India Vegetable Oil Market Size, Share, Growth and Industry Forecast | 2025-2034

India Vegetable Oil Market Outlook

According to the report by Expert Market Research (EMR), the India vegetable oil market size attained a volume of about 33.52 MMT in 2024. Aided by the increasing demand for edible oils and the expanding applications of vegetable oils in various industries, the market is projected to grow at a CAGR of 14.30% between 2025 and 2034 to reach a volume of nearly 111.63 MMT by 2034.

Vegetable oil is a key component in the Indian food industry, widely used for cooking, frying, and as an ingredient in processed foods. Derived from plant sources such as soybean, palm, sunflower, mustard, and rice bran, vegetable oils play a crucial role in meeting the dietary and industrial demands of the country. Beyond its applications in food, vegetable oil is also used in the production of biofuels, cosmetics, and industrial lubricants.

India Vegetable Oil Market Size and Share

The India vegetable oil market size was volume of about 33.52 MMT in 2024. and is projected to grow at a CAGR of 14.30% between 2025 and 2034, reaching a volume of nearly 111.63 MMT by 2034. India is one of the largest consumers and importers of vegetable oil, with a substantial portion of its demand met through imports. Palm oil, soybean oil, sunflower oil, and mustard oil dominate the market, with palm oil holding the largest share due to its affordability and wide availability. The market is characterized by the presence of both domestic and international players, with companies focusing on innovations in fortified and blended oils to cater to health-conscious consumers.

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India Vegetable Oil Market Trends

Several key trends are shaping the India vegetable oil market, including:

• Shift Towards Healthier Oils – Rising health awareness is prompting consumers to opt for oils with higher nutritional value, such as olive oil, rice bran oil, and canola oil, which are known for their heart-health benefits.
• Government Initiatives for Self-Sufficiency – The Indian government has been promoting oilseed cultivation and domestic oil production through schemes like the National Mission on Edible Oils – Oil Palm (NMEO-OP) to reduce import dependency.
• Growth of Fortified Oils – With an increasing focus on nutrition, the demand for fortified vegetable oils enriched with vitamins A, D, and E is on the rise.
• Expanding Applications Beyond Cooking – Vegetable oils are finding growing applications in cosmetics, pharmaceuticals, and biofuels, contributing to market diversification.
• Sustainability and Ethical Sourcing – Consumers are showing a preference for sustainably sourced oils, leading companies to adopt responsible sourcing practices and certification programs.

Drivers of Market Growth

The India vegetable oil market is driven by multiple factors, including:

• Rising Population and Urbanization – The growing middle-class population and urban lifestyle changes are fueling higher consumption of vegetable oils in cooking and food processing industries.
• Increasing Disposable Income – Higher disposable incomes allow consumers to spend more on premium and specialty oils with added health benefits.
• Expansion of the Food Processing Industry – The booming food processing sector in India is driving demand for vegetable oils as key ingredients in packaged foods, snacks, and ready-to-eat meals.
• Growth in Organized Retail and E-commerce – The rapid expansion of supermarkets, hypermarkets, and online grocery platforms has improved accessibility and availability of a wide range of vegetable oils.
• Rising Demand for Plant-Based Products – As plant-based diets gain popularity, vegetable oils are increasingly used in plant-based food products, driving further market growth.

India Vegetable Oil Market Segmentation

The market can be divided based on type, application and region.

Breakup by Type

• Soybean Oil
• Palm Oil
• Sunflower Oil
• Mustard Oil/Rapeseed Oil
• Vegetable Oil
• Rice Bran Oil
• Others

Breakup by Application

• Food
• Industrial
• Biofuel
• Others

Breakup by Region

• North India
• East India
• West India
• South India

Competitive Landscape

Some of the major players explored in the report by Expert Market Research are as follows:

• Adani Wilmar Limited
• Ruchi Soya Industries Limited
• Bunge Ltd.
• Marico Limited
• Cargill, Incorporated
• Patanjali Ayurved Limited
• Emami Agrotech Ltd.
• Mother Dairy Fruit & Vegetable Pvt. Ltd.
• Others

India Vegetable Oil Market Forecast (2025-2034)

The India vegetable oil market is expected to continue its growth trajectory, driven by increasing domestic consumption, health-conscious consumer preferences, and government initiatives promoting self-sufficiency in oil production. By 2034, the market is projected to reach volume of nearly 111.63 MMT, with significant contributions from premium, fortified, and sustainably sourced oils. Investments in research and development, technological advancements in oil extraction, and expansion into new application areas will further boost market expansion.

Overall, the India vegetable oil market is set to witness robust growth, offering substantial opportunities for industry players while addressing challenges related to sustainability, price volatility, and regulatory compliance. As the demand for healthier and ethically sourced oils rises, businesses focusing on innovation and responsible production will be well-positioned for success in the evolving market landscape.

Challenges and Opportunities

Despite strong growth prospects, the India vegetable oil market faces several challenges:

• Heavy Dependence on Imports – A significant portion of India’s vegetable oil demand is met through imports, making the market vulnerable to global price fluctuations and supply chain disruptions.
• Price Volatility – The prices of vegetable oils are influenced by international market trends, climate conditions, and government policies, leading to uncertainty for producers and consumers.
• Environmental Concerns – The production of certain vegetable oils, particularly palm oil, has raised concerns about deforestation and environmental sustainability, pushing companies to adopt eco-friendly practices.
• Regulatory Changes – Stringent government regulations on food safety, labeling, and import duties impact market dynamics and require businesses to stay compliant.

However, there are numerous opportunities for India Vegetable Oil Market players:

• Expansion of Domestic Oilseed Production – Government incentives for oilseed farmers and investments in agricultural technology can enhance domestic production and reduce import dependency.
• Innovation in Healthy Oil Blends – Companies can tap into the health-conscious consumer base by introducing innovative blends of oils with improved nutritional profiles.
• Growing Demand for Organic and Cold-Pressed Oils – The organic food movement and preference for cold-pressed oils present new growth avenues in the premium oil segment.
• Diversification into Non-Food Applications – The increasing use of vegetable oils in personal care products, bio-lubricants, and biodiesel production offers lucrative opportunities beyond the edible oil market.