Peanut Oil Market Size, Share, Growth, and Industry Analysis, By Type (Refined,Unrefined), By Application (Personal Care Products,Food,Pharmaceutical,Others), Regional Insights and Forecast to 2033

Peanut Oil Market Overview

The Peanut Oil Market size was valued at USD 16891.91 million in 2024 and is expected to reach USD 21397.17 million by 2033, growing at a CAGR of 2.6% from 2025 to 2033.

The global peanut oil market has witnessed significant growth, driven by its widespread application in culinary practices and its health benefits. In 2023, the market was valued at approximately USD 10.8 billion. The demand for peanut oil is particularly high in Asian countries, with China leading as both a major producer and consumer. In 2023, China's peanut oil market was valued at around USD 2.2 billion.  Peanut oil's high smoke point and neutral flavor make it ideal for frying and deep-frying, contributing to its popularity in various cuisines. Additionally, its rich content of monounsaturated fats and vitamin E appeals to health-conscious consumers. The food industry remains the largest application segment, accounting for a significant share of the market. In 2023, the food industry segment was valued at approximately USD 6.5 billion. The market is also influenced by the rising trend of plant-based diets and the increasing use of peanut oil in personal care products due to its moisturizing properties. These factors collectively contribute to the robust growth of the peanut oil market globally.

Key Findings

Top Driver Reason: Rising health consciousness among consumers, leading to increased demand for oils rich in monounsaturated fats.

Top Country/Region: China, with a market size of approximately USD 2.2 billion in 2023.

Top Segment: Food industry, accounting for a significant portion of the market, valued at around USD 6.5 billion in 2023.

Peanut Oil Market Trends

The peanut oil market is experiencing several notable trends that are shaping its growth trajectory. One significant trend is the increasing consumer preference for healthier cooking oils. Peanut oil, known for its high monounsaturated fat content and vitamin E, aligns with this preference, making it a popular choice among health-conscious individuals. Another trend is the growing demand for cold-pressed and unrefined peanut oils. These variants retain more natural nutrients and flavors, appealing to consumers seeking minimally processed products. The cold-pressed segment is expected to witness substantial growth, driven by its perceived health benefits. The food industry's expansion, particularly in emerging economies, is also contributing to the increased demand for peanut oil. The oil's high smoke point makes it suitable for various cooking methods, including frying and sautéing, which are prevalent in many cuisines. In addition to culinary uses, peanut oil is gaining traction in the personal care and cosmetics industry. Its moisturizing properties make it a valuable ingredient in skincare products, further diversifying its application base. E-commerce platforms are becoming vital distribution channels for peanut oil, offering consumers easy access to a wide range of products. This shift towards online retailing is expected to continue, providing manufacturers with broader market reach. Sustainability is another emerging trend, with consumers showing interest in products sourced through environmentally friendly practices. Producers are responding by adopting sustainable farming and extraction methods, enhancing their appeal to eco-conscious buyers.

Peanut Oil Market Dynamics

DRIVER

Rising health consciousness among consumers

The increasing awareness of health and wellness is a primary driver of the peanut oil market. Consumers are seeking cooking oils that offer health benefits, and peanut oil, rich in monounsaturated fats and vitamin E, fits this criterion. Its ability to support heart health and its antioxidant properties make it a preferred choice for health-conscious individuals. The demand is further amplified by the global trend towards plant-based diets, where peanut oil serves as a suitable cooking medium.

RESTRAINT

Competition from alternative cooking oils

Despite its benefits, peanut oil faces stiff competition from other vegetable oils like olive, sunflower, and canola oils. These alternatives are often marketed for their health benefits and may be more familiar to consumers in certain regions. Additionally, price fluctuations and limited awareness about peanut oil's advantages can hinder its market penetration, especially in areas where it is not traditionally used.

OPPORTUNITY

Expansion into emerging markets

Emerging economies present significant opportunities for the peanut oil market. As disposable incomes rise and urbanization increases, there's a growing demand for diverse cooking oils. Introducing peanut oil into these markets, coupled with educational campaigns about its health benefits, can lead to substantial market growth. Furthermore, the development of value-added products, such as flavored or fortified peanut oils, can attract a broader consumer base.

CHALLENGE

Allergen concerns associated with peanuts

Peanut allergies are a serious concern, particularly in Western countries. This poses a challenge for the peanut oil market, as consumers may avoid products containing peanuts or derived from them. Although highly refined peanut oil is generally considered safe for most individuals with peanut allergies, the perception of risk can deter potential buyers. Manufacturers must address these concerns through clear labeling and consumer education to mitigate the impact on sales.

Peanut Oil Market Segmentation

By Type

• Refined Peanut Oil: Refined peanut oil is widely used due to its neutral flavor and high smoke point, making it suitable for various cooking methods. In 2023, the refined segment held a significant market share, driven by its application in the food industry. Its extended shelf life and stability also make it a preferred choice for commercial food preparation.
• Unrefined Peanut Oil: Unrefined peanut oil retains more of the natural flavors and nutrients, appealing to consumers seeking less processed options. This variant is gaining popularity in gourmet cooking and among health-conscious individuals. The demand for unrefined peanut oil is expected to grow, particularly in markets where traditional cooking methods are prevalent.

By Application

• Food: The food industry is the largest consumer of peanut oil, utilizing it for frying, baking, and as a salad dressing component. Its high smoke point and flavor profile make it ideal for various culinary applications. The food segment accounted for a significant portion of the market in 2023.
• Personal Care Products: Peanut oil's moisturizing properties make it a valuable ingredient in skincare and haircare products. Its use in personal care is expanding, with manufacturers incorporating it into lotions, creams, and hair oils.
• Pharmaceutical: In the pharmaceutical sector, peanut oil serves as a carrier oil in medications and is used in the formulation of certain drugs. Its stability and compatibility with various compounds make it suitable for pharmaceutical applications.
• Others: Beyond the primary applications, peanut oil is also used in the production of biodiesel and as a lubricant in certain industrial processes. These niche applications, while smaller in scale, contribute to the overall demand for peanut oil.

Peanut Oil Market Regional Outlook

• North America

In North America, the peanut oil market is driven by the growing demand for healthier cooking oils. The United States, in particular, has seen an increase in peanut oil consumption due to its health benefits and culinary versatility. In 2023, the U.S. consumed approximately 190,000 metric tons of peanut oil, reflecting a steady increase from previous years. The rise in health-conscious consumers opting for monounsaturated fats over saturated fats has contributed to this growth. Moreover, the expanding personal care and cosmetics sectors are also adopting peanut oil due to its natural emollient properties, particularly in skin creams and massage oils.

• Europe

Europe’s peanut oil market has seen moderate growth, with France, Germany, and the UK being the primary consumers. In 2023, the European market collectively accounted for an estimated 160,000 metric tons of peanut oil consumption. The region’s strict food quality and safety regulations favor cold-pressed and organic variants of peanut oil, which are increasingly preferred by European consumers. Furthermore, demand is rising in the natural cosmetics segment, especially in France and Germany, where there is a growing inclination toward organic and botanical personal care products.

• Asia-Pacific

The Asia-Pacific region dominates the global peanut oil market, both in terms of production and consumption. China leads the market, followed by India and Southeast Asian nations. In 2023, China alone accounted for over 2.2 billion USD in peanut oil value, with consumption exceeding 1.1 million metric tons. The oil is deeply rooted in regional cooking practices, especially in stir-fry and deep-fry applications. Additionally, India is experiencing increased demand due to its traditional use of groundnut oil in household cooking. The growing middle class, urbanization, and increasing health awareness contribute significantly to market growth in this region.

• Middle East & Africa

The peanut oil market in the Middle East & Africa is gradually expanding, supported by increasing food processing activities and a shift toward healthier cooking oils. In 2023, the region imported over 70,000 metric tons of peanut oil, mainly to Gulf countries and South Africa. Countries like Nigeria and Egypt are also emerging as promising markets due to rising disposable incomes and a growing awareness of healthy eating habits. While the market is still developing, the presence of peanut cultivation in some African nations offers an opportunity for localized production and processing.

List of Top Peanut Oil Market Companies

• ADM
• Bunge
• Cargill
• Louis Dreyfus
• Wilmar International
• Corbion
• Shandong Luhua
• Cofco
• Donlinks
• Longda
• Qingdao Changsheng
• Shangdong Jinsheng
• Shandong Bohi Industry
• Hunan Jinlong
• Sanhe Hopefull
• Dalian Huanong
• Shandong Sanwei
• Qingdao Tianxiang
• Guangdong Yingmai
• Henan Sunshine Group Corporation

Top Twp Companies with Highest Market Share

• Wilmar International: In 2023, Wilmar controlled a significant share of the Asia-Pacific peanut oil processing industry, with annual production volumes exceeding 300,000 metric tons. The company operates large-scale processing plants across China, Vietnam, and Indonesia, catering to both domestic and international markets.
• ADM (Archer Daniels Midland Company): ADM’s peanut oil division has expanded in recent years, especially in the North American and European markets. In 2023, ADM reported processing capacities exceeding 180,000 metric tons of peanut oil, with a strong presence in the retail and industrial food sectors.

Investment Analysis and Opportunities

The peanut oil market presents numerous investment opportunities across processing, distribution, and product development. A significant share of investment is being funneled into the modernization of oil extraction technologies, especially cold-press and expeller methods, to improve yield and product quality. For example, Chinese processors have adopted automated cold-press systems, which have improved oil retention rates by 12% and reduced waste. Emerging economies such as India, Vietnam, and Nigeria are attracting investments for setting up new peanut oil processing units. In 2023, Nigeria launched three new groundnut oil mills in Kano and Kaduna, with combined capacities of over 40,000 liters per day. These facilities aim to strengthen local agricultural economies while reducing reliance on imported cooking oils. Private equity firms and agribusiness funds have begun investing in farm-to-factory integration projects, aimed at strengthening the peanut supply chain. In India, over ₹600 crore (~USD 72 million) has been invested in recent years to improve groundnut sourcing, storage, and logistics infrastructure, enabling better quality and price stability in the peanut oil market. Digitalization and e-commerce are also emerging as high-potential investment areas. Online platforms for branded peanut oil sales are growing rapidly, especially in urban centers. In 2023, online peanut oil sales in India increased by 27%, driven by the availability of organic, unrefined, and cold-pressed options. In addition, there is a rising demand for premium and niche variants of peanut oil, including flavored oils (e.g., garlic-infused, chili-infused) and fortified oils enriched with omega-3 or vitamin D. This segment is projected to grow faster than standard refined oil, with specialty peanut oils capturing around 15% of total online cooking oil sales in China in 2023. Foreign Direct Investments (FDI) are being encouraged in several developing countries to boost oilseed processing. Bangladesh, for instance, approved USD 18 million in FDI in 2023 for the construction of a multi-seed oil processing plant that includes peanut oil production lines. All these developments indicate a strong business case for continued investments in technology, infrastructure, product innovation, and distribution, reinforcing the long-term growth potential of the peanut oil market.

New Product Development

Innovation in peanut oil products is gathering momentum as companies explore new ways to differentiate their offerings and capture evolving consumer preferences. In recent years, several new products have been launched that cater to the demands for health, sustainability, and gourmet appeal. One notable area of innovation is the development of cold-pressed peanut oils. Unlike traditional refining processes, cold-pressing retains more nutrients and natural antioxidants. In 2023, companies like Shandong Luhua introduced cold-pressed virgin peanut oil targeting high-end urban markets. These products, sold in premium glass packaging, command prices up to 30% higher than standard oils. Flavored peanut oils are another trend gaining popularity. Gourmet variants infused with herbs, chili, garlic, and lemon have been rolled out by regional and global players alike. Qingdao Tianxiang recently launched a garlic-infused peanut oil variant that sold over 100,000 bottles within the first quarter of 2024, indicating robust consumer interest. Fortified peanut oils, enriched with vitamin A, D, and omega-3 fatty acids, are also being developed to address malnutrition issues in low-income communities. In collaboration with public health programs, manufacturers in India and Sub-Saharan Africa have introduced fortified oils in sachet packaging for easy household use. These fortified products have increased market penetration by 14% over the last year. In the personal care segment, peanut oil is being used as a base for cosmetic formulations. Companies like Corbion and Guangdong Yingmai have expanded their product lines to include massage oils, facial serums, and natural moisturizers based on peanut oil. The demand is particularly strong in Southeast Asia, where natural beauty products are growing in popularity. Sustainability-focused innovations have also emerged. Companies are now offering certified organic peanut oil, produced without the use of chemical pesticides or GMOs. The organic peanut oil segment grew by 22% in 2023 in Western Europe, driven by demand from health-conscious and environmentally aware consumers. Packaging innovation is also noteworthy, with brands moving toward eco-friendly and recyclable packaging. In the US, several brands have replaced plastic bottles with aluminum and glass alternatives, resulting in a 19% increase in customer preference in 2023. Through continuous R&D and alignment with consumer trends, manufacturers are not only enhancing product quality and appeal but also contributing to the expansion of the overall peanut oil market.

Five Recent Developments

• Wilmar International Expanded Production Capacity in China (2023): Wilmar International commissioned two new peanut oil extraction plants in Shandong province in Q4 2023. These facilities added a combined processing capacity of 350,000 metric tons per year. This expansion is part of the company’s strategy to meet rising domestic demand and streamline logistics for northern Chinese markets.
• Shandong Luhua Introduced Cold-Pressed Premium Peanut Oil (2023): In early 2023, Shandong Luhua launched a premium line of cold-pressed peanut oil in high-end retail stores in Beijing and Shanghai. The product emphasized nutritional retention and was marketed as free from solvents and additives. Within six months, sales crossed 1.5 million units, outperforming projections by 25%.
• Cargill Collaborated with Retail Chains in India (2024): Cargill India entered into an exclusive distribution agreement with major Indian supermarket chains to distribute their Naturalle peanut oil brand. The collaboration expanded Cargill’s retail footprint across 40 Tier-1 and Tier-2 cities in India. The Naturalle peanut oil brand saw a 20% jump in sales volume in Q1 2024.
• ADM Invested in Smart Refining Technologies in the US (2023): ADM announced the deployment of a smart refining system at its Decatur, Illinois facility. The system integrates AI and sensor-based analytics to optimize oil quality and reduce waste. The new system improved oil purity by 9.8% and reduced energy consumption by 11.2%, positioning ADM as a technology leader in edible oil refining.
• Henan Sunshine Group Launched Organic Peanut Oil Line (2024): Henan Sunshine Group introduced a certified organic peanut oil product under its “SunVital” label in April 2024. The launch targeted the premium segment in both domestic and international markets, particularly in Germany and South Korea. Initial exports reached 800,000 liters in the first two quarters of 2024.

Report Coverage of Peanut Oil Market

This report comprehensively analyzes the peanut oil market across several key dimensions including product types, applications, end-users, regions, and competitive landscape. It offers an in-depth look at the factors influencing market trends, demand drivers, constraints, and the evolving needs of consumers and industries. The study covers all major forms of peanut oil—refined and unrefined—and their performance in different market segments, notably food, personal care, pharmaceutical, and other industrial uses. Each of these segments has been assessed on the basis of quantitative demand trends, user demographics, and changing consumption behavior. For instance, the food segment, accounting for over 60% of global consumption, is further examined by analyzing its use in fast food, packaged food, and home cooking. Geographically, the report provides detailed market coverage across North America, Europe, Asia-Pacific, and the Middle East & Africa. The Asia-Pacific region, driven by countries like China and India, dominates global production and consumption. Meanwhile, the North American and European markets are characterized by premiumization, organic product demand, and rising online distribution. A significant portion of the report is dedicated to competitive analysis. It profiles major players including ADM, Wilmar International, Cargill, Bunge, and Shandong Luhua, focusing on their production capacities, distribution networks, investment trends, and product launches. It also evaluates the strategies employed by regional and local players to gain market share through niche innovations such as flavored or fortified peanut oils. The report includes a forward-looking analysis of market opportunities and threats, particularly in the context of increasing global health consciousness, supply chain constraints, and rising food-grade oil standards. Investment activity, both in terms of capacity expansion and R&D for new product development, is covered thoroughly. For example, it highlights how over USD 100 million has been invested in Southeast Asia in 2023 alone to establish integrated peanut oil processing facilities. Further, the report assesses regulatory and policy environments that affect production, labeling, safety, and export-import dynamics. It provides insights into allergen labeling requirements in Europe and North America, which have direct implications on marketing and product formulation. Through detailed graphs, segmented data tables, and analytical commentary, this report provides stakeholders with actionable insights and forecasts, equipping them with the tools needed to make strategic decisions in the evolving peanut oil market landscape.

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