cooking oil manufacturing business ideas

Best 20 Cooking Oil Manufacturing Business Ideas with High Profit

The Indian cooking oil or edible oil industry is highly fragmented. It has extreme variation in the consumption pattern of Indian consumers. The object of crafting this article is to provide a list of profitable cooking oil business ideas to aspiring entrepreneurs and a startup guide on the steps to follow to start an edible oil manufacturing unit.

Apart from cooking, edible oils have several other usages and have applications in different industries. The Indian cooking oil market continues to be underpenetrated and thereby holds immense business opportunities. Vegetable oil consumption has increased due to a rise in overall household income, surging retail sector, increasing health awareness, growing population, etc.

Due to the rise in overall household income, the market is growing very fast. Furthermore, the surging retail sector, increasing health awareness, growing population, and increasing demand are the major reasons for growth.

Read: Top Cooking Oil Brands 

However, increasing demand has not matched the level of production thereby facilitating the imports of edible oil in the country. The Indian edible oil market is the fourth largest in the world after the U.S.A., China, and Brazil.

Additionally, it accounts for around 9% of the world’s oilseed production. Provided the positive macro and demographic fundamentals, the cooking oil market has a favourable demand growth outlook over the medium-to-long term. The industry experts expect a robust expansion of the Indian cooking oil market shortly.

20 Edible Oil Manufacturing Business Ideas

#1. Almond Oil

Almonds are a rich source of oil, with values ranging between 36 and 60% of kernel dry mass. Not only is almond oil good for your skin, but it is also edible and a healthy alternative to many other cooking oils.

#2. Castor Oil

Castor oil is vegetable oil. Some of the common usages are in food additives, flavourings, candy, etc. Apart from this, it is beneficial in storing rice, wheat, and pulses from rotting. Additionally, castor oil is an essential item in soaps, lubricants, hydraulic and brake fluids, paints, dyes, coatings, inks, cold-resistant plastics, waxes and polishes, nylon, pharmaceuticals, and perfumes manufacturing industries.

#3. Celery Seed Oil

Generally, celery seed oil is a very good essential oil. And it has medicinal properties. However, there is some cooking usage of this oil. If you are living in an area where you can source a lot of celery seed, then you can start an oil extraction business.

#4. Coconut Oil

Coconut oil is an important cooking medium in the Southern parts of the country, especially in Kerala and Karnataka State. Besides, the oil has varied industrial applications. One can start a coconut oil manufacturing business on a small scale with not much investment.

#5. Corn Oil

Corn oil or maize oil is important in cooking oil.  It is also a key ingredient in the manufacturing of margarine. Corn oil is generally less expensive than most other types of vegetable oils. The small-scale manufacturing operation is profitable.

#6. Cottonseed Oil

Cottonseed oil is also an essential cooking oil. You can extract the oil from the kernel.  Cottonseed oil is used for salad oil, mayonnaise, salad dressing, and similar products because of its flavour stability.

#7. Flax Seed Oil

Flaxseed oil contains both omega-3 and omega-6 fatty acids, which are essential for health. Generally, this oil is available in liquid and soft gel capsule forms. Oil has different types of medicinal properties.

#8 Grapeseed Oil

It is a popular cooking and salad oil.  It is widely used in baked goods, pancakes, and waffles. Commercial oil extraction is highly profitable.

#9.  Groundnut Oil

Groundnuts are a popular source of food throughout the world. Groundnut oil ranks at the top among edible oils exported from India. It is a premium oil and its cost is also high.

#10. Hazelnut Oil

This oil is used as a cooking oil at low temperatures, and makes a delicious addition to salad dressings and dips, adding a nutty flavour profile. Toasty, richly flavoured, aromatic hazelnut oil provides vitamin E, a potent antioxidant that appears to keep your mind and hearing sharp.

#11. Mustard Oil

Mustard oil is one of the most popular cooking oil items in eastern and northern India, Pakistan, Nepal, and Bangladesh. It is fatty vegetable oil. Mustard oil production is profitable. Additionally, you can start on a small-scale basis.

#12. Olive Oil

Olive oil is a costly vegetable cooking oil. Apart from cooking, this is an essential item in manufacturing cosmetics, pharmaceuticals, and soaps. Additionally, oil has huge potential throughout the world.

#13. Palm Oil

Palm oil is edible vegetable oil. In India, a wide range of the population uses this oil as the main cooking medium. Palm oil is naturally reddish because of its high beta-carotene content.

#14. Rapeseed Oil

Rapeseed oil is another important cooking oil globally. It comes from the black seeds of the oilseed rape plant, Brassica napus. A small-scale rapeseed oil manufacturing business is profitable.

#15. Rice Bran Oil

It is popular as a cooking oil in several Asian countries, including Bangladesh, Japan, India, and China. It is an extracted oil from the hard outer brown layer of rice after chaff (rice husk).

#16. Safflower Oil

It is another popular vegetable oil. Additionally, the commercial production of safflower oil is profitable. Safflower seed oil is flavourless colourless, and nutritionally similar to sunflower oil. Apart from cooking, the cosmetics industry is a large consumer of this oil.

#17. Sesame Oil

Sesame oil is edible vegetable oil. It is popular in Asia and is also one of the earliest-known crop-based oils. The market for sesame oil is mainly located in Asia and the Middle East.

#18. Soyabean Oil

Soyabean oil is a vegetable cooking oil. The manufacturing process is simple. Any individual can initiate a soyabean oil manufacturing business on a small-scale basis.

#19. Sunflower Oil

Sunflower oil is commonly used in food as a frying oil and in cosmetic formulations as an emollient. The world’s largest sunflower oil producers now are Russia, Ukraine, and Argentina.

#20. Vanaspati Ghee

The vanaspati industry is the second-largest food processing industry in India, second only to the sugar industry. It is the largest of its kind in Asia and the fifth-largest in the world. It is a popular vegetable cooking oil.

Frequently Asked Questions

How to start an Edible Oil Manufacturing Business?

The business of manufacturing edible oil can started on a small or medium scale depending on the investment capacity of an entrepreneur. However, to launch an edible manufacturing plant, one must follow the following steps:

  • Understand the market
  • Select the edible oil product to be manufactured
  • Create a business plan
  • Regsiter your business
  • Get licenses and permits
  • Select a plant location
  • Hire manpower
  • Arrange Funds
  • Buy machinery and allied equipment required to make edible oil
  • Have a packaging and distribution plan

Is the Cooking Oil Business Profitable?

Yes, it is without doubt, that manufacturing cooking oil is a profitable industry. The demand for edible oil is increasing and fetches a high-profit margin. However, one needs to invest a good amount of money to start this business.

Indian cooking oil or edible oil milling industry is very promising. However, you must establish the manufacturing unit according to the availability of the oilseeds locally.