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Groundnut Oil Market

The market for Groundnut Oil was estimated at $11.3 billion in 2025; it is anticipated to increase to $14.5 billion by 2030, with projections indicating growth to around $18.5 billion by 2035.

Report ID:DS1901195
Author:Debadatta Patel - Senior Consultant
Published Date:
Datatree
Food & Beverage
Packaged & Processed F&B
Groundnut Oil
Share
Report Summary
Market Data
Methodology
Table of Contents

Global Groundnut Oil Market Outlook

Revenue, 2025

$11.3B

Forecast, 2035

$18.5B

CAGR, 2026 - 2035

5.1%

The Groundnut Oil industry revenue is expected to be around $11.3 billion in 2026 and expected to showcase growth with 5.1% CAGR between 2026 and 2035. This sustained momentum underscores the strategic significance of Groundnut Oil as a high-value edible oil within the global vegetable oil complex, driven by rising health awareness, urbanization, and the shift toward cleaner, plant-based oil alternatives in both developed and emerging markets. Strong penetration in packaged foods, foodservice, and personal care manufacturing keeps demand resilient, with Food and Cosmetic applications together accounting for 80.0% of consumption, reinforcing its role as a preferred ingredient for consistent texture, stability, and nutrition. The industry benefits from the perception of favorable monounsaturated fats, a neutral-to-nutty taste profile, and supply chain integration in key producing countries, which collectively support long-term relevance for refined groundnut oil across mainstream and premium product segments.

Groundnut Oil is a versatile cooking oil characterized by a high smoke point, mild nutty flavor, and good oxidative stability, making it suitable for deep frying, baking, and everyday culinary use as well as for value-added processed foods. In cosmetics and personal care, cosmetic-grade groundnut oil functions as an effective emollient in skincare formulations, contributing to moisturization and improved skin feel in creams, lotions, balms, and haircare products. Refined Product Type dominated the Groundnut Oil industry revenue with $7.23 billion sales in 2025, supported by its consistent quality, long shelf life, and compatibility with large-scale manufacturing, while cold-pressed groundnut oil and organic groundnut oil are gaining traction in niche, clean-label, and gourmet cooking segments. Emerging trends such as premiumization, demand for natural and sustainably sourced ingredients, and the expansion of omnichannel retail are further shaping product innovation, packaging formats, and branding strategies across the broader Groundnut Oil market.

Groundnut Oil market outlook with forecast trends, drivers, opportunities, supply chain, and competition 2025-2035
Groundnut Oil Market Outlook

Market Key Insights

  • The Groundnut Oil market is projected to grow from $11.3 billion in 2025 to $18.5 billion in 2035. This represents a CAGR of 5.1%, reflecting rising demand across Gastronomy & Culinary Practices, Cosmetics & Personal Care, and Therapeutic Use.

  • Cargill Incorporated, Archer Daniels Midland Company, and Wilmar International are among the leading players in this market, shaping its competitive landscape.

  • India and China are the top markets within the Groundnut Oil market and are expected to observe the growth CAGR of 3.3% to 4.9% between 2025 and 2030.

  • Emerging markets including Brazil, Indonesia and South Africa are expected to observe highest growth with CAGR ranging between 5.9% to 7.0%.

  • Transition like Embracing Health and Nutrition has greater influence in India and China market's value chain; and is expected to add $276 million of additional value to Groundnut Oil industry revenue by 2030.

  • The Groundnut Oil market is set to add $7.3 billion between 2025 and 2035, with manufacturer targeting Cosmetic & Pharmaceutical Application projected to gain a larger market share.

  • With

    health conscious trend, and

    Technological Advancements in Oil Production, Groundnut Oil market to expand 64% between 2025 and 2035.

groundnut oil market size with pie charts of major and emerging country share, CAGR, trends for 2025 and 2032
Groundnut Oil - Country Share Analysis

Opportunities in the Groundnut Oil

In Southeast Asia, premium baked snacks and instant noodle seasonings are creating new demand for cold-pressed Groundnut Oil with clean-label positioning. Unrefined groundnut oil, a $4.05 billion global market in 2025, is also forecast to reach $5.37 billion by 2030, growing fastest at 5.80% CAGR as snack food manufacturers reformulate with healthier fats. The most attractive opportunity is unrefined, cold-pressed Groundnut Oil used in value-added, functional foods, enabling co-branding partnerships between oil processors and regional fast-moving consumer goods leaders.

Growth Opportunities in Asia-Pacific and Europe

In Asia-Pacific, Groundnut Oil is primarily driven by the Food application, where peanut oil is entrenched as a mainstream cooking oil within the broader edible oil market, creating strong volume resilience and pricing power. Competitive intensity is high due to numerous local crushers and regional refiners, so top opportunities lie in upgrading from bulk commodity sales to branded, value-added formats such as standardized, low-residue plant-based oils for retail and foodservice, alongside tailored blends for snack processing and instant foods. Key regional drivers include rapid urbanization, rising disposable incomes, premiumization of traditional cuisines, and a growing focus on healthier dietary patterns, which support investment in supply-chain integration, modern packaging, and food-safety certifications to differentiate against fragmented competition.
In Europe, Groundnut Oil demand is increasingly aligned with higher-margin Cosmetic and Pharmaceutical applications, where cold pressed groundnut oil and organic groundnut oil are valued as natural emollients and carriers in skincare formulations and niche nutraceutical applications rather than as a staple edible oil. The competitive landscape is characterized by specialized vegetable oil industry refiners and ingredient formulators that prioritize traceability, allergen control, and sustainability, opening opportunities for suppliers that can guarantee certified, high-purity lots and tailored functional specifications for dermo-cosmetic and dietary supplement brands. Core regional growth drivers include stringent regulatory standards favoring clean-label, plant-derived inputs, consumer preference for healthy fats and vegan products, and the expansion of indie personal care and wellness brands, supporting strategic positioning of Groundnut Oil as a premium, responsibly sourced specialty ingredient rather than a volume-oriented commodity.

Market Dynamics and Supply Chain

01

Driver: Rising Demand for Health-Oriented Edible Oils and Premium Culinary Experiences

The groundnut oil market is also being propelled by growing consumer demand for health-oriented edible oils alongside an increase in premium culinary also experiences. From the health perspective, groundnut oil’s favorable lipid profile rich in monounsaturated fats and vitamin E aligns with global trends toward heart-healthy diets, functional foods, and clean-label ingredients. Health-conscious consumers are also increasingly replacing saturated fats with oils perceived to offer metabolic benefits, driving retail and foodservice sales of cold-pressed and less refined groundnut oil variants. Concurrently, the premium culinary trend has also elevated interest in oils with distinct flavor profiles and high thermal stability. Chefs and gourmet cooks prefer groundnut oil for its neutral to slightly nutty taste and high smoke point, making it suitable for stir-frying and deep-frying in artisanal and restaurant kitchens. Technological improvements in extraction and filtration now deliver consistent quality across batches, reinforcing both health narratives and culinary versatility. Together, these factors stimulate innovation in packaging, sourcing traceability, and segment-specific product lines targeted at discerning consumers and specialty food markets.
Consumer preference for plant-based, natural, and sustainably sourced ingredients is also a key driver for groundnut oil’s expansion beyond food into cosmetics and therapeutic markets. In personal care, formulations emphasize botanically derived emollients that support skin hydration and barrier repair without synthetic additives. Groundnut oil’s high vitamin E content and gentle sensory profile make it attractive in moisturizers, hair oils, and massage blends marketed to eco-conscious buyers. Similarly, within wellness and therapeutic sectors, practitioners and niche brands adopt natural carrier oils for aromatherapy and skin treatments, aligning with holistic health narratives. This shift toward clean, transparent ingredient lists and multifunctional natural oils strengthens groundnut oil’s market position and encourages cross-industry collaborations.
02

Restraint: Volatility in Raw Peanut Prices and Supply Chain Disruptions Restrict Market Growth

Fluctuating raw peanut prices and ongoing supply chain challenges significantly restrain groundnut oil market expansion. Weather-related crop instabilities in major producing regions like India, China, and the United States lead to inconsistent yields and periodic shortages, driving up procurement costs for processors. Elevated input costs compress profit margins, forcing some manufacturers to pass prices onto consumers, which can dampen demand in price-sensitive segments such as mass retail and foodservice. Logistic bottlenecks and rising freight costs further delay deliveries and inflate operational expenses, weakening competitive positioning against alternative edible oils with more stable supply bases. For example, sudden raw material price spikes have historically depressed sales volume growth in developing markets where consumer purchasing power is limited.
03

Opportunity: Groundnut Oil as healthy cooking oil for urban Indian households and Unrefined Groundnut Oil for natural personal care products in Europe

India’s rapidly expanding urban middle class is shifting from generic vegetable blends toward traceable, heart-healthy Groundnut Oil for daily frying and traditional cuisine. Refined groundnut oil, already a $7.23 billion global segment in 2025 and projected to reach $9.10 billion by 2030 at 4.7% CAGR, can capture share from palm and soybean oils through fortification, low-absorb technologies, and convenient packaging. The strongest growth potential lies in refined Groundnut Oil positioned as an affordable yet premium healthy cooking oil in tier‑2 and tier‑3 cities.
European personal care brands are accelerating the shift toward plant-derived emollients, opening white space for Groundnut Oil in skin creams, hair treatments, and massage blends. Unrefined Groundnut Oil offers a non-GMO, vitamin-rich profile that aligns with vegan consumers and sustainable sourcing commitments, yet remains underutilized versus argan and coconut oils. The highest upside is in unrefined Groundnut Oil for leave-on cosmetics, where specialized refining, deodorization, and allergen-controlled processing can justify premium pricing and long-term supply contracts with natural beauty formulators.
04

Challenge: Allergen Concerns and Health Perceptions Limit Broader Consumer Adoption

Groundnut oil faces consumer resistance due to peanut allergy concerns and mixed health perceptions in certain markets. Peanut allergies are among the most common food sensitivities, particularly in North America and Europe, leading some consumers and institutions to avoid groundnut oil altogether, even in refined forms where allergenic proteins are minimized. This restricts penetration into segments like school meal programs or allergy-aware food products. Additionally, occasional health narratives associating high-calorie oils with weight gain influence price-conscious or health-driven buyers to choose alternatives like olive or sunflower oil, which are perceived as safer or more beneficial. These demand shifts directly impact revenue streams and constrain category growth in competitive edible oil portfolios.

Supply Chain Landscape

1

Groundnut Farming

Olam InternationalCargill Incorporated
2

Peanut Oil Extraction

Archer Daniels Midland CompanyBunge Limited
3

Groundnut Oil Refining

Wilmar International LtdCargill Incorporated
4

End Use Industries

FoodCosmetics & Personal CarePharmaceuticals
Groundnut Oil - Supply Chain

Use Cases of Groundnut Oil in Gastronomy & Culinary Practices & Cosmetics & Personal Care

Gastronomy & Culinary Practices : In gastronomy and everyday cooking, groundnut oil is prized for its high smoke point and neutral to mildly nutty flavor, making it ideal for high-heat applications such as deep-frying, stir-frying, sautéing, and roasting across diverse global cuisines. Refined groundnut oil is the most widely used in foodservice and industrial kitchens because it withstands heat without breaking down and doesn’t impart strong flavors, while cold-pressed oil is preferred in artisanal or health-focused segments for its richer aroma and retained nutrients. The advantages include flavor neutrality, heat stability, and heart-healthy unsaturated fats, supporting both traditional and modern culinary trends. Major edible oil players like Wilmar International, Archer Daniels Midland (ADM), Cargill, Bunge, and Adani Wilmar command substantial market share, supplying refined groundnut oil to food processors, restaurants, and retail consumers worldwide.
Cosmetics & Personal Care : Groundnut oil’s high vitamin E content, natural emollient properties, and lipid profile make cold-pressed and unrefined groundnut oils attractive ingredients in personal care products such as moisturizers, lotions, massage oils, and hair treatments. Its ability to hydrate, soften skin, and support barrier function has led to increased adoption in natural and organic cosmetics formulations, especially as consumers seek plant-based, gentle alternatives to synthetic emollients. This segment benefits from trends toward clean beauty and functional botanicals. Key players in the broader groundnut/peanut oil space, including Adani Wilmar, Cargill, Olam International, and Wilmar International, are expanding offerings to cater to personal care and cosmetic ingredient customers, leveraging global distribution and sustainable sourcing.
Therapeutic Use : Therapeutic applications of groundnut oil span traditional and modern wellness practices, with cold-pressed natural oil frequently used as a carrier oil in massage therapy, aromatherapy, and Ayurvedic treatments due to its smooth texture and mild scent. Practitioners value it for skin nourishment, potential anti-inflammatory properties, and ease of absorption, supporting joint massage, relaxation, and general skin health. While scientific evidence varies, these uses persist culturally and commercially, contributing to niche markets in health-oriented oils and therapeutic blends. Companies at the intersection of food and wellness ingredients, such as Cargill, ADM, Wilmar International, and specialized naturals brands, are increasingly supplying high-purity groundnut oil suited for therapeutic applications as part of expanding product portfolios.

Recent Developments

Recent developments in the groundnut oil market underscore growth driven by health-oriented edible oil trends and sustainable production practices. Demand for cold-pressed peanut oil is rising as consumers seek high-antioxidant, low-trans fat options for cooking and premium gastronomy. Simultaneously, manufacturers are investing in eco-friendly extraction to reduce energy use and enhance supply chain sustainability, appealing to clean-label and green-beauty segments. This shift supports new product formulations, broader foodservice adoption, and stronger positioning against alternative vegetable oils in competitive markets.

July 2025 : Wilmar International completed the acquisition of a 20 % stake in AWL Agri Business (formerly Adani Wilmar), valued at approximately ₹7,150 crore, increasing its ownership and consolidating leadership in edible oil, including groundnut oil production and distribution in India. This strategic stake acquisition strengthens Wilmar’s control over one of the country’s largest edible oil players and enhances its supply chain influence in the Asia Pacific edible oils market.
December 2024 : In a major divestment transaction, the Adani Group announced its complete exit from the Adani Wilmar joint venture, selling its entire 44 % interest primarily to Wilmar International and through the open market. The decision reshaped ownership of the Fortune edible oil business including its groundnut oil portfolio and marked a strategic pivot for Adani toward its core infrastructure and energy verticals.
October 2024 : Health-conscious Line by HealthyLiving Co. - HealthyLiving Co.

Impact of Industry Transitions on the Groundnut Oil Market

As a core segment of the Packaged & Processed F&B industry, the Groundnut Oil market develops in line with broader industry shifts. Over recent years, transitions such as Embracing Health and Nutrition and Innovation and Sustainability have redefined priorities across the Packaged & Processed F&B sector, influencing how the Groundnut Oil market evolves in terms of demand, applications and competitive dynamics. These transitions highlight the structural changes shaping long-term growth opportunities.
01

Embracing Health and Nutrition

Embracing health and nutrition is becoming a structural growth catalyst for the Groundnut Oil market, particularly across the India and China value chains. As consumers shift toward heart-healthy, low-cholesterol diets, Groundnut Oil’s high monounsaturated fat profile is repositioning it from a traditional cooking medium to a preferred healthy cooking oil in everyday cuisine, functional foods, and dietary supplements. This nutrition-led rebranding, supported by rising demand for premium edible oils and organic groundnut oil, is deepening penetration across retail and foodservice channels. Collectively, these trends are projected to unlock an additional $276 million in industry revenue by 2030, reshaping segment mix, incentivizing investment in value-added processing, and reinforcing Groundnut Oil’s strategic role in Asia’s evolving edible oil landscape.
02

Innovation and Sustainability

Innovation and sustainability are reshaping the groundnut oil industry as producers adopt cleaner extraction technologies and resource-efficient processing models. The shift from conventional solvent extraction to cold-pressing, enzymatic extraction, and energy-optimized refining reduces chemical use, lowers emissions, and improves oil quality, directly enhancing acceptance in health-focused food markets. In the food and beverage sector, sustainably processed groundnut oil supports clean-label positioning and premium pricing, particularly in quick-service restaurants seeking lower carbon footprints. In cosmetics and personal care, manufacturers increasingly favor sustainably sourced groundnut oil as a natural emollient, aligning with green formulation standards. Additionally, valorization of by-products such as peanut cake for animal feed and bio-based ingredients improves circularity, supporting profitability while strengthening sustainability credentials across associated industries.