The traditional wonders likely to be overtaken by the newer wealth- Bonafide Research
Oct, 17

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The traditional wonders likely to be overtaken by the newer wealth- Bonafide Research



Not only known for their direct consumption, but the crops of rice, mustard, and groundnut are extremely popular for their oils too. Yet, it can be said that these crops are not extracted to their potential, as still the major part of these crops are used for direct consumption. The industrial use of rice bran oil is increasing due to its various health benefits, with only 75% of the extraction being used for edible consumption. 

Traditionally mustard oil is the most preferred oil for cooking in the eastern region; but is also used in different applications like aromatherapy, pharmaceuticals, & soaps, etc. The recently published report titled 'India Edible Rice Bran Oil, Mustard Oil & Groundnut Oil Market Outlook, 2027-28' by Bonafide Research, suggests that these oils are much more than their health benefits, opening up a profitable market by the forecasted period, due to the increasing demand. 

Rice bran oil is technically a newer entrant to the market extracted from the hard outer brown layer known as rice husk, containing nearly 15% oil. Considered a popular cooking oil in Asian countries, it has also been recommended by The World Health Organization (WHO), as an effective choice to keep cholesterol under control. However, mustard oil is not an unfamiliar concept to the country, with grandmothers, including it in the winter cuisines that act as a single cure for most of seasonal ailments The market of mustard oil is expected to grow with a CAGR of more than 6% during the forecasted period, while the market of rice bran is expected to grow with a CAGR of more than 9%. On the basis of packing, these oils are segmented into plastic bottles and containers, glass containers, plastic pouches, and cartons. The purchase of the size and packaging depends highly on the cost and shelf life and the purpose of the purchase. Plastic bottles and containers and plastic pouches are important and dominant segments due to their particular applicability in the storage of oil. 

Even with their health benefits, these oils could not capture the entire market, as a heap of challenges surrounds them. The challenge with rice bran oil is the darker color of the oil caused by the red hue. Over years, Indian consumers have started believing that lighter color indicates a better quality of the oil. This can be considered as a reason for reluctance in the people towards rice bran oil. Commonly used in the western region, groundnut oil has now become the most expensive cooking oil in India, backed by growing consumption of peanuts in the form of savouries and rise in exports. The sale of groundnut oil from the unorganized market sector is considerably high, expected to remain arch, with more than a quarter of the total share even by the year 2027. This tendency of unbranded purchase is considerably a big threat to the branded players as the unorganized market leads due to the lower pricing achieved by a low quality of the oil. The government is in the need to take adequate steps in order to demolish this sector, which might harm the consumer's health in the long run.