Mustard Oil – Analysing Market Health and understanding the variations

January 31, 2022January 31, 2022 EIRI Team

Mustard oil’s popularity and wide cooking usage can be attributed to its immense health benefits. Besides that, mustard oil finds itself as a significant ingredient in making beauty products, pharmaceuticals, and even aromatherapy.

Last year, the market size catapulted into a market valuation of $21.6 billion, and understandably so. The mustard oil industry has soared through the ranks in recent years thanks to the realizations that have dawned on people about various health concerns and the benefits of omega-3 fatty acids.

Mustard oil contains omega-3 fatty acids and six different fatty acid compositions, including linoleic acid alpha-linolenic acid in a ratio of 10:1. This composition has many benefits to the body, most notably with its anti-inflammatory properties that can help improve the body’s immune system and reduce inflammation in the joints and muscles.

Additionally, the pressing of the mustard seeds has seen changes and improvements over the last few years. That, too, has contributed to the increased production of mustard oil in the previous decade or so.

Market Overview

As elucidated above, several reasons are adding up to the increased production and use of mustard oil:

North India, in particular, employs the oil for cooking purposes.
The applications are immense in the beauty segment, where products like hair vitalizer need mustard oil for anti-bacterial and anti-fungal purposes.
Mustard oil also acts as an appetizer and stimulant used in industries producing such products.
The pharmaceutical and health industry further present opportunities for mustard oil utilization.
Different varieties of mustard, including white, black, and yellow mustard, are used in various segments, particularly for anti-fungal and anti-bacterial offerings.

Current Mustard Oil Market Status in India

Forecasted market size: 21.6 billionby 2026

CAGR: 3.8-4.5% during the forecast period (2022-2027)

Mustard oil comprises significant components of the oleochemical and medicinal product segment, which are consumed as anti-inflammatory, anti-allergic, anti-bacterial compounds. The growing cosmetic industry and the latest technological developments are also expected to maintain a significant market share during the forecast period.

Market Segmentation Forecast

The mustard oil market is heavily governed by industries where it’s a primary ingredient. The yield of mustard is dealt with appropriately, and the farming sector with its biotechnological innovations is punching in a lot of effort in this regard.

Here’s what the market’s segmentation looks like:

1. Cooking Oil Industry

The proliferation of the cooking industry is directly proportional to the growing population. Given the proven importance of omega-3 fatty acids, the cooking oil industry targets the growth of the mustard oil segment. At a CAGR of 3.25%, the market is expected to catapult a revenue of $2 56,200 million by 2027. The mustard oil will be a significant contributor with a CAGR of 3.8% between 2020 and 2026 and a $45 million market size by 2026.

2. Aromatherapy

The aromatherapy market size stood at $1.6 billion in 2020 and is expected to grow at a CAGR of 11.65% between 2021 and 2028. Again, mustard oil plays a crucial role in achieving the desired effect and has always been a significant contributor to the aromatherapy industry, where it is used for massage purposes and other related therapeutic applications.

3. Appetizer / Snacks

The market of appetizers and fast foods is ever-expanding, and there is supposed to be a rise in the demand for appetizers with the growing market size, recorded to be $78.13 billion in 2019. The reason is that a variety of appetizers can be prepared in minutes and are ready to offer as soon as they are dispatched. Mustard oil is believed to play a significant role in the success of this business section because of its vital role in the health factor. In addition to this, it has also been used to add nutritional value and texture.

4. Cosmetics

The beauty industry has evolved over the last few years, especially with the introduction of the organic and natural products segment. The organic segment is said to be growing in India at a CAGR of 4.23% between 2020 and 2026, making it the fastest-growing beauty industry segment. Mustard oil is used for hair care and hair treatment products, which are increasingly popular with their low pricing and high effectiveness.

5. Therapeutic application.

Different pharmaceutical and other therapeutic units will also show exhibit proliferation in the forthcoming period. Given the kind of environmental organization we are in, it won’t be easy to sustain health without proper care. That said, a YoY growth of 7.1% is expected in this segment during the forecast period, indicating how vivid mustard oil’s role will be as a therapeutic product.

Conclusion

Mustard oil is a vital ingredient and plays a significant role in several industries. It’s one of the most important oils in India, and its increased production only indicates how crucial it is to Indian businesses. In addition to being vital as a cooking medium, it presents a number of other avenues that can be explored in the coming years. To that end, the mustard oil market will be an advantage-focused market, where the manufacturers and traders will both realize the prominence of the associated products.