India Vegetable Oil Market Synopsis

The India Vegetable Oil Market size was reasonably estimated to be approximately 24.10 Million Metric Ton in 2023 and is poised to consume over 31.74 Million Metric Ton by the end of 2030, projecting a CAGR of around 3.5% from 2023 to 2030.

India Vegetable oil is a type of edible oil derived from various plant sources, such as seeds, nuts, fruits, or vegetables. It plays a crucial role in cooking, baking, and food preparation worldwide. The extraction process typically involves crushing or pressing the plant's seeds or fruits to obtain the oil, which is then refined to remove impurities. Vegetable oils are rich in essential fatty acids, like omega-3 and omega-6, and they provide a significant source of energy and nutrients in the human diet.

• Common examples of vegetable oils include soybean oil, sunflower oil, canola oil, corn oil, and olive oil, each with its distinctive flavor and culinary properties. Besides culinary uses, vegetable oils find application in various industries, such as cosmetics, pharmaceuticals, and biofuels, making them versatile and indispensable commodities in modern society.
• With their high smoke points, vegetable oils are ideal for frying and sautéing, while their natural flavors enhance the taste of various dishes. Additionally, vegetable oils contribute to the texture and moisture in baked goods. They are also heart-healthy alternatives to saturated fats, making them a preferred choice for those looking to maintain a balanced diet.

                                                                                                                                                                                                   Source: Statista

The graph above shows the consumption of vegetable oils in India from the fiscal year 2016 to 2022, reaching over 22 million metric tons in 2022. This figure includes various types of oils, such as coconut, cottonseed, olive, palm, peanut, rapeseed, soybean, and sunflower oils. Globally, the total consumption of vegetable oils during that year exceeded 204 million metric tons.

Top Key Players Involved Are:

"Adani Wilmar Limited (India), Ruchi Soya Industries Limited (India), Bunge India Private Limited (India), Cargill India Pvt. Ltd. (India), Marico Limited (India), Godrej Agrovet Limited (India), Emami Agrotech Limited (India), Dalmia Continental Private Limited (India), 3F Industries Limited (India), Liberty Oil Mills Limited (India), Pepsico India Holdings Pvt. Ltd. (Quaker Oats) (India), B.L. Agro Oils Ltd. (India), Agro Tech Foods Ltd. (India), Gemini Edibles & Fats India Pvt. Ltd. (India), Vimal Oil & Foods Limited (India), VVF (India) Limited (India) and Other Major Players."

The India Vegetable Oil Market Trend Analysis

Growing Population and Changing Dietary Habits

• The driver of "Growing Population and Changing Dietary Habits" significantly impacts the India Vegetable Oil Market. Firstly, India's population is continuously growing, making it one of the most populous countries in the world. With more people, there is an increased demand for food products, including vegetable oils, which are essential ingredients in cooking and food preparation.
• Secondly, there has been a notable shift in dietary habits among the Indian population. As the country undergoes economic development and urbanization, people's lifestyles and food preferences are changing. There is a growing inclination towards processed and convenience foods that require the use of vegetable oils in their production. This trend is further boosting the demand for edible oils in the country.
• Moreover, with an increasing focus on health and wellness, consumers are becoming more conscious of their dietary choices. As a result, there is a preference for healthier cooking oils, such as sunflower oil, olive oil, and soybean oil, over traditional options.

Export Opportunities

• The "Export Opportunities" in the Indian vegetable oil market present a significant avenue for growth and expansion for domestic vegetable oil producers and suppliers. India is one of the leading producers of vegetable oils in the world, and its robust production capacity opens up avenues for export to various countries. The rising global demand for healthier and diverse cooking oils, coupled with the popularity of Indian cuisines in international markets, creates a favorable environment for exporting vegetable oils.
• One of the primary advantages of exporting vegetable oils is the potential for revenue diversification. By tapping into international markets, Indian vegetable oil manufacturers can reduce their dependence on the domestic market and mitigate risks associated with fluctuating local demand or market conditions. Moreover, exporting allows companies to leverage economies of scale, leading to cost efficiencies and increased competitiveness.
• Furthermore, India's geographic location and well-established trade networks offer logistical advantages for exporting vegetable oils to nearby regions and beyond. The government's support and favorable export policies provide additional incentives for companies to explore global markets.

Segmentation Analysis of The India Vegetable Oil Market

India Vegetable Oil market segments cover the Type, application, and end-users. By Type, the Sunflower Oil segment is Anticipated to Dominate the Market Over the Forecast Period.

• The segment of "Sunflower Oil" is dominating the India vegetable oil market due to several key factors. First and foremost, sunflower oil has gained popularity as a healthier cooking oil option. It is known for its low saturated fat content and high levels of unsaturated fats, including omega-6 fatty acids, which are considered beneficial for heart health. Health-conscious consumers and those looking to reduce saturated fat intake have increasingly embraced sunflower oil as a preferred choice in their kitchens.
• Furthermore, sunflower oil's neutral flavor and high smoking point make it a versatile cooking oil that can be used for a wide range of culinary applications, including frying, sautéing, baking, and salad dressings. Its mild taste allows it to complement various dishes without overpowering their flavors, making it suitable for different regional cuisines in India.
• The widespread availability and affordability of sunflower oil have also contributed to its dominance in the market. It is produced domestically and is readily available in grocery stores and supermarkets across the country. Additionally, sunflower oil is widely used in the food processing industry for products like snacks, baked goods, and packaged foods, further driving its demand.

Country Analysis of the India Vegetable Oil Market

• India's vegetable oil market is one of the largest and most dynamic in the world. With a population of over 1.3 billion, the country has a significant demand for edible oils used in cooking and food preparation. The market is dominated by oils such as mustard oil, sunflower oil, soybean oil, and groundnut oil. Mustard oil holds a traditional significance in Indian cuisine, while sunflower oil is gaining popularity due to its health benefits.
• The Indian government has launched the National Mission on Edible Oils-Oil Palm, a centrally-sponsored scheme aimed at promoting oil palm cultivation, particularly in the northeast region and the Andaman and Nicobar Islands. Despite being the world's second-largest consumer and top importer of vegetable oil, India's domestic production falls short of meeting its consumption needs, resulting in a significant reliance on imports.
• Additionally, the rise of e-commerce and online sales presents new growth opportunities for India vegetable oil producers to reach a broader consumer base. The India vegetable oil market is expected to continue experiencing growth and evolving in response to changing consumer preferences and economic factors.

Covid-19 Impact Analysis on India Vegetable Oil Market

• The COVID-19 pandemic had a notable impact on the India Vegetable Oil Market. During the initial phases of the pandemic, disruptions in transportation and logistics led to supply chain challenges, affecting the distribution of vegetable oil products. Movement restrictions and lockdown measures resulted in reduced consumer mobility, leading to changes in consumption patterns.
• As people spent more time at home due to lockdowns, there was a shift towards home cooking, leading to increased demand for vegetable oils used in cooking and food processing. However, the closure of restaurants and food service establishments during lockdowns caused a temporary decline in the food service sector's demand for vegetable oils.
• Additionally, the economic impact of the pandemic resulted in fluctuations in commodity prices, including vegetable oils. This affected production costs and profit margins for manufacturers and retailers in the market. To adapt to changing consumer preferences and uncertainties, some India vegetable oil companies focused on e-commerce and online sales to reach consumers directly and sustain their businesses during the challenging period.

Top Key Players Covered in The India Vegetable Oil Market

• Adani Wilmar Limited (India)
• Ruchi Soya Industries Limited (India)
• Bunge India Private Limited (India)
• Cargill India Pvt. Ltd. (India)
• Marico Limited (India)
• Godrej Agrovet Limited (India)
• Emami Agrotech Limited (India)
• Dalmia Continental Private Limited (India)
• 3F Industries Limited (India)
• Liberty Oil Mills Limited (India)
• Pepsico India Holdings Pvt. Ltd. (Quaker Oats) (India)
• L. Agro Oils Ltd. (India)
• Agro Tech Foods Ltd. (India)
• Gemini Edibles & Fats India Pvt. Ltd. (India)
• Vimal Oil & Foods Limited (India)
• VVF (India) Limited (India)

Key Industry Developments in the India Vegetable Oil Market

In May 2022, Ruchi Soya, an edible oil manufacturer, revealed its plan to acquire Acharya Balkrishna's Patanjali Ayurved's food retail business at Rs 690 crore, aligning with its prospectus on the follow-on public offer (FPO) with SEBI. The acquisition will occur in three tranches, with the first tranche involving 15% of the total purchase consideration or Rs 103.50 crore to be paid simultaneously with the execution of the business transfer agreement (BTA) or within three days from the execution of the BTA.

in February 2023, Cargill India, a subsidiary of the global food corporation Cargill, expanded into the South Indian market through a $35 million acquisition and investment in an existing facility in Nellore, Andhra Pradesh. With this move, Cargill introduced its edible oil brand, Gemini Pureit, in four South Indian states, starting with sunflower oil as its first product.