Peanut Oil Market Size, Share & Industry Analysis, By Type (Refined Oil, Unrefined Oil, and Others), By Nature (Conventional and Organic), By Application (Food Service, Food Processing, and Household), and Regional Forecast, 2025-2032

The global peanut oil market size was valued at USD 8.20 billion in 2024. The market is projected to grow from USD 8.65 billion in 2025 to USD 12.73 billion by 2032, exhibiting a CAGR of 5.69% during the forecast period. Asia Pacific dominated the peanut oil market with a market share of 92.44% in 2024.

Peanut oil, also known as groundnut oil, is an edible vegetable oil extracted from peanut seeds. This oil is recognized as a healthy cooking oil owing to its mild flavor, nutritional value, and high smoke point. It is mostly utilized in Southeast Asian and American cuisine for cooking purposes. A few of the well-known forms of oil include cold-pressed/unrefined oil and refined oil. With respect to production, India and China are the prominent producers of groundnut oil, while Myanmar and China are the major consumers. Moreover, along with culinary applications, groundnut oil is used in cosmetics, biodiesel, and pharmaceuticals. The rising demand for traditional ingredients-enriched oil, surging health consciousness, and the health benefits of peanut oil are contributing to the global market growth.

A few of the key players in the global industry include Cargill, Incorporated, ARCHER-DANIELS-MIDLAND Company, and The Hain Celestial Group, Inc., among others.

Global Peanut Oil Market Overview

Market Size & Forecast:

• 2024 Market Size: USD 8.20 billion
• 2025 Market Size: USD 8.65 billion
• 2032 Forecast Market Size: USD 12.73 billion
• CAGR: 5.69% from 2025–2032

Market Share:

• Asia Pacific dominated the peanut oil market in 2024 with a value of USD 7.58 billion, driven by cultural significance, high production of peanuts, and increasing inclination toward natural ingredients in cooking. Groundnut oil remains a staple in Asian cuisine, especially for frying and cooking traditional and modern dishes.
• By type, the refined oil segment held the largest share in 2024, attributed to its prolonged shelf life, elimination of odor and impurities, and suitability for high-heat cooking processes.

Key Country Highlights:

• China: Leading consumer of peanut oil in 2024, supported by strong domestic production and preference for traditional Chinese cuisines.
• India: One of the top producers of peanut oil globally, with high demand in both household and food service applications.
• United States: Rising focus on healthier dietary habits and launches of refined groundnut oil are boosting consumption.
• Europe: Increasing adoption of veganism and growing personal care industry applications are driving peanut oil demand.

Peanut Oil Market Trends

Growing Trend of Utilization of Oil in Pharmaceuticals Sector

The pharmaceutical industry is experiencing a rise in oil usage, especially as a carrier for numerous items. This trend is augmented by growing consumer awareness of its health advantages and its versatility in medicinal formulations. Predominantly, this oil is utilized in ear drops, as a laxative, and for softening earwax. Also, it is used in a few of the controlled-release injectables and is utilized in over-the-counter medications. Additionally, it is utilized in the formulation of tropical preparations. Moreover, it is used in oral formulations to solubilize drugs. Asia Pacific witnessed a growth from USD 7.11 Billion in 2023 to USD 7.58 Billion in 2024.

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MARKET DYNAMICS

Market Drivers

Surging Utilization of Oil in Food Service Sector Boosts Market Growth

The growing use of groundnut oil in the food service industry is a prime driver for strengthening the market’s growth. This oil is recognized as a healthy ingredient within the food service sector, especially for deep frying, as it doesn’t absorb food flavors when fried. In today’s health-centric era, individuals are turning toward groundnut oil, as it is low in saturated fats and high in unsaturated fats. This advantage enhances its usage in culinary preparation. Moreover, this oil, particularly refined oil, offers a neutral flavor and has a high smoking point, which shows that it can resist high temperatures. Along with sautéing, frying, and grilling, this oil can be utilized as a flavor enhancer in salad dressings, marinades, and sauces. Other benefits of peanut oil, such as cost-effectiveness and functional properties, further make it a prominent choice in food service operations. 

Market Restraints

Aflatoxin Contamination in Groundnut Oil and Stiff Competition are Crucial Hurdles Inhibiting Growth

One of the key hurdles observed in the global industry is the surging risk of aflatoxin contamination. Groundnuts are prone to aflatoxin contamination, which is a natural toxin produced by specific Aspergillus parasiticus and Aspergillus flavus species. Predominantly, these groundnuts get easily contaminated, owing to the storage conditions and cultivation practices. Later, when these infected peanuts are processed into oil, the toxins are transferred to the finished products. As a result, such contamination obstructs the global peanut oil market growth.

Another hindrance experienced by edible oil producers is the tough competition from numerous types of oils. The industry faces stiff competition from widely available and economical substitutes such as sunflower oil and palm oil. Thus, this hurdle can inhibit the market’s momentum.

Market Opportunities

Increasing Use of Oil in Cosmetics Industry Unlocks Growth Possibilities

The rising usage of groundnut oil in beauty/skincare products builds growth opportunities for the global marketplace. Likewise, food industry, this oil is considered a popular ingredient in the cosmetics sector, especially massage oils, lotions, creams, and lipsticks. This oil, when used in the personal care industry, offers nutrients to the skin and aids in hydrating the skin. Moreover, it performs as a barrier on the skin, further minimizing moisture loss. Additionally, it is well-tolerated by sensitive skin and acts as an emollient, which offers softness to the skin. As a result, such increasing awareness of oil in the personal care sector strengthens its usage.

SEGMENTATION ANALYSIS

By Type

Refined Oil Segment Led Due to Its Benefits, Including Elimination of Odor and Impurities

Based on type, the market is distributed into refined oil, unrefined oil, and others.

Among all, the refined oil segment dominated the market and held the highest share in 2024. Compared to unrefined oil, this type of oil is produced after refining and bleaching, which eliminates the odor and impurities. Moreover, this oil has a prolonged shelf life and is rich in omega-6 fatty acids. However, while stable and ideal for high-heat cooking processes, this refined oil loses most of its advantageous properties during refining.

The unrefined oil is the fastest-growing segment and is predicted to soar at a higher pace in the near term. In comparison to refined oil, this unrefined oil has a shorter shelf life and is not appropriate for high-heat cooking.

By Nature

Conventional Segment Dominated Market Owing to Its Wide Availability

On the basis of nature, the market is segmented into conventional and organic.

Out of all, the conventional segment led the global market in 2024. In comparison to organic oil, conventional oil is cheaper and is easily accessible globally. Also, regular oil has an extended shelf life as the refining process is known to eliminate impurities that can lead to rancidity. Moreover, conventional groundnut oil is less allergenic, further strengthening its utilization.

The organic segment has a high CAGR and is expected to maintain the same pace in the future. The growing options of organic oil and surging inclination toward natural ingredient-sourced cooking oil facilitate the segment’s growth.

By Application

Household Led Market Due to Growing Home Cooking Trend

Depending on the application, the market is segregated into food service, food processing, and household.

Among all, the household sector secured the foremost position in the market and accounted for a considerable market share. The growing home cooking trend and surging consumer preference toward fortified oil are cumulative factors stimulating its usage at the household level. Other reasons, such as increasing health-conscious consumers and their popularity, further drive the segment’s growth.

The food service sector is recognized as the fastest-growing segment and is anticipated to achieve high trajectory growth in the near term. The increasing number of quick-service restaurants and the enhanced socializing trend are escalating the sales of groundnut oil.

Global Peanut Oil Market Regional Outlook

On the basis of region, the market is segmented into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

Asia Pacific

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Asia Pacific leads the global industry and generated the highest peanut oil market share in 2024. The region’s growth is attained due to a couple of factors, such as cultural significance and increasing inclination toward natural ingredients. In Asian cuisine, groundnut oil is considered a main ingredient, especially for frying and cooking purposes. As a result, this versatility makes it an ideal choice for both modern and traditional dishes. Along with the growing population, this region is also known for its high production of peanuts, which further adds to the growth. According to the U.S. Department of Agriculture, a government agency, China observed a spike in its production capacity of peanuts and reached 3,136 thousand tons in 2023/2024.

China is considered the prominent consumer of groundnut oil in 2024. The production dominance and growing preferences for traditional Chinese cuisines drive the nation’s potential.

Middle East & Africa

The Middle East & Africa secured second position and are expected to grow at the same pace in the coming years. The improved use of oil at the household level and the rising number of private-label players stimulates the growth. Moreover, the sudden consumer shift toward healthier cooking alternatives and their versatility propels regional growth.

North America

North America emerged as the third biggest region in the global market. This region is renowned for robust manufacturing capabilities and a rich agricultural landscape, which considerably shapes the dynamics of the groundnut oil industry. With respect to the food processing industry, American countries have a well-built food processing sector that makes use of superior-quality groundnut oil. Moreover, with the surging focus on healthier dietary habits, most consumers are switching toward groundnut oil for its nutritional advantages. As a result, the factors mentioned above drive the market’s growth.

The U.S. is the leading country in the North American market and is expected to exhibit high trajectory growth in the near term. The growing launches of refined groundnut oil and the rising startups of oil encourage its usage.

Europe

Europe also held a considerable share in 2024. In this region, most Europeans are adopting the veganism trend and are looking for healthier substitutes to conventional cooking oil. This demand for safer alternatives fuels the intake of groundnut oil owing to its vitamin E and high monounsaturated content. Moreover, the expanding personal care industry further increases the usage of groundnut oil, especially due to its emollient properties. Thus, such advantages facilitate growth.

South America

South America is at its nascent stage, compared to developed regions, and is anticipated to soar at a higher pace in the future. The surging urbanization and growing food service sector collectively augment the demand for peanut oil.

COMPETITIVE LANDSCAPE

Prominent Players Focus on New Product Offerings to Upgrade Brand’s Position

The active players operating in the peanut oil industry include The Hain Celestial Group Inc., ARCHER-DANIELS-MIDLAND COMPANY, and Cargill, Incorporated, among others. All these mentioned companies are concentrating on new launches that can satisfy consumer demands. Moreover, the increased support via the government and acquisitions with dominating players sector further augments the market’s growth.

List of Key Peanut Oil Companies Profiled

• ARCHER-DANIELS-MIDLAND COMPANY (U.S.)
• Cargill, Incorporated (U.S.)
• The Hain Celestial Group, Inc. (U.S.)
• COFCO (China)
• Wilmar International Ltd (Singapore)
• Patanjali Ayurved Limited (India)
• Tata Consumer Products (India)
• Ventura Foods (U.S.)
• AAK (Sweden)
• La Tourangelle (U.S.)

KEY INDUSTRY DEVELOPMENTS

• October 2024: Texas A&M Agri Life Research, one of the biggest research and tech development agencies in Texas, revealed the development of a high-oil peanut variety, which aids in the production of high-oil peanuts.
• September 2024: Fassoum Peanut Oil, a Nigerian-based oil and its derivatives enterprise, joined the LaunchUp Program of Dubai-based venture FasterCapital. This initiative’s goal is to support startups, which helps to upgrade their operations and boost their presence globally.
• May 2023: Singireddy Niranjan Reddy, the Agriculture Minister of Telangana, announced the launch of the Vijaya brand groundnut oil. The launch event observed the presence of the Oil Fed Chairman and other dignitaries.
• April 2022: Gemini Edibles and Fats India Ltd. (GEF India), an Indian oil enterprise, introduced the launch of the five-liter jar of groundnut oil via its brand, Freedom. This oil offers a nutty flavor and is preferred for making pickles across India. 
• March 2020: Dhara, a popular cooking oil brand in India, revealed the “Milled in India” campaign, which encouraged individuals to opt for indigenous filtered oils such as Kachi Ghani Groundnut Oil and Mustard Oil.

REPORT COVERAGE

The global market report includes quantitative and qualitative insights into the market. It also offers a detailed global peanut oil market analysis of the market sizing and growth rates for all possible market segments. Key insights presented in the report include an overview of related markets, a competitive landscape, recent industry developments such as mergers & acquisitions, the regulatory environment in critical countries, and current global market trends.  

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