Peanut Oil Manufacturing Industry

Peanut Oil Manufacturing Industry


Peanut Oil Manufacturing Industry. Groundnut Oil Production Business. Edible Oil Industry

Peanut oil, also referred to as groundnut oil or arachis oil, is a vegetable-derived oil made from the edible seeds of the peanut plant. Peanut oil, also known by other names such as groundnut oil and arachis oil, is a type of vegetable oil commonly used in cooking that is derived from peanuts. It comes in a number of varieties, including refined, unrefined, roasted, and cold-pressed, which have slight differences in their nutritional value and health benefits. Generally, people use peanut oil in their cooking for the interesting flavor that it gives, particularly the roasted variety, as well as the fact that it is healthier than many types of oil.

Peanut oil is most commonly used in Asian cultures, including that of China and Southeast Asian nations like Vietnam, Laos, and Cambodia.

Peanut oil is an edible vegetable oil, which is derived from peanuts. Peanuts are legumes and are native to Latin America and various other tropical regions. Peanut oil is utilized either to enhance the flavor of the underlying food or as a base for cooking. It possess a high smoke point comparative to other cooking oils, and is used for frying food. Its major component fatty acids include oleic acid, linoleic acid, and palmitic acid. In addition, it contains arachidic acid, stearic acid, lignoceric acid, behenic acid, and other fatty acids.

Market Outlook

The global peanut oil market is highly congested with high level of competition among key players. Moreover, since there is no unique functionality of peanut oil when compared to other vegetable oils, the demand is anticipated to remain stagnant throughout the forecast period. The emergence of soybean oil is as an important reason for the declining growth of the global peanut oil market. The impact of new and unique oils is predominantly strong in developed regions, since consumers have access to new products and have a strong purchasing power.

Peanut oil is relatively healthy owing to low percentage of trans-fats, saturated fats, and cholesterol. Moreover, the nutty flavor offered by peanut oil is a crucial factor, which is anticipated to accelerate the demand for peanut oil. However, high price of peanut oil and increase in demand for soybean oil hamper the market growth.

In 2017, the global Peanut Oil market size was million US$ and is forecast to million US in 2025, growing at a CAGR of from 2018.

The global peanut oil market is segmented on the basis of type, application, packaging, and geography. Based on type, the market is categorized into refined and unrefined. By application, it is classified into personal care products, food, pharmaceutical, and others. According to packaging, it is divided into glass containers, plastic containers, cartons, plastic pouches, and others. Geographically, it is analyzed across into North America, Europe, Asia-Pacific, and LAMEA.

The major players operating in the global market are focusing on key market strategies such as mergers, acquisitions, collaborations, and partnerships.

Some of the key players in the global market include:

  • Archer Daniels Midland
  • Cargill Incorporated
  • Olam International
  • Adani Wilmar Limited
  • Ventura Foods (Lou Ana), etc.

The peanut oil is segmented on the basis of type, application, and packaging. On the basis of type, the market is segmented into refined and unrefined peanut oil. The refined oil is refined through bleaching and deodorization. This process essentially removes the components that might cause peanut-based allergies thereby making refined peanut oil, non-allergic. The high smoke point offered by refined peanut oil makes it an attractive frying oil for hotels and restaurants. Unrefined peanut oil offers the nutty taste of peanuts and is, therefore, an ideal choice for salad dressings.

Production of groundnut oil may cross 700,000 tonnes this year in India following a bumper output. In addition, lower export of peanuts have diverted the crop to crushing, which has increased the oil production.

The global peanut oil market is highly congested with high level of competition among key players. Moreover, since there is no unique functionality of peanut oil when compared to other vegetable oils, the demand is anticipated to remain stagnant throughout the forecast period.

Edible Oil Market

India is a potential market for edible oils because of its domestic consumption. However, the deficit between production and consumption of edible oils is increasing rapidly, even after importing millions of tonnes of oil. The government should increase the oilseed production and solve the problems faced by the edible old market.

Domestic Edible Oil Production, Imports & Consumption

The Indian edible oil market is the world’s fourth-largest after the USA, China and Brazil. The Indian per capita consumption for edible oil is expected to grow from the current consumption levels of ~16kg to ~24 kg’s by 2020 with a conservative CAGR of ~6% & 1% (Historical Growth rates) for Total edible oil consumption and Population respectively.

Demand for edible oil is mainly driven by increase in per capita consumption of the commodity, rising income levels and improvement of living standards.

The global edible oils market is expected to witness a steady growth throughout the forecast period 2017-2024. The global edible oils market is also estimated to bring in US$ 130.3 Billion revenue by th end of the forecast period.

The global edible oil market is anticipated to witness a substantial growth owing to increasing popularity of unrefined, unprocessed, healthy, and organic oil. In the coming years, vegetable oils with low cholesterol, fat, and calories are likely to gain high response due to growing health awareness among people across the world. In addition, major improvement in retail network, increasing crop yields, oil production, and growing economies are some of the prominent factors supporting the growth of the global edible oil market. Furthermore, growing popularity of canola oil, trans-fat free soybean oil, and emerging preference for olive oil will drive the global market for edible oil.

The market for edible oil can be segmented on the basis of type, end-users, and geography. Increasing consumption of fried foods has significantly increased the demand for edible oils. Based on end-users, the marker for edible oil can be divided into food processor, food service, and retail. Improving living standards, changing dietary habits, and increasing consumer preference for healthy edible oil supporting the growth of the global edible oil market.

Global Edible Oils Market Value, By End User, 2017 (US$ Bn)

Some of the key players operating in the global edible oil market include Archer Daniels Midland Company, Beidahuang Group, Ruchi Soya, Ach Food Companies Inc., Bunge Alimentos Sa, and Adani Group.


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