Peanut Oil Market Analysis

Peanut Oil Market Analysis

The peanut oil industry is experiencing significant growth driven by rising consumer awareness of health benefits, including its high monounsaturated fat content and favorable omega-6 to omega-3 ratio. The increasing demand for natural and organic oils, along with a surge in the food service industry, particularly in Asian cuisines, is further propelling market expansion.

Additionally, the growing trend towards plant-based diets and cooking at home has led to an uptick in peanut oil usage for frying and sautéing. Upcoming trends include the development of flavored peanut oils and innovations in sustainable sourcing practices, as well as potential market penetration through e-commerce platforms, catering to health-conscious consumers seeking convenient shopping options.
 

Refined peanut oil segment was valued at USD 6 billion in 2023, and it is anticipated to expand 3.5% of CAGR during 2024 to 2032, due to its widespread use in cooking, frying, and food processing. Its high smoke point and neutral flavor make it a preferred choice for both household and commercial kitchens.
 

Additionally, refined peanut oil undergoes extensive processing, which enhances its stability and shelf life, appealing to manufacturers and consumers seeking quality and durability. The growing trend of healthy cooking options further bolsters its popularity, as refined peanut oil is rich in antioxidants and promotes heart health. With rising demand for healthy cooking oils, the refined peanut oil sector is poised for continued growth and expansion.
 

The peanut oil market from food industry segment was valued at USD 6.5 billion in 2023 and gained 3.4% CAGR from 2024 to 2032, due to its extensive use in cooking, frying, and food preparation, particularly in Asian, African, and Middle Eastern cuisines. Peanut oil’s high smoke point makes it ideal for deep frying, enhancing its demand in restaurants and food service outlets. The rising popularity of convenience foods and ready-to-eat products has also spurred its use in processed food production.
 

Additionally, the food industry benefits from peanut oil's health positioning, as it contains heart-healthy fats, which appeals to health-conscious consumers. Growing trends in plant-based and organic foods are further driving the use of peanut oil as a preferred ingredient in packaged foods, expanding its presence in global food markets.
 

The peanut oil market from offline segment was valued at USD 9.4 billion in 2023 and gained 2.3% CAGR from 2024 to 2032, driven by the widespread availability of the product in supermarkets, hypermarkets, and grocery stores. Consumers prefer dates and peanut oil from physical outlets due to the ability to inspect the product's quality, check expiration dates, and compare brands before purchase.
 

Additionally, bulk buying options and the ease of access to trusted local stores make offline channels more convenient for many buyers. Traditional brick-and-mortar stores also provide promotional offers and discounts, attracting cost-conscious consumers. In rural and semi-urban areas, where online penetration is lower, offline retail remains the primary distribution channel, further reinforcing its dominance in the market.
 

China peanut oil market size dominated around USD 2.2 billion in 2023 and poised to expand at a 3.1% CAGR through 2032, due to its vast peanut cultivation and consumption base. As one of the largest producers and consumers of peanut oil, China benefits from its extensive agricultural infrastructure and favorable growing conditions for peanuts. The high demand for peanut oil in Chinese cuisine, particularly for frying and stir-frying, reinforces its market dominance.
 

Additionally, the rising disposable income and shift towards healthier cooking oils further boost domestic consumption. China's strong supply chain and ability to process and export peanut oil also contribute to its leadership in the market. Government initiatives promoting agricultural efficiency and food security enhance China's competitive edge, ensuring its continued dominance in the peanut oil sector.