India Palm Oil Market to Grow with a CAGR of 4.89% through 2030F

India's palm oil market is driven by rising consumption in food and personal care industries, government initiatives to boost domestic production, and shifting preferences toward sustainable, cost-effective vegetable oil alternatives

According to TechSci Research report, “India Palm Oil Market – By Region, Competition, Forecast & Opportunities, 2021-2031F”, the India Palm Oil Market was valued at USD 8.20 Billion in 2025 and is expected to reach USD 10.89 Billion by 2031 with a CAGR of 4.89% during the forecast period. Palm oil holds a crucial position in India's edible oil landscape, serving as one of the most widely consumed vegetable oils in the country. With its relatively low cost, versatile applications, and year-round availability, palm oil has become a staple in Indian kitchens, food processing units, and industrial manufacturing. Its adaptability for use in cooking, frying, and baking, as well as in the production of soaps, detergents, and cosmetics, underscores its widespread demand across sectors.

India is one of the largest importers of palm oil globally, relying heavily on supplies from major producing nations such as Indonesia and Malaysia. Given that domestic edible oil production is unable to meet growing demand, imports play a vital role in maintaining food security and price stability. However, this heavy dependence on foreign markets exposes India to risks related to global price fluctuations, supply disruptions, and geopolitical developments in supplier countries.

Several factors are driving the sustained growth of the palm oil market in India. One of the primary drivers is the rising demand for affordable cooking oil among a large and growing population. Palm oil's cost-effectiveness compared to other edible oils like soybean and sunflower oil makes it the preferred choice for low- and middle-income households. In addition, its long shelf life and stability at high temperatures make it ideal for deep frying and industrial food processing.

While palm oil offers economic and functional advantages, it is also at the center of ongoing sustainability debates. Globally, palm oil production has been associated with deforestation, loss of biodiversity, and high greenhouse gas emissions, particularly in producing countries. As a major importer, India is under increasing pressure from international organizations, environmental groups, and corporate stakeholders to encourage the use of sustainably sourced palm oil.

Efforts are being made to promote the adoption of Certified Sustainable Palm Oil (CSPO) through initiatives such as the Indian Palm Oil Sustainability Framework (IPOS). This framework encourages Indian businesses to adopt sustainable procurement practices and enhance supply chain transparency. Although awareness of sustainable palm oil remains relatively low among Indian consumers, multinational corporations and large FMCG brands are gradually transitioning to responsibly sourced ingredients in line with global sustainability commitments.

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The India Palm Oil Market is segmented into product type, application, nature, and region.

Based on nature, the organic segment is emerging as the fastest-growing segment in the India palm oil market, driven by rising consumer awareness about health, wellness, and sustainable consumption. Increasing concerns over chemical residues, environmental impact, and food safety are prompting a shift toward organic palm oil, especially among urban and health-conscious consumers. Organic palm oil is produced without synthetic pesticides or fertilizers, aligning with the growing demand for clean-label and eco-friendly products. Food manufacturers, retailers, and personal care brands are increasingly incorporating organic palm oil into their offerings. This trend is further supported by premiumization and expanding availability through online and specialty channels.

Based on region, the South region is the fastest-growing market for palm oil in India, fueled by rising urbanization, increasing disposable incomes, and expanding food processing industries. States like Tamil Nadu, Karnataka, and Andhra Pradesh are witnessing rapid growth in demand due to changing dietary patterns and greater consumption of processed and convenience foods. The region’s growing hospitality and quick-service restaurant sectors also contribute significantly to palm oil consumption. Additionally, improved supply chain infrastructure and government initiatives promoting oil palm cultivation are supporting this growth. As awareness about palm oil’s versatility spreads, the South region continues to attract investment and experience robust market expansion.

Major companies operating in India Palm Oil Market are:

• Ruchi Soya Industries Ltd.
• Cofco Agri Ltd.
• Cargill India Private Limited
• Edible Group
• 3F Industries Ltd.
• Godrej Agrovet
• Adani Wilmar Ltd.
• Sundex Process Engineers Pvt. Ltd.
• Brissun Technology Pvt. Ltd.
• Chempro Technovation Pvt. Ltd.

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“Technology is playing an increasingly important role in modernizing the palm oil industry in India. From advanced milling and refining techniques that improve extraction rates and reduce wastage to digital tools that enhance traceability and supply chain management, innovation is helping the sector become more efficient and transparent. Digital platforms are being deployed to connect farmers, traders, and refiners, enabling better access to market information, weather updates, and best practices. Some companies are also experimenting with blockchain and geospatial technologies to trace palm oil from source to shelf, a trend that aligns with rising demand for ethical and transparent sourcing.” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.

“India Palm Oil Market, By Product Type (Crude Palm Oil, RBD Palm Oil, Palm Kernel Oil, Fractionated Palm Oil), By Application (Food & Beverage, Personal Care & Cosmetics, Biofuel & Energy, Pharmaceuticals, Others), By Nature (Organic, Conventional), By Region, Competition, Forecast & Opportunities, 2021-2031F”, has evaluated the future growth potential of India Palm Oil Market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the India Palm Oil Market.

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