Europe Palm Oil Market Size to Grow At 7.2% CAGR From 2024 to 2030.

Europe Palm Oil Market Size (2024 - 2030)

As per our research report, the  Europe Palm Oil Market size is estimated to be growing at a CAGR of 7.2% from 2024 to 2030.

Palm oil, an edible vegetable oil, is extracted from the mesocarp of the oil palm fruit. It is recognized as the most efficient vegetable oil crop worldwide, producing yields that are 5 to 10 times greater per hectare compared to other leading vegetable oil crops. This oil is low in fat, easily digestible, and is abundant in carotenoids and vitamin A, providing various nutritional benefits.

Palm oil is predominantly used in food manufacturing, including cooking and frying oils, shortenings, margarine, and confectionery fats. The high consumer demand for these products drives significant growth in the palm oil market.

In addition to the oil itself, by-products such as palm shells, mesocarp fibers, empty fruit bunches, oil palm fronds, and trunks are being utilized in the production of medium-density fiberboard, particleboard, pulp and paper, plastic composites, and bioenergy. Oil palm biomass is considered an excellent alternative to wood across various applications.

The market is characterized by fierce competition and a wide range of participants, from small enterprises to large corporations. These entities are consistently striving to enhance their competitive edge through improved production capabilities, refined distribution networks, better product quality, and various competitive strategies.

The active involvement of numerous stakeholders in research and development is anticipated to propel industry progress. With the demand for palm oil continuing to increase, the market is expected to exhibit greater growth potential, further solidifying its role in the sector.

The pandemic has caused labor shortages that negatively impact palm oil production. With fewer available workers, production efficiency has declined, resulting in higher production costs and reduced profit margins.

At the same time, rising demand, fueled by government policies promoting the blending of palm oil into diesel, has worsened supply chain challenges. As a result, the industry faces constraints that impede the expected rapid growth.

Europe faces unique challenges related to specific oil palm products and their supply chains, affecting sectors beyond food, such as oleochemicals and animal feed. Economic and industrial activities experienced temporary disruptions, with nearly all manufacturing units utilizing advanced ceramics—particularly in the electrical, electronics, transportation, industrial, and

chemical sectors (excluding medical)—scaling back production capacities due to labor shortages. Lockdown measures further disrupted supply chains, leading to significant consequences for both the production and demand for advanced ceramics.

KEY MARKET INSIGHTS:

• Based on the Nature, Conventional oil palm farms are an essential source of income for small and medium-sized producers, as synthetic chemicals can improve productivity. This conventional sector is especially prominent in countries with low per capita incomes and sizable populations. Conversely, the organic segment, which exists alongside conventional farming, occupies a relatively minor market share due to production difficulties that restrict product availability. Stringent regulations and high costs related to inputs, such as specialized soil maintenance products, render large-scale production financially impractical and challenging for manufacturers.

• Based on the Product, The fractionated palm oil segment has become the market leader, mainly due to its accessibility and cost-effectiveness. Its plentiful supply and low price make it especially popular in low-income countries, where it can be produced in large volumes with relative ease. The Crude Palm Oil (CPO) segment has also significantly contributed to revenue, primarily because of its critical role in the food and beverage industry. The incorporation of vitamin A in this product increases its attractiveness, positioning it as a favored option for edible applications.

• Based on the End-use, The food and beverage sector commands a substantial share of the market, driven by the rising demand for palm oil as a raw material and the expanding variety of products that contain it. Population growth has further influenced this trend, increasing product demand on a global scale. Following the food and beverage segment, the personal care and cosmetics, as well as biofuel and energy sectors, show only minor variations in revenue share. These markets are expected to experience rapid growth in the coming years, propelled by technological advancements. Although the personal care and cosmetics segment is anticipated to grow at a slower rate, it is projected to make a significant contribution to revenue by the end of the forecast period. The diversification of product offerings and the increasing demand for organic and sustainable plant-based products are expected to drive growth in this segment.

• Based on the region, France exported $10.5 million in palm oil, positioning it as the 56th largest palm oil exporter worldwide. In that same year, palm oil ranked as the 982nd most exported product from France. The United Kingdom exported $9.24 million in palm oil, making it the 58th largest exporter globally.

• Companies playing a leading role in the Europe Palm Oil Market profiled in this report are United Plantations Berhad, Bunge Loders Croklaan, Astra Agro Lestari, Kuala Lumpur Kepong Berhad, Genting Plantations Berhad and Hap Seng Plantations Holdings.