the US food major Cargill has acquired an edible oil refinery located in Andhra Pradesh. The newly acquired refinery gives Cargill the capability to supply refined palm oil, palm olein, Vanaspati, and sunflower oil.
Key Market Segmentation
RationalStat has segmented the India edible oil market on the basis of type, packaging type, packaging material, distribution channel, and region.
- By Type
- Palm Oil
- Soyabean Oil
- Mustard Oil
- Sunflower Oil
- Groundnut Oil
- Others (Coconut Oil, Rice Bran Oil, etc.)
- By Packaging Type
- Others (Cans)
- By Packaging Material
- Rigid Plastic
- Flexible Packaging
- Others (Glass)
- By Distribution Channel
- Commercial Retail
- Modern Retail
- Specialty Store
- Online Retail/E-commerce
- By Region
- North India
- West and Central India
- South India
- East India
RationalStat has developed a state-of-the-art research methodology to crunch numbers and provide the best possible real-time insights to clients. We combine a varied range of industry experience, data analytics, and experts’ viewpoint to create a research methodology for market sizing and forecasting.
RationalStat combines a mix of secondary sources as well as primary research to assess the market size and develop a forecast. Key steps involved in accurately deriving the market numbers are:
- Defining the problem by understanding the type of market and data required by the client.
- Data gathering and collection through relevant paid databases, publicly available sources, company reports, annual reports, surveys, and interviews.
- Formulating a hypothesis to create market numbers, forecasts, influencing factors, and their relevance.
- Evaluating and analyzing the data by referring to data sources utilized and leveraged.
- Validating, interpreting, and finalizing the data by combining the details gathered from primary and secondary sources with the help of experienced analysts.
- Annual reports, company filings, investor presentations, product catalogs, and company documents
- Industry and market-related documents available in the public domain
- Paid database including Bloomberg, Factiva, S&P Capital IQ, FactSet, Refinitiv Eikon, ICIS, EUWID, and Thomson Reuters, among others
- Whitepapers, research papers, and industry blogs.
Why Buy this Report?
The report is intended for India edible oil producers and suppliers, raw material suppliers, third-party distributors, importers & exporters, government organizations, regulatory agencies, and market research firms, among others. The report provides an in-depth analysis of market size, consumption patterns, ongoing market trends and challenges, and future market opportunities. The report will serve as a source for a 360-degree analysis of the market thoroughly delivering insights to clients to find the right answers to their business questions.
Frequently Asked Questions (FAQs)
The India Edible Oil market is expected to grow at a CAGR of around 1.3% during the forecast period 2022-2028.
West and Central India is dominating the India Edible Oil market in 2021.
The India Edible Oil market is estimated at 23.9 million tonnes in 2021.
Growing population, increasing health concern, and increasing per capita edible oil consumption are some of the key drivers of the market.
Major companies operating in the India Edible Oil market include, Adani Wilmar Ltd., Mother Dairy Fruits and Vegetables Pvt. Ltd., Cargill India, Patanjali Ayurved Ltd., Emami Agrotech Ltd, BCL Industries Ltd. etc.