Starting a cold pressed oil manufacturing business can be a strong opportunity for entrepreneurs today. With rising health awareness and changing food habits, there is a growing demand for natural and chemical-free oils in India and around the world. Oils such as groundnut, mustard, sesame, and coconut are widely used in Indian kitchens and also in personal care products. This article will help you understand the business idea in a clear way, covering market trends, demand, machinery, production, margins, risks, and steps for setting up your own unit.

What Is Cold Pressed Oil?

Cold pressed oil is made by mechanically pressing oil seeds or nuts without using heat or chemical solvents. The absence of high heat helps preserve the natural nutrients, taste, aroma, and color of the oil. Because of these qualities, cold pressed oils are considered healthier than refined oils, which undergo heating and chemicals during extraction.

Cold pressed versions of groundnut, mustard, sesame, and coconut oils are especially popular. Each has its own flavor, cooking uses, and cultural importance in different regions of India. These oils are now chosen by consumers for daily cooking, premium gift packs, traditional food, Ayurvedic use, and cosmetic preparations.

Why This Business Is Gaining Popularity

In recent years, there has been a strong shift toward health-conscious eating. Many consumers are now aware that heavily processed oils can lose nutrients and may include additives. Cold pressed oils are seen as closer to traditional processing and closer to natural nutrition.

For entrepreneurs, this means a growing audience who are willing to pay premium prices for quality and health benefits rather than just low cost. This creates space for new brands and products in both local retail and online markets.

Understanding the Market Demand

The demand for cold pressed oils has grown steadily over time. Consumers are more aware of health issues such as heart health, cholesterol levels, and the harmful effects of refined oils. Many food bloggers, nutritionists, and health magazines promote traditional and natural oils, increasing their appeal.

Groundnut oil is widely used in Indian cooking because of its light taste and high smoking point. Mustard oil has a strong flavor and is preferred in northern and eastern India. Sesame oil is popular in South India and for traditional dishes and Ayurvedic uses. Coconut oil is used for both cooking and hair and skin care. Because of this variety of uses, there is a steady market for these oils across different states and regions.

The retail market includes local grocery stores, supermarkets, and organic food stores. Online platforms have also opened new channels for selling cold pressed oils directly to customers. Many small brands have successfully reached customers through online marketplaces and social media.

Growing health awareness, urbanization, and rising incomes are all driving the demand for cold pressed oils. This makes it a promising business to start, especially for entrepreneurs who can maintain quality and build a trusted brand.

Current Market Growth and Future Outlook

Global Cold Pressed Oil Market

The cold pressed oil market is growing at a steady pace across the world. Changing food habits and higher focus on health have pushed consumers toward oils that are minimally processed. Industry estimates indicate that the global cold pressed oil market is on track to reach a value of about USD 41–42 billion by the year 2030. The market is expected to grow at an average annual rate of around 5 to 5.2 percent during this period.

One of the main reasons behind this growth is the shift in consumer preference toward natural and chemical-free products. Cold pressed oils are increasingly used not only for everyday cooking but also for personal care, premium food preparation, and wellness products. Many consumers see these oils as safer and closer to traditional methods of extraction, which adds to their appeal.

Looking further ahead, long-term projections suggest that demand will remain strong beyond 2030. Between 2025 and 2035, the global cold pressed oil market is expected to stay around the USD 40 billion mark, with continued growth coming from regions such as Asia Pacific, Europe, and North America. These regions are seeing steady demand from health-conscious households and premium food brands.

Cold Pressed Oil Market in India

India is emerging as one of the important markets for cold pressed oils. In 2023–2024, the size of the Indian cold pressed oil market was estimated to be in the range of USD 1.8 to 2.4 billion. 

With increasing awareness and acceptance, the market is expected to grow to around USD 3.5–3.7 billion by 2030. This reflects a healthy compound annual growth rate of nearly 6.8 to 7.2 percent.

In terms of quantity, the Indian market consumed roughly 12.5 million liters of cold pressed oil in 2023. This volume is projected to cross 16.8 million liters by 2030, showing consistent growth in both urban and semi-urban areas.

This upward trend is mainly driven by two factors. First, consumers are becoming more careful about what they eat and are choosing oils that are perceived to be healthier. Second, there is growing concern about adulteration in edible oils, which has increased trust in cold pressed and chemical-free alternatives, even if they come at a higher price.

Overall Edible Oil Industry Trends

When viewed within the larger edible oils industry, cold pressed oils still form a smaller but fast-growing segment. India’s overall edible oil market, which includes refined oils and specialty oils, is already worth tens of billions of dollars and continues to expand. Different segments of this market are expected to grow at annual rates ranging from 4 to 14 percent, depending on usage and product type.

Government efforts to boost domestic oilseed production are also playing a supportive role. Policies aimed at reducing dependence on imported edible oils and improving farm productivity may help ensure better availability of raw materials. In the long run, these steps can indirectly benefit cold pressed oil manufacturers by strengthening local supply chains and stabilizing input costs.

Planning Your Cold Pressed Oil Business

Before starting the business, you need a clear plan. This includes deciding which oils to produce, estimating investment, choosing a location, purchasing machinery, and understanding legal and quality requirements.

  • First, decide which oil types you want to produce. Groundnut, mustard, sesame, and coconut oils have different raw material costs, production methods, and market segments. Some entrepreneurs start with one or two oil types and expand later.

  • Next, choose the scale of your operation. A small unit may serve local markets, while a medium or large unit can supply to wider regions and institutional customers. Your budget and market research will help you decide the scale.

  • Location plays an important role. A location near raw material suppliers can reduce transportation costs. It is also important to choose a place with good access to roads for distribution. If you plan to sell in multiple states, being close to transport hubs can reduce logistics costs.

Legal and Quality Requirements

Like any food business, cold pressed oil manufacturing has legal requirements. You need to register your business and obtain necessary licenses. In India, this typically includes FSSAI (Food Safety and Standards Authority of India) registration or license. For larger operations, you may need a license rather than just registration.

If you produce more than a certain quantity per day or supply outside your local area, you must follow food safety rules, maintain hygiene, and get your products tested in a certified lab. The packaging and labeling must meet FSSAI standards. Labels should include nutritional information, manufacturing date, expiry date, batch number, and FSSAI license number.

It is also important to follow environmental and waste disposal regulations. Oil extraction produces solid waste like seed cake and seed husk. These can be sold as animal feed or used in other industries, but you must manage them responsibly.

Machinery and Equipment Needed

The heart of your cold pressed oil business is the machinery. Choosing the right machines determines the quality of the oil and the efficiency of your production process. Cold press machines are available in various capacities, from small manual units to large automatic machines.

At a basic level, the equipment you need includes:

  • Seed Cleaner: Before pressing, seeds must be cleaned to remove stones, dust, and other impurities. This improves oil quality and protects the pressing machine.

  • Dehuller or Decorticator (for some seeds): For sesame or groundnut, removing the outer husk can improve oil yield.

  • Cold Press Oil Extraction Machine: This is the main equipment. It squeezes oil from seeds at low temperatures. There are screw press machines with different capacities. Small units may produce 10–20 liters per hour, while larger units can produce 100 liters or more per hour.

  • Oil Filtration System: After extraction, the oil contains solid particles. A filtration unit helps clarify the oil, making it visually appealing and safer for consumption.

  • Storage Tanks: Stainless steel tanks or food-grade containers are needed to store the finished oil before packaging.

  • Packaging Machine: For small bottles, a semi-automatic or automatic filling and capping machine saves time. You also need labeling machines for branding.

The cost of machinery depends on capacity and automation level. Small scale units with basic machines may cost less, while larger automatic units require higher investment. It is wise to get quotations from multiple suppliers and choose reliable machines with after-sales support.

Setting Up Your Production Unit

Once you have the machinery, you need to set up your production unit. Make sure the production area is clean and spacious. Floor and walls should be easy to clean. Good ventilation and proper lighting help maintain hygiene.

Set up separate areas for raw material storage, cleaning, pressing, filtration, and packaging. This prevents cross-contamination. Install machinery according to the manufacturer’s instructions. Workers should be trained to operate machines safely and maintain quality.

Temperature control is important in cold pressing. Although the process does not use added heat, the pressing generates some heat due to friction. Good cold press machines have temperature control systems, but you should still monitor the temperature to ensure it does not exceed recommended limits.

Raw Material Sourcing

Your oil quality depends on the quality of the raw materials. You need reliable suppliers for groundnuts, mustard seeds, sesame seeds, and coconut. Raw materials should be clean, fresh, and free from fungi or moisture.

Many entrepreneurs work directly with farmers or cooperatives. This can ensure quality and reduce costs. You can also buy from wholesale markets or agricultural mandis. It is a good idea to test samples before bulk purchase.

Keep raw materials in a cool, dry place to prevent spoilage. Moisture and heat can reduce oil yield and affect taste.

Production Process

The cold pressed oil production process involves several steps:

  • Cleaning: Remove stones, dust, and foreign matter from seeds. Clean raw material helps protect machines and improves yield.

  • Preparation: Some seeds like sesame and groundnut may need dehulling. Coconut processing involves removing the kernel and drying.

  • Pressing: Feed the prepared seeds into the cold press extractor. The machine applies pressure to extract oil without high heat. Monitor temperature and speed to ensure quality.

  • Filtration: After extraction, oil contains particles. Filter the oil to remove solids. You can use simple cloth filters or mechanical filters for larger quantities.

  • Storage and Packaging: Store filtered oil in clean stainless steel tanks before packaging. Use bottles of various sizes depending on your market (e.g., 200 ml, 500 ml, 1 liter).

  • Labeling: Label bottles with brand name, oil type, nutritional facts, manufacturing and expiry dates, and FSSAI license number.

Managing By-Products

Cold pressing leaves behind seed cake, which still contains nutrients. This by-product can be sold as animal feed, organic fertilizer, or used in other industries. Selling by-products helps reduce waste and increases profitability.

Marketing and Sales Strategy

Marketing is key to the success of your oil business. Start with a strong brand identity. Choose a brand name, design a simple logo and attractive labels that communicate health benefits and purity.

Use multiple channels to sell your products. Local retail stores and supermarkets are traditional outlets. Visit store owners and show your product samples. Offering introductory discounts or free tastings can help get initial orders.

Online marketplaces like Amazon, Flipkart, and health-focused stores give access to customers outside your local area. Build a simple website or social media page for your brand. Share information about health benefits, recipes, and how your oil is better than refined alternatives.

Participate in local fairs, farmers’ markets, and exhibitions. These events help you connect with health-conscious consumers directly.

Build relationships with restaurant owners and caterers. They often prefer quality cold pressed oils for cooking, which can be a stable source of orders.

Pricing and Margins

Pricing is important for profitability. Your price should cover raw material costs, production cost, packaging, marketing, and profit. Cold pressed oil usually sells at a higher price than refined oil because of its perceived health benefits and lower production yield.

Margins depend on the type of oil and market price of raw materials. For example, mustard and sesame seeds may be costlier than groundnuts during certain seasons. Good quality raw materials usually cost more but help you sell at higher prices.

Calculate the cost of production carefully. This includes electricity, labor, transportation, packaging, rent, and machine maintenance. After calculating total cost per liter, add a reasonable profit margin based on market rates.

In many cases, cold pressed oil businesses can achieve a gross margin of 25% to 40% or more, depending on pricing and sales channels. It is important to keep costs under control and build a brand that customers trust.

Managing Challenges

Like any business, cold pressed oil manufacturing has challenges. Raw material price fluctuations affect your cost and profit margin. To manage this, build good relationships with suppliers and negotiate long-term deals.

Maintaining consistent quality is crucial. Customers expect purity and good taste every time they buy your oil. Invest in good machinery, train your staff, and follow strict quality control.

Marketing takes effort, especially for a new brand. Be patient and consistent with your communication. Use digital marketing to reach more consumers.

Competition from larger brands and refined oil producers can be strong. Focus on your unique selling points such as purity, local sourcing, traditional methods, and health benefits.

Scaling Your Business

Once your business is stable and profitable, you can plan to expand. You might add more oil varieties, increase production capacity, or enter new markets. Setting up distribution in neighboring towns and cities increases sales.

You can also diversify into related products like flavored oils, organic oil blends, and personal care oils (like coconut oil for skin and hair). Packaging in premium bottles for gift packs is another idea.

Invest in better machines as you grow. Automatic press and packaging lines save time and labor. Quality certifications such as organic certification or GMP (Good Manufacturing Practices) can help you compete in premium markets.

Final Thoughts

Starting a cold pressed oil manufacturing business requires planning, hard work, and attention to quality. The rising demand for healthy cooking oils creates a favorable market for new entrepreneurs. By understanding the production process, choosing the right machinery, maintaining quality, and building a strong brand, you can build a successful business.

Stay focused on customer needs, keep improving your products, and adapt to market changes. With the right approach, your cold pressed oil business can grow from a small local brand to a trusted name in the health foods market.