Demand for mustard oil surges

The demand for mustard oil – a popular cooking ingredient which can also be used as a hair and skincare product – is surging among consumers.

An increase in Soybean oil prices is a key factor behind the growth of mustard oil sales throughout Bangladesh, industry insiders told The Business Post.

“Our sales of mustard oil increased significantly after the Covid-19 pandemic hit Bangladesh. The market for this oil has grown by around 30 per cent in the last two years,” said Pran-RFL Group’s Director of Marketing Kamruzzaman Kamal.

“It is comparatively healthier than other types of edible oil, and works as an immunity booster. A consumer can use the oil for multiple purposes, which is contributing to the increase of its sales. Another major factor is the rising price of soybean oil in the local market,” he added.

Former chairman of the Bangladesh Oil Mills Association Harun Ur Rashid said a significant number of people across the country – especially in rural regions – use mustard oil.

“It is very popular due to its versatility, and this factor is boosting its sales. Besides, many health conscious consumers prefer mustard oil to any other edible oils. Demand has been increasing steadily in the country for the last couple of years,” he added.

Radhuni, Teer and Fresh are some of the major brands of mustard oil in Bangladesh, but many non-brand products are also available here.

When asked about why he prefers mustard oil to soybean, a shopper in Mirpur area Tufajjal Haque said, “Mustard oil is versatile and it has numerous health benefits. I use it for cooking at home.”

“Mustard oil is good for my hair growth, stops hair loss and prevents skin dryness as well,” he added. Many shoppers just like Tufajjal have expressed the same opinion. Besides, a shop owner in Mirpur Md Shapon also said mustard oil has gained more popularity in recent years.

According to a report by Mordor Intelligence, Bangladesh mustard oil market is projected to grow at a compound annual growth rate (CAGR) of 5.6 per cent during the forecast period (2020-2025).

The report also said mustard oil accounts for a share of around 5-6 per cent of the Bangladesh edible oil market.

Several global players – who are trying to penetrate the mustard oil market in Bangladesh – are collaborating with local distributors to boost their sales through convenience stores.

The easy availability of mustard oil is a key factor behind its presence in road-side and open-air stores, and this is aiding the market’s growth across Bangladesh, the report added.

According to a research conducted by Indian market research company Absolute, the global mustard oil market was valued at US$ 37 million in 2019. The market size will reach US$ 45 million by the end of 2026, growing at a CAGR of 2.8 per cent during 2021-2026.