The Indian edible oil consumption is growing at a staggering pace. India is one of the largest consumers of edible oil. The upturn in the market is rooted in numerous factors such as India’s large population, a spurt in middle-income households, India’s rich culinary tradition, and growing demand for low-fat oils. In the midst of the 90s, India’s overall per capita edible oil consumption was 7.4 Kg/ year. In the midst of the 2010s, it reached 18.4 kg.
In FY 23, oil seed production in India crossed 40 million tons, growing at a CAGR of 5.02% from FY 18 to FY 23. Despite growth in production, the Indian edible oil market is largely import-dependent as India imports around ~ 55% of its oil from outside. In fact, India is the largest importer of edible oil in the world. The country accounts for 15% of the overall oil imports in the world.
Traditionally in the west and south of India, ground nut oil is greatly used, alongside certain pockets where coconut oil and sesame are consumed. In the East, mustard oil is widely used. In the North Mustard oil and vanaspati are consumed.
The Indian governing agencies are thinking seriously about further developing local production and becoming self-reliant in edible oil production. The recent Ukraine- Russia crisis has also underscored the importance of reducing dependence on foreign imports. Other crises such as a decline in palm oil production in Malaysia and reduced soybean production in South America due to drought have further undermined global edible supply lines.
Factors driving growth in the edible oil market
As outlined below there are multiple factors that are fueling growth in the Indian edible oil market.
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