Why Is Peanut Oil So Expensive

If you’ve ever shopped for cooking oils, you may have noticed that peanut oil is often pricier compared to other varieties like canola or vegetable oil. This begs the question: why is peanut oil so expensive?

The answer lies in the manufacturing process and the limited supply of peanuts, as well as the oil’s high smoke point and numerous health benefits.

To produce peanut oil, peanuts must first be shelled, cleaned, and pressed multiple times to extract the oil. Since peanuts are a seasonal crop, their limited availability can also contribute to higher prices.

Additionally, peanut oil boasts a high smoke point, making it ideal for deep frying and high-heat cooking. Plus, it contains healthy monounsaturated fats and antioxidants, making it a popular choice for health-conscious consumers.

What is Peanut Oil?

What is Peanut Oil?

Understanding Peanut Oil

As the name suggests, peanut oil is an oil extracted from peanuts. It is a popular vegetable oil that is commonly used in cooking, and it has a mild, nutty flavor that makes it a favorite of many. Peanut oil is a versatile oil that can be used for frying, roasting, and sautéing, making it a staple in many kitchens.

It is important to note that peanut oil is not the same as peanut butter or peanut sauce. It is an oil that is extracted from peanuts, and therefore, it does not contain any other ingredients.

Composition of Peanut Oil

Peanut oil is comprised of both monounsaturated and polyunsaturated fats, making it a healthier oil choice than many other vegetable oils. It is also high in vitamin E and phytosterols, which can help reduce cholesterol levels in the body.

Types of Peanut Oil

There are two main types of peanut oil: refined and unrefined. Refined peanut oil is processed using high heat and chemicals, which removes any impurities and gives it a longer shelf life. Unrefined peanut oil is processed using low heat, which helps to retain the natural flavors and nutrients of the oil.

Why is Peanut Oil So Expensive?

Why Is Peanut Oil So Expensive

Peanut oil is considered to be one of the most expensive vegetable oils in the market. This might come as a surprise to many, as peanuts are relatively inexpensive compared to other nuts and seeds. So, why is peanut oil so expensive? Let’s take a look at some of the factors that affect the price of peanut oil.

Cost of Production

The cost of producing peanut oil is relatively high due to the labor-intensive nature of peanut farming. Harvesting, shelling, and processing peanuts require a lot of time and energy, which ultimately drives up the cost of peanut oil.

Demand and Supply

Peanut oil is in high demand in countries such as China, India, and the United States. However, the supply of peanuts is limited, especially in regions with unfavorable climatic conditions. This limited supply of peanuts further drives up the price of peanut oil.

Sourcing of Raw Materials

To produce high-quality peanut oil, producers must source high-quality peanuts, which often come at a premium price. Additionally, the cost of transporting peanuts from the farms to the processing plants adds to the overall cost of production.

Processing Method

The method used to extract oil from peanuts can significantly affect the price of peanut oil. Expeller pressing, which involves mechanically extracting oil from peanuts, is a more expensive method than solvent extraction, which uses chemicals to extract the oil.


The cost of peanut oil can vary depending on the location of production. For example, producing peanut oil in regions with high labor costs will ultimately result in a more expensive product.

Peanut Oil Prices: How Much Does It Cost?

Please not that the prices may vary depending on the retailer and the size of the bottle:

Peanut Oil Prices: How Much Does It Cost?
Chosen Foods16 fl oz$6.99
Spectrum Naturals16 fl oz$7.99
Bragg16 fl oz$8.99
Kirkland Signature16 fl oz$9.99
Simply Nature16 fl oz$10.99

Comparison with Other Vegetable Oils

Why Some Vegetable Oils Are Cheaper Than Others

The price of vegetable oils largely depends on the type of oil and the method of production. For example, oils such as canola and soybean oil are cheaper than peanut oil due to the abundance of their raw materials and the less intensive production process.

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Where Peanut Oil Stands in Comparison to Other Oils

While peanut oil may be more expensive than some vegetable oils, it is still relatively affordable in comparison to high-end oils such as avocado or flaxseed oil.

Ultimately, the price of peanut oil is influenced by a range of factors, from the cost of production to the processing method used. Despite its high cost, peanut oil remains a popular choice for cooking and skincare due to its many nutritional benefits.

Benefits of Peanut Oil

Aside from its taste and versatility in cooking, peanut oil has several benefits for both your health and skincare routine. Here are some reasons why you should consider incorporating peanut oil into your daily routine:

Nutritional Value of Peanut Oil

One tablespoon of peanut oil contains approximately:

  • 119 calories
  • 13.5 grams of fat
  • 2.3 grams of saturated fats
  • 2.6 grams of polyunsaturated fats
  • 7.5 grams of monounsaturated fats

Peanut oil is also a good source of vitamin E and phytosterols, which can have benefits for heart health.

Health Benefits of Peanut Oil

Studies have shown that consuming peanut oil may have several health benefits:

  • Reduced Risk of Heart Disease: The monounsaturated and polyunsaturated fats in peanut oil can help improve cholesterol levels and reduce the risk of heart disease.
  • Anti-inflammatory Properties: Peanut oil contains resveratrol, which has anti-inflammatory properties and may help reduce the risk of chronic diseases.
  • Antioxidant Properties: The vitamin E in peanut oil is an antioxidant that helps protect cells from damage caused by free radicals.

Peanut Oil for Skincare

Peanut oil can also be used topically for skincare as it is lightweight and absorbs quickly into the skin. It may help:

  • Moisturize and hydrate dry skin
  • Reduce the appearance of fine lines and wrinkles
  • Improve skin elasticity

Peanut Oil for Cooking

Peanut oil has a high smoke point, making it an ideal oil for frying and stir-frying. It also has a neutral flavor that allows the flavors of other ingredients to shine through.

Additionally, peanut oil is high in monounsaturated and polyunsaturated fats, which can be healthier options compared to saturated fats for cooking and baking.

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Disadvantages of Peanut Oil

Health Risks Associated with The Consumption of Peanut oil:


Peanut oil is known to cause allergic reactions in some individuals, especially those with peanut allergies. This can lead to severe symptoms such as hives, swelling, and difficulty breathing. It is recommended that individuals with peanut allergies avoid consuming products containing peanut oil.

Cholesterol and Heart Diseases

Peanut oil contains high levels of saturated and unsaturated fats, which can contribute to high cholesterol levels and heart diseases. It is important to maintain a healthy balance of fats in the diet and limit the consumption of peanut oil to moderate levels.

Obesity and Weight Management

Consuming too much peanut oil can also lead to weight gain and obesity. This is due to the high caloric content of the oil and the fact that it does not provide significant satiety or fullness. It is important to use peanut oil in moderation as part of a balanced diet to maintain a healthy weight.

The Future of Peanut Oil

Trends and Predictions in The Peanut Oil Industry

The peanut oil industry is constantly evolving, with new trends and predictions emerging over time. One of the most notable trends in recent years has been the emergence of new markets for peanut oil, particularly in Asia. As demand for peanut oil continues to grow in these markets, prices may continue to rise, but innovations in production techniques could help offset some of these costs.

Another trend that is likely to shape the future of the peanut oil industry is the shift towards healthier oils. While peanut oil has long been praised for its health benefits, it is facing increasing competition from other oils that are perceived as even healthier.

As a result, producers are investing in innovations that can help improve the nutritional profile of peanut oil and make it even more appealing to health-conscious consumers.

Overall, the future of the peanut oil industry looks promising, with plenty of opportunities for growth and innovation in the years to come. Whether you are a fan of peanut oil for its taste, nutritional value, or cooking versatility, there is no doubt that this oil will continue to play an important role in our diets and our lives.


In conclusion, peanut oil is expensive due to various factors such as the cost of production, demand and supply, sourcing of raw materials, processing method, and location. However, despite the high price, peanut oil offers numerous health benefits and uses both for cooking and skincare. As the industry continues to innovate and shift towards healthier oils, the future of peanut oil looks promising.

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