Oils & Fats - India

India

Revenue in the Oils & Fats market amounts to €42.13bn in 2024. The market is expected to grow annually by 6.03% (CAGR 2024-2029).
In global comparison, most revenue is generated in India (€42bn in 2024).
In relation to total population figures, per person revenues of €29.22 are generated in 2024.
In the Oils & Fats market, volume is expected to amount to 10.58bn kg by 2029. The Oils & Fats market is expected to show a volume growth of 2.3% in 2025.
The average volume per person in the Oils & Fats market is expected to amount to 6.6kg in 2024.

Key regions: Canada, India, Spain, Philippines, South Korea

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Analyst Opinion

The Oils & Fats market in India is witnessing minimal growth, influenced by factors such as shifting consumer preferences towards healthier alternatives, fluctuating raw material prices, and increasing competition from processed food options that affect traditional consumption patterns.

Customer preferences: Consumers in India are increasingly gravitating towards oils and fats that align with health-conscious lifestyles, prompting a rise in demand for natural and organic options. This shift is influenced by a younger demographic that prioritizes wellness and sustainability, favoring products with clear sourcing and health benefits. Additionally, the growing awareness of heart health and the impact of fats on overall well-being has led to the popularity of alternatives like olive oil and avocado oil, reshaping traditional cooking habits and preferences.

Trends in the market: In India, the Oils & Fats market is experiencing a significant shift towards healthier options, with consumers increasingly opting for natural and organic oils. This trend is driven by a younger demographic that prioritizes wellness, sustainability, and transparency in sourcing. As awareness of heart health rises, alternatives like olive oil and avocado oil are gaining popularity, influencing traditional cooking practices. These changes signify a critical pivot in consumer behavior, prompting industry stakeholders to innovate product offerings and marketing strategies to cater to this health-conscious demand, ultimately reshaping the market landscape.

Local special circumstances: In India, the Oils & Fats market is shaped by diverse geographical and cultural factors that influence consumer preferences and market dynamics. The country's rich culinary heritage emphasizes the use of traditional oils like mustard and coconut, which coexist with the rising demand for healthier options. Regional variations in cooking styles also drive the popularity of specific oils. Additionally, government regulations promoting the fortification of edible oils with essential nutrients further encourage innovation, pushing brands to adapt their offerings to meet both health standards and local tastes, thus reshaping the competitive landscape.

Underlying macroeconomic factors: The Oils & Fats market in India is significantly influenced by macroeconomic factors such as fluctuating global oil prices, domestic agricultural productivity, and government policies aimed at food security. Economic growth drives disposable incomes, leading to increased consumption of premium and health-oriented oils. Additionally, inflation rates impact consumer purchasing power, shaping preferences towards affordable options. Trade policies and import tariffs on edible oils also affect market dynamics, as they influence the availability and pricing of imported oils. Furthermore, rising health consciousness among consumers fuels demand for fortified and low-fat alternatives, prompting innovation in product offerings.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the total consumer spending on food, which comprises all private household spending on food that is meant for at-home consumption (out-of-home consumption is not accounted for).

Modeling approach:

Market sizes are determined through a top-down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, and consumer price index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Food market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.