A Study of the Indian edible oil market and factors

influencing consumers’ purchase decisions.

Submitted To:

The

INTEGRAL UNIVERSITY IN PARTIAL FULFILLMENT OF

THE REQUIREMENTS FOR THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION
IN
FOOD AND AGRIBUSINESS MANAGEMENT
By
Name: Sajal Kumar Sharma
Enrollment Number: 2100103928
Integral Institute of Agricultural Science and Technology
(IIAST)
Integral University
Lucknow-226026
2022-23

1
 CONTENT TABLE

TITLE PAGE NO.

1. Introduction 07
1.1 Global scenario of edible oil 08
1.2 Global Edible Oils Market Dynamics 10
2. Research Objectives 13
3. Scope of Research 15
4. Literature Review 17
5. Research Methodology 24
5.1 Research Design 25
5.2 Sample Design 25
5.3 Sample Size 25
5.4 Data Resources 25
5.5 Sample Frame 26
5.6 Sample Area 26
5.7 Research Instrument 26
6. Executive Summary 28
7. Indian Edible Oil Market 30
7.1 Key Points of the Indian edible oil industry 30
7.2 Commonly Used Oil Types in India 32
7.3 Edible Oil consumption pattern in India 33
7.4 Features of the edible oil industry in India 34
7.5 Government launched Initiatives 34
7.6 Indian Import Market and its Trends 36
7.7 Indian Export Market and its Trends 36
7.8 Recent developments 38
8. Characteristics of the edible oil market in India 40
8.1 Market share based on the variant of edible oil 40
8.2 Edible oil packaging type, material and size 41
8.3 The current state of the edible oil industry 41
8.4 Market Segmentation 41
8.5 SWOT Analysis of the Indian edible oil industry 42

2
9. Research Results and Findings 45
9.1 Demographical Findings and Results 45
9.2 Factors influencing purchase decision 48
9.3 Findings in Terms of Brand Preferences 53
9.4 Findings Pertaining to Health Consciousness 57
10. Conclusion and Recommendations 60
11. Bibliography 63
12. References 65
13. List of Figures and Tables 66
13. List of Charts 67
14. Annexure 1 69

3
 CERTIFICATE

This is to certify that the thesis entitled “A Study of the Indian edible oil market and
factors influencing consumers’ purchase decisions” submitted for the partial fulfilment
of the requirements for the award of the degree of MBA in Food and Agribusiness
Management to the Integral University, Lucknow is a formal record and original research
work carried out by a bonafide student, Sajal Kumar Sharma, Enrollment No
2100103928 under our guidance and supervision and no part of this thesis has been
submitted for any other degree.
Further, the assistance and help received during the course of research work has been duly
acknowledged.

Name and Signature of Advisor

Designation: Professor
Affiliation: ISAB, Greater
Noida
Forwarded by:
Dean/Head

4
 DECLARATION

I hereby declare that the present thesis entitled “A Study of the Indian edible oil market
and factors influencing consumers’ purchase decisions” embodies the original research
work carried out by the undersigned and has not been published and/or submitted elsewhere
for the award of any degree.

Dated- Signature

Sajal Kumar Sharma

5
 ACKNOWLEDGEMENT

It is a matter of great pleasure to recall the path one traversed during the days of hard work
and perseverance. I would consider this work nothing more than incomplete without
acknowledgement of the overwhelming support I received during this endeavour.

I consider myself fortunate to have been able to work under the guidance of Dr Agyeya
Tripathi (Professor, Imperial School of Agri Business, Greater Noida). I express my deep
sense of gratitude to those who spared time and shared knowledge during my study from their
hectic schedule and for their most valuable advice, discussion, supervision, constant
inspiration, submitted interest, eminent guidance, and encouragement throughout my research
work. Without their support and scholarly guidance, this work would not have seen the light
of the day.

I am also thankful to the teaching staff of the Imperial School of Agri Business, Greater
Noida for their kind support and guidance.

I express my sincere gratitude to all respondents surveyed for their timely and substantial
help and cooperation in providing the necessary information.

My heart is filled with joy to express thanks to my loving parents, who are my constant
source of untiring energy in my life and responsible for what I am today.

Finally, I would like to extend my gratitude to all those who have helped me directly or
indirectly in completing this research work.

Place: Greater Noida Sajal Kumar Sharma

Date: MBA-FABM

(2021-23)

6
 CHAPTER 1 - INTRODUCTION

Edible oils are extracted through a series of processes from various sources such as plant
seeds, nuts, fruits etc. They are commonly utilised in culinary and non-food applications to
substitute animal fats and petrochemicals. They are used to make bactericides, cosmetics, and
medicines, among other things. Furthermore, edible oils are extensively used in the creation
of a variety of meals across the world because they provide health advantages like lowering
the probability of cardiovascular disease, increasing metabolism and digestion, and lowering
cholesterol levels. They also contain key nutrients such as vitamins and fatty acids, and hence
they are employed as a foundation component in the manufacture of gourmet specialities
throughout the globe.

Vegetable and edible oil play an integral role in the culinary world, serving as a fundamental
ingredient in cooking, baking, and food preparation. They are derived from various plant and
animal sources and are widely used for their flavour-enhancing properties, nutritional
benefits, and cooking versatility. The introduction and utilization of edible oils have a rich
history that spans cultures and centuries.

Historical Background:

Edible oils have been used for thousands of years. The Egyptians, Greeks, and Romans
recognised the benefits of oils obtained from plants such as olives and sesame seeds. Olive oil
and mustard oil, in particular, have a long and important history, having been widely eaten
and cherished in Mediterranean and Harappan societies.

Throughout history, different regions and cultures developed their unique edible oils based on
plants that were locally abundant. For example, in India, oils like mustard, coconut, and
sesame have been integral to traditional cooking for centuries. In East Asia, oils such as
soybean, peanut, and sesame are widely used. It is believed that Mexico and North America
were the geographies from where peanut and sunflower oil originated. A similar belief is
bestowed in Southern Europe, where cultures developed the globally popular olive oil.

Production and Sources:

Edible oils are extracted from various plant and animal sources through different methods.
Plant-based oils are predominantly obtained through processes like pressing or solvent
extraction. Seeds, nuts, fruits, or grains serve as the primary sources for extracting oils.

7
Common plants or plant products that become the source of edible oils include olive,
coconut, canola, soybean, sunflower, palm, corn, and peanut.

Animal-based oils, although less commonly used today, were historically significant.
Examples include butter and ghee, which are derived from milk, as well as lard and tallow
from animal fats. These oils were often employed in traditional cooking methods and added
unique flavours to dishes.

Uses and Culinary Applications:

Edible oils serve a multitude of purposes in cooking and food preparation. They are
commonly used for frying, sautéing, baking, and as a base for salad dressings and marinades.
Each type of oil possesses unique flavour profiles and properties, making them suitable for
specific cooking techniques or dishes. For instance, olive oil is renowned for its distinctive
taste and is often used in Mediterranean cuisine, while the high smoke point of peanut oil
makes it suitable for deep-frying.

Nutritional Aspects:

Edible oils provide vital fatty acids and fat-soluble vitamins, which contribute to a healthy
diet. While their fat concentration provides a concentrated source of energy, they also include
beneficial components such as monounsaturated fats, polyunsaturated fats, and antioxidants.
Edible oils vary in composition and nutritional value, and people typically pick oils
depending on their personal dietary needs or preferences.

Health Considerations:

The consumption of edible oils should be mindful of overall dietary requirements and health
considerations. Some oils contain higher levels of saturated fats, which, when consumed in
excess, may contribute to health issues like heart disease. Choosing oils with healthier fat
profiles, such as those rich in unsaturated fats, can be beneficial. Additionally, moderation
and portion control are essential for incorporating oils into a balanced diet.

1.1 Global scenario of edible oil

The worldwide edible oil sector was evaluated to be US$ 255.2 billion in 2022, and it is
expected to rise at a 5% CAGR between 2023 and 2028. Consumption of edible oil
worldwide is expected to rise to 87 MMT (million metric tonnes) by the year 2026, an

8
increase from 85 MMT (million metric tonnes) in the year 2021.

Figure 1 - Global Vegetable Oils production by country.

(Edible Oil Market Outlook 2022-26, 2022) states that India is the greatest consumer, with
13.7 million metric tonnes. China is placed second, followed by the United States and Brazil,
in that order. Edible Oil is a Processed Food subcategory that contains oils such as Olive,
Sunflower, Soybean, Cottonseed, Palm, and other oils.

Vegetable Oils Market Size Volume Share by

Country (Thousand Metric Tons) in 2021
18.00
16.00
16.22
14.00
14.54
12.00
10.00
8.00
6.00 7.77
4.00 5.12
2.00 3.90
2.79 2.49
0.00
India China United States Brazil Indonesia Russia Nigeria

Chart 1 - Size of Global Vegetable Oil Markets by Volume (expressed in thousand metric
tons).
As per (Edible Oil Market Outlook 2022-26, 2022), the supply of edible oil is predicted to
rise to 233 MMT (million metric tonnes) by the year 2026, an increase from 221 MMT
(million metric tonnes) in the year 2021. The leading producer was Indonesia, at 52 MMT

9
(million metric tonnes). China is ranked second, Malaysia is ranked third, and the United
States is placed fourth.

Thousand Metric Tons

236000.00
234000.00 233362.58

232000.00 230890.69
230000.00 228368.35
228000.00
225794.53
226000.00
224000.00 223168.19

222000.00
220000.00
218000.00
2022 2023 2024 2025 2026

Chart 2 - Global forecast of production of Vegetable oils.

1.2 Global Edible Oils Market Dynamics

DRIVERS

1. Growing demand for edible oil as a result of its unique applications - The demand for
palm oil is rising due to its distinctive uses such as smooth and creamy texture,
exceptional cooking characteristics, and lack of odour, which are projected to fuel the
market's growth rate. According to research published in 2021 by 'The Conversation,' the
globe utilises palm oil more than any other vegetable oil since it is less expensive than
other oils. The African oil palm may produce 10 times the amount of palm oil per hectare
as soybean oil.
2. Growth and expansion of fast food are increasing the demand for edible oils - The
changing lifestyle, rising number of working women, and culinary taste are some of the
primary reasons driving the global demand for fast food. The primary goal of fast food is
to please consumers by providing quick service. They are easily made and served using
energy-saving cooking methods, which increase palatability due to crust formation, fat
absorption, and pleasant flavours and aromas. Frying is a popular way of preparing quick
dishes all around the world. Because it has the right chemical composition, oil such as
edible oil is used to fry food, resulting in tasty meals. As a result, it increases demand for
edible oil and is likely to fuel market expansion.

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OPPORTUNITIES

1. Consumers' health concerns are growing - Nowadays, people are very concerned
about their health, therefore they choose organic goods such as edible oils, which is
projected to open up various chances for market growth. The market is expanding due to
rising demand for edible oils with reduced cholesterol, calories, and fat content. This is
due to the rising incidence of lifestyle diseases such as cardiovascular disease, diabetes,
and obesity. Due to the health concerns amongst consumers, the edible oil market
expansion will be fuelled by healthier versions of the existing and newer edible oils.
2. Key firms are expanding their edible oil capacity - One of the primary growing trends
in the worldwide market is capacity expansion by major producers to meet the rising
demand for edible oil throughout the world. As per (The Hindu Business Line, 2019)
Emami Agrotech, for example, intended to invest around Rs 700 crore in capital
expenditure to create edible oil capacity in August 2019. Following the capacity
extension, the company's edible oil capacity will increase to 10,000 tonnes per day from
6000 tonnes per day. Thus, rising edible oil capacity expansion by manufacturers would
generate profitable chances for market growth throughout the forecast period.

LIMITATIONS

1. Increasing market acceptance of new guidelines and high market costs - The growing
customer desire for edible oils has compelled large corporations to pursue competitive
positioning in order to remain competitive in the edible oils industry. Furthermore, this
has a significant pricing impact. These aspects are expected to slow the market growth of
edible oils. Furthermore, amendments in food safety rules and regulations is affecting
relevant businesses to improve production processes and remain compliant with food
safety requirements. This may cause many issues in the production process and increase
total costs, stifling market expansion.
2. The Impact of Economic Slowdown on Product Pricing and Availability – The
industry is facing significant challenges due to economic downturns resulting from the
Russia-Ukraine war and the anticipated global recession. These economic crises have had
a detrimental effect on product pricing and accessibility. Additionally, supply chain
disruptions further contribute to the difficulties faced by the industry. These combined
factors have resulted in decreased consumer confidence, reduced investment in new
projects, and an overall challenging operating environment. Businesses are grappling with

11
increased costs and decreased revenue, while small businesses, in particular, struggle to
survive amidst the existing inequalities within the industry.
3. Impact and Current Market Scenario of Raw Material Shortage and Shipping Delay –
Various aspects such as the supply chain disruption during Covid, the Russia-Ukraine war
and the upcoming global recession have led to aberrations in the raw material shortage
and massive delays in delivery of shipments throughout the world. (Dutta, 2022) clearly
states that more than 70% of India's crude edible oil need is covered by imports, while in
the case of sunflower oil, India is heavily reliant on imports from Russia and Ukraine,
which account for 90% of total demand which got affected since the onset of war between
the countries.

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 CHAPTER 2 - RESEARCH OBJECTIVES

Research objectives are defined goals that drive the study process and explain the researcher's
ambitions. They give clarity and direction, directing the research towards a certain goal.
Exploring relationships between variables, describing phenomena, identifying trends,
assessing the effectiveness of interventions, testing theoretical frameworks, investigating
factors influencing outcomes, comparing approaches or methods, or making
recommendations are all examples of research objectives.

These goals assist researchers in collecting data, analysing information, and drawing
conclusions, ensuring that the study adds to knowledge and answers the research subject or
problem at hand.

The research objectives for a study of the Indian edible oil market and factors influencing
consumers are aimed at gaining a comprehensive understanding of the market dynamics and
consumer behaviour in order to provide valuable insights and recommendations. The
following objectives outline the key areas of focus for the study: -

1. To study and analyse the current scenario of the edible oil market in India - This
objective entails conducting a detailed assessment of the market size, growth rate, and
segmentation of the Indian edible oil industry.
2. To assess the challenges of the edible oil market - This objective aims at
understanding the challenges faced by the industry faced at various levels that directly or
indirectly affect the value chain, pricing etc. of the industry.
3. To know the consumers' most preferred oil brand and edible oil variant – With a
variety of edible oil variants and brands available in the Indian market, the study tries to
assess which is the most popular amongst the masses.
4. To examine the present shopping behaviour of the customers for the preferred oil
brand - Consumer preferences and tastes regarding edible oils can vary over time,
influenced by factors such as health trends, cultural factors, and marketing campaigns.
Analysing such factors and the customer responses to such factors is critical for any
business, or professional operating in the industry.
5. To understand the gender-wise composition of the consumers – Understanding this
component would help in analysing the prominent gender in terms of making the
purchase decision of edible oil.

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 6. To know the factors influencing the decision to purchase an oil brand – This objective
aims at gathering insights on why a particular brand is bought by the customers and how
certain qualities are perceived with a brand by customers.

By addressing these research objectives, the study of the Indian edible oil market and factors
influencing consumers will contribute to a deeper understanding of the market dynamics,
consumer behaviour, and trends in the industry. The outcomes of the study will provide
valuable insights to industry players, policymakers, and other stakeholders, enabling them to
make informed decisions and enhance their strategies in this competitive market.

14
 CHAPTER 3 - SCOPE OF RESEARCH

Customers differ in age, wealth, education level, and taste throughout the country, and
understanding how all these elements influence customer purchase decisions is never
straightforward. Today, the Indian industry of edible oils is highly fragmented, due to the
presence of a plethora of players from both organised and unorganised sectors, which has
resulted in harsh competition. As an aftermath, oil companies in India have changed their
focus towards understanding consumer choices in a better manner and organizing product
ranges to achieve structured brand management to gain market competitiveness and
profitability.

In addition to this, the coronavirus pandemic has led to changes in consumer behaviour,
particularly in relation to food choices. Consumers have become more conscious of the health
benefits of the food they consume, with many people seeking out products that offer immune-
boosting properties. This trend has implications for the edible oil industry, which is an
essential ingredient in many food products.

The scope of the study encompasses various aspects related to the consumption patterns,
preferences, and decision-making processes of consumers in India, as well as the Indian
edible oil market’s dynamics.

To begin, the research will look at the present state of the Indian edible oil market, such as its
size, growth rate, and main players. It will examine the market share and popularity of
various edible oils available on the market, such as mustard, soybean, sunflower, palm, etc.
This research would aid in identifying the market's major players and comprehending the
competitive landscape.

Furthermore, the research would aim to identify the key factors that influence consumers'
choices and preferences when it comes to edible oils. This would involve studying consumer
behaviour, attitudes, and perceptions towards different types of edible oils, including their
nutritional value, health benefits, taste, price, and brand reputation.

The research would also investigate the impact of socioeconomic factors on consumer
behaviour in the Indian edible oil market. This would involve analysing the influence of
income levels, education, occupation, and geographical location on consumers' oil
consumption habits and preferences. Moreover, the study would explore the role of

15
demographic factors, such as age, and gender, in shaping consumers' choices regarding edible
oils.

Another important aspect of the research would involve investigating the impact of health
and nutrition awareness on consumers' edible oil choices. With increasing awareness about
the health risks, understanding the role of health-consciousness and nutritional considerations
in consumers' decision-making processes would be crucial.

Furthermore, the research would aim to identify emerging trends and opportunities in the
Indian edible oil market. This could include exploring the growing demand for organic or
cold-pressed oils, the rise of e-commerce platforms for oil sales, and the potential for product
innovation and differentiation. Understanding these trends would help edible oil companies
and other stakeholders in devising effective marketing strategies and business plans.

Overall, the scope of research on a study of the Indian edible oil market and factors
influencing consumers is wide-ranging and interdisciplinary. It combines elements of market
research, consumer behaviour analysis, socioeconomic studies, health and nutrition analysis,
and policy analysis. By comprehensively examining these factors, the research would provide
valuable insights and recommendations for edible oil companies, policymakers, and other
stakeholders in the Indian market.

16
 CHAPTER 4 - LITERATURE REVIEW

According to (Singh & Verma, 2020) , Sunflower oil is popular among consumers because it
is excellent for the heart and maintaining cholesterol levels; soybean oil is popular among
consumers because it is low in calories and is frequently suggested by physicians (due to the
fact that it reduces the risk of cardiovascular diseases) and merchants (due to the fact that it is
widely available, affordable, has a neutral flavour and a high smoke point). Apart from price
and packing size, groundnut and cottonseed oil are favoured due to their colour and aroma.
Cottonseed oil and palm olein oil are usually consumed by low-income people, whereas
mustard oil is consumed for its taste and pungency. Consumers frequently favour edible oil
characteristics such as nice scent, traditional usage, colour, light touch, and health
advantages.

According to (Dhyani, 2018), The findings indicate that the quality, brand, and price of
edible oil are the most significant product-related characteristics used to make purchasing
decisions. Personal factors such as weight control, heart health, and budget are also identified
as major predictors of purchasing behaviour. According to the survey, respondents are very
interested in sales promotional efforts and the availability of edible oil. Brand ambassadors
and ads also play an important influence in the selection of edible oil. The consumption
pattern also influences purchasing decisions, such as quantity purchased, occasions, and so
on. A buyer's demographic profile also influences their purchasing decisions.

According to (Gautam S. , Sharma, Gautam, & Gautam , 2019), Cropping system

demonstrations, maximising returns per unit area, time, and input, cluster area approach,
closing the various levels of gaps through efficient resource use management, effective
integration of all research and development agencies, success story generation, replication of
success stories by utilising successful farmers as trainers and successful farms as classrooms,
and use of the revolving fund for pro bono services are examples of illustrative solutions.
Better enforcement of regulated markets, growth of appropriate market institutions, forward
marketing and contract farming implementation, and market integration promotion should all
be prioritised. Price incentives for edible oil shortages, better management of edible oil price
fluctuation risk during storage, improving information quality and efficiency, rewarding
higher quality produce, strengthening quality regulations, and increasing earnings from
oilcake and oil meals should all be prioritised.

17
According to (Santhakumari & Pushparani, 2016), The difficulties present in edible oil
marketing are Limited raw materials, Low skilled and semi-skilled labour, Lock-outs in
factories and strikes, Abnormal activities occurring in the industries such as fire, natural
calamities, etc., Difficulties in channel distributions, Delay of interstate goods movement,
Strikes while transporting the goods, Unutilized capacity, Absence of cooperative unit,
Ineffective production methods, Cost of production, Government subsidy, Sales tax, Power
problem in the industry, and Importing or marketing the edible oils.

According to (Gautam, Sharma, & Gautam, A Survey of Edible Oil Policies and Market in
India, 2008), Over the last few years, major local and global corporations have consolidated
ownership of oilseed processing operations. Short-term causes, notably financial turmoil in
the business following many bad harvests, appear to be driving the trend. However, these
larger firms are responding to the opportunity to reduce costs and increase profitability, as
well as the allure of engaging in a vast and developing market.

According to (Govindaraj, Suryaprakash, Sivaramane, & Murali, 2016), The amount of oil
consumed per person per month in rural and urban areas between 1987–1988 and 2009–2010,
respectively, tripled and doubled, indicating that the consumption of edible oils increased
more quickly in rural than in urban areas. However, per capita consumption was higher in
urban than rural areas, probably as a result of disparities in wealth and the variety and
quantity of food products that urban and rural families ate. In both rural and urban regions,
spending on conventional peanut oil has drastically decreased over time while spending on
Other Edible Oils (OEOs) has significantly grown. In both urban and rural regions, sunflower
oil appeared as the most popular and consumed edible oil by families, followed by peanut oil.
The least popular oils on the market right now include rice-bran oil, soybean oil, and maize
oil.

According to (Batra & Lister, 2010), Vegetable and oilseed processing has not yet proven to
be as lucrative in India as its imported equivalents. Consolidating small plants can increase
local output through improved efficiency, cheaper production costs, and economies of scale,
reducing reliance on imported edible oil. Farmers' motivation to cultivate oilseeds would be
improved by higher income and returns. In order to make more of its production capacity
usable, India will also need to update its crushing facilities.

According to (Rajanevi & Ramasamy, 2011) Consumers do not see a need for cooking oil as
a result of an advertisement, but they do regard an advertisement as a significant source of

18
information. As a result, it is suggested that commercials be employed exclusively to raise
brand recognition among prospects. When purchasing cooking oil, customers place a larger
value on health benefits and brand image than on other sales promotional methods given by
corporations. As a result, it is advised that cooking oil marketers focus on increasing the
health benefits, quality, and image of the brand of the cooking oil rather than mainly focusing
on sales and the promotional efforts associated with it.

According to (Dey, 2017) Consumer behaviour is complex, and it is not always accepted as
reasonable. Consumer personalities that differ across borders and across regions will be a
concern in the future. The vulnerable client, who may not have as many alternatives as the
average consumer, must also be considered. In terms of the market, the people of India are
split into several client segments based on class, position, and income. The expansion of the
rural market and the market for organic products for a variety of consumer goods is an
important and recent development in India's consumerism. Rural India is home to three-
fourths of the population and accounts for one-third of the national GDP; thus, it should not
be avoided. Finally, it is critical to deliver value while also satisfying the customer.

According to (Chandni & Srivastava, 2021), Customer Care contributes to Customer

Satisfaction, and the data indicate that the majority of respondents feel that price has a large
influence on purchase intentions, whilst health consciousness and ingredients have just a
minimal impact. As per the data analysis performed, most of the consumers in the Lucknow
district preferred Saffola1, after that the next choice was Borges2 and the third choice of the
consumers came out to be Patanjali3.

According to (Pandey, Kumari , & Kumari, 2021), Price influenced almost half of the
respondent’s purchasing decisions, followed by brand name accounting for almost a quarter,
taste, and other variables accounting for minuscule percentages. Only a handful of
respondents regarded health factors to be an important factor in purchasing decisions. The
majority of respondents were unaware of the benefits of using healthy cooking oil. As a
result, there is an urgent need to increase public knowledge of the health dangers associated
with cooking oil. Customers should choose edible oils with a high MUFA content and a

1
Saffola is an edible oil brand in India owned by Marico Limited, an Indian multinational consumer goods
company.
2
Borges is an edible oil brand based out of Spain, which commercialises 15% of the world's organic olive oil
output.
3
Patanjali is an edible oil brand in India owned by Patanjali Ayurved, an Indian multinational conglomerate
holding company 19
balanced PUFA content, since both provide health benefits when ingested at the appropriate
amounts. Customers' preferred edible oil must have a high smoke point in order to be used for
frying without jeopardising the oil's benefits. If at all possible, we should select oils that have
additional health benefits, such as fortified oils with Vitamin E, Omega-3, and Omega-6.
Because olive oil is pricey, a potential alternative is ground nut oil, which offers similar
health benefits to olive oil.

According to (Mittal , 2018), The Consumption of edible oils is shifting from conventional
to non-traditional oils. Groundnut oil consumption is declining, whereas OEO consumption is
increasing. In terms of consumption, non-traditional oils such as rice bran, sunflower and
soybean oil, and other edible oils have gained popularity. The preference for novel oils, as
well as the overall increase in per capita edible oil consumption, are expected to intensify in
the coming years. Overall population expansion, changes in eating patterns, improvements in
per capita income, and improved health consciousness have been recognised as important
causes for the general increase in edible oil consumption. Productivity increase through the
adoption of frontier technologies is critically needed, particularly in household-favourite
edible oil crops such as sunflower and rice bran, where horizontal growth is limited. The
Indian growth narrative is intact, and our demand will climb more.

According to (Narayan, 2016), To boost stagnant growth, the Indian government must
implement big reforms in oilseed agriculture. This is essential to ensure the country's self-
sufficiency in the edible oil segment, as consumption of edible oils will continue to rise due
to rising per capita income levels and improved living standards and the domestic net edible
oil availability growth rate accelerated at 2.19 per cent less than total edible oil availability
growth rate accelerated at 7.09per cent from 2005-06 to 2013-14. Paying farmers specific
incentives to convert from surplus grains growing to oilseed cultivation is another option. To
spur stagnating development, the Indian government must execute major changes in oilseed
agriculture, and the greatest alternative for increasing output is groundnut, which requires an
expansion in the groundnut area during the Rabi/Summer season. There was untapped
potential and opportunity in Tamil Nadu to increase groundnut likes productivity to more
over 3500 kg/ha, which could be accomplished in all groundnut-producing states in India
during the Rabi season.

According to (Dohlman, Persaud, & Landes , 2003), With its large population and
continuous rapid economic expansion, India's total and per-capita edible oil consumption is

20
likely to rise significantly over the next few decades. The extent to which rising demand is
met by imports, as well as the types of oil imported, will be greatly influenced by India's
trade and agricultural policies, however imports are projected to remain high for the
foreseeable future. With affordability being the primary concern of Indian consumers and
importers, palm oil is likely to maintain its market domination.

According to (Lodhi, Masih, Sonkar, & Handibag, 2022), According to the research, edible
oil packaging influenced 62.7% of consumers on occasion, whereas 1.8% of respondents
were not influenced at all. Soya bean oil was chosen as the favourite oil variation by
consumers (55.5%), while the bulk of cooking oil purchases were made by family members
(56.4%). The majority of respondents (39.1%) purchased edible oil from a local grocery
shop, and the majority of customers (33.6%) favoured edible oil packing material. The
majority of people in Madhya Pradesh choose peanut oil and refined oils. In Maharashtra, the
majority of people prefer peanut oil, whilst mustard oil is the most popular alternative in
Uttar Pradesh.

According to (RS & Vakayil, 2019), Consumer awareness, understanding, and exposure to
edible oil are growing as a result of increased education, urbanisation, and an increase in
communication facilities. Despite the fact that the edible oil industry is very competitive and
that customers are more price-conscious, packaging has a considerable impact on consumer
purchase behaviour.

According to (Ali & Begum, 2019), Families having low monthly income purchase non-
branded/loose edible oil whereas families having medium and high monthly incomes prefer
to consume branded oils. Almost every household respondent was familiar with sunflower oil
and its derivatives, such as rice bran oil, soy oil, and so on, but coconut oil is consumed by a
small percentage of household respondents. Many households choose groundnut oil, despite
the fact that it is quite pricey. A sachet of edible oil piqued the eye of an elderly consumer.
Home customers are less interested in knowing about components, net weight, nutritional
benefits, expiration date, and so on.

According to (Arya, Vikash, & Kiran, 2021), The most crucial factor in brand choosing,
according to the respondents, is health. There is no strong brand loyalty for edible oil
consumption because the majority of respondents change their oil for greater health.
Consumers' primary sources of information on edible oil are television advertising and
newspapers. However, it should be noted that while advertising does not create a need for

21
cooking oil in the minds of prospects, it does serve as a key source of information. When
purchasing cooking oil, consumers emphasise the health advantages and brand image of the
cooking oil over other sales promotional techniques provided by corporations. As a result,
rather than focusing just on sales promotion, it is recommended that cooking oil marketers
focus on boosting the health advantages, quality, and brand image of the cooking oil.

According to (Tyagi, 2014), Today's digital marketplace revolution enables for far more
customisation of products, services, and promotional messaging than previous marketing
tools. It allows marketers to collect and analyse more sophisticated data on customer
purchasing habits and personal traits. Conversely, the same technologies enable consumers to
access more information about items and services, including pricing, easy availability, and, in
most cases, from the comfort of their own homes. The FMCG fight victors, on the other hand,
will create more complicated but significantly perceptive models and utilise technology to
create a flexible supply chain, innovative items, and marketing concepts, and fulfil even more
consumer needs. In addition, in order for the business to reach its full potential, the
government must provide an enabling environment and address a number of urban
challenges.

According to (Narayana, Sarabhai, & Khan, 2014) Customers favour the soybean and
mustard oil variants. As a result, marketers may leverage current health awareness to
encourage customers to embrace alternative edible oil variations in addition to the sunflower
variety. Consumers aged 26 to 35 are looking for their favourite oil brands, and most of them
are men. According to the research, the most significant factors influencing purchase
decisions are brand image, price, health consciousness, and the quality of a certain brand, and
so the marketer's value proposition and positioning should focus around health and value for
money. According to the report, few oil buyers choose one-litre pet bottles over five-litre jars.
As a result, businesses must begin and focus on making these product variations as widely
available as possible, because brands with the most exposure and availability are more likely
to produce sales.

According to (Joshi, 2019), Indian Brand Equity Foundation research shows that FMCG
companies in India are performing better than other MNCs globally. The top seven FMCG
firms in India contributed over $11.1 billion in US dollars during the fiscal year 2015–16.
The findings of the study show the significance of each of the five elements, namely
consumer innovativeness, perceived risk, parent brand reputation, perceived fit, and brand

22
extension. The influence of advertisements on brand equity and brand expansion are both
significant. Fortune, a well-known FMCG brand in India, sponsored the study because it
consistently promotes itself through advertising, sales promotion, social media marketing,
email marketing, and other channels. Fortune has significant exposure as a result.

23
 CHAPTER 5 - RESEARCH METHODOLOGY

The methodical and structured strategy used by researchers to conduct their study and collect
pertinent data is referred to as research methodology. It includes the general design as well as
the methods, strategies, and equipment employed in the research process. The technique used
for research is determined by elements such as the study question, objectives, data needs, and
accessible resources.

It is impossible to overstate the importance of research methodology. The following are the
key reasons for its importance-

1. Strict and systematic approach: Research methodology provides a systematic framework

that leads researchers through data collection, analysis, and interpretation. It assures that
the research is well-organized, logical, and structured.
2. Authenticity and reliability of results: A sound research technique contributes to the
validity and reliability of research findings. Researchers may improve the quality and
consistency of their results by using proper research methods, sampling strategies, and
data analysis procedures.
3. Ethical considerations: Ethical norms and principles must be followed by researchers
when doing a study. It guarantees that research is performed with integrity, that
participants' rights and welfare are protected, and that confidentiality and privacy are
maintained.
4. Replicability and generalizability: A clearly defined research technique allows other
researchers to duplicate and evaluate the findings. It also provides for generalizability,
which makes it easier to apply study findings to broader groups or similar circumstances.
5. Efficiency and resource optimisation: Research methodology supports researchers in
making the best use of resources such as time, money, and people. Researchers may
simplify their efforts and maximise the value of their study by using proper research
methodologies and procedures.
6. Advancement of understanding and knowledge: A solid research technique adds to the
growth of knowledge in a certain sector. It offers a disciplined technique to exploring new
topics, testing ideas, developing new theories, and adding to current knowledge.

In conclusion, research technique is critical for assuring study quality, dependability, and
validity. It provides a systematic method to data collecting and analysis while upholding
ethical norms and advancing knowledge. A well-designed research technique increases the

24
legitimacy and significance of research findings while also contributing to the broader body
of knowledge in a particular sector.

This study was conducted to learn about brand preferences and the factors that influence
purchasing decisions for edible oil. This will entail selecting a research region, selecting
respondents, sampling procedures for collecting main and secondary data, and statistical tools
for assessing data related to the study's purpose. These elements, as well as the pertinent
information, have been discussed.

5.1 Research Design

A descriptive study was utilised, which is used to correctly characterise the features of an
individual, group, or specific scenario. Descriptive research is one in which data is gathered
without altering the environment. A descriptive study in human research gives information
about a certain group's naturally occurring health state, behaviour, attitude, and other
characteristics.

Because most social research is done in this category, accuracy is the most important benefit
of this sort of study. As a result, descriptive research minimises bias while increasing
dependability.

5.2 Sample Design

It is based on convenient sampling irrespective of age, education & geographical belonging.

The only criteria were that the person should be an Indian resident and must be associated
with the consumption of edible oil.

5.3 Sample Size

This refers to the number of entities chosen from the universe in order to create a sample.

The sample size for the primary research was 161 people who were chosen irrespective of
their age, gender, geography, and income etc.

5.4 Data Sources

To explore the objectives, data were gathered from both primary and secondary sources.

Data for the research work was obtained from respondents using pre-structured
questionnaires.

25
1. Primary Data- Original data obtained personally by researchers for their research work is
referred to as primary data. It is specific to the research project and is obtained by
surveys, interviews, observations, or experiments. Primary data is not previously
published or analysed by others and gives direct and new insights into the study issue.
The data for the study were gathered from respondents from various Indian states. The
respondents were reached by phone and over the internet. During the completion of the
questionnaires, all information on the usage, interest, and numerous varieties of edible oil
available in the Indian market was collected in an Excel sheet.
2. Secondary Data- Secondary data is data that has already been obtained for a reason other
than the present research work. It incorporates information from a variety of sources,
including government papers, academic publications, industry statistics, and past research
investigations. Secondary data is evaluated and interpreted by researchers to obtain
insights and support their own study aims. Secondary data was gathered from the internet,
journals, published research papers etc.

5.5 Sample Frame

Before picking a sample, a decision on a sampling unit has been made; the sampling frame
may be geographically one district, town, etc. It is a list of sampling units or elements from
which the sample or a portion of the sample is drawn or selected.

As a result, the sample frame used in this research study is that of the Indian subcontinent,
which includes all states and districts in the country.

5.6 Sampling Area

Respondents were from all over India and the respondents belonged to rural and urban areas
of India.

5.7 Research Instrument

The questionnaire is not formally separated into sections, but it can be seen that there are two
areas, namely, the general background of respondents and consumer behaviour and use of
edible oil.

The questionnaire (Annexure 1) has 16 questions in total, including basic background

questions for responders. The questionnaire for respondents was designed to capture as much
information as possible on their demographics, purchasing motivations, preferences,

26
consumer awareness, and consumption habits, among other things. The questionnaires were
filled out on a personal basis when the correct data-gathering plan was designed.

The physical meetings were a relief and a boost to the existing virtual meetings due to Covid-
19. These physical or rather in-person meetings made it easy to connect with the respondents
and have a better grasp of their mindset and understanding regarding the subject matter.

27
 CHAPTER 6 - EXECUTIVE SUMMARY

This executive summary provides an overview of thorough study on the Indian edible oil
market, with a focus on the factors that influence customer purchasing decisions. The study
looks at the current state of the Indian edible oil industry, as well as client preferences and the
primary factors impacting purchasing decisions.

The Indian edible oil sector has risen dramatically in recent years, owing to factors such as
increasing population, changing dietary habits, and growing disposable incomes. The market
is intensely competitive, with both domestic and foreign players vying for a piece of the
action. Understanding client behaviour and purchasing decisions is essential for creating a
competitive edge.

The study employed a mixed-methods strategy that incorporated quantitative surveys and
qualitative interviews to gather comprehensive insights into customers' likes and behaviours.
A representative sample of clients from diverse demographic groups and geographical
locations was recruited for the study.

The study's key findings reveal that customers evaluate a variety of criteria while making
edible oil purchasing decisions. Price was shown to be an important consideration, with the
majority of buyers preferring affordability without sacrificing quality. Furthermore,
consumers prioritised oils thought to be healthier, which emerged as a key driver.

Furthermore, the study found that branding and packaging have an important effect in
customer decision-making. Brand recognition and physically appealing packaging were
discovered to instil trust and attract customers. Furthermore, availability affects buying
decisions to varied degrees.

Several recommendations may be given to edible oil makers and marketers based on the
findings. To begin, pricing strategies must achieve a balance between price and quality. The
health advantages of edible oil products may be communicated through clear and transparent
labelling, which can assist appeal to the expanding health-conscious customer sector.
Investing in branding and packaging activities may promote brand awareness and customer
trust, resulting in a larger market share.

Continuous market research is advised to stay competitive and react to changing customer
preferences. As online shopping becomes more popular in India, future research should look
into the influence of digital platforms and e-commerce on edible oil buying decisions.

28
Finally, this study gives useful insights into the Indian edible oil business, highlighting the
elements that influence consumer purchasing decisions. The conclusion can help edible oil
makers and marketers better understand customer preferences and modify their tactics to
drive growth and success in this dynamic and highly competitive sector.

29
 CHAPTER 7 – INDIAN EDIBLE OIL MARKET

India's edible oil business is critical to the country's economy and food sector. India is the
world's largest user and importer of edible oils. Cooking, frying, and using edible oil as a
foundation for other culinary preparations are all common uses for edible oil in Indian
cuisine.

As per the report published (Edible Oil Market Outlook 2022-26, 2022), India ranks the
highest in the overall consumption of edible oil and is one of the most prominent players
when it comes to the production of oilseeds. Indian imports of edible oil such as Palm oil,
Sunflower oil etc. make it the largest importer of edible oil in the world. India also acts as a
prominent exporter of oilseeds and edible oils to various nations throughout the globe.

(Oil Division, 2023) found that Rainfed agriculture by small farmers accounts for about 72%
of the oilseed area, resulting in poor yield. However, by adding cutting-edge crop production
techniques, a breakthrough in oilseed output was realised. Oilseed output grew from 108.3
lakh tonnes in 1985-86 to 365.65 tonnes in 2020-21 as a consequence.

India’s oilseed output has grown during the last 5 years. In 2020-21, the country's production
was 365.65 lakh tonnes, a 10 per cent increase over the last year. From FY 2015-16 to 2020-
21, the cumulative annual growth rate (CAGR) of production was 7.7 per cent. This was
attained after the execution of various actions by the Government of India, such as special
Rabi programmes for mustard and rapeseed and cluster demonstrations of superior
technologies.

The major oilseed-producing states in India include Andhra Pradesh, Gujarat, Haryana,
Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, Tamil Nadu, Uttar Pradesh, and West
Bengal. The biggest producers are Rajasthan, Gujarat, Madhya Pradesh, and Maharashtra,
which account for around 20%, 20%, 19%, and 16% of total output, respectively.

The Indian edible oil industry is a dynamic and evolving sector, driven by factors such as
population growth, changing consumer preferences, government policies, and international
trade. With the focus on increasing domestic production, improving quality standards, and
meeting consumer demands, the industry is poised for further growth and development in the
coming years.

30
7.1 Key Points of the Indian edible oil industry

1. Production: India is the world's fourth-largest producer of edible oils (37+ million
metric tons) with 20.8% of the global area under production and produces nearly 10% of
the global production. A significant portion of this production comes from oilseeds such
as groundnut, soybean, mustard, sunflower, and sesame. The major oil-producing states in
India include Gujarat, Madhya Pradesh, Rajasthan, Maharashtra, and Andhra Pradesh.
2. Consumption: India has a large population and massive domestic demand for edible
oils, which makes India the largest importer of edible oil and the largest market for edible
oil in the world. Edible oil is a staple ingredient in Indian households and is used in
various forms such as refined oils, cooking oils, and specialty oils like mustard oil,
sesame oil, and coconut oil.
3. Imports: Despite being a major producer, India still relies on imports to meet its
domestic demand for edible oils. The demand surpasses the domestic production capacity,
leading to significant imports from countries like Indonesia, Malaysia, Argentina, and
Ukraine. Palm oil is India's most widely imported edible oil, followed by soybean and
sunflower oil.
4. Government policies: The Indian government has implemented several policies to
support the edible oil industry and reduce dependence on imports. Initiatives like the
National Mission on Oilseeds and Oil Palm (NMOOP) aim to increase domestic
production, improve oilseed quality, and enhance productivity through research and
development, training programs, and subsidies.
5. Packaging and branding: The edible oil market in India is highly competitive, with
numerous domestic and multinational brands offering a wide range of products.
Packaging and branding play a crucial role in consumer preference. Edible oils are
available in various formats such as pouches, bottles, and cans, catering to different
consumer needs and market segments.
6. Health concerns: In recent years, there has been growing awareness among
consumers about the health aspects of edible oils. Healthier options like olive oil, rice
bran oil, and low-fat oils have gained popularity due to their perceived health benefits.
Consumers are also becoming more conscious of factors such as trans fats, saturated fats,
and cholesterol levels in edible oils.
7. Regulatory framework: The Food Safety and Standards Authority of India (FSSAI)
regulates the standards and quality of edible oils in the country. FSSAI ensures that edible

31
 oils meet the prescribed quality standards and labelling requirements to protect consumer
health and promote fair trade practices.
8. Market trends: The edible oil industry in India is witnessing various market trends,
such as increasing demand for premium and organic oils, the rising popularity of branded
oils, and a shift towards healthier cooking oils. The market is also influenced by factors
like changing consumer lifestyles, urbanization, and increasing disposable incomes.

7.2 Commonly Used Oil types in India

India is fortunate to have a varied range of oilseed crops grown throughout its different agro-
climatic zones. Groundnut, mustard, rapeseed, sesame, safflower, linseed, Niger, and castor
are the most commonly grown oilseeds. Soybean and sunflower have also gained popularity
in recent years. Coconut is the most important of the plantation crops. Palm trees are planted
in Andhra Pradesh, Karnataka, Tamil Nadu, the country's north-eastern states, Kerala, and the
Andaman and Nicobar Islands. Most important non-conventional oils in the country are rice
bran oil and cottonseed oil. Additionally, oilseeds of tree and forest origin, which are
typically found in tribally inhabited areas, are a significant source of oils.

Year Oilseed Net edible oil Imports Edible oil

Production supply from availability in
homegrown total
sources
2010-11 324.79 97.82 72.42 170.24
2011-12 297.98 89.57 99.43 189.00
2012-13 309.43 92.19 106.05 198.24
2013-14 328.79 100.80 109.76 210.56
2014-15 266.75 89.78 127.31 217.09
2015-16 252.50 86.30 148.50 234.80
2016-17 312.76 100.99 153.17 254.16
2017-18 314.59 103.80 145.92 249.72
2018-19 315.22 103.52 155.70 259.22
2019-20 332.19 106.55 134.16 240.71
2020-21 365.65 113.09 148.40 261.49
Table 1 - Figures for estimated output of key cultivated oilseeds, availability of edible oils
from all sources (domestic and import sources), Quantity is expressed in Lakh tons.

32
7.3 Edible Oil consumption pattern in India

India is a large country, and inhabitants of different regions have developed individual
preferences for certain oils, based mostly on the oils available in the region. The South and
West, for example, prefer groundnut oil, whilst the East and North prefer mustard. Rapeseed
oil is one type of oil. Sesame oil and Coconut oil are also consumed in various sections of
Southern India. Locals of the northern plains prefer Vanaspati, which is a partially
hydrogenated edible oil combination of oils such as soybean, sunflower, rice bran etc. Various
unique oils produced from trees and forests have entered the edible pool, mostly via the
vanaspati means. A recent change is observed that all oils have been rendered nearly
colourless (translucent), odourless, and astringent via the use of modern scientific techniques
such as physical refining, bleaching, and deodorization, and are therefore changed frequently
in the households. Oils including soybean, cottonseed, sunflower, rice bran, palm oil and its
liquid fraction- palm olein- have paved their way as a result into Indian kitchens. (Oil
Division, 2023) states that Raw oil, refined oil, and vanaspati4 are anticipated to account for
35%, 60%, and 5% of the whole edible oil market, respectively. The imports contribute to
around 56% of the total domestic edible oil demand, with palm olein/ palm oil contributing
approximately 54%. The use of palm olein 5(refined) and its combination with other oils has
increased dramatically over the years, and it is now extensively used in hotels, restaurants,
and the production of a variety of culinary products.

S. No. Industry Type Number of units registered

1. Interesterified Vegetable and Vanaspati Fats 109
2. Refinery including Solvent Plants & Oil Mills 235
3. Oil Mills & Blended Edible Vegetable Oil Plants 493
4. Solvent Extraction Unit 130
Total 967
Table 2 - Industries of Vegetable Oil registered with the Directorate under the VOPPA(R)
Order, 2011.

4
Vanaspati is a hydrogenated vegetable oil that is often used as a culinary alternative for ghee on the Indian
subcontinent.
5
Palm olein is a liquid fraction of palm oil that is produced through fractionation. Because of its durability and
adaptability, it is extensively used in cooking, frying, baking, and food processing.
33
7.4 Features of the Edible Oil Industry in India

There are two key factors that have significantly contributed to the expansion of the country's
edible oil sector –

1. The first was the establishment of the Technology Mission on Oilseeds in 1986, which
was later renamed the National Mission on Oilseeds and Oil Palm (NMOOP) in 2014.
According to a decision regarding the merger/conversions/linkage of Schemes/sub-
Schemes/programs, etc. with similar components such as incentives for seed, demonstration,
and farm implements including efficient water application tools covered under NFSM and Oil
seeds, the NFSM was revamped in 2018-19. This boosted the government's attempts to
increase oilseed output. This is seen by the very spectacular rise in oilseed output from
around 11.3 million tonnes in 1986-87 to 33.22 million tonnes in 2019-20. The majority of
oilseeds are grown on marginal ground and are highly reliant on rainfall and other
environmental factors.
2. The second dominant feature that has had a significant impact on the current state of
the edible oilseeds/oil industry is the liberalisation programme, which allows greater freedom
to the open market and encourages healthy competition and self-regulation rather than
protection and control. Regulations and controls have been eased, resulting in a highly
competitive market controlled by both domestic and global businesses.

7.5 Government launched Initiatives

The Government of India dedicated 1,500 crore rupees for the upliftment of the oilseed sector
in the Budget 2022-23. Similarly, the programme for edible oil palm received 900 crore
rupees, whereas the oilseed programme received 600 crore rupees.

In the financial year, 2019-20 and 2020-21, the GOI launched numerous schemes and actions
to increase oilseed production, including the National Food Security Mission, demonstrations
of improved technology for oilseeds on a cluster level, Targeted Rice Fallow Area (TRFA)
oilseeds, Programme on Mustard during Rabi, and dedicated programme on rapeseed. These

34
accompanying actions resulted in setting a benchmark in oilseed output throughout these
mentioned years.

• National Food Security Mission (NFSM)

The Oilseeds project helps states and agencies acquire breeder seeds, distribute certified
seeds, and seed treatment drums, among other things. Oilseeds are a significant component of
this initiative, which was launched in 2007. It aims to boost the production and productivity
of oilseeds such as groundnut, mustard, soybean, sunflower, and sesame by different
interventions such as seed distribution, demonstrations, and extension services.
• Directorate of Oilseeds Development (DOD)
In the year 1942, The Directorate of Oilseeds Development (DOD) was established for
overseeing the Programmes for Oilseed Development and Oil Palm Development throughout
the nation as well as in the assigned states of Tamil Nadu, Andhra Pradesh, Kerala, and
Karnataka.
• Indian Oilseeds and Produce Export Promotion Council (IOPEPC)

Founded in the year 1956, the sole purpose of the Indian Oilseeds and Produce Export
Promotion Council (IOPEPC) is to protect and expand the nation’s export of commodities
including oilseeds, vegetable oils, oilcakes etc. In addition to the management of the overseas
business, the council contributes to enhancing the indigenous supply chain by motivating
farmers, sellers, processors, surveyors, and exporters to enhance oilseed quality in India.

IOEPC's tasks include developing and exporting oilseeds, promoting mulching, and resolving
pesticide-related difficulties.
• National Mission on Edible Oils-Oil Palm (NMEO-OP)

Introduced in the year 2014, the mission aims to increase oil palm cultivation in the country
to reduce edible oil imports. It provides financial assistance to farmers for establishing oil
palm plantations, promoting research and development, and creating infrastructure for the
processing and marketing of oil palm products.

• Technology Missions on Oilseeds and Pulses

The Indian government has implemented various technology missions to promote oilseeds
and pulses production. These missions focus on improving seed quality, enhancing
productivity through the adoption of advanced technologies, and creating infrastructure for
post-harvest management and value addition.

35
7.6 Indian Import Market and its Trends

In India, the present rate of edible oil consumption surpasses the rate of domestic production.
As a result, the economy is reliant on imports to compensate for the demand-supply
mismatch. India imports about 55% to 60% of its edible oil requirement, making it the
world's top importer of vegetable oils. In 2021, the country's edible oil import bill is
estimated to be Rs 83,005 crore, up from Rs 59,543 crore the previous year.

India aims to become self-sufficient in oil production in order to fulfil local demand while
also increasing exports in the same category. The Open General Licence (OGL) governs the
import of edible oils. The government examines the tariff structure on edible oils on a regular
basis in order to balance the interests of producers, processors, and consumers.

Figure 2 - Graph of Edible oil imports vs domestic consumption of India.

Palm oil (crude + refined) accounts for around 62% of total edible oil imports, primarily from
Indonesia and Malaysia, while soyabean oil (22%) is imported primarily from Argentina and
Brazil, and sunflower oil (15%) is imported primarily from Ukraine and Russia.

7.7 Indian Export Market and its Trends

36
(Oil Division, 2023) states that India is a significant provider of oilseed products. India
exports soybeans, mustard seeds, groundnuts, sesame seeds, Niger seeds, cotton seeds, castor
seeds, and sunflower and safflower seeds. Indian oilseeds are marketed to countries all over
the world and are exported to the US, UAE, Belgium, Germany, Indonesia, Hong Kong,
Nepal, Saudi Arabia, Netherlands, China, Singapore, Australia and Italy. Indian exports of
oilseeds and value-added items reached Rs. 32,531 crores in fiscal year 2022.

In 2019, the country exported US$ 19 million worth of mustard seeds. The amount sent over
this time period was close to 31.5 million kg. India is a major exporter of mustard oilseeds,
flour and, meals, and for this was ranked fourth in mustard seed exports in 2019. In India's
fiscal year 2021-22, oilseeds were valued at 8,310 crore rupees (US$ 1,003.99 million). In the
month of September 2022, India’s Oilseeds export reached a worth of US$ 59.11 million, a
17.47% increase year on year.

For the financial year 2023 (April-August 2022) groundnut exports from the country totalled
US$ 223.5 million. Within the same time frame, 177,938.21 MT were exported. Gujarat and
Rajasthan account for the majority of groundnut exports from India. Many measures have
been launched by the administration to enhance West Bengal exports. In 2021-22, Groundnut
from the country was exported to more than 80 countries and its main groundnut export
markets were Indonesia, Vietnam, the Philippines, Malaysia, Bangladesh, Nepal, Singapore,
Iran, and others. In the financial year 2023 (April-August 2022), the top importers were
Indonesia, Vietnam, the Philippines, and Malaysia, with total imports of 74,506.54 MT,
30,209.76 MT, 19,600.50 MT, and 19,088.59 MT, respectively. During this time, India
exported US$ 93.52 million in groundnuts to Indonesia.

In 2019-20, exports of Niger seed totalled $15 million, increasing to $22 million in 2020-21.
The United States receives the vast bulk of India's Niger seed shipments. Other popular
destinations for Niger seed include the United Kingdom, Canada, the Netherlands, Spain,
Belgium, Mexico, Algeria, Italy and Brazil. The aforementioned countries, along with the
United States, account for over 98 per cent of total exports from India.

Sesame seed exports from India were $526 million in 2019-20, with the country exporting to
over 125 countries. Sesame importers include Vietnam, South Korea, the United States, the
Netherlands, Russia, Greece, Iran, Taiwan, Germany, and Indonesia. However, due to a lack
of capacity to meet local demand, imports of edible oil are worth more than exports of the
same from India.

37
 Figure 3 - Indian Export vs Import of oilseed products over the years.
7.8 Recent Developments

1. Due to the high reliance on imports for edible oils, India's Department of Agriculture
organised a campaign in 2021 to introduce oil seeds in practically all districts of the
Kashmir division.
2. In 2021, India intends to dramatically enhance its palm oil output in the northeast of
the nation in order to lessen India's reliance on other countries for palm oil. Over the next
several years, the government will invest around US$ 1.5 billion to build 6500 square
kilometres of palm oil plantations across the country.
3. Following Indian Prime Minister Narendra Modi's promise for a self-sufficient India,
or Atma Nirbhar Bharat, Amul entered the edible oil sector in Rajasthan and Gujarat in
2020. With the development of the Janmay line of edible oils, the firms want to lessen
India's reliance on foreign edible oils while simultaneously assisting local farmers.
4. As a centrally-sponsored project, the government of India created the National
Mission on Edible Oils-Oil Palm, which is being implemented jointly by the national and
state governments, with a specific focus on the northeast area and the Andaman and
Nicobar Islands. An additional 6.5 lakh hectares of palm oil land is anticipated by 2025-
26.
5. The Department of Food and Public Distribution's Directorate of Sugar and Vegetable
Oils has created a web-based portal (evegoils.nic.in) for monthly online reporting of
inputs by vegetable oil producers. This has aided the government in making timely and
informed policy decisions to improve the management of the vegetable oil sector. The

38
new method also improves openness in the data management of the vegetable oil business
and the activities of the government. The platform also includes a registration opportunity
as well a submission opportunity for monthly production returns.

39
 CHAPTER 8 - CHARACTERISTICS OF THE EDIBLE OIL MARKET IN INDIA

8.1 Market share based on the variant of edible oil

The edible oils market of India includes a wide range of oils. Palm oil is the market leader in
this category, followed by soybean oil. The following are the variants of edible oils sold in
the country, as well as their market shares:

1. Palm oil accounts for the biggest market share among all the edible oils in India, and
its demand is fulfilled by both domestic output and imports. However, as an aftermath of the
Covid-19 pandemic and the Russian-Ukraine war, imports have been limited.
2. India's second most popular edible oil is Soyabean oil. Along with palm oil, it
accounts for 57.7% of the total domestic consumption.
3. The third most common oil in the country is Mustard oil, and its often bought in the
eastern and southern India. It has been noticed that usage of mustard oil in India is expanding
as a result of varying dietary choices coupled with the health advantages of this oil.
4. Another popular edible oil among Indians is Sunflower oil, which is particularly
bought in the western parts of the country.
5. Other edible oils that are classified as a group and account for a lesser consumption in
India include olive oil, rice bran oil, groundnut oil, sesame oil, and others.

Figure 4 - Total edible oil consumption in India (2020-21).

40
8.2 Packaging type, material, and size of Edible oils

This category focuses on edible oil packing, with the following subcategories available:

1. Pouches, cans, bottles, and jars are examples of packing.

2. The most common edible oil container sizes are less than a litre, one-litre pack, five-litre
pack, fifteen-litre pack, and larger.
3. The other division is the packing of edible oils based on the ingredient used. This division
is dominated by metal and plastic, followed by paper and other materials such as glass.

8.3 The current state of the edible oil industry

India is the world's largest importer of edible oils and has a vast market. The key driver of the
market is the vast and ever-increasing demand for the same. The following factors contribute
to such increased demand:

• Citizens' purchasing power is rising

• Citizens' food preferences are changing
• The country's demographics are shifting, and urbanisation is on the rise.
• Increased demand for the food processing business
• Increased demand for healthy edible oils as the country's young people face more health-
related challenges

The Indian edible oil business is predicted to expand as a result of the aforementioned
reasons driving up demand. This industry has also profited from rising edible oil exports and
agricultural production. Another factor influencing the sector is the increasing demand for
processed items and ready-to-eat foods that use edible oils as preservatives, and the increased
demand for cold-pressed healthy oils for household consumption. As a result, tremendous
branding possibilities have arisen, as has more market potential penetration into urban, semi-
urban, and rural regions.

8.4 Market Segmentation

The Indian edible oil industry is currently dominated by unorganised and regional companies
that are restricted to smaller areas and serve a smaller TAM (Total Addressable Market). The

41
organised edible oils sector is nationally controlled by a few big businesses controlling a
large portion of the available market share.

The proportion of branded vegetable oils in total vegetable

oils sold in the country.

13%

Branded Oil

Unbranded Oil

87%

Chart 3 - The proportion of branded vegetable oils in total vegetable oils sold in the country.

Market Share of key branded players

2%
3%
4%
6%

8%

60%
17%

Others Adani Wilmar Ruchi Soya (Patanjali) Emami Cargill Marico Bunge

Chart 4 - Market share of key branded players in the Indian Edible Oil Industry.
8.5 SWOT Analysis of the Indian edible oil industry

• Strengths:
1. Large domestic market: India has a significant population, providing a vast consumer
base for edible oil products. The increasing disposable income and changing dietary
habits contribute to the growth of the industry.
2. Diverse oilseed production: India has a diverse range of oilseeds, including
groundnut, mustard, soybean, sunflower, and sesame. This diversity helps in reducing
dependency on any specific oilseed and enhances the production potential.

42
3. Established distribution network: The edible oil industry in India has a well-
established distribution network, including wholesalers, retailers, and online platforms.
This infrastructure facilitates the efficient supply of edible oil products across the country.
4. Government support: The Indian government has implemented various policies and
schemes to support the edible oil industry, including subsidies on oilseeds, import duties,
and incentives for domestic production. This support promotes growth and self-
sufficiency.
• Weaknesses:
1. Dependence on imports: India’s the largest importer of edible oils in the entire globe.
Domestic production is not sufficient to meet the growing demand, resulting in a heavy
reliance on imports. This dependence makes the industry vulnerable to fluctuations in
global prices and geopolitical factors.
2. Inefficient supply chain: While the distribution network is well-established, the supply
chain in India faces challenges such as inadequate storage facilities, transportation issues,
and lack of proper infrastructure. These inefficiencies can lead to supply chain disruptions
and affect the availability and affordability of edible oil.
3. Low productivity: India’s average productivity of oilseeds is relatively low when
compared to global standards. Factors such as fragmented land holdings, limited adoption
of modern agricultural practices, and lack of quality seeds contribute to low productivity
levels.
4. Adulteration and quality concerns: The edible oil industry in India faces challenges
related to adulteration and quality control. Some unscrupulous traders and manufacturers
engage in adulteration practices, impacting consumer trust and health.
• Opportunities:
1. Growing health consciousness: With an increasing focus on health and wellness, there
is a rising demand for healthier cooking oils such as olive oil, rice bran oil, and other oils
with lower saturated fats. This trend presents an opportunity for the industry to diversify
its product offerings and cater to health-conscious consumers.
2. Rising urbanization and changing lifestyles: Consumption of packaged and
convenience meals has risen as a result of urbanisation and changing lifestyles. This move
enables the edible oil business to provide packaged edible oils as well as new products to
urban customers.

43
3. Export potential: While India is a net importer of edible oils, there is also significant
potential for export. With the right investments and quality control measures, Indian
edible oil producers can tap into international markets and increase their exports.
4. Technological advancements: Advancements in technology, such as precision
agriculture, the use of drones, and improved irrigation techniques, can enhance
productivity and efficiency in oilseed cultivation.
• Threats:
1. Price volatility: The edible oil industry in India is highly vulnerable to price volatility
in the global market. Fluctuations in international prices can impact the cost of imports,
influencing domestic prices and profitability.
2. Competition from imports: The Indian edible oil industry faces intense competition
from imported edible oils, especially from countries like Malaysia and Indonesia. These
imports often come at competitive prices, posing a challenge to domestic producers.
3. Climate change and environmental concerns: Climate change can have a significant
impact on oilseed crops, affecting yields and quality. Additionally, environmental
concerns related to deforestation for oil palm cultivation and pesticide use can affect the
industry's reputation and consumer preferences.
4. Changing government policies: Changes in government policies, such as import
duties, subsidies, and trade regulations, can have a direct impact on the Indian edible oil
industry. Uncertainty surrounding policy changes can disrupt the industry's operations and
profitability.

44
 CHAPTER 9 – RESEARCH RESULTS AND FINDINGS

A questionnaire was utilised to collect primary data from respondents during the study. The
questionnaire had 16 questions covering demographics, decision-making, brand awareness,
and so on.

The results and findings are reported in a classified fashion below.

9.1 Demographical Findings and Results

Demographical representation of respondents

100.00%
90.00%
80.00%
70.00%
59.63%
60.00%
50.00%
40.37% Total
40.00%
30.00%
20.00%
10.00%
0.00%
Rural Urban

Chart 5 - Demographical representation of the respondents.

There were 161 responses in total for the primary research, where 59.63% respondents
belonged to urban areas and 40.37% respondents belonged to rural areas.

Count of Age of the respondent

2, 1% 2, 1% 4, 3%
6, 4%

26, 16%

<18 >38 18-22

23-27 28-32 33-37

121, 75%

Chart 6 - Count of Age of the respondents.

45
Out of the 161 respondents, 121 (75%) belonged to the 23-27 age group, 26 (16%) belonged
to the 18-22 age group, 6 (4%) belonged to the 28-32 age group, 4 (3%) belonged to the >38
age group, 2 (1%) belonged to the 33-37 age group and 2 belonged to the <18 age group.

Occupation of Respondents
100.00%
90.00%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
Entrepreneur Homemaker Salaried Employee Student
Total 1.86% 1.24% 36.02% 60.87%

Chart 7 - Occupation of the respondents.

Annual Household Incomes of Respondents

6, 4% 4, 2%
10-12.5 LPA
50, 31%
46, 29% 12.5- 15 LPA
2.5-5 LPA
5-7.5 LPA
7.5-10 LPA
Above 15 LPA
Less than 2.5 LPA
13, 8%
25, 15%
17, 11%

Chart 8 - Annual Household incomes of the respondents.

A majority (60.8%) of the total respondents were students, 36.02% were salaried employees,
1.86% were entrepreneurs and 1.24% were homemakers.

46
A majority, 50 (31%) of the respondents had a household income of less than 2.5 LPA, 46
(29%) belonged to the income bracket of 2.5-5 LPA, 25 (15%) belonged to the 5-7.5 LPA
income bracket, 17 (11%) belonged to the 7.5-10 LPA income bracket, 13 (8%) belonged to
the income bracket of above 15 LPA, 6 (4%) belonged to the income bracket of 10-12.5 LPA
and 4 (2%) respondents belonged to the 12.5-15 LPA income bracket.

20
18
16
14
12
10
8
6
4
2
0
Him
And Mad Utta Wes
Chha acha Jhar Karn Mah Raja Tela Utta
hra Assa Biha Delh Hary Keral hya Odis Punj r t
ttisg l khan atak aras stha ngan rakh
Prad m r i ana a Prad ha ab Prad Beng
arh Prad d a htra n a and
esh esh esh al
esh
Coconut Oil 2 1
Groundnut Oil 5 1 1
Mustard Oil 3 12 1 2 1 1 11 2 1 2 5 12 3 4
Olive Oil 1 1 2
Rice Bran Oil 1 1 1 1 3 1 2 2 1 1
Soyabean Oil 1 1 18 3 1
Sunflower Oil 9 1 2 16 3 4 1 9 3 1

Chart 9 - State-wise preferences of respondents for edible oils in India.

An interesting observation can be made from the graph below, where edible oils that were
consumed the most in the different states are visible. The respondents from Madhya Pradesh
preferred Soybean Oil as the most preferred oil in the state. Mustard Oil was the first choice
of consumers as an edible oil in states such as UP, Bihar, Assam, Rajasthan, West Bengal,
Uttarakhand and Haryana. Sunflower Oil was the first preference of consumers in the state of
Telangana and Karnataka, whereas groundnut oil was the first preference of the respondents
from Andhra Pradesh. Coconut Oil was the predominant choice of the respondents from
Kerala whereas, for states like Delhi, Chhattisgarh, and Jharkhand, not much can be said as
there isn’t conclusive evidence. Respondents from Maharashtra depicted that soybean and

47
 Most preferred edible oil variant by the
respondents
3, 2%
7, 4%

49, 30%

60, 37%

24, 15%
14, 9% 4, 3%

Coconut Oil Groundnut Oil Mustard Oil Olive Oil Rice Bran Oil Soyabean Oil Sunflower Oil

sunflower oil are the most preferred options of the residents. Data from Punjab depicts that
Mustard and Olive oil were being preferred by the consumers of the state.

According to the study, if we talk about the most preferred edible oil variant, it comes out to
be Mustard Oil (60, 37%), followed by Sunflower Oil (49, 30%), Soybean Oil (24, 15%),
Rice Bran Oil (14, 9%), Groundnut Oil (7, 4%), Olive oil (4, 3%) and Coconut Oil (3, 2%).

9.2 Factors influencing purchase decision

The latter part of the questionnaire contained questions pertaining to gaining information
about factors that shape up the consumer’s mind to purchase an edible oil. These factors were
rated by the respondents on a scale of 1-5, where 1 being the least important and 5 being the
vice-versa. Also, this part of the survey gave insights on the monthly consumption of Indian
Chart 10 - Most preferred edible oil variant by the respondents.

households which is depicted in the graph below.

48
 Edible Oil consumption per month in Indian households
7, 4%

36, 23%
47, 29%
<1 litres >3 litres

1 litre 1-2 litres

2-3 litres
45, 28%

26, 16%

Chart 11 - Edible Oil Consumption per Month in Indian households.

As evident from the pie chart above, a majority of households 47 (29%) consume more than 3
litres of edible oil in a month, followed by 45 (28%) households that consume 1-2 litres
monthly, 36 (23%) households that consume 2-3 litres monthly, 26 (16%) households that
consume 1 litre and 7 (4%) households that consume less than 1 litre of edible oil on a
monthly basis. This consumption may vary due to the number of people in a family, but in a
nutshell, it can be said that on average an Indian household consumes somewhere between
2.5-3 litres of edible oil per month.

Where does respondent buy edible oil from?

7, 4%
29, 18%
32, 20% E-stores (Flipkart, Amazon,
Bigbasket etc.)
Hypermarkets/Supermarkets

Retail shops (near you)

Wholesale traditional shops

93, 58%

Chart 12 - Sources used to purchase edible oils by the respondents.

From the pie chart, it is evident that the majority of purchases of edible oil is being done
from local, handy and nearby retail shops accounting for 93 (58%) of the total responses.
Followed by it are hypermarkets/supermarkets which are the go-to place to purchase edible
oils for 32 (20%) respondents, then comes the wholesale shops located in main markets

49
which are the purchase points for 29 (18%) respondents and the least popular option to
purchase edible oil is through e-commerce that accounted for 7 (4%) respondents out of the
total 161 respondents.

How important is price for respondents while buying an edible

oil? (Rated on 1-5)
100.00%
90.00%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
1 2 3 4 5
Total 13.66% 11.18% 18.01% 31.06% 26.09%

Chart 13 - Importance of price for the respondents.

This line graph indicates that price is a very important factor for respondents while making a
purchase decision in terms of edible oil. 31.06% respondents found it a fairly important
factor, 26.09% found it to be a very important factor, 18.01% were neutral on the factor,
11.18% were not at all influenced by the price as a factor to make a purchase decision
whereas 11.18% respondents found price not an important factor to purchase edible oil.

How important is brand reputation for respondents while

buying an edible oil? (Rated on 1-5)
100.00%
90.00%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
1 2 3 4 5
Total 14.29% 8.07% 10.56% 29.81% 37.27%

Chart 14 - Importance of brand reputation for the respondents.

50
The graph attached here shows the importance of brand reputation for respondents to
purchase a certain edible oil. Interestingly 37.27% respondents found the reputation of an
edible oil brand to be a very important factor whilst making the purchase decision. This was
followed by 29.81% of respondents who agreed that brand reputation is fairly important
whilst making the purchase decision, 14.29% found it least important, 10.56% respondents
were neutral about the factor, and 8.07% found that it is not an important factor.

How important is packaging for respondents while buying an

edible oil? (Rated on 1-5)
100.00%
90.00%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
1 2 3 4 5
Total 12.42% 8.07% 23.60% 26.09% 29.81%

Chart 15 - Importance of packaging for the respondents.

The graph here showcases how important packaging of edible oil is for them whilst forming a
purchase decision. 29.81% respondents found it to be a very important factor, 26.09% found
it to be fairly important, 23.6% were neutral of the packaging, 12.42% found it to be the least
important and 8.07% found it not to be an important factor.

51
 How important is the celebrity/marketer/endorser for
respondents while buying an edible oil? (Rated on 1-5)
100.00%
90.00%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
1 2 3 4 5
Total 26.09% 23.60% 24.22% 18.01% 8.07%

Chart 16 - Importance of endorser/celebrity/marketer for the respondents.

The graph indicated how influential is the celebrity endorsing a particular edible oil in
making the purchase decision. 26.09% respondents found it to be the least important factor,
24.22% were neutral about the factor, 23.6% found it not to be an important factor, 18.01%
found it fairly important and a mere 8.07% of respondents considered it to be a very
important factor.

How important is variant of the edible oil for respondents

while buying an edible oil? (Rated on 1-5)
100.00%
90.00%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
1 2 3 4 5
Total 13.66% 7.45% 15.53% 26.09% 37.27%

Chart 17 - Importance of Variant of edible oil for the respondents.

This graph showcases the importance of the variant of an edible oil as a factor to make a
purchase decision. 37.27% of respondents found it to be a very important factor, 26.09%
found it to be fairly important, 15.53% found it as a neutral factor, 13.66% found it the least
important and the rest 7.45% respondents found it not to be an important factor.

52
 How important is the availability for respondents while buying
an edible oil? (Rated on 1-5)
100.00%
90.00%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
1 2 3 4 5
Total 16.77% 4.97% 22.98% 34.16% 21.12%

Chart 18 - Importance of availability of certain edible oil for the respondents.

This graph shows how important the availability of a certain edible oil in the market (in the
absence of it, the customer won’t buy any other oil) is for customers to make a purchase
decision. 34.16% found it to be a fairly important factor, 22.98% were neutral about it,
21.12% found it to be a very important factor, 16.77% of respondents found it the least
important and 4.97% respondents didn’t find it to be an important factor.

9.3 Findings in Terms of Brand Preferences

To assess the brand preferences of the respondents, 6 national edible oil brands were given as
an option to choose from which are as follows-

1. Fortune – Adani Wilmar

2. Emami Healthy & Tasty – Emami Agrotech
3. Dhara – Mother Dairy
4. Patanjali – Patanjali Ayurveda
5. Saffola – Marico
6. Nature Fresh – Cargill India

These brands were chosen on the basis of their share in the total edible oil consumed
throughout the country. These brands are widely recognized by consumers due to their
presence in most of the markets (online and offline) irrespective of geography and due to
their continuous efforts to dominate the organized space in the Indian edible oil Industry.
Respondents were given parameters such as-

1. Quality

53
 2. Trustworthiness
3. Affordability
4. Health
5. Promotions

On these bases, which among the 6 brands scores the highest in a particular parameter and if
the respondents were to buy an edible oil, which of these 6 brands will they prefer depending
upon the mentioned parameters?

Best Quality Edible Oil Brand

100.00%
90.00%
80.00%
70.00%
60.00%
62.73%
50.00%
40.00%
30.00%
20.00%
10.00% 4.35% 3.73% 4.35% 6.83% 18.01%
0.00%
DHARA - EMAMI HEALTHY FORTUNE - NATURE FRESH - PATANJALI - SAFFOLA -
(MOTHER DAIRY) & TASTY - (ADANI WILMAR (CARGILL INDIA) (PATANJALI (MARICO)
(EMAMI LTD.) AYURVED)
AGROTECH)

Chart 19 - Best quality edible oil brand according to the respondents.

Respondents opted Fortune by Adani Wilmar as the best quality edible oil brand which
garnered a total of 62.73% preferences. To follow after, it was Saffola by Marico (18.01%),
Patanjali by Patanjali Ayurved (6.83%), Nature Fresh by Cargill India (4.35%), Dhara by
Mother Dairy (4.35%), and least preferred was Emami Healthy & Tasty by Emami Agrotech
(3.73%).

54
 Most trustworthy Oil Brand
100.00%
90.00%
80.00%
70.00%
73.29%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00% 2.48% 0.62% 3.11% 7.45% 13.04%
0.00%
DHARA - EMAMI HEALTHY FORTUNE - NATURE FRESH - PATANJALI - SAFFOLA -
(MOTHER DAIRY) & TASTY - (ADANI WILMAR (CARGILL INDIA) (PATANJALI (MARICO)
(EMAMI LTD.) AYURVED)
AGROTECH)

Chart 20 - Most trustworthy edible oil brand according to the respondents.

According to the respondents, the most trustworthy edible oil brand amongst all the brands
was Fortune by Adani Wilmar which was chosen by 73.29% of respondents, followed by
Saffola by Marico (13.04%), Patanjali by Patanjali Ayurved (07.45%), Nature Fresh by
Cargill India (3.11%), Dhara by Mother Dairy (2.48%), and Emami Healthy & Tasty by
Emami Agrotech (0.62%).

100.00%
Most Affordable Oil Brand
90.00%
80.00%
70.00%
60.00%
50.00%
53.42%
40.00% 46.58%
30.00%
20.00%
10.00%
0.00%
REFINED OIL (EASILY AVAILABLE, RELATIVELY VIRGIN OIL (SCARCELY AVAILABLE, RELATIVELY
CHEAPER, RELATIVELY LESS HEALTHY AND A MASS EXPENSIVE, RELATIVELY MORE HEALTHY AND A
PRODUCT) NICHE PRODUCT)

Chart 21 - Most affordable edible oil brand according to the respondents.

According to the respondents, the most affordable brand of all the 6 brands came out to be
Fortune by Adani Wilmar with 46.58% responses in its favour. It was followed by Patanjali
by Patanjali Ayurved (18.63%), Saffola by Marico (15.53%), Emami Healthy & Tasty by
Chart 22 - Most health centric edible oil brand according to the respondents.

55
Emami Agrotech (6.83%), Nature Fresh by Cargill India and Dhara by Mother Dairy both of
which got 6.21% responses in their favour.

Most Health Centric Oil Brand

100.00%
90.00%
80.00%
70.00%
60.00%
50.00%
40.00% 48.45%
30.00%
20.00%
10.00% 21.12%
5.59% 6.21% 3.11% 15.53%
0.00%
DHARA - EMAMI HEALTHY FORTUNE - NATURE FRESH - PATANJALI - SAFFOLA -
(MOTHER DAIRY) & TASTY - (ADANI WILMAR (CARGILL INDIA) (PATANJALI (MARICO)
(EMAMI LTD.) AYURVED)
AGROTECH)

The most health-centric brand perceived by the respondents of this study came out to be
Fortune by Adani Wilmar (48.45%) which was followed by Saffola by Marico (21.12%),
Patanjali by Patanjali Ayurved (15.53%), Emami Healthy & Tasty by Emami Agrotech
(6.21%), Dhara by Mother Dairy (5.59%) and at with the least responses in its favour Nature
Fresh by Cargill India (3.11%).

100.00%
Most Advertised Oil Brand
90.00%
80.00%
70.00%
60.00%
50.00% 58.39%
40.00%
30.00%
20.00%
24.22%
10.00% 2.48% 4.35% 3.73% 6.83%
0.00%
DHARA - EMAMI HEALTHY FORTUNE - NATURE FRESH - PATANJALI - SAFFOLA -
(MOTHER DAIRY) & TASTY - (ADANI WILMAR (CARGILL INDIA) (PATANJALI (MARICO)
(EMAMI LTD.) AYURVED)
AGROTECH)

Chart 23 - Most advertised edible oil brand according to the respondents.

According to the respondents, they could find that Fortune by Adani Wilmar (58.39%) does
the most advertisements/promotions of its products which was followed by Saffola by Marico
(24.22%), Patanjali by Patanjali by Patanjali Ayurved (6.83%), Emami Healthy & Tasty by

56
Emami Agrotech (4.35%), Nature Fresh by Cargill India (3.73%) and Dhara by Mother Dairy
(2.48%) was the least promoted as per the respondents.

9.4 Findings Pertaining to Health Consciousness

To understand whether the respondents consider nutritional and health benefits while
purchasing edible oil, questions catering to this were added to the questionnaire. The findings
from the same are described below.

Do respondents check nutritional information on the edible oil

packets before making a purchase decision?
100.00%
90.00%
Yes, 78.26%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00% No, 21.74%
20.00%
10.00%
0.00%
No Yes

Chart 24 - Count of respondents checking nutritional information before purchasing an

edible oil.

57
78.26% respondents out of the total 161 respondents check the nutritional information
mentioned on the packets of edible oil before making a purchase decision. This behaviour
certainly denotes that the consumers in the country have become a lot more concerned and
aware regarding their health.

Do respondents check health benefits of the edible oil before

making a purchase decision?
100.00%
Yes, 87.58%
90.00%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00% No, 12.42%
10.00%
0.00%
No Yes

Chart 25 - Count of respondents checking health benefits before purchasing an edible oil.

87.58% respondents out of the total 161 respondents answered positively that they check the
health benefits of edible oil before making a purchase decision. This behaviour has seen a
positive trend since the onset of Covid-19 and has made the consumers of the country more
focused towards their diet and health.

Do respondents know the difference between a refined and a

virgin edible oil?
100.00%
90.00%
80.00% Yes, 75.78%
70.00%
60.00%
50.00%
40.00%
30.00% No, 24.22%
20.00%
10.00%
0.00%
No Yes

Chart 26 - Count of respondents knows the difference between refined and virgin edible oil.

58
The difference between refined and virgin edible oil is known to 75.78% respondents out of
the 161 respondents. Virgin edible oils also known as cold-pressed edible oil, are produced by
stone-crushing whereas, refined oils are made by a series of processes that add various
synthetic substances, heat etc. that may or may not damage the nutritional content of the oil.

Betweeen a refined and a virgin edible oil, what would the

respondents purchase ?
100.00%
90.00%
80.00%
70.00%
60.00% 53.42%
46.58%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
Refined Oil (Easily available, relatively cheaper, Virgin Oil (Scarcely available, relatively
relatively less healthy and a mass product) expensive, relatively more healthy and a niche
product)

Chart 27 - Respondents pick between Virgin and Refined Oil.

However, an interesting observation emerged despite the consumers knowing the difference
between refined and virgin edible oil. 53.42% of the 161 respondents still wanted to purchase
refined edible oil instead of virgin edible oil which was chosen by 46.58% of respondents.
This might be due to the higher costs associated with virgin oil when compared with refined
oils.

59
 CHAPTER 10 – CONCLUSION & RECOMMENDATIONS

Finally, the research into the Indian edible oil market and the factors that influence customers
has offered useful insights into this dynamic business. We discovered significant trends,
preferences, and drivers that affect Indian consumers' edible oil selections through a thorough
study.

To begin, the study found that the Indian edible oil industry is expanding steadily, owing to
factors such as population increase, rising disposable income, and shifting dietary trends.
Rising health and nutrition awareness has also increased demand for healthier edible oil
choices, such as those with reduced saturated fat and more nutritional content.

Second, the study found that the importance of price in influencing customer behaviour has
been reduced marginally. Indian customers have always been price-sensitive and make
purchase selections based on affordability, however, aspects such as brand reputation and
edible oil variety have grown more significant to individuals. As a consequence, it was clear
that customers are prepared to pay a premium for high-quality oils that provide health
advantages as well as excellent flavour.

The results and findings discussed in the chapter above indicate that the most preferred brand
amongst all the 6 brands came out to be Fortune by Adani Wilmar which is also evident from
the Figure which showcases that it has the largest share amongst all the nationalised and
organized players in the edible oil market of India. It secured the most votes in all categories
i.e., quality, affordability, trustworthiness, health and promotional activities.

According to the respondents of this study, the good old Mustard oil still remains the most
preferred edible oil by Indian households. Although the secondary research findings suggest
that palm and soybean oil are the most used oils in the country, in this research we haven’t
surveyed the HORECA channel and the other non-household consumption of these edible oils
where palm and soybean are being used extensively.

Also, post Covid-19 consumers have become more concerned towards health and the
nutritional aspects of edible oil and consider it to a great extent whilst purchasing edible oils.
This awareness is in the right direction as the Indian market is presently flooded with
abundant varieties and variants that provide the consumer with room to choose the best edible
oil suiting his/her criteria.

60
It is also evident from the findings that although e-commerce has eaten up a lot of share in the
overall business that happens in the country, it is yet to catch up in the edible oil industry as a
majority of respondents still purchase it from the local retail shops that are located near to
their residences.

The prominent recommendations that would be helpful for the industry and the brands that
operate within are as follows-

1. Diversify Product Offerings: To respond to the diverse interests of consumers, edible

oil producers should work on broadening their product portfolio. Offering a variety of
alternatives, such as low-saturated fat oils, oils with special health advantages,
affordable cold-pressed oils and oils ideal for various cooking techniques, is part of
this. Companies may attract and keep a broader consumer base by offering more
diversity.
2. Improve Health and Nutritional Claims: With customers becoming more health
concerned, edible oil firms should engage in research and development to provide oils
with better health benefits. This might include strengthening oils with important
vitamins and minerals or creating oils that promote specific health advantages such as
heart health or weight loss. Consumers will be able to make more informed decisions
if these advantages are labelled clearly and credibly.
3. Competitive pricing: Price still remains a crucial element affecting customer decisions
in the Indian edible oil industry. Companies should aim to retain product quality while
offering reasonable costs. Cost-cutting exercises, efficient manufacturing processes,
and leveraging economies of scale may all assist lower production costs and enable
businesses to provide competitive pricing without sacrificing profitability.
4. Improve and Improvise Branding and Marketing: To separate themselves from the
competition, edible oil firms should engage in effective branding and marketing
initiatives. Building a strong brand reputation, utilising social media channels, and
developing compelling advertising campaigns will aid in capturing consumer
attention and influencing purchase choices. Packaging should also be visually
appealing and informative, emphasising the product's unique selling characteristics.
5. Enhance Distribution Channels: Edible oil producers should guarantee that their
goods are widely available through a well-established distribution network. This
involves collaborating with a wide range of retailers, including major supermarkets
and neighbourhood food stores. Additionally, businesses should investigate e-

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 commerce platforms in order to access a larger client base, particularly in
metropolitan regions where online buying is becoming increasingly popular.
6. Constant customer Research: Because customer tastes and market trends change so
quickly, edible oil producers must do constant consumer research. Monitoring shifting
eating patterns, understanding developing health problems, and remaining current on
consumer views and tastes are all part of this. Companies will be able to alter their
strategy and stay ahead of the competition if they conduct regular market research and
solicit customer input.

Overall, the study's conclusions are useful for enterprises functioning in the Indian edible oil
sector. Understanding customer preferences, price sensitivity, the impact of branding, and the
growing need for healthier and more sustainable solutions will allow businesses to design
successful marketing strategies, reinvent their product offers, and remain competitive in this
fast-changing market.

Further research and analysis will be required to capture newer trends and shifting consumer
dynamics as the Indian edible oil industry grows and evolves. This research lays the
groundwork for future research and gives a complete knowledge of the elements influencing
customer decisions in the Indian edible oil industry.

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 REFERENCES

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%20is%20the%204th%20largest,seed%2C%20mustard%20and%20safflower%20oilseed
s.
2. https://www.marketsandmarkets.com/Market-Reports/edible
3. https://www.databridgemarketresearch.com/reports/global-edible-oils-market
4. https://www.reportlinker.com/p06424986/Vegetable-Oil-Market-Global-Industry-
Trends-Share-Size-Growth-Opportunity-and-Forecast.html
5. https://www.reportlinker.com/clp/global/2354
6. https://www.reportlinker.com/dataset/6959790763d089268fcaa18282e0d053fefd20d5
7. https://www.reportlinker.com/dataset/2c48a6f0ebd48865f1eadb4703a7c8108dbcc06c
8. https://www.reportlinker.com/dataset/2503d4125289bb62e00af058d5bb3e766d769bd
d
9. https://www.persistencemarketresearch.com/market-research/edible-oils-market.asp
10. www.dfpd.gov.in/oil-division.htm
11. https://www.iasparliament.com/current-affairs/beyond-the-edible-oil-mission
12. https://groww.in/blog/adani-wilmar-analysis
13. https://www.fisdom.com/top-edible-oil-stocks-in-india-sector-market-size-share-
market-present-status-future-prospects/
14. https://www.gaonconnection.com/read/indonesia-palm-oil-export-ban-edible-oil-
mustard-ukraine-russia-war-pds-rural-india-inflation-exports-commerce-consumer-
packaged-goods-50731

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 LIST OF FIGURES AND TABLES

S No. Title of the Figure Page No.

1. Global Vegetable Oils production by country. 09
2. Graph of Edible oil imports vs domestic consumption of India. 36
3. Indian Export vs Import of oilseed products over the years. 38
4. Total edible oil consumption in India (2020-21). 40

S No. Title of the Table Page No.

1. Figures for estimated output of key cultivated oilseeds, availability of 32
edible oils from all sources (domestic and import sources), Quantity is
expressed in Lakh tons.
2. Industries of Vegetable Oil registered with the Directorate under the 33
VOPPA(R) Order, 2011.

66
 LIST OF CHARTS
S No. Title of the Chart Page No.
1. Size of Global Vegetable Oil Markets by Volume 09
(expressed in thousand metric tons).
2. Global forecast of production of Vegetable oils. 10
3. The proportion of branded vegetable oils in total 42
vegetable oils sold in the country.
4. Market share of key branded players in the Indian 42
Edible Oil Industry.
5. Demographical representation of the respondents. 45
6. Count of Age of the respondents. 45
7. Count of Occupation of the respondents. 46
8. Annual Household incomes of the respondents. 46
9. State-wise preferences of respondents for edible 47
oils in India.
10. Most preferred edible oil variant by the 48
respondents.
11. Edible Oil Consumption per Month in Indian 48
households.
12. Sources used to purchase edible oils by the 49
respondents.
13. Importance of price for the respondents. 50
14. Importance of brand reputation for the respondents. 50
15. Importance of packaging for the respondents. 51
16. Importance of endorser/celebrity/marketer for the 51
respondents.
17. Importance of Variant of edible oil for the 52
respondents.
18. Importance of availability of certain edible oil for 52
the respondents.
19. Best quality edible oil brand according to the 54
respondents.

67
20. Most trustworthy edible oil brand according to the 54
respondents.
21. Most affordable edible oil brand according to the 55
respondents.
22. Most health centric edible oil brand according to 55
the respondents.
23. Most advertised edible oil brand according to the 56
respondents.
24. Count of respondents checking nutritional 57
information before purchasing an edible oil.
25. Count of respondents checking health benefits 57
before purchasing an edible oil.
26. Count of respondents knowing the difference 58
between a refined and a virgin edible oil.
27. Respondents pick between Virgin and Refined Oil. 58

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 ANNEXURE 1

The questionnaire used for the primary research that was filled by the respondents
through google forms or by the author via telephonic conversation is attached below for
reference-

1. Name of the respondent

2. Age of the respondent
• <18-22
• 23-27
• 28-32
• 33-37
• >38
3. Gender of the respondent
• Male
• Female
• Prefer not to say
4. Native State/UT of the respondent
5. Demography where the respondent belongs to
• Urban
• Rural
6. Occupation of the respondent
• Student
• Salaried Employee
• Entrepreneur
• Homemaker
7. Annual Income of the respondent
• Less than 2.5 LPA
• 2.5-5 LPA
• 5-7.5 LPA
• 7.5-10 LPA’
• 10-12.5 LPA
• 12.5-15 LPA
• Above 15 LPA

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8. While grocery shopping, which brand of edible oil is preferred by you?
• Fortune – Adani Wilmar
• Saffola – Marico
• Emami Healthy & Tasty – Emami Agrotech
• Patanjali – Patanjali Ayurved
• Dhara – Mother Dairy
• Nature Fresh – Cargill India
9. Which oil variant is consumed mostly at your household?
• Mustard Oil
• Soybean Oil
• Sunflower Oil
• Olive Oil
• Coconut Oil
• Groundnut Oil
• Rice Bran Oil
10. On an average how much edible oil is consumed in your household per month?
• <1 litres
• 1 litre
• 1-2 litres
• 2-3 litres
• >3 litres
11. Are you aware of the difference between a refined and a virgin edible oil?
• Yes
• No
12. If given a choice, what would you buy?
• Refined Oil (Easily available, relatively cheaper, relatively less healthy and a
mass product)
• Virgin Oil (Scarcely available, relatively expensive, relatively healthier and a
niche product)
13. While buying an edible oil packet do you consider: - (Choose either Yes or No)
Criteria Yes No
Ingredients mentioned on the packaging

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 Health benefits of the oil
Fortification of oil with additional benefits

14. Where do you purchase edible oil from?

• Retail shops (near you)
• Wholesale traditional shops
• Hypermarkets/Supermarkets
• E-stores (Flipkart, Amazon, Big basket etc.)
15. Rate the following factors in terms of importance while making a purchase decision
for edible oil. (On a scale of 1-5, where 1 being the least and 5 being the maximum)
Criteria 1 2 3 4 5
Price of the edible oil
Brand reputation of the edible oil
Packaging of the edible oil
Variant of the edible oil (soyabean, mustard etc.)
Availability of the edible oil
Marketer/Endorser/Celebrity of the edible oil
Nutrient content of the edible oil

16. Select the most suitable option pertaining to brand perception regarding different
edible oil brands
Criteria Fortune Saffola Patanjali Emami Dhara Nature
Fresh
Most trustworthy edible oil
brand
Best quality edible oil
brand
Most affordable edible oil
brand
Most health-centric edible
oil brand
Most advertised edible oil
brand

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