How to Make Money from Onion Oil Manufacturing

Introduction to make money from onion oil manufacturing

Onion is well known for its best tasty flavor and is native to the Mediterranean Coastal and Central Asia areas. It has a very delicate flavor, soft fiber, high storability, fleshy bulbs, and fine texture, which is considered as ‘Vegetable Queen’ in some countries. Onion oil is extracted from seeds of the onion. It has a different aroma owing to vast significant properties that involve aphrodisiac, antibacterial, Antiviral, hypnotic nature, and also antiseptic. Hair Fall is a major issue, almost all the ladies and men are sick and tired of counting the hair they lose every day. Hairfall doesn’t come single, it is accompanied by other scalp problems which involve dandruff, baldness, hair thinning, and greying. Of course, pollution is the main reason, we get exposed to pollution each and every day, no matter how much we try to protect our hair by wearing around a scarf or using a heat protectant. It still gets damaged and loses its natural shine slowly day by day. Also, the water is also a big issue, hardened and polluted water takes a toll on your hair, it not only makes the strands weaker and lifeless but also drains out the natural oil from the hair, making it prone to breakage. We cannot do anything against the pollution, but we can surely take extra care of our hair by using all-natural and best products to overcome hair fall and hair damage.

Ideas to start and make money from onion oil manufacturing

Create a business plan to make great money from onion oil manufacturing

Among all end-use industry segments, the food segment is estimated to account for high revenue in contribution to the target market, owing to high adoption by the various food industries. The cosmetic and personal care product segment is projected to grow at a significantly high rate due to the increasing usage of onion oil as a main ingredient or base for making hair oils. Onion oil is known to be best beneficial for stimulating hair growth and maintaining good hair health.

A place to set up a plant for manufacturing onion oil

Choosing the area of your business is another critical factor that can make one’s business continuously productive. It’s optimal to find the region which is close to your wellspring of raw materials. For example, if one will be going into onion oil creation, they should discover an extraction plant near an onion oil estate. This will decrease transportation costs, which could be crippled many restrictions for plants.

How to choose the raw materials?

Quality starts with the selection of the best suppliers. Carefully selected onions and exquisite raw materials from all over the world are the heart of the product range. The selection and evaluation method ensures that we are collaborating with top suppliers, most of whom you should do business with who have been doing business with for many years. In doing so, our focus is on regional suppliers and sustainability. It is therefore absolutely necessary to select and treat the raw material as carefully and gently as possible in order to preserve the essential oils that are responsible for the flavor and fragrance of our products.

Nutritional values of onion oil

Onion is a well-known traditional nutraceutical and medicinal plant that is cultivated and used around the whole world. Onions have phenolics and flavonoids that have potential anti-inflammatory, anti-cholesterol, anticancer, and antioxidant properties. Onions have 89% water, 1.5% protein, and vitamins B1, B2, and C, along with potassium and selenium. Onion contains polysaccharides such as fructosans, saccharose, peptides, flavonoids (mostly quercetin), and essential oil. Onion has numerous sulfur compounds including thiosulfinates and the thiosulfonates; cepaenes; S-oxides; S, S-dioxides; mono, di, and tri-sulfides; and sulfoxides.

The global market for onion oil manufacturing business to make huge money

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The global market for onion oil manufacturing business.
The global market for onion oil manufacturing business.

Europe’s onion essential oil market is estimated to record significant revenue in the target market over the 10-year forecast period. Increasing demand for onion essential oil from the food & beverage industry is a factor projected to propel the growth of the European market. In addition, the presence of major manufacturers is another factor expected to drive the growth of the market in the region. The North American market is projected to account for moderately higher revenue share in the global market owing to increasing inclination towards essential oils, growing aromatherapy sector, and rising awareness regarding benefits of onion oil. The Asia Pacific market is anticipated to register the highest CAGR over the next few years. Growing demand for onion essential oils in a wide range of applications such as an ingredient in the personal care & cosmetics industry and various uses in the food industry for culinary uses in the countries including Korea, Japan, China, and India, among others in the region. In addition, growing preference for natural ingredients, increasing spending capacity, and changing lifestyles are factors projected to drive the growth of the global market in the next 10 years.

The small scale business is exceptionally conservative and simple to start. The business can be considered as a sole proprietorship if one individual takes care of business. The registration of the business isn’t required for a sole proprietorship. But, it is compulsory to get a license to work that is a business license from the local authorities. After getting a license if any permission is required, then it should be applied. It might be a Company, Partnership Firm, Limited Liability Partnership (LLP). The Company should be incorporated by following the provisions of Companies Act, 2013.

How to register as a company?

The application must be sent to the Register of Companies with required documents. The ROC will verify the records and applications, then the confirmation of registration is obtained. It is required to register the business to prevent themselves from liabilities and debts. On the occasion that oils are delivered for prescriptions and magnificence care items, by then the license must be gained and as per provisions of Drugs, Cosmetics Act and Rules. If oils are manufactured to food-based products then the Food Safety and Standards Authority of India (FSSAI) license is required.

An extraction procedure and manufacturing of onion oil 

Oil extraction from onion was done by steam distillation. Response surface methodology was applied to evaluate the effects of the ratio of water to raw material, extraction time, zymolysis temperature, and distillation times on the yield of onion oil. The maximum extraction yield of (1.779%) was obtained as following conditions: the ratio of water to raw material was 1, extraction time was 2.5 hours, zymolysis temperature was 36°C and distillation time was 2.6 hours. The experimental values accept well with those predicted by the regression model. The chemical composition extracted from onion oil under the optimum conditions was analyzed by gas chromatography-mass spectrometry technology. The results showed that sulfur compounds, like alkanes, sulfide, alkenes, ester, and alcohol, were the main components of onion oil.

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The cost to start an onion oil extraction business

The cost required to start the onion oil extraction business includes both fixed and variable costs. The onion oil business does not require huge capital to start.  The investment for setting up an onion oil mill is approximately Rs. 17 lakhs to Rs. 25 lakhs. The costs are listed below:

  • The cost of equipment like oil expeller, filter, storage tank, etc, – Rs. 2,00,000 to Rs. 3,00,000
  • Installation, electrification and taxes – Rs. 40,000 to Rs. 55,000
  • Working staff – Rs. 25,000 to Rs. 30,000 per month
  • Raw material (onion seeds ) – Rs. 5,00,000 to Rs. 6,00,000
  • Power, electricity, and water charges – Rs. 1,00,000 per month
  • Registration and licenses – Rs. 1,50,000 to Rs. 2,50,000
  • Rent of premises- Rs. 2,20,000 to Rs. 2,50,000
  • Any other miscellaneous expenses – Rs. 30,000 to Rs. 40,000

 Marketing strategies for onion oil

The demand for onion oil is already established. There are many brands of onion essential oil available in the market. The brand established must be advertised to increase sales. For this one can make use of social media. Facebook, Instagram, Whatsapp, etc are more likely to be used for marketing such brands. The customers will increase in the event that one is fabricating the quality marked oil. The cost additionally impacts the market. There are numerous brands accessible in the market. Along these lines, one should assess the value which is sensible and ought not to affect different brands.

Uses of onion essential oil

  • Onion fundamental oil is very notable for its delectable commitment to the culinary world, yet its helping properties have been kept separate from the spotlight. Onion unadulterated basic oil has an unmistakable onion smell.
  • Onion oil is known for its disinfectant, antibacterial, sexual enhancer, and mesmerizing properties. It additionally has anthelmintic, antimicrobial, hostile to sclerotic, antiviral, antispasmodic, bactericidal, carminative, depurative, diuretic, stomach related, expectorant, fungicidal, hypotensive, hypoglycemic stomachic, and vermiculite traits.
  • Onion has gained notoriety for adjusting weight issues and glandular awkwardness.
  • Onion basic oil is utilized fundamentally in fiery work. It helps in the avoidance of colds and keeps different diseases under control.
  • Onion likewise advances solid bones. It goes about as an exceptionally successful blood chemical which helps with keeping the skin in incredible and clean condition.
  • Onion basic oil helps in the mending of ear infections. It has been known to be a sexual enhancer since notable occasions. It can likewise be utilized cosmetically to animate hair development.
  • Onion oil is a powerful diuretic likewise has similar traits and it additionally helps in evacuation of poisonous operators like uric corrosive, bile, and so on from the body.
  • These diuretic qualities likewise decline the odds of an individual turning into a casualty of sicknesses like stiffness, skin break out, joint pain, bubbles, and different illnesses as well.
  • A few ailments which include the issue of the clog are a hack, sinus, and such others. Onion is an extraordinary expectorant that can be utilized to treat these clog related issues.
  • The utilization of onion fundamental oil brings about opening up the blocked section which clears a path for the sputum to come out. At the point when the sputum is discharged out from the body, the patients begin to get help from their affliction.
  • Onion basic oil is increasingly refreshing when it is utilized freely with no consolidating. In any case, it tends to be blended in with some fundamental oils and scents to diffuse the sulfurous smell.
  • Onion Oil can be utilized as a room sanitizer to clear negative, abhorrent vitality. Use in shower treatment with a prepared advisor. There are numerous cultivars of onion. It is hard to tell precisely from which assortment the onion oil is taken.

The cost of an onion oil

There are many brands available in markets through online and offline. The names of the best brands of cardamom oil are khadi onion oil, Rey naturals, etc. The bottle of 1 liter of onion oil costs around Rs. 3,000/- to Rs. 5,000/-.

The conclusion to make money from onion oil manufacturing

Onion oil is labeled and branded as one of the healthiest oils in the country. It won’t harm in using it as a medicinal purpose, for skin or hair, etc. so it is advisable to do this onion oil extraction business and earn huge profits. To reduce the input costs and get more profits, you can start Growing Onions from Seed.


  1. I am interested to set red onion oil extraction plant in Nasik Maharashtra , i need below help

    Consultant to set up oil extraction plant
    Consultant for direct marketing and getting B2B contract

  2. I’m interested onion oil extraction plant. In our place onions are available. please give me sugession on how to we marketing and companies


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