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Not the celebrities, but it is the quality that matters. - Actual Market Research
Oct, 17
2020

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Not the celebrities, but it is the quality that matters. - Actual Market Research

 

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As the brands are roping in celebrities, the consumer feel otherwise, when it comes to edible oil market. The consumers are ready to pay more, provided the brand can ensure providing a quality product manufactured in a hygienic condition.


Until 1990's the dominant edible oil produced and consumed in India were mustard, sesame, and groundnut. The technological, economic and policy changes thereafter induced dynamics in consumer demand for food, including edible oils. The possible reason for these shifts are increased urbanization, changing lifestyles, increased awareness, availability of oils in packet form in varied quantities even in remote rural areas, change in relative prices of oils, and increased income levels of households.

As per the outcome of the recent report published by Actual Market Research under the title, 'India Edible Oil Market Outlook, 2025' revealed that dominant edible oil consumed in India is palm oil 50 of the total consumption followed by the soybean and sunflower oil. Rice Bran Oil market in India is still at its nascent stage. The groundnut oil and the mustard/rapeseed oil, which was traditionally consumed by households, have been replaced by soybean oil, implying the need for appropriate changes in the production. Even though the constant change in the preference, the consumption of oil differs among the regions, with the glimpse of the traditions and climatic influences.

India has the largest area and production of few highly consumed oilseed crops, namely groundnut, rapeseed/mustard, sesame, and coconut. Yet, India is the world’s large importer of the edible oil. India’s edible oil market was recorded at INR 1,89,426 Crore in the year 2014, with the unorganized oil market showing a decline in the market share with a CAGR of over 2.50%. The growth of the packaged oil type was not even and only the certain variants showed the growth in the market. Consumers still prefer to purchase the traditional oils from the unorganized sector, even though there is a negligible price difference among them. With the increase in the health conscious Indian population, the sales of branded edible oil have also increased. Edible oil packaging has been evolved over the years to encompass a wide range of packaging products such as jerry cans, pouches, jars, tin cans, bottles, among others. With the continuous innovations and the increasing awareness about the adulteration in the edible oil industry, the market of the packaged edible oil is expected to grow more than 200000 Crore, by the end of the year 2025.

In terms of production, the mustard & soybean oilseed are expected to lead the market during the end of the forecasted period, with both accounting to more than 3 Million Tonnes of production. Whereas on the other hand, the major traditionally used cotton oilseed and sesame oilseed are expected to a very low growth in the future. When interviewed directly, the consumer disagreed to the fact that celebrity endorsements having any effect on their purchase decision. However, supporting the advertisement with a scientifically prove fact have influence in the consumer mind. Adulteration of edible oil has emerged as a major issue worldwide, especially in India, due to their increasing market demand and the potential profit. It has, therefore, become essential to monitor the purity and quality of edible oils to reduce health risks. With the consumers being aware of the possible adulteration, prefer to pay higher price for quality product rather than compromising on their health in order to save a negligible amount.