Peanut oil imports surge amid global demand, domestic shifts
The surge is fueled by peanut oil’s reputation as a heart-healthy cooking option.
GLOBAL – The global edible oil market is experiencing significant growth, with imports on the rise and peanut oil emerging as a key player in this trend.
This growth is fueled by shifting consumer preferences, competitive pricing, and evolving agricultural priorities, promising an exciting future for the industry.
India, one of the world’s largest producers and consumers of peanut oil, is witnessing a notable uptick in imports as domestic production struggles to keep pace with demand.
According to market analysts, the global peanut oil market was valued at US$8.20 billion in 2024 and is projected to grow to US$12.73 billion by 2032, reflecting a compound annual growth rate (CAGR) of 5.69%.
The surge is fueled by peanut oil’s reputation as a heart-healthy cooking option, prized for its mild flavor, high smoke point, and low saturated fat content.
However, India’s edible oil sector is facing headwinds. While the country remains a top producer of groundnuts, farmers are increasingly shifting toward crops like corn and rice due to better returns and government incentives for ethanol production.
This shift has led to a decline in oilseed acreage, including groundnuts, which are vital for domestic peanut oil production.
Compounding the issue is the rising popularity of Distillers’ Dried Grains with Solubles (DDGS), a byproduct of ethanol that’s replacing traditional oilseed-based animal feed.
This substitution is depressing oilseed prices and discouraging cultivation, further widening the gap between supply and demand.
The Middle East and Africa regions rank second in edible oil market performance and is projected to maintain steady growth.
This momentum is driven by increased household consumption, a surge in private-label brands, and a growing preference for healthier, more versatile cooking oils.
In Kenya, similar dynamics are unfolding. Groundnuts are being promoted as a high-value crop to reduce edible oil imports, yet the country still relies heavily on imports from neighbouring nations to meet demand.
The government is working to commercialise smallholder farming and expand groundnut cultivation to over 200,000 farmers, aiming to strengthen the domestic edible oil value chain.
Meanwhile, Asia-Pacific remains the largest market for peanut oil, with China and India leading global consumption.
As health-conscious consumers increasingly favor traditional oils, peanut oil’s culinary and nutritional appeal continues to grow.
Despite its potential, the rise in peanut oil imports signals a need for strategic agricultural reform to balance biofuel ambitions with food security and self-sufficiency in edible oils.
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