From Seed to Cold-Pressed: Inside India’s Edible Oil Story

Edible oil consumption in India has shifted towards a higher volume and a greater variety of oils, with a noticeable trend towards healthier options. Factors like rising incomes, urbanization, and increased health awareness are driving this change.

Consumers are becoming more aware of the health benefits of certain oils and are actively seeking out options low in saturated and trans fats, and high in unsaturated fats. Urbanization and the rise of fast-food culture have increased the demand for ready-to-eat and packaged foods, which often utilize specific types of edible oils.

India's edible oil consumption has evolved significantly, driven by a complex interplay of population growth, rising incomes, urbanization, increased health awareness, and targeted marketing efforts. This has led to a shift away from traditional oils and towards a greater variety of options, particularly those perceived as healthier.

With over 30 years of experience in the edible oil industry, what are your thoughts on the current market trends and consumer preferences, particularly with regards to seed oils versus cold-pressed oils?

With over 30 years in the edible oil industry, I've witnessed a significant evolution in market trends and consumer preferences, particularly the growing divergence between refined seed oils and cold-pressed oils. The edible oil market remains susceptible to price fluctuations due to factors like weather, geopolitical events, and export bans. This can impact consumer choices, with many switching to cheaper substitutes when prices rise. The edible oil market is experiencing a strong growth trend, driven by increasing population, rising incomes, and changing dietary habits.

Within this market, a niche demand for cold-pressed oils, and consumers are willing to pay a premium as it is perceived as healthier and more natural. While seed oils remain dominant due to cost-effectiveness and widespread availability, cold-pressed oils are being preferred in select pockets.

How important is regional understanding and execution in building a nationwide leadership position in the edible oil market, and what approaches have you found to be most effective in different regions?

Regional localization is vital for our marketing approach, particularly as the brand’s most robust markets- Andhra Pradesh, Telangana, Karnataka, Chhattisgarh and Odisha feature unique cultures, languages, and consumer tastes. Grasping and valuing these local subtleties enables us to engage more profoundly with its clients.

In practice, this involves customizing communication, campaigns, and even packaging to align with local preferences and languages. Marketing messages are tailored to local feelings and cultural settings, enhancing their reliability and impact. For instance, campaigns could highlight regional festivals, well-known local influencers, or dishes that connect with the local audience and local culinary traditions.

Moreover, the sales and distribution teams adopt state-specific methods, tailoring strategies according to the unique buying behaviors and competition of each region. This targeted approach guarantees improved market penetration, enhanced brand allegiance, and community connect ensuring dominance in key markets.

In general, regional localization enables us to establish trust and significance, making the brand appear as an integral and appreciated part of the local community instead of merely a national product.

As the edible oil market continues to evolve, what are your thoughts on the future of seed oils, and how can manufacturers and marketers adapt to changing consumer preferences and trends while ensuring sustainability and quality?

The edible oil market is currently a vibrant and dynamic industry, estimated at USD 250.78 billion in 2024 and projected to reach USD 306.92 billion by 2029, reflecting a CAGR of 4.1%. The demand for edible oils is increasing globally, especially in countries like India and China, due to factors such as population growth, urbanization, and the rising popularity of processed foods. This growing demand, coupled with increased health consciousness and a desire for healthier food choices, positions the edible oil market for continued expansion in the coming years