The revenue of the edible oil market was worth about 33 billion U.S. dollars in 2023 and is projected to increase over the years. This increase in edible oil consumption could be attributed to country’s growing population, adoption of a healthy diet as edible oils is rich in essential fatty acids, antioxidants, and vitamins, and more inclined towards branded oils as compared to non-branded edible oil due to adulteration and quality issues.
What drives the demand for edible oil imports into India?
The growing demand from developing sectors such as food service and pharmaceutical is the primary contributor to the rise in edible oil imports into India. However, the surge in consumer demand is fulfilled to a greater extent by edible oil imports. A greater share of the edible oil imports is taken up by palm oil, followed by soybean, and sunflower oil. Indonesia and Malaysia were the leading exporters of edible oil to India in the financial year 2023.To meet the demand and availability of edible oil in the country, edible oil exports were banned in 2008. However, over the years, exports of groundnut oil, mustard oil, and soybean oil were permitted from 2017 and 2018.
Key players in organized edible oil
The edible oil market is dominated by the presence of old conglomerate companies such as Adani Willmar, Patanjali Foods, and Agro Tech Foods.The most preferred domestic cooking oil was Fortune, a front-runner in Adani Wilmar’s brand of oils. Fortune is one of the best-selling packaged oil products that offer not only healthy but also budget-friendly options for Indian consumers. The edible oil segment of Adani Wilmar generated the highest revenue among other packaged food products, amounting to over 461 billion Indian rupees during the financial year 2023.
Similarly, Patanjali offers a variety of edible oil products. In fiscal year 2023, more than 80 percent of the segment revenue of Patanjali Food products was from the edible oil segment. Palm oil accounting for the highest revenue share, followed by soybean oil.
Traditionally, ghee is considered a golden elixir in Indian cooking and Ayurvedic medicine. Despite its many benefits, the fact remains that it is a key dairy product consumed in large amounts across the country. Plant-based edible oils serve as great alternative to ghee and butter in a consumer market where the growing trend is towards more ethical, sustainable consumption.
