Peanut Oil Market to Reach $14.9 Bn by 2032, Driven by Health Trends & Food Demand

The global peanut oil market is on a steady upward trajectory, reflecting a robust demand for healthier cooking oils and versatile edible oil applications. Valued at US$ 11.2 Bn in 2025, the market is projected to grow to US$ 14.9 Bn by 2032, registering a CAGR of 4.3% during the forecast period from 2025 to 2032. This growth is primarily fueled by the increasing consumer inclination toward natural and nutrient-rich oils, rising awareness of cardiovascular health, and the growing demand across foodservice and packaged food industries.

Peanut oil, also known as groundnut oil, is widely recognized for its mild flavor, high smoke point, and beneficial fatty acid profile. It has become a preferred choice for cooking in households, restaurants, and industrial food preparation settings. Moreover, the rising adoption of plant-based diets and emphasis on oils rich in monounsaturated fats are significantly contributing to the market's expansion.

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Why is the demand for peanut oil rising globally?
The demand for peanut oil is rising globally due to increasing consumer awareness about healthier dietary choices, particularly oils that support heart health and reduce cholesterol levels. In addition, the growing trend of natural and minimally processed edible oils in packaged food and the foodservice industry has expanded peanut oil's appeal. Its widespread use in Asian cuisines and adoption in Western markets for frying and baking are also adding momentum to global growth.

Segmentation Analysis

By Type
The peanut oil market is segmented into refined peanut oil, cold-pressed peanut oil, and roasted peanut oil. Among these, refined peanut oil holds the largest market share, attributed to its wide-scale use in commercial food processing and restaurants due to its neutral flavor and high smoke point. However, the cold-pressed segment is expected to grow at the fastest pace during the forecast period, supported by consumer preference for minimally processed oils that retain natural nutrients and flavors. The rising adoption of cold-pressed oils in premium food categories and specialty retail outlets is further enhancing growth in this segment.

By Product/Application Type
In terms of product and application, the market is classified into household cooking, foodservice/restaurants, processed foods, and industrial uses (such as cosmetics and pharmaceuticals). Household cooking remains a dominant segment, particularly in emerging economies where peanut oil is a staple in traditional cuisines. Meanwhile, the foodservice sector is witnessing accelerated adoption due to peanut oil's ability to withstand high-temperature cooking and impart consistency in taste. The cosmetics and pharmaceutical industries are also recognizing peanut oil for its moisturizing and antioxidant properties, further diversifying demand.

By Distribution Channel
Distribution channels for peanut oil include supermarkets/hypermarkets, convenience stores, specialty stores, and online retail. Supermarkets and hypermarkets dominate sales due to their established supply chains and consumer reach. However, the online retail channel is growing rapidly, driven by e-commerce penetration, direct-to-consumer (DTC) models, and the increasing popularity of premium peanut oil brands offering cold-pressed and organic variants through digital platforms.

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Regional Insights

Regionally, Asia Pacific leads the global peanut oil market, with China, India, and Southeast Asian countries being major contributors. High consumption levels in traditional cuisines, strong domestic peanut production, and the expansion of local edible oil brands support the region's dominance.

North America is projected to be the fastest-growing market during the forecast period, propelled by the growing health-conscious population, the rising adoption of ethnic foods, and increasing consumer preference for plant-based oils. In Europe, the demand for peanut oil is also climbing steadily, particularly in countries with diverse culinary traditions and strong adoption of premium, cold-pressed oils. The Middle East & Africa region, while smaller in size, is emerging as a promising market due to dietary diversification and the adoption of healthier cooking oils in urban centers.

Unique Features and Innovations in the Market
Modern peanut oil solutions are increasingly differentiated by innovation in production techniques and product positioning. Cold-pressing technologies ensure that natural nutrients such as vitamin E and phytosterols are retained, appealing to health-conscious consumers. The introduction of organic and non-GMO certified peanut oil is also a key differentiator in premium markets.

Furthermore, technology-driven improvements in supply chain management and oil refining are enhancing efficiency and quality assurance. Although peanut oil is not directly tied to AI, IoT, or 5G integration like some industrial sectors, advancements in agricultural technology (such as precision farming and digitalized crop monitoring) are indirectly improving peanut yields and supply reliability, which supports stable market growth.

Market Highlights
The peanut oil market is witnessing growing adoption due to several key factors. Firstly, regulatory support and health-focused campaigns highlighting the risks of trans fats and hydrogenated oils are encouraging consumers and foodservice providers to switch to healthier alternatives such as peanut oil. Secondly, cost reduction and improved refining technologies are making peanut oil more accessible to a wider demographic. Lastly, sustainability concerns are driving the demand for peanut oil, as peanuts are often grown in crop-rotation systems that enhance soil fertility, thus contributing to eco-friendly agricultural practices.

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Key Players and Competitive Landscape
The global peanut oil market features a competitive landscape with a mix of multinational companies and regional producers. Leading players are focusing on expanding product portfolios, investing in organic and cold-pressed oil lines, and strengthening regional distribution networks.

Cargill, Incorporated: A global agribusiness leader, Cargill emphasizes product innovation and food safety standards. The company continues to expand its edible oils segment with an increasing focus on sustainable sourcing.

ADM (Archer Daniels Midland Company): ADM leverages its vast agricultural network and advanced refining processes to supply refined peanut oil to foodservice and industrial users. Its strategy includes regional expansions and strengthening its distribution channels.

Olam International: A significant player in agricultural commodities, Olam invests in peanut farming and processing facilities across Asia and Africa, ensuring a reliable supply chain for its peanut oil operations.

Wilmar International: With a strong presence in Asia Pacific, Wilmar leads in edible oils through extensive refining facilities and branded consumer products, positioning itself as a key player in household peanut oil consumption.

Adani Wilmar Limited: One of India's largest edible oil companies, Adani Wilmar focuses on catering to mass-market consumers through refined oils, while gradually expanding into premium cold-pressed and organic oil categories.

Others: Regional brands in China, Southeast Asia, and Africa also play a crucial role, often leveraging local peanut production and offering competitive pricing strategies.

Outlook
The outlook for the global peanut oil market remains promising, with multiple growth avenues emerging across diverse geographies. Increasing consumer focus on health, rising demand in foodservice applications, and the growing popularity of natural and cold-pressed oils will continue to drive the industry forward. Furthermore, regulatory trends discouraging the use of trans-fatty oils and encouraging healthier edible oil consumption provide a supportive framework for market expansion.

Looking ahead, the integration of sustainable agricultural practices, advances in refining and cold-pressing technologies, and expanding online retail distribution are expected to redefine the competitive landscape. Companies that can align their strategies with consumer preferences for transparency, health, and sustainability are poised to capture significant market share. The peanut oil market, while traditional in its base, is evolving dynamically to meet the changing demands of the modern global consumer.

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