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. 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. 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.
According to the research report "India Commercial Cleaning Chemical Market Overview, 2028," published by Bonafide Research, the India Commercial Cleaning Chemical market is anticipated to grow at more than 13% CAGR from 2023 to 2028. The Indian
edible oil market for rice bran oil, mustard oil, and groundnut oil is classified into domestically produced and imported varieties. Mustard oil dominates North and East India, where mustard cultivation is extensive. It is widely consumed for its strong aroma and antibacterial properties. Groundnut oil, on the other hand, is predominantly produced in Gujarat, Tamil Nadu, and Andhra Pradesh, serving as a preferred cooking medium in South and West India. Rice bran oil, extracted from the outer layer of rice grains, has gained prominence due to its heart-health benefits and is primarily produced in West Bengal, Uttar Pradesh, and Punjab. Increasing health consciousness, dietary diversification, and government initiatives to promote domestically produced oils are driving market expansion. While mustard and groundnut oil have deep-rooted culinary traditions, rice bran oil is growing in demand due to its cholesterol-lowering properties. The rising preference for cold-pressed and unrefined oils is influencing the market landscape, especially among urban consumers seeking healthier cooking options.
Packaging plays a critical role in maintaining the quality and freshness of edible oils. Mustard oil is traditionally packaged in glass bottles,
PET bottles, metal tins, and flexible pouches, with premium variants often using dark-colored bottles to protect against light exposure. Groundnut oil is commonly found in plastic and PET bottles for household consumption, while large-scale users prefer jerry cans and metal tins. Rice bran oil, marketed for its health benefits, is increasingly sold in tetra packs, PET bottles, and resealable pouches for convenience. Eco-friendly and recyclable packaging solutions are gaining popularity, driven by consumer demand for sustainable options. Additionally, modern brands are incorporating tamper-proof and spill-proof packaging to enhance product safety and shelf life. As the
e-commerce sector grows, packaging innovations ensuring spill-free and durable delivery are becoming essential for brands targeting online shoppers.
The availability of edible oils in varied packaging sizes caters to diverse consumer needs. Small sachets (200ml-500ml) are popular among rural and low-income households for affordability and single-use convenience. Standard household buyers typically opt for 1L-5L PET bottles or pouches. In urban areas, premium cold-pressed mustard, groundnut, and rice bran oils are gaining traction in 250ml-500ml glass bottles, appealing to health-conscious consumers. Commercial and foodservice buyers, such as restaurants and bulk
food processors, prefer 15L-20L tins or jerry cans for cost efficiency. As consumer demand shifts toward bulk purchasing for better value, mid-sized packs (5L-10L) are witnessing increased adoption. Subscription-based models and refillable packaging solutions are also emerging trends, particularly for organic and premium edible oil brands.
Rice bran oil has gained traction in rice-producing states such as West Bengal, Odisha, Punjab, and Andhra Pradesh due to its affordability and health benefits. Urban centers like Delhi, Mumbai, and Bangalore are witnessing rising demand for all three oils, driven by growing health awareness and dietary shifts. With increasing disposable income and urbanization, the demand for healthier, premium, and
fortified edible oils is expected to rise across various regions. Edible oils have diverse applications in cooking, food processing, and industrial sectors. Mustard oil is predominantly used for cooking, deep frying, and pickling in North and East India. It is also used in Ayurvedic medicine and
skin care due to its antimicrobial properties. Groundnut oil is a popular choice for frying, baking, and making sweets in households and commercial kitchens. It is also used in snack manufacturing and
margarine production. Rice bran oil is widely used in cooking, especially in health-conscious urban households, and is gaining traction in the
functional food segment due to its heart-health benefits. Apart from food applications, these oils are also used in non-food industries such as
cosmetics, soaps, and pharmaceuticals. The increasing demand for organic, cold-pressed, and fortified edible oils is shaping the future of the edible oil market in India.
The end users of edible rice bran, mustard, and groundnut oil include households, the foodservice industry, food processing units, and industrial applications. Mustard oil is widely used in home kitchens, traditional cuisines, and pickling due to its antibacterial and preservative properties. Groundnut oil is preferred for deep frying and cooking in households and commercial kitchens, particularly in South and West India. Rice bran oil, known for its cholesterol-lowering properties, is gaining popularity among health-conscious households and
fitness enthusiasts. The food processing industry uses these oils in snack manufacturing,
bakery products, and confectionery. Restaurants,
fast food chains, and
catering services are major buyers, with bulk demand for frying and flavor enhancement. Industrial applications of these oils include use in pharmaceuticals, cosmetics, and soap manufacturing. As consumers seek healthier cooking alternatives, demand for cold-pressed and organic variants is steadily rising among health-conscious end users.
3