India Mustard Oil Market Research Report and Industry Forecast

Market Overview:

The India mustard oil market size reached USD 1.2 Billion in 2024. The market is projected to reach USD 1.7 Billion by 2033, exhibiting a growth rate (CAGR) of 4.2% during 2025-2033. The market growth is attributed to increasing consumer demand for healthier oils, government support for oilseed farming, the growing preference for cold-pressed mustard oils, and the expanding retail and e-commerce channels.

Market Insights:

• On the basis of packaging type, the market has been divided into pouches, jars, cans, and bottles.
• On the basis of packaging material, the market has been divided into metal, plastic, paper, and others.
• On the basis of pack size, the market has been divided into less than 1 litres, 1 litres, 1 litres - 5 litres, 5 litres - 10 litres, and 10 litres and above.
• On the basis of application, the market has been divided into household cooking, HoReCa, and industrial uses.
• On the basis of distribution channel, the market has been divided into direct/institutional sales, supermarkets and hypermarkets, convenience stores, online, and others.
• On the basis of region, the market has been divided into North India, West and Central India, East India, and South India.

Market Size and Forecast:

• 2024 Market Size: USD 1.2 Billion
• 2033 Projected Market Size: USD 1.7 Billion
• CAGR (2025-2033): 4.2%

Mustard oil refers to a type of vegetable oil that is naturally extracted from the seeds of black, brown, and white mustard. In India, it is widely available in different forms, including refined mustard oil, Grade I (Kachchi Ghani) mustard oil, and Grade II (non-edible) mustard oil. Some of the key factors driving the demand of mustard oil in India include rising disposable incomes, health benefits, strong demand from both urban and rural regions and diversified applications in both food and non-food applications. 

India is among the biggest consumers of mustard oil based on its high consumption in various culinary practices, such as cooking, frying, poaching, dressing, etc. Additionally, the expanding agriculture sector contributes to the increasing availability of high yielding mustard seeds, thereby catalyzing the mustard oil production. Furthermore, the Indian government has launched several initiatives for enhancing the production of oilseeds in the country to reduce imports and achieve self-sufficiency in edible oil production. Moreover, the wide presence of brick-and-mortar retail centers, including convenience stores, grocery stores, supermarkets, hypermarkets, etc., is also propelling the demand for mustard oil in the country. In line with this, the increasing sales of mustard oil over e-commerce platforms supported by several discounted offers, cashback, doorstep delivery options, etc., are also catalyzing the market for mustard oil in India. Moreover, the market is further driven by the growing demand for mustard oil in the personal care sector in India.

The outbreak of the COVID-19 pandemic, in early 2020, however, had disrupted the supply chain of mustard oil due to the temporary shutdown of several manufacturing plants, unavailability of raw materials and labor shortages. Demand was also negatively impacted by the temporary shut down of hotels and restaurants during the lockdown.

India Mustard Oil Market Trends:

 Rising Popularity of Cold-Pressed Mustard Oil

In recent years, there has been a growing preference for cold-pressed mustard oil, known locally as ‘kachchi ghani’ oil. This traditional method of extraction is valued for retaining the oil's natural flavor, nutrients, and aroma, which is why it has gained popularity among health-conscious consumers, which, in turn, has resulted in the expansion of the India mustard oil market share. Along with this, the demand for organic and non-GMO mustard oil varieties has surged, particularly among consumers seeking healthier cooking alternatives. These trends are further accentuated by the rising interest in premium packaging formats such as glass bottles and pouches, which reflect the evolving consumer preference for convenience and eco-friendly options. The demand for these premium oils is not just limited to cooking but extends to cosmetic applications as well, with consumers increasingly opting for organic mustard oils for skincare and haircare.

Government Support and Growth Drivers

The government has played a significant role in boosting the India mustard oil market growth, aiming to reduce dependence on edible oil imports. Several initiatives have been introduced, such as offering Minimum Support Prices (MSP) for mustard seeds, providing financial assistance to farmers, and launching programs to improve oilseed cultivation techniques. Furthermore, the government's focus on enhancing domestic production has led to an increase in mustard oil availability, contributing to the market's growth. Other growth drivers include the rising disposable incomes of the middle class, growing health awareness, and the expansion of retail channels, as per the India mustard oil market analysis. With a significant rise in demand from urban and rural regions, the mustard oil market is set for steady growth over the coming years.

Emerging Markets and Opportunities

The India mustard oil market demand is witnessing a surge in non-edible applications, particularly in the fields of Ayurvedic treatments and medicinal uses. The increasing popularity of Ayurvedic cold-pressed oils, used for massage therapies and skincare, is adding a new dimension to the market. Additionally, mustard oil holds cultural significance, especially in the northern regions of India, where it is used during Diwali rituals and other ceremonial occasions. The growth in these non-edible sectors opens up new opportunities for mustard oil producers, allowing them to tap into markets beyond culinary uses. Moreover, the growing interest in sustainable and eco-friendly products, alongside the increasing recognition of mustard oil's benefits in traditional medicine, positions the market for continued expansion in both domestic and international markets.

Challenges and Supply-Side Drivers

The mustard oil market in India faces several challenges, including the volatility of raw material prices, supply chain disruptions, and the dependency on weather conditions for mustard seed cultivation. As per the mustard oil price trend in India, fluctuating prices of mustard seeds, often driven by poor harvests or adverse weather, directly impact mustard oil production. Additionally, the market grapples with a fragmented supply chain, with many small mills competing with large-scale producers, creating disparities in product quality and pricing. These supply-side dynamics further influence the pricing structure, making it difficult to maintain consistent profit margins. Despite these challenges, factors such as government subsidies and support for oilseed farmers have helped stabilize the supply, providing some relief to the mustard oil sector.

Key Market Segmentation:

IMARC Group provides an analysis of the key trends in each sub-segment of the India mustard oil market report, along with forecasts at the country and regional level from 2025-2033. Our report has categorized the market based on packaging type, packaging material, pack size, application and distribution channel.

Breakup by Packaging Type:

• Pouches
• Jars
• Cans
• Bottles

Breakup by Packaging Material:

• Metal
• Plastic
• Paper
• Others

Breakup by Pack Size:

• Less than 1 Litres
• 1 Litres
• 1 Litres - 5 litres
• 5 Litres - 10 Litres
• 10 Litres and Above

Breakup by Application:

• Household Cooking
• HoReCa
• Industrial Uses

Breakup by Distribution Channel:

• Direct/Institutional Sales
• Supermarkets and Hypermarkets
• Convenience Stores
• Online
• Others

Breakup by Region:

• North India
• West and Central India
• East India
• South India

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

The report provides a comprehensive analysis of the competitive landscape in the India mustard oil market with detailed profiles of all major companies, including:

• Adani Wilmar Limited
• Emami Agrotech Ltd.
• Marico Limited
• Dabur India Ltd.
• Patanjali Ayurved Limited
• K. S. Oils Limited
• Puri Oil Mills Limited
• Bansal Oil Mill Ltd.
• NatureLand Organics

Latest News and Developments:

• In September 2024, Dhara, a leading edible oil brand from Mother Dairy, launched a new campaign titled '0% Milawat, 100% Swaad' to promote the purity and authentic taste of its mustard oil variants. The campaign, which spans four weeks, includes television commercials and reaches consumers across 12 states, including Delhi NCR, Uttar Pradesh, Rajasthan, Bihar, and others. Dhara aims to reaffirm its commitment to quality mustard oil, emphasizing purity and family traditions, aligning with consumer preferences for authenticity and health-conscious choices in cooking oils.
• On 30 January 2024, Standard Cold Pressed Oil celebrated its 8th anniversary with the launch of a new cold-pressed mustard oil. With a focus on maintaining the nutritional value of seeds, Standard Cold Pressed Oil continues to strengthen its position in the health-conscious market with this launch.
• On 14 May 2024, Adani Wilmar launched Fortune Pehli Dhaar, a premium first-pressed mustard oil made using the traditional wooden kolhu method. Sourced from the finest mustard seeds in Rajasthan, the slow extraction process preserves the oil’s natural taste, aroma, and rich color, aiming to offer an authentic and superior culinary experience. The product will be available in 1L PET bottles and pouches across major cities including Delhi NCR, Kolkata, Lucknow, Mumbai, and Bengaluru through various sales channels, including general trade and e-commerce.
• On 30 March 2025, Haryana Chief Minister Nayab Singh Saini announced plans for the establishment of large oil mills in Kurukshetra and Rewari to support the mustard farming community. The mills, including Asia’s largest oil mill in Rewari and Narnaul, will provide a substantial boost to local farmers by ensuring the purchase of their mustard crops at the Minimum Support Price (MSP).

Report Coverage: