Is Peanut Powder a Byproduct of Peanut Oil? Unpacking the Process

January 12, 2026 •

3 min read

With approximately 14 million metric tons of peanuts crushed annually to produce edible oil, a significant amount of solid material is left behind. This defatted peanut material, often called peanut meal, is the primary source for producing peanut powder, making it a valuable and high-protein byproduct of the peanut oil manufacturing process.

Quick Summary

The process of extracting oil from peanuts results in a low-fat, high-protein solid residue. This leftover material is dried and ground into a fine powder, which can be sold as defatted peanut flour or used as the base for powdered peanut butter.

Key Points

Source of Peanut Powder: Peanut powder, or defatted peanut flour, is a byproduct of the oil extraction process, not a primary product.
Low-Fat Composition: By pressing the oil out of roasted peanuts, the solid meal is created, which is then ground into a powder that is significantly lower in fat and calories.
High Protein Density: With the oil removed, the remaining solids have a higher concentration of protein, making defatted peanut flour a protein-dense food.
Not All Powder is Equal: While peanut flour is a pure byproduct, many commercial 'peanut butter powders' add sugar and salt for flavor, so it's important to check the label.
Versatile Ingredient: The uses of peanut powder extend beyond spreads, including baking, thickening sauces, and adding a protein boost to smoothies and shakes.
Gluten-Free Alternative: Defatted peanut flour is a naturally gluten-free option, making it a suitable ingredient for those with gluten sensitivities or following a gluten-free diet.

The Peanut Oil Extraction Process

The creation of peanut powder begins with the industrial-scale process of making peanut oil, which separates oil from solid components. This process typically involves cleaning and roasting peanuts to enhance flavor. Roasting is key for the nutty aroma in both the oil and powder.

From Meal to Powder

After roasting, peanuts are pressed to extract most of the oil. The solid residue is called peanut meal or press cake. This meal retains the roasted flavor but is lower in fat and higher in protein than whole peanuts. The meal is then dried and ground into a fine powder. Low-temperature pressing can be used to preserve protein properties. The powder, also called defatted peanut flour, can be sold as is or with added sweeteners and salt as powdered peanut butter.

Understanding Defatted Peanut Flour

Defatted peanut flour is a gluten-free ingredient that provides nutrients with less fat than traditional peanut butter. The defatting process removes up to 85% of fat calories, leaving a concentrated source of protein and fiber.

Nutritional Advantages

Defatted peanut flour has an impressive nutritional profile. Removing oil increases the concentration of other nutrients. It's high in protein and a good source of magnesium, potassium, and niacin.

Here is a list of some key nutritional benefits:

Higher Protein: More protein per serving than whole peanuts, useful for supplements.
Lower Fat & Calories: Significantly less fat and calories than regular peanuts, aiding weight management.
Rich in Minerals: Provides minerals vital for health.
Heart-Healthy: Retains components that can help lower bad cholesterol.
High Fiber: Contains fiber for digestion and fullness.

Culinary Uses of Defatted Peanut Powder

Defatted peanut flour is versatile in cooking, adding flavor to sweet and savory dishes.

Baking: A gluten-free flour alternative for nutty flavor and protein.
Smoothies & Shakes: Blends easily for protein and flavor.
Thickening Agent: Thickens soups and sauces, adding creaminess and nutty taste.
Coatings: Mixed with spices, it creates a crispy coating.
Desserts: Ideal for lower-calorie treats.

Peanut Powder vs. Whole Peanuts: A Nutritional Comparison

Comparing defatted peanut powder (approx. 2 tbsp) and whole peanuts (approx. 1/4 cup) shows key nutritional differences:


Feature	Defatted Peanut Powder (Approx. 2 tbsp)	Whole Peanuts (Approx. 1/4 cup)
Calories	~60 calories	~207 calories
Total Fat	~1.5g	~18g
Protein	~8g	~9.5g
Carbohydrates	~5g	~6g
Primary Use	High-protein additive, low-fat spread, baking flour	Snacking, full-fat spreads, whole-ingredient recipes

The Different Kinds of Peanut Powder

There are two main types of peanut powder:

Defatted Peanut Flour: The pure byproduct of oil extraction, containing only ground, defatted peanuts. Used in baking or as a thickener.
Powdered Peanut Butter: Defatted peanut flour with added sugar and salt for flavor. Designed to be mixed with water for a lower-fat spread.

Conclusion: A Valuable Co-Product

Peanut powder is a valuable co-product of peanut oil manufacturing, not just a waste product. The process yields versatile, protein-rich, defatted peanut flour, which can be made into powdered peanut butter or used in various culinary applications. Oil extraction refines the peanut into two beneficial products, offering a nutritious low-fat alternative to whole peanuts.

For more on peanut products' health benefits, visit The Peanut Institute website.

FAQs About Peanut Powder and Peanut Oil Byproducts

Frequently Asked Questions

Yes, for the most part, peanut powder is the same product as defatted peanut flour. However, some manufacturers market 'peanut butter powder' which adds sugar and salt to the basic flour, so it's wise to check the ingredients.

The main difference lies in the fat content. Peanut powder has most of the oil pressed out, resulting in a product that is much lower in fat and calories, and higher in concentrated protein per serving, compared to oil-rich peanut butter.

The taste is similar but less rich. Peanut powder retains the nutty, roasted flavor but lacks the rich creaminess from the natural fats. For a flavor closer to traditional peanut butter, commercial powdered peanut butters often add sugar and salt.

To reconstitute, simply mix peanut powder with a small amount of water until it reaches your desired consistency. Most brands recommend a 2-to-1 ratio of powder to water, but this can be adjusted.

Yes, for many, defatted peanut flour is a healthy alternative. It's lower in fat and calories than regular peanut butter, while providing a significant boost of plant-based protein, fiber, and important minerals.

Yes, peanut powder can be used in baking. It serves as a gluten-free flour alternative, adding a nutty flavor and boosting the protein content of recipes like cookies, cakes, and pancakes.

The oil extracted during the process is refined and bottled for sale as peanut oil. The manufacturing process is efficient and creates two separate, valuable food products from the same raw material.