Comparison and Selection Guide for Peanut Oil Extraction Process

When planning to invest in a peanut oil business, the choice of the peanut oil extraction process often determines subsequent equipment investment, operational costs, and market positioning. Many investors face multiple options at the initial stage of factory setup: traditional mechanical pressing, pre-press—solvent extraction combined process, cold pressing, or small-scale refined pressing. The differences between these processes are not just in equipment models but also involve production capacity, oil quality, energy consumption, and ultimately, return on investment.

Choose Right Peanut Oil Extraction Process for Your Production Business

This article systematically outlines the advantages and disadvantages of several mainstream groundnut oil production processes, and combines project scale and market positioning to help investors clarify decision-making and avoid common pitfalls.

3 Mainstream Process Routes for Peanut Oil Extraction

Traditional Mechanical Pressing: Stability, Maturity, and Trade-Offs Between Energy and Oil Yield

In peanut oil production, the traditional mechanical pressing process is the most widely applied, especially in small to medium-sized factories. Its core advantage lies in its simple process and mature technology, requiring minimal complex solvents or large-scale equipment, making the factory setup threshold relatively low.

However, mechanical pressing also involves unavoidable trade-offs:

1. Energy consumption: Relying purely on physical pressure, the press machine consumes substantial electricity during operation;
2. Oil yield limitation: Even with well-adjusted equipment, the residual oil in peanuts is typically 7%–9%, meaning 20–30 kg of oil per ton of raw material may be lost;
3. Labor dependency: Frequent monitoring of feed, temperature, and pressure is required, increasing operational management demands.

Example scenario: A local small factory with an annual processing capacity of 5,000 tons may produce over 300 tons less oil if using mechanical pressing compared to a “pre-press—solvent extraction” setup, translating to a revenue gap of millions of yuan. However, for investors targeting local markets and quick cash recovery, this loss is acceptable due to lower equipment investment and easier process maintenance.

For investors intending to enter the market at a small scale, test channels, or build a regional brand, mechanical oil pressing remains a practical choice.

Start Small Oil Press Plant Business in India

Pre-Press—Solvent Extraction Combined Process: Suitable for Large-Scale Production

When processing scales exceed tens of thousands of tons annually, single mechanical pressing often cannot meet investors’ expectations for output and profit. At this point, the pre-press—solvent extraction combined process becomes the mainstream choice. It typically consists of two steps: first, use a spiral press to “pre-press” about 70% of the oil; then employ a solvent (commonly n-hexane) to extract the residual oil.

The core advantages of this process are threefold:

1. Extremely high oil yield: Residual oil in peanuts can drop to 1%–1.5%, nearly exhausting the oil content;
2. Significant economies of scale: A single line can process 300–600 tons of raw material per day, reducing unit production cost;
3. High by-product utilization: Peanut cake with low residual oil is more suitable for feed or further processing markets, providing higher added value.

However, it also imposes higher requirements on investors: cooking oil solvent extraction plant investment typically exceed millions dollars, requiring solvent recovery systems, storage tanks, fire protection, and environmental facilities. In terms of environmental and safety management, solvents are flammable chemicals, necessitating strict plant layout, personnel training, and daily supervision. Regarding the oil mill plant construction cycle and professional expertise, the peanut oil making process from design to commissioning usually takes 8 to 12 months and requires a professional team.

For investors with strong capital and aiming for large-scale edible oil production and national markets, this oil processing method is often the most worthwhile long-term solution. However, if the main goal is “flexible and fast market entry,” one must weigh whether the initial high investment is justified.

Large Peanut Oil Pre-Pressing and Solvent Extraction Factory

Cold Pressing and Small-Scale Refined Pressing: Targeting High-End and Niche Markets

Beyond investors pursuing scale efficiency, some projects focus on high-value markets. The cold pressing and small-scale refined pressing process is the core choice for these investments. Its key feature is maintaining a pressing temperature below 60℃, minimizing oil oxidation and nutrient loss, thereby preserving the natural flavor and active components of peanut oil.

Cold pressing peanut oil machine also has notable limitations. One major drawback is the lower oil yield, as the residual oil can exceed 10%, which is significantly higher compared with combined processes. In addition, the limited capacity of single machines—typically handling only 1 to 20 tons per day—makes it difficult to meet large-scale supply demands. Finally, the process stability is highly sensitive to raw material quality, meaning that even small variations in peanut moisture or impurities can noticeably reduce pressing efficiency.

Therefore, for investors targeting high-end consumers or differentiated markets, cold pressing and small-scale refined pressing are not only process choices but also market strategies. However, for those pursuing scale and cost advantages, these processes cannot serve as the main solution.

20TPD Hydraulic Cold Press Oil Processing Plant ABC Machinery

Quick, low-risk startup → Mechanical pressing is suitable;
Targeting large-scale production and stable long-term returns → Combined process is preferred;
Entering high-end markets and building a differentiated brand → Cold pressing/small refined pressing is more competitive.

Our Support for Clients

• Process consulting and investment assessment: Evaluate feasibility and ROI for different processes based on raw materials, capacity, and market demand, avoiding early-stage decision errors.
• Customized equipment and turnkey projects: Provide complete equipment solutions and factory layout for seamless implementation and smooth production launch.
• Post-setup training and after-sales service: Cover operational training, maintenance guidance, and technical support to help clients maintain stable operations and improve returns.

Emerging Market Opportunities for Peanut Oil Processing in Southeast Asia and Africa

The peanut oil market in Southeast Asia and Africa is growing rapidly, but seizing opportunities requires comprehensive analysis of raw material supply, processing capacity, cost structure, and market demand:

• Raw material supply stability: Countries like Indonesia, Myanmar, Nigeria, and Senegal have concentrated high peanut production. Investors can secure stable annual supply by signing long-term purchase contracts or partnering with local cooperatives, avoiding production stoppages or cost spikes due to seasonal fluctuations.
• Processing cost and energy advantage: Local electricity and labor costs are relatively low. Using mechanical pressing or combined processes can achieve unit oil cost advantages, especially the pre-press—solvent extraction combined process, which benefits from economies of scale and quick investment recovery.
• Market demand and consumption upgrade: High-end markets demand cold-pressed, low-acid peanut oil, particularly in urban supermarkets and restaurant chains. Differentiated products with cold pressing or refined processes can establish price and brand advantages between imported oils and low-end bulk oils.
• Policy and trade environment: Some African countries provide export incentives and tax breaks for local processors, while certain Southeast Asian countries offer industrial park support. Investors should verify local environmental, solvent usage, and safety regulations to ensure process feasibility.

Our Edible Oil Processing Projects in Southeast Asia and Africa