Description
Peanut Oil Market Overview
The global peanut oil market is witnessing consistent growth, largely fueled by an increase in consumer awareness regarding its health advantages, including a high content of monounsaturated fats. Its neutral taste and elevated smoke point render it a preferred option within the foodservice sector, especially for frying.
The Asia-Pacific region continues to lead in both consumption and production, deeply embedded in the culinary practices of nations such as China and India. A significant trend is the rising preference for unrefined, cold-pressed, and organic varieties, as health-conscious consumers gravitate towards minimally processed options.
However, market expansion encounters several challenges, including competition from alternative edible oils like palm and soybean, price fluctuations driven by the weather-dependent yields of peanut crops, and the ongoing issue of peanut allergies. Notwithstanding these challenges, the increasing application of peanut oil in cosmetics, pharmaceuticals, and the growing processed food industry continues to support its favorable market growth.
The global Peanut Oil Market size was valued at US$ 14.34 Billion in 2025 and is poised to grow from US$ 15.14 Billion in 2026 to 21.45 Billion by 2033, growing at a CAGR of 4.4 % in the forecast period (2026-2033)
Peanut Oil Market Impact on Industry
The peanut oil market plays a crucial role in the global food industry, especially within the foodservice sector, where its high smoke point and neutral flavor are greatly appreciated for deep frying. This characteristic enables restaurants, fast-food establishments, and commercial kitchens to achieve crispy textures with minimal flavor transfer, thereby increasing the bulk demand for refined peanut oil. Moreover, its reputation as a healthier cooking oil, abundant in monounsaturated fats and antioxidants, directly challenges and pressures the traditional edible oil market, prompting manufacturers to develop fortified and health-oriented alternatives to align with changing consumer dietary preferences.
In addition to culinary uses, the market’s influence reaches into non-food industrial sectors. Peanut oil is becoming increasingly popular in the cosmetics and personal care industries, where its emollient properties and Vitamin E content are leveraged in the creation of moisturizers, massage oils, and various skincare products. Likewise, in the pharmaceutical field, it is utilized as a safe and natural base or carrier oil for a range of medicinal applications, including injectables and topical formulations. The rising demand from these non-culinary sectors diversifies the oil’s revenue streams and opens up opportunities for specialized, high-purity product lines.
Nevertheless, the dynamics of the market also present challenges across different industries. Fluctuations in the price of raw peanuts due to weather-related crop variations create instability for manufacturers, impacting production costs and retail prices. Additionally, the serious and widespread issue of peanut allergies requires rigorous labeling and quality control measures, particularly in Western markets. This allergen concern restricts its application in many packaged food and bulk manufacturing processes, necessitating alternative oil sourcing and risk management strategies throughout the entire food supply chain.
Peanut Oil Market Dynamics:
Peanut Oil Market Drivers
The peanut oil market is mainly influenced by the increasing global awareness of health and the oil’s exceptional functional characteristics in culinary uses. Consumers are progressively opting for cooking oils that are regarded as beneficial for heart health, due to peanut oil’s low saturated fat levels and high monounsaturated fat content. This health-oriented trend is further intensified by the growing demand for organic, non-GMO, and cold-pressed options, which are perceived as cleaner-label products that preserve a greater amount of natural nutrients. Moreover, the swift growth of the global foodservice sector, especially in the Asia-Pacific region, drives the bulk demand for refined peanut oil, which is valued for its elevated smoke point and neutral taste, making it suitable for high-temperature cooking methods such as deep frying.
Challenges
The market encounters considerable challenges arising from the volatility of raw material supply and fierce competition from alternative products. Peanut farming is highly susceptible to changes in climate and disease outbreaks, resulting in unpredictable yields and price variations for the raw material, which directly affects the production costs and profit margins of manufacturers. Additionally, the intense competition within the edible oil industry, featuring readily available and economical substitutes like palm, soybean, and sunflower oils, limits the market share of peanut oil. A significant obstacle, particularly in Western markets, is the widespread consumer apprehension regarding peanut allergies, which requires stringent labeling and restricts its use in extensive food manufacturing and foodservice applications.
Opportunity
Substantial growth prospects exist in diversifying products and capitalizing on demand from non-food industries. The rising consumer inclination towards minimally processed products creates a significant opportunity for unrefined and cold-pressed peanut oil to penetrate premium market segments. In addition to food applications, the oil’s inherent emollient and nutritional characteristics are propelling its growing utilization in the cosmetics and personal care sector for moisturizers and massage oils, as well as in the pharmaceutical industry as a carrier oil. Investigating unconventional uses, such as employing peanut oil as a feedstock for biodiesel production, also presents a sustainable, long-term growth pathway, thereby positioning the product within the burgeoning renewable energy market.
The Peanut Oil Market Key Players: –
- Marico
- Hain Celestial Group, Inc.
- Patanjali Ayurved Limited
- AAK
- Tata Consumer Products Limited
- Ventura Foods
- ADM
- Cargill, Inc
- Olam Group
- Wilmar International Ltd
- Bunge Limited
Recent Development:-
Singapore, August 12, 2025 Wilmar International Limited (“Wilmar” or “the Group”), Asia’s leading agribusiness group, reported a 26% increase in pre-tax profit to US$937.7 million for the six months ended June 30, 2025 (“1H2025”) (1H2024: US$742.2 million). Page 2 of 5 The improvement was driven by stronger performances in the Plantation & Sugar Milling and Food Products segments. Contributions from associates and joint ventures were also higher, more than doubling in 1H2025 compared to 1H2024. However, these improvements were partially offset by lower contributions from the Feed & Industrial Products segment. Together with higher ta
Jul. 29, 2025 Cargill to acquire Mig-Plus, expanding animal nutrition business in Brazil agreement will enable the company to deliver even more robust solutions to producers. Cargill, one of the world’s leading food providers, continues to advance its growth strategy in the Brazilian market and announces its binding offer to acquire 100% of the operations of Mig-Plus, a family-owned company specializing in animal nutrition solutions for multiple species, primarily swine and ruminants, with a product portfolio that includes premixes, feed concentrates, and complete feeds.
Peanut Oil Market Regional Analysis: –
The global peanut oil market showcases a clearly defined regional landscape in terms of consumption and production, with Asia-Pacific standing out as the leading region by a considerable margin. This pre-eminence is fundamentally linked to the cultural and traditional culinary practices prevalent in major economies such as China and India, where peanut oil, also known as groundnut oil, is a fundamental kitchen ingredient. Its elevated smoke point and compatibility with deep frying and stir-frying render it a vital component in numerous local cuisines. In 2024, the Asia-Pacific region held an overwhelmingly significant portion of the global market, with certain reports suggesting that its share exceeded 60%. The vast population, the burgeoning middle class with increasing disposable incomes, and the substantial scale of the foodservice sector in this area collectively fuel this extraordinary demand. Although its overall market size is the largest, its Compound Annual Growth Rate (CAGR) is also anticipated to be noteworthy, with projections estimating it to be around 4.9% from 2025 to 2033, propelled by urbanization and the growing consumption of both refined and traditional unrefined varieties.
Following the Asia-Pacific region, North America and Europe emerge as the next major markets, although their consumption behaviors and growth factors differ significantly. North America commands a substantial market share, primarily fueled by the extensive use of refined peanut oil in the commercial foodservice sector for deep frying, especially within fast-food establishments, owing to its neutral taste and stability. Additionally, the rising trend of health consciousness, which promotes oils rich in heart-healthy monounsaturated fats, has led to an increased demand for specialty, organic, and cold-pressed peanut oils among retail consumers.
In a similar vein, Europe is experiencing a robust growth trajectory. It is frequently recognized as the fastest-growing regional market, with certain forecasts predicting a compound annual growth rate (CAGR) surpassing 7.6% through 2033. This growth is linked to the surging popularity of ethnic Asian and Mediterranean cuisines, a heightened consumer appetite for premium, healthy oils in nations such as Italy and Germany, and the expanding use of peanut oil in non-food industries like cosmetics and pharmaceuticals. Nevertheless, both regions encounter the challenge of widespread consumer awareness regarding peanut allergies, which serves as a structural barrier to mass market acceptance.
The markets in Latin America and the Middle East and Africa (MEA) are distinguished by emerging growth and specialized applications. In the MEA region, there is a consistent increase in demand, driven by traditional cooking methods in certain African nations where peanuts are a significant crop, along with the impact of Asian expatriate communities and the growth of the foodservice industry. Latin America is also experiencing a gradual rise in peanut oil consumption, frequently influenced by the cultural culinary traditions of the region and a heightened interest in varied, healthier cooking oils. Although these regions possess smaller market shares in comparison to Asia-Pacific, their rising urbanization and enhancing economic conditions indicate potential growth opportunities, especially as global trade enhances the accessibility and competitiveness of peanut oil against traditional local vegetable oils. The growth in these areas is also commonly associated with the expansion of industrial applications, such as the utilization of vegetable oils in biofuels.
Peanut Oil Market Segmentation:
By Type
- Refined Peanut Oil
- Unrefined Peanut Oil
- Cold-Pressed
- Hot-Pressed
By Application (End-Use Industry)
- Food
- Cooking (Household Consumption)
- Food Service (HoReCa)
- Food Processing
- Cosmetics and Personal Care
- Pharmaceuticals
- Others (e.g., Biofuels)
By Region
- Asia-Pacific
- China
- India
- Japan
- Rest of Asia-Pacific
- North America
- United States
- Canada
- Mexico
- Europe
- Germany
- United Kingdom
- France
- Italy
- Rest of Europe
- Latin America
- Middle East and Africa (MEA)