The global peanut oil market size is projected to grow from USD 11.30 billion in 2025 to USD 12.76 billion by 2030, reflecting a CAGR of 2.46%. The market is underpinned by evolving consumer health preferences, expanding foodservice applications, and increasing demand for premium organic and cold-pressed oil variants.
Get More Insights:https://www.mordorintelligence.com/industry-reports/peanut-oil-market
Key Peanut Oil Market Trends
Health Awareness Fuels Peanut Oil Demand
Rising health consciousness is a key driver of market growth. Peanut oil’s cholesterol-free composition and high monounsaturated fat content position it as a heart-healthy alternative to saturated fats. With global lifestyle diseases like obesity and coronary heart disease rising, consumers are shifting towards oils with proven cardiovascular benefits. For example, the CDC reported 4.8% of US adults with coronary heart disease in 2023, highlighting the market potential for healthier edible oils. Companies such as Marico Limited have capitalized on this trend, launching cold-pressed oil ranges including peanut oil to cater to health-conscious consumers seeking clean-label products.
High Smoke Point and Neutral Flavor Drive Culinary Applications
Peanut oil's high smoke point (450°F/232°C) and neutral flavor profile make it popular in commercial and household kitchens for deep frying, stir-frying, and sautéing. Its stability during high-temperature cooking preserves food safety and nutritional value while its subtle taste allows natural ingredient flavors to remain prominent. This versatility benefits quick-service restaurants and institutional kitchens requiring consistent oil quality. Cold-pressed groundnut oil brands such as Tata Simply Better emphasize these benefits in marketing for traditional frying and tempering applications.
Surge in Organic and Non-GMO Product Demand
Consumers are increasingly seeking organic and non-GMO oils driven by health, sustainability, and clean-label preferences. Organic peanut oil production utilizes sustainable farming, aligning with environmental values and offering premium pricing opportunities. Germany, France, and the Netherlands lead in organic imports within the EU, demonstrating established infrastructure and demand for certified organic peanut oils in food processing and retail. Brands are leveraging this trend by incorporating sustainability certifications and traceability programs to meet European consumer expectations for quality and environmental responsibility.
Foodservice Sector Maintains Market Leadership
The foodservice segment remains dominant, accounting for 51.34% market share in 2024, driven by bulk oil consumption in restaurants, quick-service chains, and institutional kitchens. Peanut oil's stability and cost-effectiveness make it ideal for large-scale deep frying and sautéing. In markets like Mexico, peanut consumption reached 314,000 metric tons in 2024/2025, reflecting growth driven by foodservice demand. The oil’s versatility across global cuisines, especially Asian and African dishes, ensures its continued significance in commercial food preparation.
Peanut Oil Market Segmentation
By Type
Refined Peanut Oil Dominates Market Share: In 2024, refined peanut oil held 78.01% market share due to its allergen safety and suitability for high-temperature applications. Refining removes allergenic proteins, enabling broader adoption in foodservice and manufacturing. It also eliminates aflatoxins, meeting stringent food safety standards globally.
Unrefined Oils Gain Traction: Unrefined peanut oils, including cold-pressed and expeller-pressed varieties, are projected to grow at 6.5% CAGR through 2030. These oils retain higher levels of natural compounds such as polyphenols and resveratrol, appealing to health-conscious consumers seeking minimally processed options. However, their shorter shelf life and higher costs limit adoption in allergen-sensitive environments.
By Category
Conventional Oils Lead Market: Conventional peanut oil accounted for 96.87% market share in 2024, driven by established supply chains and competitive pricing. High production efficiency in countries like India, the world’s second-largest peanut producer, ensures stable supply for this segment.
Organic Segment Expanding Rapidly: The organic peanut oil segment is growing at 7.21% CAGR through 2030, driven by consumer preference for certified clean-label products. Initiatives such as the USDA Organic Transition Initiative are expected to increase certified organic peanut cultivation and production, especially for premium retail and health-focused markets.
By Packaging
Bottles Dominate, Pouches Show Rapid Growth: Bottles held 55.30% market share in 2024 due to consumer familiarity, brand visibility, and storage convenience. However, pouches are advancing at 7.10% CAGR to 2030, driven by cost efficiency, reduced shipping weights, and sustainability benefits. Flexible pouches also appeal to environmentally conscious consumers prioritizing packaging waste reduction.
By Distribution Channel
Foodservice Sector Leads: The HoReCa (Hotels, Restaurants, Catering) segment continues to dominate, expected to grow at 2.80% CAGR to 2030. Its preference for peanut oil arises from the oil’s high smoke point, neutral taste, and cost-effectiveness for large-scale operations.
Retail Channels Diversify: Supermarkets and hypermarkets lead in retail distribution, leveraging extensive networks for mass-market access. Online retail is also expanding, supported by rising e-commerce adoption, although shipping costs remain a challenge for oil products. Convenience stores cater to smaller, quick-purchase volumes, while premium organic oils are increasingly stocked in specialty health food outlets.
Peanut Oil Market Regional Outlook
Asia-Pacific Maintains Leadership
Asia-Pacific commanded 62.50% of global peanut oil market share in 2024, driven by culinary traditions and high domestic production in China and India. India, for example, expects a 10% increase in peanut oil consumption for 2025/26, supported by strong demand and limited palm oil availability.
Europe Shows Fastest Growth
Europe is forecast to grow at 7.64% CAGR through 2030, driven by premium product positioning, organic consumption trends, and stringent quality regulations. Germany, France, the Netherlands, and Italy lead in organic peanut oil consumption, driven by sustainability commitments and consumer health consciousness.
North America Remains a Significant Market
In North America, peanut oil maintains consistent demand, underpinned by traditional culinary use, domestic production, and strong retail networks. Regulatory frameworks ensure high safety standards, sustaining peanut oil's position in household and foodservice applications.
Get More Insights:https://www.mordorintelligence.com/ja/industry-reports/peanut-oil-market
Peanut Oil Market Competitive Landscape
The market remains moderately fragmented, with global players adopting vertical integration and sustainability-focused strategies. Leading companies include:
Wilmar International Limited
Archer Daniels Midland Company
Cargill, Incorporated
AAK AB
Bunge Limited
These firms are investing in regenerative agriculture, carbon reduction programs, and advanced extraction technologies to enhance quality and operational efficiency. For example, Cargill ranked highest in the Edible Oil Supplier Index 2025 for trans-fatty acid reduction, underscoring the importance of regulatory compliance and health credentials in market positioning.
Peanut Oil Market Conclusion
The global peanut oil market is on a steady upward trajectory, driven by health-conscious consumer preferences, expanding foodservice demand, and premium product innovations. Companies focusing on organic certification, technological advancements, and sustainable production practices are well-positioned to capture future market opportunities as the sector evolves to meet shifting dietary and environmental priorities.