Peanut Oil Market Size, Share, Trends, Growth and Forecast 2032

Peanut Oil Industry Prospective:

The global peanut oil market size was worth around USD 10.56 billion in 2023 and is predicted to grow to around USD 15.84 billion by 2032, with a compound annual growth rate (CAGR) of roughly 4.6% between 2024 and 2032.

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Peanut Oil Market: Overview

Peanut oil is essentially a vegetable oil obtained from peanut seeds, aka Arachis hypogaea. It is prominently used in cooking, mainly in frying, owing to its neutral flavor, high smoke point, and multiple health benefits. Its nutritional profile, along with its versatility, makes it a vital cooking oil on a global scale. It holds several culinary benefits, making it ideal for stir-frying, deep frying, and grilling.

Peanut oil is also rich in monounsaturated fats, which are considered heart-friendly, unsaturated fats for cell growth and brain function, and resistant starch that contributes to blood sugar control and better digestion. The said oil is popularly used in Thailand, China, India, and most parts of Southeast Asia in a broader range of dishes.

The key drivers of the peanut oil industry comprise rising health consciousness about the benefits of peanut oil for health, increasing applications in cooking and processing, and sustainability of peanut farming.

Nonetheless, the market is restrained by the growing competition from alternate oils, high price volatility due to variations in crop yields, weather conditions, input costs affecting market stability, and low availability in regions due to logistical challenges.

Key Insights:

• As per the analysis shared by our research analyst, the global peanut oil market is estimated to grow annually at a CAGR of around 4.6% over the forecast period (2024-2032)
• In terms of revenue, the global peanut oil market size was valued at around USD 10.56 billion in 2023 and is projected to reach USD 15.84 billion by 2032.
• The peanut oil market is projected to grow at a significant rate due to the growing popularity of peanut oil in African and Asian cuisines and increasing international food choices.
• Based on type, the refined segment is growing at a high rate and will continue to dominate the global market as per industry prediction.
• Based on distribution channel, the business-to-business segment is anticipated to command the largest market share.
• Based on region, North America is projected to dominate the global market during the forecast period

Peanut Oil Market: Growth Drivers

Mounting demand for healthy cooking oils and inclination towards natural products and non-GMO to fuel the market growth

The rising health consciousness among the large population is fueling increased demands for peanut oils for better health benefits.

Peanut oil comprises greater levels of monounsaturated fats that are regarded essential for the health of the heart. It has a comparatively lesser level of saturated fats, and the existence of antioxidants like resveratrol is also the reason for its popularity.

Moreover, with the growing shift towards non-GMO and natural products, most consumers are choosing peanut oil owing to its acceptance as a less processed alternative to other oils like corn oil and soybean oil.

This demand is largely seen in the western regions like Europe and North America. Besides, Asia Pacific is also witnessing greater consumption of peanut oil, with China leading the race among other nations.

The country accounts for nearly 40% of the total consumption of peanut oil, whereas India is witnessing a steady inclination of around 6-8% toward peanut oil due to changing dietary habits and a growing urban population.

Growing use of peanut oil in biofuels is contributing to industry growth

One of the leading drivers of the growth of the peanut oil market is its progressing use in biofuels. The rising global interest in sustainable resources and renewable energy is propelling the use of vegetable oils, including peanut oil, in the production of biodiesel. This domain could majorly contribute to the rising demand, mainly in the nations that are emphasizing reducing carbon emissions.

Furthermore, Africa and Asia-like developing nations are experiencing substantial growth in consuming healthy oils like peanut oil. Nations like India and China hold maximum cultivation of peanuts and have a growing appetite for such oils due to the rising spending power of middle-class population and growing urbanization.

Peanut Oil Market: Restraints

Volatility in the production of peanuts to hamper the development and growth of the overall market

The two key restraining factors of the peanut oil market comprise weather sensitivity and the threat of diseases & pests. Peanut cultivation is extremely sensitive to climate conditions.

Droughts, variations in temperature, and excessive rainfall may majorly impact peanut production, thus resulting in increased prices and supply scarcities. This could possibly create instability and negatively impact the growth of the peanut oil industry.

Moreover, peanuts are highly susceptible to different diseases and pests, which may decrease crop production and quality. Outbreaks of diseases, such as aflatoxin contamination or peanut rust, could disturb the production of peanut oil. Peanut yields are vulnerable to weather fluctuations.

For instance, in 2023, the United States witnessed a drought scenario in some regions, resulting in decreased crop production than ever.

Peanut Oil Market: Opportunities

Technological improvements in the oil extraction process to impact the market progress

Growing popularity of solvent and cold-pressed extraction technology is one of the leading opportunities in the peanut oil market.

These techniques can notably increase the production and preserve the quality of the oil, increasing its attraction among producers and consumers. These methods enable producers to maximize efficiency, thus aiding in reducing costs and strengthening profitability in the market.

Furthermore, purification and refining enhancements are other opportunities witnessed in the peanut oil market. Improvements in the refining process have resulted in high-quality production with minimal impurities.

This comprises enhancements in bleaching, deodorization, and winterization procedures, which improve the stability of the oil and extend shelf-life, especially in hot weather. This ultimately increased the ability to produce quality and stable oils for export, supplying high-end restaurants, gourmet foods, and more markets.

Peanut Oil Market: Challenges

Consumer education and awareness to hinder market penetration

In most regions, mainly in the non-traditional markets, people are not completely aware of the advantages of peanut oil. Such low awareness may challenge producers to expand market penetration, mainly in the region where other oils dominate.

Also, misconceptions about health are yet another market challenge. Despite peanut oil being regarded as heart-friendly, most consumers may be hesitant by its association with peanuts because of misconceptions about fat content and concerns about allergens.

Handling and managing these misconceptions is important to educate people on the advantages of peanut oil for market growth.

Peanut Oil Market: Segmentation

The global Peanut Oil market is segmented based on type, application, distribution channel, and region.

Based on the type, the global market is divided into refined and unrefined. The refined segment held a larger market share in 2023 and is projected to lead over the forecast period as well, owing to its extended shelf life, broader uses, and high stability compared to unrefined.

Refined peanut oil is specially processed to remove impurities, free fatty acids, and allergens in order to increase its safety for more number of consumers.

Also, its high smoke point and neutral flavor make it a versatile option for high-heat cooking and frying, thus enhancing its market prominence.

Based on application, the global peanut oil industry is categorized as cosmetics, food, pharmaceuticals, and others. In 2023, maximum growth was observed by the food segment owing to the versatility, high smoke point, and neutral flavor of peanut oil that makes it suitable for diverse cooking uses like sautéing, frying, and baking. Its health benefits like high content of monounsaturated fats aid in its popularity among people, thus impacting its appeal.

Based on the distribution channel, the global peanut oil market is segmented as hypermarkets/supermarkets, independent retail stores, business-to-business, and online sales channels.

The business-to-business segment registered a majority share of the market in 2023, owing to increasing demand from restaurants, food manufacturers, and the food processing industry.

These businesses need huge quantities of peanut oil for frying, cooking, and production of food. B2B enables massive purchases, which is more effective than retail, and promises a steady supply of refined oil for industrial use.

Peanut Oil Market: Report Scope

Peanut Oil Market: Regional Analysis

Asia-Pacific to hold the maximum demand during the estimated period

The global peanut oil market is expected to be led by Asia-Pacific during the forecast period. The reason for the growth of the market in the region comprises high consumption of peanut oil in cooking, mainly in India, Indonesia, and China.

Peanut oil is a staple oil in most of the Asian cuisines owing to its high smoke point, neutral flavor, and suitability for deep frying and stir frying. Moreover, the rising middle-class population and the progressing food industry are fueling the demand for peanut oil.

North America is the second leading region in the consumption of peanut oil owing to its strong demand for foodservice and household uses. The region holds great awareness of the benefits of peanut oil on health.

Moreover, education about healthy cooking and the rising popularity of non-GMO and natural products has increased peanut oil’s use.

The existence of leading food companies and the broad food processing sector also impacts major demand, thus resulting in the region’s market growth.

Peanut Oil Market: Competitive Analysis

The global peanut oil market is led by players like:

• Cargill Inc.
• ADM (Archer Daniels Midland Company)
• Bunge Limited
• Wilmar International
• Olam International
• Peanut Corporation of America (PCA)
• The Good Oil Company
• Intercontinental Oils & Fats
• Sime Darby Oils
• Olin Corporation
• J.M. Smucker Company
• American Vegetable Oils Inc. (AVO)
• National Peanuts Inc.
• Ag Processing Inc. (AGP)
• and Sanhe Shunhua Food Co. Ltd.

Peanut Oil Market: Key Market Trends

1. Growing number of restaurants and food processing:

With the growing demand for snacks and food, the food processing sector is majorly dependent on peanut oil. Moreover, the foodservice industry is progressing, mainly in key parts of Asia-Pacific, where the said oil is largely used for traditional cooking.

1. Emphasizing on Sustainability:

There is a growing consumer preference for non-GMO and natural peanut oil. Leading companies and brands are focusing on eco-friendly processes like eco-friendly packaging and ethical sourcing to appeal to the health-conscious population that demands eco-friendly products.

The global peanut oil market is segmented as follows:

 By Type

• Refined
• Unrefined

By Application

• Cosmetics
• Food
• Pharmaceuticals
• Others

 By Distribution Channel

• Hypermarket/Supermarket
• Independent Retail Stores
• Business to Business
• Online Sales Channels

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa