In the human and animal diet, fats and oils are recognized as an essential nutrient. They supply essential fatty acids, are condensed source of energy, and major carriers for fat-soluble vitamins. In developed regions, increasing the purchasing power of the consumers to buy new products is positively impacting the growth of the peanut oil market. The cooking oil market has strong competition due to the introduction of new and unique oils every year and consistent use of several vegetable oils. Furthermore, double-filtered peanut oil is gaining significant traction in the marketplace. Gemini Edibles & Fats India Pvt. Ltd, a subsidiary of Singapore based Golden Agri Resources, introduced a Freedom double-filtered groundnut oil, in March 2019. It is a new variant in the blended cooking oil portfolio that comprises of rice bran, refined sunflower oil, mustard oil, and gingerly groundnut or peanut oil. An emerging trend of blended peanut oil is flourishing in the global market. This oil has high chemical corrosion resistance and contains polyunsaturated and saturated fats that are healthy for cooking purposes. Blended peanut oil is free from aflatoxins and allergens because they are refined before mixing with other oils. In order to make peanut oil or Arachis oil more affordable, the oil is blended with lower-cost oils such as soybean oil. The firms blend the oil usually with those oils that have a similar high smoking point, which helps in preserving the excellent frying qualities. To rightly capitalize over prevailing opportunities, enterprises are opting for such efficient and economical operations that are offered to the consumers. As a consequence, the global peanut oil market size was evaluated to be $9.3 billion in 2018 and is progressing with a CAGR of 4% during the forecast period 2019-2025.
APAC Dominating the Global Peanut Oil Market
APAC dominated the global peanut oil market, with a regional share of 56% in 2018. China and India are the major contributors in terms of groundnut production in the region. According to the Agriculture & Processed Food Products Export Development Authority (APEDA), in 2017, India and China exported 532,447 and 319,174 Million Tonnes (MT) of peanuts respectively. Rising investments by potential investors for the expansion of manufacturing units in various countries are attributed to the high demand for peanut oil. Peanut oil is an established product in the cooking oil market that has significant use in various Asian cuisines and foods. Additionally, India’s share in the global production of peanut oil was around 23% in 2017-2018, according to the Agriculture Cooperation & Farmers Welfare. India has a prominent market for peanut oil as it is used as an everyday cooking ingredient. The consumption and trade of peanut oil in the countries such as France and Italy, being the major importer, from India is influencing the growth of the peanut oil market.
Growing Demand for Peanut Oil in Application Industries
· Pharmaceutical Industry: The demand for peanut oil is constantly growing in the pharmaceutical industry. For internal and external usage, peanut oil is widely used in various products that are consumed by the consumers. It even prevents heart disease and is used to lower the cholesterol level. Medicines that are used in reducing appetite for weight-loss and curing cancer contains peanut oil. Furthermore, peanut oil is also applied directly on the skin by people who have arthritis, joint pain, eczema, dry skin, scalp crusting, hair loss, and other skin-related issues. Use of peanut oil ranges from human to animals. Peanut oil reduces Atherosclerosis in Cynomolgus monkeys, rats, and rabbits. Increased intake of pure peanut oil reduces Cholesterolemia and the risk of Atherogenesis as compared to blended peanut oil in the animals. With such developments in the pharmaceutical industry, the peanut oil market is witnessing substantial growth in recent times.
· Beauty and Personal Care Industry: Peanut oil is obtained from kernels seeds of Arachis hypogea. In the personal care and cosmetic industry, peanut oil is used to serve as a skin conditioning agent due to its solvent and emollient properties. Peanut-derived oil is found in all most all skincare products, moisturizer, hair care products, and nail treatment products. Antioxidant, anti-inflammatory, and occlusive properties found in peanut oil reduces minor skin irritations and functions as a barrier against external factors such as heat and dust. Thus, with an increase in the demand for the product which is influencing the growth of the peanut oil market.
Offline Distribution Channel Growing the Product Demand Intensively
The growing popularity of supermarkets, hypermarkets, and franchise and specialty stores offering a variety of premium edible oil is the major factor that is driving the growth of the peanut oil market. The offline segment is the intensively growing market, incrementing at a CAGR of 4% during the forecast period. The growing awareness of the presence of healthy fats in the product is highly responsible for the demand for peanut oil. Furthermore, rising per capita income of the consumers in the emerging economies is further boosting the growth of the market through the offline sales channel. In developing countries, the local distribution channels play an important role to scale up the offline distribution channel. Owing to the longer shelf life of the product, the local distributors can buy and store the product in bulk that is sold as per the demand. Subsequently, offline distribution utilizes media channels to create the desired goals. The peanut oil manufacturers invest an ample amount to create its market and to increase their sales through organized retailers and convenience stores. These factors are expected to propel the peanut oil market growth.
The Major Players in the Peanut Oil Market
The major players in the peanut oil market include Wilmar International Limited, Bunge Limited, COFCO Corporation, The J. M. Smucker Corporation, Archer Daniels Midland Corporation, The Hain Celestial Group Inc., Olam International Ltd., and Cargill Inc. These companies have been incessantly concentrating on R&D investments, acquisitions, joint ventures, innovation, and partnership strategies to strengthen their portfolio of products.
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