Palm Oil Market Size (2024 - 2030)

The Global Palm Oil Market was valued at USD 70732.3 million and is projected to reach a market size of USD 100192.86 million by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 5.1%. 

It is very rich in beta carotene which is responsible for the red colour. The oil is used in the production of food, cosmetics, and biofuel. There are mainly two types of oil which are produced. Palm oil is a very flexible oil with several qualities and functions that make it so valuable and frequently utilised. It is semi-solid at room temperature, which keeps spreads spreadable; it is resistant to oxidation, which gives products a longer shelf life; it is stable at high temperatures, which helps to give fried products a crispy and crunchy texture; and it is odourless and colourless, which does not alter the appearance or smell of food products. Palm oil is a high-yielding crop. It is a very efficient crop, generating more oil per acre than any other comparable vegetable oil production. On less than 6% of the area utilised to produce all vegetable oils, palm oil satisfies 40% of global vegetable oil needs.  It produces a much higher output at a cheaper cost than other vegetable oils. Palm oil production and consumption are expanding quickly over the world. All these properties make this a very attractive crop for growth. Furthermore, millions of farmers all over the world earn their primary source of income through palm oil.

Global Palm Oil Market Drivers:

The increasing demand for biofuels is a major factor boosting the growth of the Global Palm Oil industry.

Palm oil meets the European Standards of biofuels. It acts as an excellent raw material mainly because of the fewer carbon residues produced causing less carbon build up. Through a process known as transesterification, it is used to produce methyl ester and hydrodeoxygenated biodiesel. It has been put to use in biofuels production as an environmentally friendly alternative to crude oil for a variety of uses such as motor oil. Secondly, it favours trade relations between different countries thereby helping to create a steady economy.

Employment opportunities cause a positive impact on the palm oil industry.

Employment opportunities are created in the farming sector. Millions of farmers depend on palm oil production as their income source. A lot of schemes are developed by various Governmental agencies to assist with growing techniques and technology. Furthermore, a lot of companies can generate revenue due to this market. Secondly, it is extensively used in the food industry. Palm oils are popular among food makers because they are simpler to stabilise and preserve flavour and consistency in processed meals. Thirdly, it is widely used in personal care and cleaning goods, and it serves as the foaming component in almost every soap, shampoo, and detergent. Palm oil is used in over 70% of personal care items, including soap, shampoo, cosmetics, and lotion.

Global Palm Oil Market Challenges:

The palm oil industry is expanding and has seen good growth during the past ten years. However, a lot of environmental issues like deforestation, rainforest loss, carbon dioxide emission, forest fires, and global warming are associated with cultivation. This causes a lot of problems for plant and animal species as well. Additionally, human rights are violated due to poor working conditions, land issues, social conflicts, etc. Moreover, constant inflation has hampered production and has affected the supply chain.

Global Palm Oil Market Opportunities:

Asia Pacific regions have raw materials which are very easy to procure. A lot of large-scale industries are playing a key role in the cultivation. Apart from this, there have been a lot of cutting-edge technological advancements like satellite-based technology which helps in controlling deforestation. SMART (Spatial Data Management and Rapid Analytics) is a web- and mobile-based GIS platform that is used to address important business concerns and improve cooperation throughout the palm oil production value chain. Drones are used to deal with cloud cover by monitoring the health of the plantations as well as detecting any diseases or nutrition deficiencies. There is an immense potential to make further technological advancements and upgrades with novel business ideas for a competitive edge in the market by tapping into a profitable outcome. Apart from this, vendors are advised to work towards having clean package labelling highlighting the nutritional value.

COVID-19 Impact on the Global Palm Oil Market:

The pandemic has hurt the industry. Labour force, logistics, weather, politics, priorities, and costs took a toll and led to impending growth. This inconsistency caused lesser production. Secondly, negligence towards the environment and sustainability affected the cultivation. Furthermore, a vast majority of the population was inclined towards a healthy lifestyle. Palm oil is a highly saturated fat that causes a favourable condition for heart disease and bad cholesterol.

Global Palm Oil Market Recent Developments:

Fuji Oil Group developed and launched the "Responsible Plan Oil Procurement Policy" in June 2020. The procurement policy commits to zero deforestation, no peatland, and no exploitation (NDPE), which includes the supply chain for all palm oil products.

PALM OIL MARKET REPORT COVERAGE:

Global Palm Oil Market Segmentation: By Nature

• Organic

• Conventional

• Sustainable

The conventional sector has the highest revenue share in the global palm oil market. This is owing to the low cost and improved market accessibility of regular palm oil. Traditional palm oil is more common in low-income countries with famous citizens. Sustainable palm oil is a type which is developed, manufactured, and consumed in a way that has the least amount of detrimental impact on the environment and communities. It is high in tocotrienols, a kind of vitamin E and A with antioxidant characteristics that may benefit brain health. This is being accepted by a vast majority and is expected to be the fastest growing in the global palm oil market.

Global Palm Oil Market Segmentation: By Product Type

• CPO

• RBD Palm Oil

• Palm Kernel Oil

• Fractionated Palm Oil

Based on product type, the global palm oil market is segmented into CPO, RBD palm oil, palm kernel oil, and fractionated palm oil. Fractionated palm oil holds the highest share mainly because it is affordable, accessible and economical. This becomes a suitable option for developing countries. Crude palm oil is predicted to be the fastest-growing segment in the global palm oil industry because of its wide range of applications in the food, beverage, cosmetics and pharmaceutical sectors.

Global Palm Oil Market Segmentation: By End-User

• Food and Beverage Industry

• Personal Care and Cosmetics

• Pharmaceuticals

• Biofuels and Energy Sector

• Others

Based on end-user, the global palm oil market is segmented into the food and beverage industry, personal care and cosmetics, pharmaceuticals, biofuels and energy sector, and others. The food and beverage industry holds the highest market share because palm oil is used as an ingredient in many foods. Secondly, it is also used for cooking purposes. The biofuels and energy sector is projected to be the fastest growing. Lately, a lot of initiatives and awareness programs are being created for environmental benefits. Biodiesel has received good feedback as an alternative to diesel. Many guidelines and rules are being implemented to promote a more sustainable living in various countries.

Global Palm Oil Market Segmentation: By Region

• North America

• Europe

• Asia-Pacific

• South America

• Middle East & Africa

Asia Pacific dominates the global palm oil market and holds the highest share of revenue. This success is linked to the availability of raw materials, awareness, industries, innovations, and participants. Technologies, schemes and Government initiatives also play a key role. Indonesia and Malaysia are the leading countries in the manufacturing and exporting sectors. Furthermore, the variety of food and cuisines in India and China has boosted the growth. North America is the fastest-growing sector in the global palm oil market. This is due to a shift in the food industry covering a range of exquisite foods. Increased production of biofuels is also expected to create a positive impact.

Global Palm Oil Market Key Players:

1. IOI Group Berhad

2. Wilmar International Limited

3. Sime Darby Plantation Berhad

4. Kuala Lumpur Kepong Berhad

5. Golden Agri-Resources Ltd

6. Archer Daniels Midland

7. United Plantations Berhad

8. IJM Corporation Berhad

9. Boustead Holdings Berhad

10. Fuji Vegetable Oil, Inc.