India Edible Oil Market to Grow with a CAGR of 6.79% through 2030

India edible oil market is driven by rising consumption, imports, and shifting preferences toward healthier oils as well as changing dietary habits and increasing demand for packaged and fortified oils.

According to TechSci Research report, “India Edible Oil Market – By Region, Competition, Forecast & Opportunities, 2030F”, the India Edible Oil market stood at USD 4.39 billion in 2024 and is anticipated to grow USD 6.49 billion by 2030 with a CAGR 6.79% during forecast period. The India edible oil market is one of the largest in the world, driven by the country’s vast population, evolving dietary habits, and increasing disposable incomes. Edible oils are a staple in Indian households, used extensively for cooking, frying, and food preparation. The market is characterized by a mix of domestic production and heavy reliance on imports, as demand has consistently outpaced local supply. In recent years, factors such as urbanization, health consciousness, and technological advancements in oil processing have significantly influenced market dynamics.

Several factors are propelling the growth of the India edible oil market. One of the primary drivers is India’s increasing population and urbanization, leading to a higher demand for cooking oil across households, restaurants, and the food processing industry. The rapid expansion of the food services sector, including quick-service restaurants (QSRs), cloud kitchens, and packaged food manufacturers, is further fueling edible oil consumption.

Rising disposable incomes and lifestyle changes have also contributed to increased spending on premium, healthier, and imported edible oils. Consumers are gradually shifting from low-cost palm and vanaspati oils to higher-quality alternatives like olive oil, rice bran oil, and canola oil, which are perceived as healthier options. The growing awareness regarding cholesterol levels, heart health, and obesity has further led to a preference for low-trans-fat and high-nutritional-value oils.

Another challenge is health concerns linked to high per capita consumption. Excessive intake of edible oils, particularly refined and hydrogenated variants, has been associated with lifestyle diseases such as obesity, diabetes, and cardiovascular disorders. This has prompted regulatory authorities to tighten norms on oil processing standards, trans-fat limits, and labeling requirements, compelling manufacturers to adopt healthier production practices.

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The India Edible Oil market is segmented into product type, packaging type, sales channel, regional distribution, and company.

Based on the sales channel, the online segment is the fastest-growing distribution channel in the India edible oil market, driven by rising internet penetration, digital payments, and e-commerce expansion. Consumers increasingly prefer convenience, doorstep delivery, and a wide product selection available on platforms like Amazon, Flipkart, and grocery apps. The surge in discounts, subscription models, and exclusive online brands further accelerates adoption. Additionally, health-conscious consumers seek transparency through detailed product descriptions, certifications, and customer reviews. The pandemic-induced shift towards digital shopping habits and the growth of direct-to-consumer (D2C) brands are also fueling this segment, making it a key driver in market growth.

Based on region, the south region of India is emerging as the fastest-growing market for edible oils, driven by rising population, urbanization, and evolving dietary habits. Higher disposable incomes and a preference for premium oils like groundnut, sesame, and sunflower oil fuel demand. The region’s strong food processing industry, quick-service restaurants (QSRs), and increasing adoption of healthier oils further contribute to market expansion. Additionally, government initiatives promoting domestic oilseed cultivation, along with the rise of organized retail and e-commerce, enhance accessibility. The growing awareness of fortified and cold-pressed oils also accelerates market growth, making South India a key driver in the industry.

Major companies operating in India Edible Oil market are:

• Adani Wilmar Limited
• Agro Tech Foods Limited
• BCL Industries Ltd.
• Bunge India Private Limited
• Cargill India Private Limited
• Emami Agrotech Limited
• Gulab Oils & Foods Pvt Ltd.
• Mahesh Edible Oil Industries Limited (Saloni Mustard oil)
• Marico Limited
• Patanjali Ayurved Limited

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“The India edible oil market is evolving rapidly, influenced by changing consumer preferences, government policies, and global trade dynamics. One of the key trends shaping the industry is the increasing demand for healthier and fortified edible oils. Consumers are becoming more aware of the health risks associated with excessive consumption of refined and hydrogenated oils, leading to a surge in demand for cold-pressed oils, high-oleic variants, and oils fortified with essential vitamins and omega-3 fatty acids, thus driving the market demand”, said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.

India Edible Oil Market, By Product Type (Mustard Oil, Soybean Oil, Sunflower Oil, Palm Oil, Olive Oil, Others), By Packaging Type (Pouches, Cans, Bottles, Others), By Sales Channel (Supermarkets/Hypermarkets, Convenience Stores, Online, Others), By Region, Competition, Forecast & Opportunities, 2020-2030F”, has evaluated the future growth potential of India Edible Oil market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the India Edible Oil market.

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