The India vegetable oil market has witnessed significant growth in recent years, driven by rising population, increasing disposable incomes, and a shift in consumer dietary patterns towards oils and fats for cooking and food processing. According to Expert Market Research (EMR), the market was estimated at 38.31 million metric tons (MMT) in 2025 and is expected to grow at a CAGR of 14.30% between 2026 and 2035, reaching approximately 145.81 MMT by 2035. Vegetable oils, derived from crops such as soybean, palm, sunflower, and mustard, play a critical role in the Indian food and culinary industry, as well as in the production of processed and packaged foods.

The growing awareness about healthy and functional cooking oils, coupled with the rising demand from urban households, is significantly driving the vegetable oil market in India. Additionally, the expansion of the food processing sector and the increasing export opportunities for Indian edible oils further contribute to the market’s robust growth trajectory.

India Vegetable Oil Market Trends

Several key trends are shaping the Indian vegetable oil market. One prominent trend is the shift towards healthier and low-cholesterol oils, such as sunflower, safflower, and rice bran oil. Consumers are increasingly seeking oils rich in omega-3 fatty acids and unsaturated fats, reflecting the rising awareness about heart health and wellness.

Another trend is the growth of packaged and branded edible oils, replacing traditional loose oils sold in local markets. Modern retail channels and e-commerce platforms are playing a pivotal role in expanding the reach of packaged oils, thereby ensuring consistent quality, safety, and consumer trust.

Drivers of Growth

The growth of the Indian vegetable oil market is fueled by several factors. Rapid urbanisation, a rising middle-class population, and changing food consumption patterns are increasing per capita oil consumption. The growth of the hospitality, bakery, and packaged food industries is also creating strong demand for refined and specialty oils.

Government initiatives promoting oilseed cultivation and improving domestic production are expected to reduce dependency on imports, further supporting market expansion. The increasing penetration of modern retail and organised distribution networks has made branded oils more accessible to consumers across urban and semi-urban regions.

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India Vegetable Oil Market Forecast

The India vegetable oil market is poised for substantial growth over the forecast period of 2026–2035. Driven by increasing consumer awareness, modern retail penetration, and expansion in food processing and hospitality sectors, the market is expected to reach 145.81 MMT by 2035. The continued focus on healthy, branded, and sustainable oils will play a critical role in shaping the future of India’s vegetable oil industry, ensuring both domestic growth and global competitiveness.