The Indian Edible Oil market is likely to boost due to the growing demand for healthy oil, increased export activities, and population growth.
The Indian edible oil market is expected to grow significantly during the forecast period, 2020-2027. It is due to the rising preferences for unprocessed, unrefined, and healthy oil. Consumers are more concerned about their health and wellness as they are increasingly choosing high-quality edible oils. The rising prevalence of lifestyle-related diseases such as diabetes, high cholesterol, and hypertension drives premium or value-added edible oil such as canola oil, olive oil, and rice bran oil. Further, the increasing population base and growing economy will augment the Indian edible oil industry's growth in the forecast periods.
Additionally, the changing eating routines & habits and rising trend of eating out are expected to foster the Indian market growth. The surging penetration of processed food & convenience foods like ready-to-eat packaged food and growing western impact on food preferences leads to the increasing consumption of edible oil in the country. The rising popularity of vegetable oils and the rising disposable income expenditure will bolster the Indian edible oil market share's growth in the coming years. Moreover, the increasing urbanization and rising share of branded oils will stimulate the market share. Furthermore, the rising bulk export of edible oils with increasing crop yield will accelerate the Indian edible oil industry's growth. Moreover, the strong and attractive marketing strategies by leading edible oil brands, consumer preferences with changing tastes, and shifting consumer patterns towards branded and cold-pressed oils are significant contributors to the market's growth. The shift in consumption of branded edible oil increases significantly from home use which helps branded and soft oil makers penetrate deeper into the market.
In India, the consumption of edible oil is high due to the growing population and rising affordability. The high population density is a critical factor for the consumption of edible oil in the Indian kitchen. Despite having a huge agriculture sector, diverse agro-climatic conditions & abundant land, Indian imports most of the oil it consumes. This is due to the shortage of domestic production of edible oil, which cannot meet the demand. Although India's government is taking steps to boost the domestic production of edible oil, it could reduce the import dependence and benefit the farmers. The increasing production of oilseeds and stagnant domestic vegetable oil supplies will continue to fill most of the supply-and-demand gap over the next decades.
Urbanization & Evolving Eating Routines
Change in Indian eating habits is a major factor that will drive the demand of edible oils in the near future. Indian population has adopted the concept of convenience foods and is also increasing stepping out of homes for sourcing their meals. The growing trend of ‘eating out’ and high consumption of convenience foods will equate to higher oil consumption which will be palpable in the consumption numbers of edible oils in India. Moreover, the rising income level in urban areas leads to the consumption of processed and fast food which is a major contributor to the rising demand of edible oils. Thus, the impact of western culture on food habit with rising variations in processed food consumption drives the market growth.
The growing popularity of low calorie content oils is one of the market factors for India's edible oil industry. Indian consumer becomes more health-conscious and they stared preferring edible oil with low cholesterol content such as canola oil, olive oil, and rice bran oil in order to prevent the high risk of coronary heart disease, brain stroke and type- 2 diabetes, associated with the trans-fat consumption. To capitalize on the increasing need for "balanced oils," all of the big oil companies have launched healthier versions of their standard offerings. In addition, edible oil is mostly used for cooking, and increasing customer health consciousness has raised the market for high-quality edible oils. Since they are pressed at a lower temperature, cold-pressed oils are considered high-quality oils because the oil's taste and characteristics are preserved, which is likely to fuel the market. Furthermore, the changing dietary patterns along with hectic lifestyle among working people is expected to change the consumer preference and will boost the demand for olive and coconut oil for cooking. Olive oil, which is a staple of the Mediterranean diet, is the healthiest and easiest oil to use. The antioxidant content of extra virgin olive oil is high, and it is completely natural. MUFA are the main fat found in olive oil and are considered a healthy dietary fat. It also helps to avoid heart disease, and as a result, they have become common in Indian markets. Olive oil has attracted significant demand despite its high price, and it is expected to rise exponentially once the domestically produced variant reaches the market.
Type of Oil Overview in the Indian Edible Oil Market
Based on the type, the Indian edible oil market segregated into Groundnut, Sunflower, Castor, Sesame, Niger seed, Soybean, Rapeseed/Mustard and others. The mustard oil segment is likely to lead the market by 2027. It is due to its high consumption and health benefits. However, the soya bean oil segment continues to gain market traction in India.
Region Overview in the Indian edible oil market
By region, the Indian edible oil market segmented into North India, South India, West India and East India. The North India anticipated dominating the market by 2027 due to the rising population and growing economy. Additionally, East and West regions also account for a significant market share, with the South region grabbing the smallest market share.
Indian Edible Oil Market: Competitive Landscape
Companies such as Ruchi Soya, Adani Wilmar and Marico Limited are the leading players in the Indian edible oil market.