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

Market Overview

India Edible Oil Market was valued at USD 4.39 billion in 2024 and is anticipated to grow USD 6.49 billion by 2030 with a CAGR of 6.79% during forecast period. India's edible oil market is one of the largest globally, driven by high consumption, heavy reliance on imports, and evolving consumer preferences. Growing health awareness is increasing demand for cold-pressed, organic, and fortified oils. Urbanization, rising disposable incomes, and expanding retail channels further drive growth. Government initiatives, such as the National Mission on Edible Oils, aim to boost domestic production and reduce import dependence. The market is also witnessing innovation in packaging and branding, with a shift toward healthier and premium edible oil variants. The report underscores a significant rise in per capita edible oil consumption in India over the past decades, reaching 19.7 kg per year. This surge in demand has outstripped domestic production, resulting in a heavy dependence on imports to cater to both household and industrial needs.

In 2022-23, India imported 16.5 million tonnes (MT) of edible oils, with domestic production meeting only 40-45% of the total demand. This import reliance poses a major challenge to the country’s self-sufficiency goals, highlighting the urgent need for enhanced domestic production, yield improvements, and strategic policy interventions in the edible oil sector.

Key Market Drivers

Rising Population and Increasing Consumption Demand

India’s growing population is a major driver of the edible oil market, leading to a steady rise in domestic consumption. With a population exceeding 1.4 billion, edible oil is a staple in Indian households, used daily for cooking and food preparation. As the middle class expands and disposable incomes rise, people are consuming more diverse and processed foods, further driving oil demand. The increasing shift towards urbanization and fast-paced lifestyles has led to a surge in demand for ready-to-eat and packaged food products, which require edible oils as a key ingredient.  According to the Industry reports published in Jan 2025, highlight that India's per capita annual edible oil consumption has exceeded 20 kg, surpassing the recommended limits of 12 kg set by the Indian Council of Medical Research (ICMR) and 13 kg by the World Health Organization (WHO). These factors, along with changing dietary habits, urbanization, and rising disposable incomes, are key drivers of market demand, influencing purchasing patterns and shaping the growth trajectory of India's edible oil industry.

Expansion of the Food Processing and HoReCa Sectors

The food processing industry and the hotel, restaurant, and catering (HoReCa) sector are rapidly growing in India, significantly contributing to edible oil demand. The expansion of quick-service restaurants (QSRs), cloud kitchens, and food delivery services has increased bulk purchasing of oils, particularly palm oil, soybean oil, and sunflower oil, which are widely used for frying and cooking. Major food chains, including McDonald’s, Domino’s, and KFC, rely on edible oils for large-scale food preparation. Additionally, the growth of food exports and processed food manufacturing—such as snacks, bakery products, and confectionery items—has further boosted the need for different varieties of edible oils. The HoReCa sector is also witnessing a rising demand for premium and healthier oils, as consumers increasingly prefer nutritious food options, leading to a shift toward cold-pressed and organic edible oils in restaurants and cafes.

Increasing Consumer Preference for Healthier Edible Oils

Rising health awareness among Indian consumers is influencing purchasing decisions, leading to a shift toward nutritious and heart-friendly oils. With the growing prevalence of lifestyle diseases such as obesity, diabetes, and cardiovascular conditions, people are opting for oils with high unsaturated fats and low trans fats. Oils such as olive oil, rice bran oil, canola oil, and mustard oil are gaining popularity due to their cholesterol-lowering properties, antioxidant content, and nutritional benefits.

The demand for cold-pressed and organic oils has surged, as consumers seek chemical-free and minimally processed options. The Food Safety and Standards Authority of India (FSSAI) has also made fortification of edible oils mandatory, leading to an increase in the consumption of vitamin A, D, and E-enriched oils. As urban consumers become more conscious about their dietary choices, brands are responding by introducing low-fat, heart-healthy, and functional edible oils, driving further market expansion.

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Key Market Challenges

High Dependence on Imports and Price Volatility

One of the most significant challenges in the Indian edible oil market is its heavy reliance on imports. India imports nearly 60-70% of its total edible oil consumption, mainly from countries like Indonesia, Malaysia, Argentina, and Brazil. Palm oil, soybean oil, and sunflower oil constitute the majority of these imports. This dependence makes India highly vulnerable to global price fluctuations, trade restrictions, and geopolitical tensions. For example, the Russia-Ukraine conflict severely impacted sunflower oil supplies, leading to price surges.

Additionally, changes in international tariffs, export bans, and climate-related disruptions in major producing countries further contribute to unstable pricing. The fluctuating cost of crude edible oils directly affects consumer prices, making it difficult for households and businesses to manage their budgets. The Indian government frequently intervenes by adjusting import duties and stock limits, but long-term sustainability requires increased domestic production and diversification of sources.

Rising Health Concerns and Changing Consumer Preferences

The growing awareness of health and wellness is reshaping consumer preferences in India’s edible oil market. Traditional oils like palm oil and vanaspati (hydrogenated oil), which are high in trans fats, are increasingly being viewed as unhealthy. Consumers are shifting toward heart-friendly oils such as rice bran oil, olive oil, and cold-pressed oils, which are perceived as more nutritious. However, the challenge lies in the affordability and accessibility of these healthier options. Premium oils are significantly more expensive than palm or soybean oils, making them less affordable for lower and middle-income households.

The lack of clear food labeling, misrepresentation of health benefits, and adulteration issues create confusion for consumers. Many lower-cost edible oils are mixed with low-quality alternatives or lack proper regulatory checks, leading to concerns over safety and nutritional value. Strengthening food safety regulations, enforcing transparent labeling, and improving consumer awareness are essential to addressing this challenge.

Key Market Trends

Government Initiatives to Boost Domestic Production

India remains heavily dependent on imported edible oils, with nearly 60-70% of its total consumption sourced from Indonesia, Malaysia, Argentina, and Brazil. To reduce this reliance and promote self-sufficiency, the Indian government has launched initiatives to boost domestic oilseed production. The National Mission on Edible Oils – Oil Palm (NMEO-OP) is a major step in this direction, aiming to increase oil palm cultivation in states like Andhra Pradesh, Telangana, and Assam. Additionally, efforts are being made to increase mustard, groundnut, soybean, and sunflower production through subsidies, research, and improved farming techniques. While these initiatives hold promise, climate challenges, land availability, and concerns over environmental impact (especially for oil palm) remain key hurdles. The push for domestic refining and processing facilities is also growing, as India seeks to develop a stronger edible oil supply chain and reduce price fluctuations caused by global market dependencies.

Focus on Sustainability and Ethical Sourcing

As global awareness of environmental issues grows, sustainability has become a key trend in the Indian edible oil market. The palm oil industry, in particular, faces criticism due to its association with deforestation, loss of biodiversity, and high carbon emissions in producing countries. As a result, there is increasing demand for sustainably sourced palm oil, with organizations and brands committing to Certified Sustainable Palm Oil (CSPO). Consumers, especially in tier-1 cities, are showing interest in eco-friendly and responsibly sourced edible oils, prompting companies to adopt green packaging, ethical sourcing policies, and transparent supply chains. Brands are also exploring alternative oil sources, such as rice bran, algae-based oils, and indigenous oils like safflower and sesame, which have a lower environmental impact. The push for sustainable farming practices, waste reduction, and carbon footprint minimization is expected to shape the future of edible oil production in India.

Segmental Insights

Product Type Insights

Mustard oil dominated the India edible oil market, driven by its strong cultural significance, health benefits, and widespread consumption in North and East India. States like Uttar Pradesh, Bihar, West Bengal, and Punjab are key consumers due to traditional cooking preferences. Known for its antibacterial, antifungal, and heart-health properties, mustard oil is favored for both culinary and medicinal uses. Government support for domestic mustard seed production, along with increasing demand for cold-pressed and organic variants, further boosts its market share. The shift toward healthier oils and the preference for locally produced, chemical-free options reinforce mustard oil’s dominance in India.

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Regional Insights

The North region dominated the India edible oil market due to its high consumption levels, strong agricultural base, and growing urban population. States like Uttar Pradesh, Punjab, Haryana, and Delhi drive demand, particularly for mustard oil, soybean oil, and palm oil. The region’s large food processing industry, expanding retail sector, and rising health consciousness contribute to its leadership. Additionally, government initiatives supporting oilseed cultivation and fortification further strengthen the market. The presence of organized retail, e-commerce penetration, and increased preference for packaged oils solidifies the North region’s dominance in the India edible oil industry.

Recent Developments

• In Sep 2024, Dhara, a leading edible oil brand under Mother Dairy, has launched its latest campaign, '0% Milawat, 100% Swaad', highlighting the purity and authentic taste of its Dhara Filtered Mustard Oil and Dhara Kachi Ghani Mustard Oil. This initiative strengthens the brand’s legacy of quality.

• In July 2024, GRM Overseas expanded its 10X brand by launching "Gulistan Kachi Ghani Mustard Oil," available nationwide in 1-litre bottles and 5-litre jars. This move aims to capitalize on the growing demand for unrefined oils in India's FMCG sector.

• In May 2024, Adani Wilmar launched Fortune Pehli Dhaar First-Pressed Mustard Oil, made from Rajasthan’s premium mustard seeds using the traditional wooden kolhu method. This preserves its natural essence, aroma, and taste. Available in 1L PET bottles and pouches, it's distributed across major Indian cities.

• In Feb 2023, Cargill expanded into South India by launching Gemini Pureit sunflower oil in Andhra Pradesh, Telangana, Karnataka, and Tamil Nadu. This move was supported by a USD 35 million investment in a Nellore, Andhra Pradesh facility

Key Market Players

• 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

Report Scope:

In this report, the India Edible Oil Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• India Edible Oil Market, By Product Type:

o   Mustard Oil

o   Soybean Oil

o   Sunflower Oil

o   Palm Oil

o   Olive Oil

o   Others

• India Edible Oil Market, By Packaging Type:

o   Pouches

o   Cans

o   Bottles

o   Others

• India Edible Oil Market, By Sales Channel:

o   Supermarkets/Hypermarkets

o   Convenience Stores

o   Online

o   Others

• India Edible Oil Market, By Region:

o   North

o   South

o   East

o   West

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the India Edible Oil Market.

Available Customizations:

India Edible Oil Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).