Being the most preferred in the south, how likely the other markets are for these oils?
Oct, 17

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Being the most preferred in the south, how likely the other markets are for these oils?


Coconut and sesame oil have been the part of culture in the south since the ancient times, while the sunflower oil, positioned as healthy oil, suitable for cuisines have a huge market in the Southern India.

These oils have been a part of almost all Indian kitchens, which is one of the most likely factor that would influence the purchase decision of the next generation. Sunflower oil being promoted as one of the healthy oil since the pre satellite TV era, the consumption of this oil spread across the country. While on the other hand, the consumption of the other two oils are concentrated much towards the southern India, with Kerala holding more than 30% consumption of coconut oil. This uneven distribution of the coconut oil, its consumption is expected not to exceeded 0.7 million Tonnes. The sesame oil is much popular not only for consumption, but also is considered as an integral part of the religious rituals and traditions in the south. With many such other uses, only 3/4th of the sesame oil extracted is used for the direct consumption, while 12% is used for the industrial purposes. With the sunflower oil being popular across the country, the market is expected to grow with a highest CAGR among the three, at a rate of more than 7.5% through the forecasted period, in terms of value. Actual Market Research backs these findings as a conclusion of the recent publication 'India Edible Coconut Oil, Sunflower Oil & Sesame Oil Market Outlook, 2025'.

Even though the coconut oil is consumed extensively in the country directly or indirectly, many known health organizations, including the World Health Organization, advising to limit or avoid the consumption, due to its high levels of saturated fat. With the increasing awareness of the varied uses of sesame oil other than for cooking and rituals, the demand for the organic sesame oil have increased for its use as massage oils in Ayurvedic wellness centres. The direct consumption of raw sesame oil is considered advantageous for the young females. The consumers prefer to purchase pet bottles, as these oil tend to get have a short shelf life once exposed to air, and thus the market is evident with the high share from the 1 litre size segment.

The sunflower oil is popular due to its light golden colour, which is assumed to purity of the oil. As the sunflower is suitable for all cuisines and cookery purpose, the household consumers prefer to purchase in bulk, evidently the 5 litre size segment holding a share of 27.66% in 2019, and expected to show an increase in the forecasted period. With the increasing competition from the newer oils, branding themselves as 'healthy' oils, the marketers of sunflower oil still continue their old strategy to targeting the ultimate decision makers - the homemakers, with the light colour and health benefits at a reasonable price. the chances of adulteration remains low in these oils, as the mixing could be caught with the change in the colour and fragrance.