Groundnut Oil Market Set to Exceed $17.3 Billion by 2034
The global groundnut (peanut) oil market is on an upward trajectory, projected to grow from approximately $10.25 billion in 2024 to around $13.32 billion by 2029, reflecting a compound annual growth rate (CAGR) of about 5.4% during that period [2]. This trend suggests continued growth into the next decade, with North America emerging as the top regional market in 2024, securing 45.7% of the global share and generating around USD 4.7 billion in revenue [2].
Key factors driving the growth of the groundnut oil market include:
- Increasing demand for processed foods: Groundnut oil is widely used in cooking and frying, making it a popular choice in the processed food industry.
- Heightened consumer awareness about health benefits: Rich in monounsaturated fats and antioxidants, groundnut oil is gaining popularity among health-conscious consumers.
- Growing use in cosmetics and personal care products: The expanding application of groundnut oil beyond food is another significant factor contributing to its market growth.
- Governmental support for the agricultural sector: Initiatives boosting peanut farming and oil production are helping to fuel the market's growth.
- Technological advancements: Innovations in oil extraction and processing, such as cold pressing and improved machinery, are improving the efficiency and quality of groundnut oil production.
- Rising disposable income and lifestyle changes: Higher consumption in the foodservice and household sectors is driven by increased disposable income and changing lifestyles.
In the broader context, the global cooking oil market, which includes groundnut oil among other types, is expected to reach USD 354.2 billion by 2034 with a CAGR of 6.0% from 2025 to 2034 [1][3]. This demonstrates a robust overall increase in edible oil demand globally, supporting the growth of specific segments like groundnut oil.
India is a major producer of groundnut oil, benefiting from steady consumption habits and changing client preferences that favor groundnut oil as a healthy cooking medium despite competition and production cost challenges [4].
Key players in the global groundnut oil market include Cargill, which has invested in sustainable groundnut oil production in India and Africa, and Archer Daniels Midland (ADM), which has expanded its sustainable edible oil portfolio, including groundnut oil. Other notable companies are Eurovanille, which has introduced organic-certified groundnut oil for gourmet and health-conscious consumers.
In terms of market segmentation, the food industry remained the largest application segment, capturing 77.2% of groundnut oil demand in 2024. Industrial manufacturers use groundnut oil in making biodegradable lubricants and biofuels, while cosmetic manufacturers incorporate it in lotions, creams, and massage oils. Pharmaceutical companies also use groundnut oil as a carrier oil in certain medicines, ointments, and vitamin supplements.
Supermarkets and hypermarkets held 39.2% of the distribution channel market share in 2024, with households representing 66.6% of global consumption. Hot-pressed groundnut oil accounted for 69.9% of the market by product in 2024, and refined groundnut oil held a commanding 72.3% share of the global groundnut oil market by type in 2024.
The market is projected to grow at a CAGR of 5.1% between 2025 and 2034, driven by the factors mentioned above and the increasing global demand for groundnut oil. As the market continues to grow, it is expected to bring about further advancements in oil extraction and processing technologies, as well as increased investment in sustainable production methods.
- The rising global demand for processed foods, fueled by lifestyle changes, presents a significant opportunity for the groundnut oil industry, given its extensive use in cooking and frying.
- Financing for sustainable production methods, as demonstrated by investments from companies like Cargill and Archer Daniels Midland, indicates the integration of finance and the groundnut oil business in promoting eco-friendly practices.
- As groundnut oil finds its way into various food-and-drink products, lifestyle, and personal care items due to its beneficial health properties and multiple applications, it significantly contributes to the broader industry of food-and-drink business and lifestyle trends.
