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

The global peanut oil market size was valued at USD 11.30 billion in 2025 and estimated to grow from USD 11.57 billion in 2026 to reach USD 13.05 billion by 2031, at a CAGR of 2.43% during the forecast period (2026-2031). This report is Segmented by Product Type (Refined and Unrefined), by Category (Conventional and Organic), by Packaging (Bottle, Jar, Can, Pouches, and Others), by Distribution Channel (HoReCa/Foodservice, and Retail), and Geography (North America, Europe, Asia-Pacific, South America, and Middle East and Africa). The Market Forecasts are Provided in Terms of Value (USD) and Volume (Tonnes).

Global Peanut Oil Market Trends and Insights

Rising Health Awareness Boosts Demand for Peanut Oil Due To Its Heart-Healthy Properties

The global peanut oil market is witnessing substantial growth driven by increasing health consciousness among consumers worldwide. The market's expansion is primarily attributed to the growing consumer preference for cooking oils with proven cardiovascular benefits. Peanut oil's composition, characterized by its cholesterol-free nature and high monounsaturated fat content, positions it as a superior alternative to traditional saturated fats, such as butter and lard. This shift in consumer behavior is further reinforced by the rising prevalence of lifestyle diseases, including obesity, hypertension, and coronary heart disease, compelling individuals to make informed choices about their cooking oil consumption. This trend is validated by data from the Centers for Disease Control and Prevention (CDC), which reported that approximately 4.8% of adults in the United States had coronary heart disease in 2023, emphasizing the critical need for heart-healthy alternatives. In response to this growing health consciousness, market participants are strategically expanding their product portfolios. For instance, Marico Limited's entry into the cold-pressed oils segment in June 2025 with the Saffola Cold Pressed Oils range, including peanut oil, demonstrates the industry's adaptation to meet the increasing demand for healthier cooking oil options.

High Smoke Point and Neutral Flavor Increase Its Popularity in Cooking and Frying

Peanut oil's high smoke point of 450°F (232°C) and neutral flavor profile make it a preferred choice in both residential and commercial kitchens. The oil maintains stability during high-temperature cooking methods like deep frying, stir-frying, and sautéing without degrading or generating harmful compounds, which helps preserve food safety and nutritional value. This characteristic is particularly important in restaurants and quick-service establishments where large quantities of oil are used for frying and consistent food quality is essential. The oil's neutral taste, which ranges from subtle and nutty to flavorless depending on refinement levels, allows ingredients' natural flavors to remain prominent. Additionally, peanut oil does not retain flavors from previously cooked foods, enabling multiple items to be fried in succession without flavor transfer. Products like Tata Simply Better and SGR 777 Foods cold-pressed groundnut oils are marketed for specific applications such as frying samosas, pakoras, and tempering gravies, emphasizing the oil's ability to maintain nutrient content and flavor integrity at high temperatures while providing a mild aroma.

Competition From Alternative Oils such as Sunflower and Rice Bran Oils Hinders Growth

The global peanut oil market encounters substantial competition from alternative edible oils, predominantly sunflower, rice bran, soybean, and canola oils. These alternatives deliver equivalent or superior nutritional benefits at competitive price points, attracting both retail consumers and commercial food service establishments. Sunflower oil contains substantial concentrations of polyunsaturated fats and vitamin E, while rice bran oil demonstrates established cholesterol-lowering properties and an optimal fatty acid composition. The increasing preference for these alternative oils, driven by their documented health benefits, comprehensive marketing initiatives, and government support programs across numerous countries, continues to constrain peanut oil market expansion. As a result, peanut oil manufacturers must implement strategic product differentiation through superior quality specifications, scientifically validated health advantages, and specialized culinary applications rather than engaging in price-based competition. This strategic approach remains essential for maintaining market position and achieving sustainable growth in an increasingly competitive global edible oils landscape.

Other drivers and restraints analyzed in the detailed report include:

• Increasing Demand for Organic and Non-GMO Oils Fuels Peanut Oil Consumption
• Expanding Foodservice Industry Growth Drives Bulk Peanut Oil Usage
• Concerns about peanut allergies among consumers reduce the potential customer base

Segment Analysis

Refined peanut oil holds 77.45% market share in 2025, driven by regulatory clarity and safety benefits in commercial applications. The Food and Drug Administration (FDA)'s exemption of highly refined peanut oils from allergen labeling requirements has enhanced adoption in foodservice and food manufacturing sectors where allergen control is essential. The refining process eliminates allergenic proteins, making the oil safe for most individuals with peanut allergies while preserving its high-temperature cooking capabilities. This process also removes aflatoxins, addressing food safety requirements in markets with strict quality standards.

Unrefined peanut oil, while holding a smaller market share, shows the highest growth rate at 6.23% CAGR through 2031. This growth stems from its premium market position and appeal to health-conscious consumers. Cold-pressed and expeller-pressed varieties maintain higher levels of natural compounds, including resveratrol and plant polyphenols, attracting consumers seeking less processed options. However, these oils have limited use in allergen-sensitive environments and typically have reduced shelf life due to higher concentrations of compounds that increase oxidation. The premium pricing and positioning in gourmet and health food markets are creating lucrative market opportunities.

Conventional peanut oil holds 96.55% market share in 2025, driven by established supply chains, cost advantages, and widespread consumer acceptance across applications. The conventional segment leverages production and distribution economies of scale, enabling competitive pricing for mass market penetration in retail and foodservice sectors. According to the United States Department of Agriculture (USDA), India's status as the second-largest global peanut producer, with production growth of 18%, reached 7.2 million metric tons in 2024/25, ensuring a stable conventional oil supply. Traditional production methods, including mechanical pressing and solvent extraction, deliver high extraction efficiency while maintaining cost competitiveness against other oils.

The organic segment, despite its smaller market share, shows significant growth at 6.92% CAGR through 2031, supported by premium positioning and consumer preference for certified sustainable products. The United States Department of Agriculture (USDA)'s Organic Transition Initiative aims to reduce organic certification barriers, potentially increasing organic peanut cultivation and oil production. Major European markets, including Germany, France, the Netherlands, and Italy, present growth opportunities for organic peanut oil, with producers focusing on sustainability certifications and traceability to support premium pricing. While the organic segment's growth aligns with consumer demand for clean-label products and environmental responsibility, expansion remains constrained by supply chain complexities and certification costs.

Complete Report Scope:

• By Type
  • Refined
  • Unrefined
• By Category
  • Conventional
  • Organic
• By Packaging
  • Bottle
  • Jar
  • Can
  • Pouches
  • Others
• By Distribution Channel
  • HoReCa/Foodservice
  • Retail
    • Supermarkets/Hypermarkets
    • Convenience Stores/Grocery Stores
    • Online Retail Stores
    • Other Distribution Channels
• By Geography
  • North America
    • United States
    • Canada
    • Mexico
    • Rest of North America
  • Europe
    • Germany
    • United Kingdom
    • Italy
    • France
    • Spain
    • Netherlands
    • Poland
    • Belgium
    • Sweden
    • Rest of Europe
  • Asia-Pacific
    • China
    • India
    • Japan
    • Australia
    • Indonesia
    • South Korea
    • Thailand
    • Singapore
    • Rest of Asia-Pacific
  • South America
    • Brazil
    • Argentina
    • Colombia
    • Chile
    • Peru
    • Rest of South America
  • Middle East and Africa
    • South Africa
    • Saudi Arabia
    • United Arab Emirates
    • Nigeria
    • Egypt
    • Morocco
    • Turkey
    • Rest of Middle East and Africa

Geography Analysis

Asia-Pacific holds 62.15% market share in 2025, driven by the integration of peanut oil in regional cuisines, production capacity, and increasing middle-class consumption. According to the United States Department of Agriculture (USDA), India expects a 10% increase in peanut oil consumption for 2025/26, supported by strong domestic demand and limited palm oil supply. China's established edible oils industry and position as a major peanut producer ensure supply stability and consumption growth. The region's expanding foodservice sector, as seen in Thailand's food and beverage services growth, increases bulk oil demand while urbanization supports packaged oil sales.

Europe shows 7.31% CAGR through 2031, supported by premium product positioning, health awareness, and regulations favoring quality-certified products. The European Union maintains stable peanut oil consumption despite competition from alternative oils. Germany, France, the Netherlands, and Italy lead in high-quality organic peanut oil consumption, with manufacturers focusing on sustainability certifications and traceability. While the region experienced declining consumption over the past decade due to allergen labeling requirements, opportunities exist in refined oil segments. European consumers' preference for organic and sustainable products, combined with strict quality standards, enables value-added positioning strategies.

North America maintains a significant presence in the global peanut oil market through established consumption patterns, domestic production, and regulatory frameworks in the foodservice and retail sectors. The United States' traditional use of peanut-based products drives consistent demand from households, restaurants, and institutional kitchens. The region's strong peanut cultivation base, combined with advanced processing capabilities and efficient distribution networks, ensures supply chain reliability and positions North America as a key contributor to the global peanut oil market's growth.

List of Companies Covered in this Report:

• Wilmar International Limited
• Archer Daniels Midland Company
• Cargill, Incorporated
• AAK AB
• Bunge Limited
• Shandong Luhua Group Co.,Ltd
• COFCO Corporation
• Hain Celestial Group,Inc.
• CHS Inc.
• Liberty Oil Mills Limited
• Sahaj Oil & Food Private Limited
• Agrocrops
• Shree Uday Oil & Foods Industries
• Qingdao Changsheng Group
• 3F Industries Ltd.
• ATC Group India
• Hormel Foods Corporation
• Marico Limited
• Mother Dairy Fruit & Vegetable Pvt Ltd
• Tata Consumer Products Limited

Additional Benefits:

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