Peanut Oil Market Size and Growth: Key Factors Driving a 4.5% CAGR [Market Valuation: USD 2.55B]

November 12, 2024

The global peanut oil market has witnessed steady growth, reaching a market value of USD 2.55 billion in 2023, with expectations of continued expansion.

According to the TechSci Research report titled, “Peanut Oil Market - Global Industry Size, Share, Trends, Competition Forecast & Opportunities, 2029F,” this market is projected to grow at a CAGR of 4.5% through 2029.

Peanut oil, also referred to as groundnut oil, is widely used in the culinary, cosmetic, and pharmaceutical sectors due to its beneficial nutritional profile and high smoke point, which make it an appealing option for various cooking methods.

Peanut Oil Market Overview

Market Value and Forecasted Growth
The peanut oil market’s steady rise can be attributed to growing awareness of its health benefits, high demand within the food industry, and expanded uses across sectors. With a projected CAGR of 4.5%, the market is anticipated to witness continued expansion, driven by consumer preferences for healthier oils and increased demand in the pharmaceutical industry.

Major Regions and Consumption Patterns
Asia-Pacific dominates the peanut oil market in terms of production and consumption, with China and India leading as the primary producers and consumers. In addition, North America and Europe are seeing growth in peanut oil consumption due to increased interest in organic and natural products.

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Key Peanut Oil Market Drivers

Health Benefits and Nutritional Profile
Peanut oil’s composition, rich in monounsaturated fats, vitamin E, and antioxidants, appeals to health-conscious consumers, who recognize its potential in reducing cholesterol levels and supporting heart health. This makes it a favored alternative to traditional cooking oils, which often contain unhealthy trans fats or high levels of saturated fats.

High Smoke Point and Versatility in Cooking
Known for its high smoke point, peanut oil is ideal for frying, roasting, and sautéing. This property, combined with its mild nutty flavor, has driven its popularity in the culinary world. The food industry benefits from peanut oil's stability under high heat, allowing it to preserve the taste and texture of food.

Rising Demand in the Pharmaceutical Sector
Peanut oil is increasingly used in the pharmaceutical sector due to its potential health benefits. As a carrier oil for active ingredients in medications, as well as a component in topical treatments and supplements, it is valued for its high monounsaturated fat content and natural antioxidants, which promote health and wellness.

Focus on Natural and Organic Products
With growing trends towards health-consciousness and sustainability, the demand for natural and organic oils is rising. Peanut oil’s popularity aligns with these trends, as consumers seek healthier, minimally processed cooking oils.

Peanut Oil Market Segmentation

By Type
The peanut oil market can be segmented into refined and unrefined varieties. Refined peanut oil, commonly used for cooking due to its neutral flavor, is the dominant type. Unrefined peanut oil, which retains a stronger peanut flavor, is often chosen for its rich taste in specific recipes.

By Application

Food Industry
The food industry remains the largest consumer of peanut oil. It is utilized in restaurants, households, and food processing industries due to its cooking versatility and unique flavor.

Pharmaceuticals
Peanut oil is increasingly valued in pharmaceutical applications. It is utilized in the production of oral supplements and topical treatments, where its monounsaturated fats and antioxidants offer additional health benefits.

Cosmetics and Personal Care
Due to its moisturizing properties, peanut oil is incorporated into cosmetics and personal care products such as lotions, creams, and hair care items, benefiting from its natural vitamin E content.

Industrial Applications
Peanut oil is used as a biodiesel feedstock, contributing to sustainable energy efforts. While a smaller segment, it represents an area of growth within the broader peanut oil market.

By Distribution Channel
Peanut oil is distributed through various channels, including supermarkets/hypermarkets, convenience stores, specialty stores, and online retail. Supermarkets and hypermarkets remain the leading sales channels, while online retail is gaining traction due to the increasing preference for convenience among consumers.

Peanut Oil Market Competitive Landscape

The peanut oil market is competitive, with major companies actively engaging in product innovation, quality enhancement, and sustainable production practices. Notable companies in the industry include:

Ventura Foods, LLC
Cargill, Incorporated
Archer Daniels Midland Company
Olam Group Limited
Wilmar International Limited
General Mills Inc.
The Hain Celestial Group, Inc.
Associated British Foods plc
Parrish and Heimbecker, Limited
Bonneterre Foods Pvt Ltd (FreshMill Oils)

These companies focus on advancing oil extraction technology, enhancing packaging methods, and pursuing sustainability certifications to maintain a competitive edge.

Key Trends and Opportunities of Peanut Oil Market

Product Innovation and Technological Advancements
Innovation in oil extraction and processing has allowed companies to improve product quality, extend shelf life, and enhance nutritional benefits. Techniques such as cold-pressing preserve the oil’s natural nutrients, which appeals to consumers seeking minimally processed products.

Sustainability Practices
Environmental concerns associated with production and processing are leading companies to adopt sustainable practices. Efforts to reduce carbon footprints, ensure ethical sourcing, and achieve organic certification are becoming crucial in meeting consumer demand for environmentally responsible products.

Expanding Use in Pharmaceuticals
The pharmaceutical sector offers significant growth potential. Research on the health benefits of peanut oil and its applications in medicinal products supports its demand. The oil’s use as a carrier for active ingredients and in products promoting skin health and overall wellness is a growing trend.

Challenges Facing the Peanut Oil Market

Price Fluctuations and Crop Yield Volatility
Peanut oil prices are susceptible to fluctuations based on peanut crop yields, which can vary due to weather conditions and disease outbreaks. Price volatility can impact production costs, affecting the market.

Emergence of Alternative Oils
While peanut oil’s health benefits drive its popularity, alternative oils such as olive, coconut, and avocado oils also attract health-conscious consumers. The availability of these options could pose a competitive challenge to the peanut oil market.

Allergen Concerns
Allergy concerns surrounding peanut oil may limit its adoption among certain consumer groups, particularly in regions with high awareness of peanut allergies.

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Peanut Oil Market Regional Analysis

Asia-Pacific
Asia-Pacific leads the global peanut oil market, with China and India being major producers and consumers. High demand from the food industry and the popularity of peanut oil in traditional cooking methods drive growth in this region.

North America
The North American peanut oil market is driven by rising interest in natural and organic products, along with increasing awareness of peanut oil’s health benefits.

Europe
In Europe, demand for peanut oil is primarily driven by the growing trend toward healthier lifestyles and dietary preferences. The region has also seen rising use of peanut oil in the pharmaceutical and cosmetic industries.

Rest of the World
Other regions, including South America and the Middle East, also represent potential growth markets, fueled by increasing disposable incomes and a shift towards healthier cooking oils.

Future Outlook

The peanut oil market is expected to maintain steady growth through 2029, with the food industry continuing to be the largest consumer. Increased awareness of peanut oil’s health benefits, coupled with technological advancements and sustainable practices, will likely support its expansion. Additionally, the pharmaceutical sector offers promising opportunities, as peanut oil is increasingly used in health and wellness applications.

Conclusion

The global peanut oil market stands as a vital segment within the edible oil industry, valued for its nutritional profile and wide range of applications. Despite challenges, such as price fluctuations and allergen concerns, the market's outlook remains positive.

Key drivers, including health-conscious consumer preferences, product innovation, and sustainable practices, are set to shape the market’s future.

The increasing utilization of peanut oil in both food and non-food sectors underscores its versatility and potential for growth, presenting opportunities for industry players to expand market penetration through strategic innovation and quality enhancement.