With rising popularity of premium, organic, and plant-based butter, the global butter market is witnessing a dynamic shift in both production and consumption.
Food & Beverages
Expensive V/S Extensive: What is that the Indian Edible Oil market is looking for?
It was in early 2008 when the central launched a scheme to sell palm oil through ration shops at subsidized rates, further the state governments adding up certain subsidiaries. Even though the scheme is still providing about two crore families in every state, relief against the soaring prices of essential commodities, it caused irreversible damage to the perception towards oil. This was the reason why the population of the middle class and above, started considering the oil to be the poor man’s oil, added to its dark color. On the other hand, olive oil had made its significant influence on overly health-conscious people and the elite population. Because of the high pricing and complex variant names, the oil was seen as luxury even by the higher middle-class population then. Forwarding a decade, due to many factors, olive oil is seen as an affordable luxury by many now, the palm oil has hardly coped up, still being the poor man’s companion. Even though considered an expensive oil, with the increasing awareness and disposable income, the consumption of olive oil is expected to grow incredibly from below 2% in the period 2016-21 to more than 8% through the forecasted period.
India relies heavily on imports for both these oil, due to the lack of favorable conditions for cultivation. This extensive import has also influenced the consumption pattern of the oil, making olive oil users shift from the unorganized market towards an online purchase in order to get a higher quality product. The unorganized market for olive oil has made a huge profit with the increasing demand of the consumers for olive oil, who were fooled by adulterated olive oil. With the increasing awareness among consumers, due to the increasing use of the internet and leading brands promoting the harms of such oils, the share of the organized market is expected to grow by over 58% by the end of the forecasted period, by volume. As the palm oil market gets the major contribution of the sales derived from the fair price stores, the market is going to be dominated by the offline sales channel over the long period. The purchase of olive oil from the online market is comparatively higher than most of the oils, owing to the discounts and easy comparison of the brands. The online market is expected to cross INR 160 Cr.
The India edible palm oil and olive oil market is categorized based on different market types, including domestic production and imports. Palm oil dominates the edible oil segment due to its affordability, high yield, and versatile applications, primarily sourced from Indonesia and Malaysia. On the other hand, olive oil remains a niche but growing market, mainly driven by increasing health awareness and dietary preferences. While palm oil is widely used for cooking, food processing, and industrial applications, olive oil finds its place in premium households, personal care, and pharmaceuticals. The rising middle class and changing consumer preferences have led to an increased demand for both oils. Market segmentation also includes refined and unrefined varieties, with refined palm oil being more common in the mass market and extra virgin olive oil gaining traction among health-conscious consumers. Additionally, government policies, import duties, and fluctuating global prices play a significant role in shaping the market dynamics. With increasing urbanization and a shift towards healthier cooking alternatives, the Indian market is witnessing a slow but steady rise in olive oil consumption, while palm oil continues to maintain its dominance due to its widespread affordability and industrial use.
Packaging plays a crucial role in the edible palm oil and olive oil market in India, as it impacts storage, shelf life, and consumer convenience. The market offers a variety of packaging options, including plastic bottles, pouches, metal tins, glass bottles, and bulk packaging. For palm oil, flexible plastic pouches and large tin containers are widely used due to their cost-effectiveness and ease of distribution. Meanwhile, olive oil, being a premium product, is often packaged in glass bottles to maintain its quality, prevent oxidation, and enhance brand perception. Many high-end olive oil brands also use dark-tinted glass to preserve the oil’s natural properties. Bulk packaging, such as jerry cans and drums, is common in the B2B segment, where palm oil is supplied to food manufacturers and restaurants. The increasing awareness regarding sustainable packaging has led some brands to explore eco-friendly alternatives such as biodegradable pouches and recyclable glass. As consumer demand for convenience rises, there is also an emerging preference for smaller, easy-to-use packaging, especially for premium olive oil products. Packaging innovations, including resealable pouches and drip-free pouring mechanisms, further enhance the market appeal and consumer experience.
The edible palm oil and olive oil market in India caters to diverse consumer needs through a variety of packaging sizes. For palm oil, bulk packaging in 15L-20L tins and jerry cans is commonly preferred by commercial and industrial users such as hotels, restaurants, and food manufacturers. Household consumers primarily opt for smaller packaging sizes, including 1L, 2L, and 5L plastic pouches or bottles, which offer convenience and affordability. In contrast, olive oil, being a premium product, is often available in smaller packaging sizes ranging from 250ml to 1L glass bottles, catering to health-conscious households. The high cost of olive oil makes smaller packaging more accessible to consumers who wish to try the product before committing to larger sizes. Additionally, some brands offer mini travel-sized bottles, particularly for extra virgin olive oil, allowing portability and trial purchases. The demand for multi-pack and combo offers has also increased, especially in online and modern retail channels. With growing consumer awareness of portion control and freshness, single-use sachets and small portion-controlled packs are gaining popularity, especially in urban areas where premium oils are increasingly used in gourmet cooking and skincare.
The demand for edible palm oil and olive oil in India varies significantly across regions, influenced by dietary habits, income levels, and consumer awareness. Palm oil is predominantly consumed in southern and eastern India, where it is widely used for frying, food processing, and traditional cuisine. The states of Tamil Nadu, Andhra Pradesh, and West Bengal have high palm oil consumption due to its affordability and use in mass cooking. In contrast, olive oil sees higher demand in metropolitan cities such as Delhi, Mumbai, Bangalore, and Pune, where urban consumers are more health-conscious and willing to invest in premium cooking oils. The northern and western regions of India, where disposable incomes are higher, are key growth areas for olive oil due to rising demand for Mediterranean and gourmet cooking. Additionally, Kerala, known for its Ayurvedic influence, has a growing market for olive oil in skincare and wellness applications. While palm oil remains the dominant choice in rural areas due to its cost-effectiveness, olive oil penetration is gradually increasing in urban households as more consumers become aware of its health benefits. With growing online sales, regional barriers are diminishing, making both palm and olive oil more accessible nationwide.
The end-user segment of the India edible palm oil and olive oil market includes households, food service establishments, industrial food manufacturers, and personal care product companies. Households remain the largest consumer base, with palm oil being the preferred choice for daily cooking due to its low cost and high availability. Restaurants, hotels, and street food vendors also rely heavily on palm oil for deep-frying and bulk food preparation. Olive oil, on the other hand, is favored by health-conscious households, upscale restaurants, and gourmet food manufacturers who focus on premium ingredients. The personal care and pharmaceutical industries are also significant end-users of olive oil, incorporating it into skincare products, massage oils, and herbal formulations. Industrial food manufacturers use palm oil extensively in packaged snacks, bakery products, and confectionery due to its stability and cost-efficiency. With growing awareness of healthy lifestyles, an increasing number of food processors and households are shifting towards olive oil for salad dressings, light cooking, and cosmetic purposes. The expanding hospitality sector, along with rising disposable incomes, is further driving demand for premium oils in fine dining, leading to steady growth in the olive oil segment across different end-user categories.
The applications of edible palm oil and olive oil in India are diverse, ranging from cooking and food processing to industrial and cosmetic uses. Palm oil dominates the food industry as it is widely used for frying, baking, and manufacturing processed foods like biscuits, noodles, and frozen snacks. Its affordability and long shelf life make it a staple in commercial kitchens and fast-food chains. Olive oil, on the other hand, is primarily used for healthy cooking, salad dressings, and light saut?ing. Extra virgin olive oil is gaining traction for raw consumption, particularly in urban households adopting Mediterranean and organic diets. Beyond cooking, both oils find application in non-food industries. Palm oil is extensively used in soap, detergent, and cosmetic production due to its emulsifying properties, while olive oil is a preferred ingredient in premium skincare, hair care, and pharmaceutical formulations. The rise of Ayurvedic and organic beauty products has further boosted demand for olive oil in wellness applications. As consumer preferences shift towards healthier alternatives, both oils continue to expand their applications, with growing innovation in product formulations catering to dietary, industrial, and personal care markets.
The sales channels for edible palm oil and olive oil in India include traditional retail stores, supermarkets, hypermarkets, online platforms, and direct business-to-business (B2B) distribution. Traditional kirana stores dominate the palm oil market, as they cater to price-sensitive consumers who purchase in bulk or small pouches for daily use. Modern retail formats such as supermarkets and hypermarkets have become important sales channels for branded edible oils, offering consumers a wide range of options, including premium and organic variants. Online retail has witnessed exponential growth, especially for olive oil, as e-commerce platforms provide easy access to global and domestic brands. Health-conscious consumers are increasingly purchasing olive oil online due to better availability of imported and niche brands, along with discounts and bulk purchase options. The foodservice and hospitality industries procure palm oil through direct B2B distribution networks, ensuring large-scale supply for restaurants, hotels, and packaged food manufacturers. The rise of digital grocery platforms and quick-commerce services has further expanded the reach of edible oils, providing consumers with convenient doorstep delivery. With increasing brand awareness and evolving purchasing behavior, the sales channels for both palm and olive oil continue to diversify, catering to a broad spectrum of consumers.
India relies heavily on imports for both these oil, due to the lack of favorable conditions for cultivation. This extensive import has also influenced the consumption pattern of the oil, making olive oil users shift from the unorganized market towards an online purchase in order to get a higher quality product. The unorganized market for olive oil has made a huge profit with the increasing demand of the consumers for olive oil, who were fooled by adulterated olive oil. With the increasing awareness among consumers, due to the increasing use of the internet and leading brands promoting the harms of such oils, the share of the organized market is expected to grow by over 58% by the end of the forecasted period, by volume. As the palm oil market gets the major contribution of the sales derived from the fair price stores, the market is going to be dominated by the offline sales channel over the long period. The purchase of olive oil from the online market is comparatively higher than most of the oils, owing to the discounts and easy comparison of the brands. The online market is expected to cross INR 160 Cr.
The India edible palm oil and olive oil market is categorized based on different market types, including domestic production and imports. Palm oil dominates the edible oil segment due to its affordability, high yield, and versatile applications, primarily sourced from Indonesia and Malaysia. On the other hand, olive oil remains a niche but growing market, mainly driven by increasing health awareness and dietary preferences. While palm oil is widely used for cooking, food processing, and industrial applications, olive oil finds its place in premium households, personal care, and pharmaceuticals. The rising middle class and changing consumer preferences have led to an increased demand for both oils. Market segmentation also includes refined and unrefined varieties, with refined palm oil being more common in the mass market and extra virgin olive oil gaining traction among health-conscious consumers. Additionally, government policies, import duties, and fluctuating global prices play a significant role in shaping the market dynamics. With increasing urbanization and a shift towards healthier cooking alternatives, the Indian market is witnessing a slow but steady rise in olive oil consumption, while palm oil continues to maintain its dominance due to its widespread affordability and industrial use.
Packaging plays a crucial role in the edible palm oil and olive oil market in India, as it impacts storage, shelf life, and consumer convenience. The market offers a variety of packaging options, including plastic bottles, pouches, metal tins, glass bottles, and bulk packaging. For palm oil, flexible plastic pouches and large tin containers are widely used due to their cost-effectiveness and ease of distribution. Meanwhile, olive oil, being a premium product, is often packaged in glass bottles to maintain its quality, prevent oxidation, and enhance brand perception. Many high-end olive oil brands also use dark-tinted glass to preserve the oil’s natural properties. Bulk packaging, such as jerry cans and drums, is common in the B2B segment, where palm oil is supplied to food manufacturers and restaurants. The increasing awareness regarding sustainable packaging has led some brands to explore eco-friendly alternatives such as biodegradable pouches and recyclable glass. As consumer demand for convenience rises, there is also an emerging preference for smaller, easy-to-use packaging, especially for premium olive oil products. Packaging innovations, including resealable pouches and drip-free pouring mechanisms, further enhance the market appeal and consumer experience.
The edible palm oil and olive oil market in India caters to diverse consumer needs through a variety of packaging sizes. For palm oil, bulk packaging in 15L-20L tins and jerry cans is commonly preferred by commercial and industrial users such as hotels, restaurants, and food manufacturers. Household consumers primarily opt for smaller packaging sizes, including 1L, 2L, and 5L plastic pouches or bottles, which offer convenience and affordability. In contrast, olive oil, being a premium product, is often available in smaller packaging sizes ranging from 250ml to 1L glass bottles, catering to health-conscious households. The high cost of olive oil makes smaller packaging more accessible to consumers who wish to try the product before committing to larger sizes. Additionally, some brands offer mini travel-sized bottles, particularly for extra virgin olive oil, allowing portability and trial purchases. The demand for multi-pack and combo offers has also increased, especially in online and modern retail channels. With growing consumer awareness of portion control and freshness, single-use sachets and small portion-controlled packs are gaining popularity, especially in urban areas where premium oils are increasingly used in gourmet cooking and skincare.
The demand for edible palm oil and olive oil in India varies significantly across regions, influenced by dietary habits, income levels, and consumer awareness. Palm oil is predominantly consumed in southern and eastern India, where it is widely used for frying, food processing, and traditional cuisine. The states of Tamil Nadu, Andhra Pradesh, and West Bengal have high palm oil consumption due to its affordability and use in mass cooking. In contrast, olive oil sees higher demand in metropolitan cities such as Delhi, Mumbai, Bangalore, and Pune, where urban consumers are more health-conscious and willing to invest in premium cooking oils. The northern and western regions of India, where disposable incomes are higher, are key growth areas for olive oil due to rising demand for Mediterranean and gourmet cooking. Additionally, Kerala, known for its Ayurvedic influence, has a growing market for olive oil in skincare and wellness applications. While palm oil remains the dominant choice in rural areas due to its cost-effectiveness, olive oil penetration is gradually increasing in urban households as more consumers become aware of its health benefits. With growing online sales, regional barriers are diminishing, making both palm and olive oil more accessible nationwide.
The end-user segment of the India edible palm oil and olive oil market includes households, food service establishments, industrial food manufacturers, and personal care product companies. Households remain the largest consumer base, with palm oil being the preferred choice for daily cooking due to its low cost and high availability. Restaurants, hotels, and street food vendors also rely heavily on palm oil for deep-frying and bulk food preparation. Olive oil, on the other hand, is favored by health-conscious households, upscale restaurants, and gourmet food manufacturers who focus on premium ingredients. The personal care and pharmaceutical industries are also significant end-users of olive oil, incorporating it into skincare products, massage oils, and herbal formulations. Industrial food manufacturers use palm oil extensively in packaged snacks, bakery products, and confectionery due to its stability and cost-efficiency. With growing awareness of healthy lifestyles, an increasing number of food processors and households are shifting towards olive oil for salad dressings, light cooking, and cosmetic purposes. The expanding hospitality sector, along with rising disposable incomes, is further driving demand for premium oils in fine dining, leading to steady growth in the olive oil segment across different end-user categories.
The applications of edible palm oil and olive oil in India are diverse, ranging from cooking and food processing to industrial and cosmetic uses. Palm oil dominates the food industry as it is widely used for frying, baking, and manufacturing processed foods like biscuits, noodles, and frozen snacks. Its affordability and long shelf life make it a staple in commercial kitchens and fast-food chains. Olive oil, on the other hand, is primarily used for healthy cooking, salad dressings, and light saut?ing. Extra virgin olive oil is gaining traction for raw consumption, particularly in urban households adopting Mediterranean and organic diets. Beyond cooking, both oils find application in non-food industries. Palm oil is extensively used in soap, detergent, and cosmetic production due to its emulsifying properties, while olive oil is a preferred ingredient in premium skincare, hair care, and pharmaceutical formulations. The rise of Ayurvedic and organic beauty products has further boosted demand for olive oil in wellness applications. As consumer preferences shift towards healthier alternatives, both oils continue to expand their applications, with growing innovation in product formulations catering to dietary, industrial, and personal care markets.
The sales channels for edible palm oil and olive oil in India include traditional retail stores, supermarkets, hypermarkets, online platforms, and direct business-to-business (B2B) distribution. Traditional kirana stores dominate the palm oil market, as they cater to price-sensitive consumers who purchase in bulk or small pouches for daily use. Modern retail formats such as supermarkets and hypermarkets have become important sales channels for branded edible oils, offering consumers a wide range of options, including premium and organic variants. Online retail has witnessed exponential growth, especially for olive oil, as e-commerce platforms provide easy access to global and domestic brands. Health-conscious consumers are increasingly purchasing olive oil online due to better availability of imported and niche brands, along with discounts and bulk purchase options. The foodservice and hospitality industries procure palm oil through direct B2B distribution networks, ensuring large-scale supply for restaurants, hotels, and packaged food manufacturers. The rise of digital grocery platforms and quick-commerce services has further expanded the reach of edible oils, providing consumers with convenient doorstep delivery. With increasing brand awareness and evolving purchasing behavior, the sales channels for both palm and olive oil continue to diversify, catering to a broad spectrum of consumers.
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