Bangladesh Mustard Oil - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)

Bangladesh mustard oil market size market size in 2026 is estimated at USD 478.98 million, growing from 2025 value of USD 463.01 million with 2031 projections showing USD 567.45 million, growing at 3.45% CAGR over 2026-2031. This report is Segmented by Product Type (Refined Mustard Oil, Unrefined Kachi Ghani, and More), Packaging (Bottles, Pouches, Bulk Tins/Drums), Distribution Channel (On-Trade/HoReCa, Off-Trade), and Geography (Dhaka Division, Chattogram Division, Rajshahi Division, Khulna Division, Sylhet Division, Barishal Division, and More). The Market Forecasts are Provided in Terms of Value (USD).

Bangladesh Mustard Oil Market Trends and Insights

Deep cultural integration and culinary relevance

Mustard oil holds a significant position in Bangladesh due to its deep cultural integration and culinary relevance. It serves multiple purposes, including use as a cooking medium, a carrier for traditional remedies like mustard paste for joint pain, a religious input for lamps in Hindu rituals, and a base for condiments such as kashundi. This cultural importance is being modernized rather than replaced, as seen in the Bangladesh Council of Scientific and Industrial Research’s July 2024 launch of sesame-mustard blended oil (SO80:MO20), which achieved a WHO/FAO-aligned fatty acid profile (SFA:MUFA: PUFA = 1:1.3:1), reduced erucic acid to 4.22%, below the 5% limit, and maintained low TOTOX values over 180 days without synthetic antioxidants. These developments address regulatory, health, and oxidative-stability concerns while preserving the traditional characteristics of mustard oil. Public research and development initiatives support brand reformulation and premium new product development, enabling manufacturers to highlight both health benefits and traditional flavors. Recent media coverage has emphasized locally blended and cold-pressed oils as safer and more authentic alternatives to heavily refined imports. Price dynamics also favor mustard oil, with loose mustard oil retailing at BDT 160-180 per liter in March 2025, narrowing the cost gap with soybean oil and allowing middle-income households to maintain or increase their usage. Brands like Meghna Group’s Fresh Mustard Oil leverage domestic seed sourcing and automated purification to appeal to urban consumers seeking heritage and quality assurance. Government nutrition campaigns further promote indigenous oils, reinforcing mustard oil’s position due to its established role in Bengali recipes, family routines, and festivals. This convergence of cultural significance, scientific advancements, price competitiveness, and strategic branding strengthens mustard oil’s resilience against imported alternatives, positioning it as a core component in household oil consumption.

Emergence of mobile mini-mills and on-site cold-pressing boosting rural demand

The decentralization of crushing infrastructure through mobile mini-mills and on-site cold-pressing is reshaping mustard oil production in Bangladesh. This approach minimizes post-harvest losses for mustard seeds and retains value within production areas, reducing reliance on urban processors. Traditional cold-press units (Kachi Ghani), operated predominantly by small-to-medium mills, remain central to the market, processing domestically produced mustard seeds with lean inventories of 1-2 months to align with seasonal harvests. These mills sell fresh oil directly to rural retailers or urban wholesalers, bypassing intermediary layers that inflate costs. The on-site model enhances rural demand by offering fresher, pungency-retaining Kachi Ghani oil at competitive prices, while farmers benefit from dual revenue streams, oil sales and nutrient-rich mustard meal byproducts for livestock feed. This integrated approach incentivizes mustard cultivation over alternative crops. Reports highlight how localized crushing sustains the country's position as a major producer amid rising edible oil demand. Small mills have adopted mobile vending units to deliver bottled Kachi Ghani oil directly to village markets, avoiding wholesale markups. Brands like Janata Oil Mills, under Mika Group, exemplify this trend by marketing Tekka and Ghani pure mustard oils from on-site presses, emphasizing minimal processing and rural traceability. These mini-mills reduce dependency on imported rapeseed blends, stabilize supply during volatile harvests, and enable small crushers to compete with large FMCG companies. Government programs in 2024-2025 further supported this shift by subsidizing portable presses in regions like Bogra and Jamalpur, transforming rural processing into a cohesive growth engine and strengthening the mustard oil supply chain.

Competition from cheaper imported palm oil

Competition from cheaper imported palm oil continues to create significant challenges for local mustard oil producers in Bangladesh by undercutting prices and reshaping purchasing behavior among low- to middle-income households. Imported palm oil, primarily sourced through large-scale refiners, is sold at substantially lower prices, making it an attractive option for cost-conscious consumers who traditionally relied on mustard oil for daily cooking. This price disparity reduces the perceived value of mustard oil, despite its cultural importance, stronger aroma, and suitability for traditional dishes like bhorta or fish fry, forcing consumers to choose between affordability and tradition. The growing adoption of palm oil in the hotel, restaurant, and catering sector, where cost efficiency is prioritized, further intensifies competition, leaving established mustard oil brands such as Pran and Teer struggling to maintain market share. The rise of blended edible oils, including palm-soy or palm-sunflower blends, adds complexity, as retailers promote these as economical alternatives, pushing mustard oil into a smaller, premium segment. Smaller artisanal ghani producers face additional pressure due to higher production costs, limiting their ability to compete with aggressively priced refined palm oil. Furthermore, the availability of palm oil in value-packs and refill pouches has expanded its reach in rural and peri-urban markets, weakening demand momentum for mustard oil and forcing producers to rely on heritage positioning, purity claims, and seasonal demand spikes.

Other drivers and restraints analyzed in the detailed report include:

• Shift to mustard oil as soybean prices stay volatile
• Government drive to cut edible-oil import bill via 40% self-sufficiency plan
• Climatic and agronomic volatility in mustard seed supply

Segment Analysis

The unrefined (Kachi Ghani) mustard oil segment accounts for a significant market share of 55.87% in 2025, driven by strong consumer preference for cold-pressed oils. These oils are valued for their traditional pungent aroma and bioactive compounds such as lignans and tocopherols, which align with local culinary traditions. This segment benefits from its association with small-scale, handcrafted crushing methods that preserve intense flavor profiles, making it a preferred choice for homemade fish curries, pickles, and festive cooking. Brands like Square Food & Beverage’s Radhuni Pure Mustard Oil emphasize the "authentic cold-pressed" identity, appealing to rural households and urban consumers who view Kachi Ghani as a natural, minimally processed product reflecting health and cultural heritage. Despite the rise of premium and clean-label trends, the artisanal nature of this segment ensures its continued prominence, resisting competition from refined or blended oils by emphasizing superior flavor and local authenticity.

The refined mustard oil segment is expected to grow at a CAGR of 4.61% through 2031, supported by urbanization and evolving consumer preferences. Refined oils are favored for their lighter flavors, longer shelf life, and compliance with regulatory fortification mandates. This growth is driven by the expanding middle-class urban population seeking convenient, health-focused products with consistent quality for daily cooking and HoReCa applications. Innovations such as BCSIR’s sesame-mustard blended oil (SO80:MO20), with reduced erucic acid levels and balanced fatty acids, highlight the potential for blended and fortified variants. These products are gaining traction in export markets like Singapore, Bahrain, and Qatar, catering to the Bangladeshi diaspora's demand for premium, health-conscious oils. Meghna Group’s Fresh Mustard Oil brand exemplifies the blending of refined processing with "natural Bengali taste," targeting urban consumers who seek modern safety assurances alongside cultural connections. Together, refined and blended oils are emerging as a growing complement to the unrefined segment, reflecting a market shaped by heritage, health, and modernization.

Complete Report Scope:

• By Product Type
  • Refined Mustard Oil
  • Unrefined (Kachi Ghani)
  • Others (Blended/Fortified and Organic and Cold-Pressed)
• By Packaging
  • Bottles
  • Pouches
  • Bulk Tins/Drums
• By Distribution Channel
  • On-Trade/HoReCa
  • Off-Trade
    • Supermarkets/Hypermarkets
    • Convenience/Grocery Stores
    • Specialty Stores
    • Online Retail Stores
    • Other Distribution Channels
• By Geography
  • Dhaka Division
  • Chattogram Division
  • Rajshahi Division
  • Khulna Division
  • Sylhet Division
  • Barishal Division
  • Rangpur Division
  • Mymensingh Division

List of Companies Covered in this Report:

• PRAN-RFL Group
• Wilmar International Ltd.
• Square Food & Beverage Ltd.
• ACI Limited
• City Group
• Partex Star Group
• Orion Group
• Ovijat Food & Beverage Industries
• Farmroots
• Meghna Group of Industries
• TK Group
• Sena Edible Oil Industries
• Bashundhara Group
• BD Foods Ltd
• Jamuna Industrial Agro Group
• Aftab Foods Limited
• Kazi Farms Group
• Abdullah Oil Mills Ltd.
• Ispahani Group
• Prodhana Oil Mills Ltd.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support