NEW YORK, Nov. 27, 2020 /PRNewswire/ -- The global peanut oil market space is heavily congested with high levels of competitiveness between key players. Owing to low percentage of cholesterol saturated fats and cholesterol, peanut oil is considered a safe option, which is expected to accelerate demand in the global market. In developed regions, the influence of new and unique oils is primarily high, as customers have access to new products and have strong buying power. In addition, the nutty taste provided by peanut oil is a key factor expected to accelerate demand in all regions across the globe.
As per PMR analysis, the global peanut oil market is projected to progress at a steady CAGR of over 4%, to be valued around US$ 13.5 Bn by the end of 2030.
Key Takeaways from Peanut Oil Market Study
Peanut is widely used as cooking oil by food manufacturers and foodservice providers, as it has a high smoke point. Thus, rising foodservice industry across the globe is expected to increase sales of peanut oil. The market value for the foodservice Industry end-use segment is expected to witness high growth at a CAGR of 4% through 2030.
Owing to high production of peanuts, East Asia holds the largest value share of around 40% in the global peanut oil market, and is expected to reach a market value of US$ 5.3 Bn by 2030.
In terms of distribution channel, the business to business segment is anticipated to have a higher market share in 2020 as compared to the business to consumer segment. A major contributing factor is high demand for peanut oil from the foodservice industry.
The COVID-19 pandemic had decreased the sales of peanut oil from the foodservice industry, which has affected the global market. Despite all the challenges, demand is expected to pick up post the pandemic era.
"Manufacturers in the peanut oil market are focusing on sourcing new varieties of peanuts that are rich in high oleic acids. They are investing in research & development to produce high grade oils to cater to demand from increasing health-conscious consumers," says a PMR analyst.
High Demand for Value-added Products in Various Segments
Application of peanut oil in the food industry is ever-increasing, as it has a high smoke point, and thus, can be used for deep-frying various food products. This offers immense growth opportunity to globally-established as well as new entrants in the peanut oil market space. Peanut oil is being used in making skin care products as well as in various baby care products. Crude peanut oil has high content of vitamin D and E, and is also known to have antioxidant properties, which make it an excellent ingredient in manufacturing soap and massage oils.
Easy availability of alternate products may restrain the growth of the global peanut oil market. Use of other vegetable oils can be a factor for the slowing growth of the global demand for peanut oil. Also, high peanut oil prices and rising demand for soybean oil are hampering market development.
However, massive emphasis of manufacturers on providing value-added oil products, together with growing awareness among customers regarding health benefits accumulated due to peanut oil intake, will drive the growth of the global peanut oil market over the coming years.
Emergence of numerous international and domestic players is fragmenting the global peanut oil market. Some of the largest market players are Adani Enterprises Ltd., Archer Daniels Midland Co., Protect Oils, Louis Dreyfus, and Cargill Inc.
Many new entrants are also launching products to cater to rising demand from the food industry as well as the foodservice industry.
In July 2020, Amul, a dairy major, announced its foray into the edible oil business and launched the Janmay brand, which includes peanut oil, cotton seed oil, soya bean oil, sunflower oil, and mustard oil.
Explore More Valuable Insights on Peanut Oil Market
Persistence Market Research, in its new report, offers an impartial analysis of the global peanut oil market, presenting historical data (2015-2019) and estimation statistics for the period of 2020-2030. The study offers compelling insights on the peanut oil market based on nature (organic and conventional), end use (food industry, foodservice, and household/retail), and distribution channel (business to business and business to consumer), across seven regions.
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