Global Palm Oil Market

Palm Oil Market Size, Share, Growth Analysis, By Origin(Organic, Conventional), By Product(Crude Palm Oil, RBD Palm Oil), By End-User(Personal Care & Cosmetics, Food) - Industry Forecast 2024-2031


Report ID: SQMIG30C2148 | Region: Global | Published Date: February, 2024
Pages: 165 | Tables: 93 | Figures: 76

Palm Oil Market Insights

Palm Oil Market size was valued at USD 63.99 billion in 2019 and is poised to grow from USD 67.3 billion in 2023 to USD 101.6 billion by 2031, growing at a CAGR of 5.1% in the forecast period (2024-2031).

Palm oil is obtained from a tropical tree that has been producing palm fruits for more than three decades, generating a significant amount of employment for agricultural groups in the region, which includes Malaysia and Indonesia. The oil is distinctly profitable, as palm trees yield more oil per hectare than any other crop. The oil contains Low to zero trans-fats and the competitive pricing raised the demand. It is one of the most used vegetable oil, commonly used in biscuits, margarine, bread, instant noodles, cereals, lipsticks, candles, chocolates, shampoos, ice cream, and detergents. Its applications include pretty diverse, which aids the demand worldwide. All these factors led to an increase in the production of palm oil globally.

US Palm Oil Market is poised to grow at a sustainable CAGR for the next forcast year.

Market snapshot - 2024-2031

Global Market Size

USD 63.99 billion

Largest Segment

Palm kernel oil

Fastest Growth

Palm kernel oil

Growth Rate

5.1% CAGR

Global Palm Oil Market 2021-2028 ($ Bn)
Country Share for North America Region- 2021 (%)
Global Palm Oil Market Size by Product, 2021-2028 ($ Mn)
Global Palm Oil Market Size by, Product 2021-2028 (%)

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Palm Oil Market Segmental Analysis

The global palm oil market is segmented based on Origin, Product, End User, and Region. Based on origin palm oil market is categorized into: Organic, Conventional. Based on Product palm oil market is categorized into: Crude palm oil, RBD palm oil, palm kernel oil, and others. Based on End-user palm oil market is categorized into: personal care & cosmetics, food and beverages, biofuel and energy, industrial, and pharmaceuticals. Based on region palm oil market is categorized into: North America, Europe, Asia-Pacific, South America, and MEA.

 

Palm Oil Market Analysis by Origin 

The government around the palm oil plantation nations i.e. Indonesia and Malaysia target sustainable and organic production of oil. Growing customer consciousness regarding the harmful effects of agrochemicals such as pesticides and insecticides used for the cultivation of traditional crops. Also, the negative effect on the environment and human health has created a demand for organic products. 

Organically grown plant negates the use of any type of chemicals or agrochemicals from the point of cultivation to the processing and packaging of the product. Therefore, the demand for the organic segment of products is predicted to grow at a rewarding rate over the forecast period.

Palm Oil Market Analysis by Product

The presence of high-level saturated fat enables palm kernel oil (PKO) to offer superior oxidative stability after frying, which makes it an attractive choice for restaurants. Palm oil is also grabbing the attention of big commercial food producers as it retains its property of being solid at room temperature which makes it very easy to transport long distances and preserve for a long time. Growing consumer focus on health & fitness along with negative side-effect of partially hydrogenated cooking oils on the cholesterol level is forcing food and snack producers to move towards trans-fat-free, cost-effective options such as palm oil. 

United States holds the largest regional market for PKO, accounting for 28.8% of all global sales in 2021. China registered the fastest compounded annual growth rate of 8.9% over the analysis period, to reach USD 2,800 million by the close of the analysis period.

Palm Oil Market Analysis by End-Users

Palm oil use in biofuel and energy accounts for a substantial revenue share of roughly 16.1% in 2021 and is expected to expand steadily throughout the forecast period. Palm oil is expected to be in high demand for biofuels all over the world.

Biodiesel has received extremely good recognition amongst consumers as a powerful alternative for diesel in the past years.  Palm oil is emphasized as the conventional source for biodiesel manufacturing and is taken into consideration to be a cheap alternative to soybean. From the beginning of 2021, numerous guidelines and mandates which have been initiated in different countries are predicted to change the trend of the market in the longer run. For instance, from the first of Jan 2021, Indonesia accelerated crude palm oil and diesel mixture to 30% (B30). This possibly will increase palm oil consumption in the region. Similarly, France discontinued the biofuel tax, a move that might incline its economic system towards biofuels or biodiesel.

The food and beverage enterprise is another outstanding end-user, in which palm oil finds its main applications as a safe-to-eat cooking oil. It is taken into consideration as a cheap alternative to different cooking oils including those sourced from soybean and sunflower and has excessive popularity amongst food processors which is predicted to enhance segment growth.

Global Palm Oil Market By Product, 2021 (%), 2019 (%)

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Palm Oil Market Regional Insights

The Asia Pacific is dominant in the manufacturing of palm oil as countries like Indonesia and Malaysia are the major producers. These countries alone contribute to 80% of total palm oil production in the world.  Other regions such as North America and Europe are enormously dependent on imports from the Asia Pacific countries.

The product demand is predicted to grow from the biofuel and energy usage in Europe and North America whereas the government mandates are increasing the penetration of biodiesel consumption in the nations. Further, the palm oil market in these countries is predicted to witness a better demand for organic palm oil from the food and beverage and personal care, and Cosmetics industries.

The Asia Pacific is predicted to witness substantial demand for the product in industrial use, wherein palm oil reveals applications in surfactants and lubricants. This is majorly pushed by the importance of commercial product manufacturing industries in China. 

Global Palm Oil Market By Geography, 2021 - 2028, 2024-2031
  • Largest
  • Fastest

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Palm Oil Market Dynamics

Palm Oil Market Driver

  • The use of palm oil in biodiesel is one of the most lucrative driving factors that will push the demand for palm oil. This will lead to multi-fold growth in the consumption of crude palm oil (CPO) through the analysis period. The rapid expansion of packaged and processed foods necessitates the use of vegetable oil in processing, PKO is the most cost-effective option for the manufacturing of processed foods. Because the processed food and beverage sector accounts for a sizable share of the market. As a result, an increase in demand in this sector will drive the demand for more items.

Palm Oil Market Restraint 

  • The palm oil production is seeing a restraint from labor and workforce due to the disruption created by COVID-19. The reduction in the labor force led to less efficient production which in turn in increasing the production cost and reduced the margins leading to less profit.
  • Sudden spike of demand as government policies for diesel blending with palm oil also led to problems in the supply chain which, in turn, is creating restrain for the sector that was anticipated to grow at a very fast scale.

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Palm Oil Market Competitive Landscape

The global palm oil market is fairly concentrated, with a few big and medium-sized market participants accounting for a large portion of market revenue. Major players are implementing numerous tactics, including mergers and acquisitions, strategic agreements and contracts, and the development and testing of palm oil platforms.

Palm Oil Market Top Players Company Profiles 

  • IOI Group Berhad
  • Wilmar International Limited
  • Sime Darby Plantation Berhad
  • Kuala Lumpur Kepong Berhad
  • Golden Agri-Resources Ltd.
  • Musim Mas Group
  • Cargill Inc.
  • Archer Daniels Midland Company
  • Bunge Limited
  • Louis Dreyfus Company
  • Astra Agro Lestari Tbk PT
  • United Plantations Berhad
  • PT Smart Tbk
  • IOI Loders Croklaan
  • Godrej Agrovet Limited
  • Asian Agri
  • Olam International Limited
  • IOI Oleochemical Industries Berhad
  • Felda Global Ventures Holdings Berhad
  • Genting Plantations Berhad.

Palm Oil Market  Recent Developments

  • In April 2022, Palm oil prices surged by 10%, while rival soybean oil reached a new high as traders braced for the commencement of Indonesia's export halt. Malaysia, the world's second-largest producer, is expected to witness an increase in demand for its products after top grower Indonesia announced a restriction on RBD palm olein exports beginning April 28 to protect domestic supply. Shipments of crude palm oil can continue. The measure will be in effect until domestic cooking oil prices fall.
  • In December 2021, Godrej Agrovet Ltd (GAVL) announced its plans to expand significantly in the palm oil sector. In the next five to six years, the corporation plans to plant up to one lakh hectares (lh) of oil palm. Godrej currently works with farmers in Andhra Pradesh, Telangana, and Tamil Nadu, where it has around 65,000 hectares under oil palm cultivation.

Palm Oil Key Market Trends

  • Raising crude oil prices is driving countries to switch to biofuels. Palm oil plays a major role in the production of biodiesel and this, in turn, is rapidly increasing the demand for palm oil around the globe.
  • The easy availability and huge production of palm oil were the reason for its extensive use in the food and beverage processing industry. The growing number of packaged foods is demanding a huge supply of this oil for manufacturing and this is increasing the demand for palm oil in the market.

Palm Oil Market SkyQuest Analysis

SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyses the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.

According to our analysis, Asia Pacific countries such as Malaysia and Indonesia are the leading producers, contributing for more than 80% of global output. Palm oil is utilized in over half of all consumer products sold on a daily basis. Demand is being driven by increased disposable income and rising per capita expenditure on consumer goods across all geographies. Crude palm oil (CPO) emerged as the largest segment of the palm oil market in 2020, accounting for over 55% of total revenue, followed by palm kernel oil (PKO). Increased demand for oleo chemicals in the production of agrochemicals and cleaning products is likely to drive market growth over the forecast period.

According to our analysis, with increasing internet penetration, the Palm Oil market size from the e-commerce segment would expand in terms of distribution channels. Benefits such as ease of access have contributed to the rapid expansion of online purchase in India, China, and Germany. The expanding popularity of e-commerce and thriving retail businesses, which result in higher overall sales, will also fuel category growth.

Report Metric Details
Market size value in 2019 USD 63.99 billion
Market size value in 2031 USD 101.6 billion
Growth Rate 5.1%
Base year 2023
Forecast period 2024-2031
Forecast Unit (Value) USD Billion
Segments covered
  • Origin
    • Organic, Conventional
  • Product
    • Crude Palm Oil, RBD Palm Oil, Palm Kernel Oil
  • End-User
    • Personal Care & Cosmetics, Food, Beverages, Biofuel, Energy, Industrial, Pharmaceuticals
Regions covered North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA)
Companies covered
  • IOI Group Berhad
  • Wilmar International Limited
  • Sime Darby Plantation Berhad
  • Kuala Lumpur Kepong Berhad
  • Golden Agri-Resources Ltd.
  • Musim Mas Group
  • Cargill Inc.
  • Archer Daniels Midland Company
  • Bunge Limited
  • Louis Dreyfus Company
  • Astra Agro Lestari Tbk PT
  • United Plantations Berhad
  • PT Smart Tbk
  • IOI Loders Croklaan
  • Godrej Agrovet Limited
  • Asian Agri
  • Olam International Limited
  • IOI Oleochemical Industries Berhad
  • Felda Global Ventures Holdings Berhad
  • Genting Plantations Berhad.
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Table Of Content

Executive Summary

Market overview

  • Exhibit: Executive Summary – Chart on Market Overview
  • Exhibit: Executive Summary – Data Table on Market Overview
  • Exhibit: Executive Summary – Chart on Palm Oil Market Characteristics
  • Exhibit: Executive Summary – Chart on Market by Geography
  • Exhibit: Executive Summary – Chart on Market Segmentation
  • Exhibit: Executive Summary – Chart on Incremental Growth
  • Exhibit: Executive Summary – Data Table on Incremental Growth
  • Exhibit: Executive Summary – Chart on Vendor Market Positioning

Parent Market Analysis

Market overview

Market size

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • SWOT Analysis

KEY MARKET INSIGHTS

  • Technology Analysis
    • (Exhibit: Data Table: Name of technology and details)
  • Pricing Analysis
    • (Exhibit: Data Table: Name of technology and pricing details)
  • Supply Chain Analysis
    • (Exhibit: Detailed Supply Chain Presentation)
  • Value Chain Analysis
    • (Exhibit: Detailed Value Chain Presentation)
  • Ecosystem Of the Market
    • Exhibit: Parent Market Ecosystem Market Analysis
    • Exhibit: Market Characteristics of Parent Market
  • IP Analysis
    • (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
  • Trade Analysis
    • (Exhibit: Data Table: Import and Export data details)
  • Startup Analysis
    • (Exhibit: Data Table: Emerging startups details)
  • Raw Material Analysis
    • (Exhibit: Data Table: Mapping of key raw materials)
  • Innovation Matrix
    • (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
  • Pipeline product Analysis
    • (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
  • Macroeconomic Indicators

COVID IMPACT

  • Introduction
  • Impact On Economy—scenario Assessment
    • Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
  • Revised Market Size
    • Exhibit: Data Table on Palm Oil Market size and forecast 2021-2027 ($ million)
  • Impact Of COVID On Key Segments
    • Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
  • COVID Strategies By Company
    • Exhibit: Analysis on key strategies adopted by companies

MARKET DYNAMICS & OUTLOOK

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • Regulatory Landscape
    • Exhibit: Data Table on regulation from different region
  • SWOT Analysis
  • Porters Analysis
    • Competitive rivalry
      • Exhibit: Competitive rivalry Impact of key factors, 2021
    • Threat of substitute products
      • Exhibit: Threat of Substitute Products Impact of key factors, 2021
    • Bargaining power of buyers
      • Exhibit: buyers bargaining power Impact of key factors, 2021
    • Threat of new entrants
      • Exhibit: Threat of new entrants Impact of key factors, 2021
    • Bargaining power of suppliers
      • Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
  • Skyquest special insights on future disruptions
    • Political Impact
    • Economic impact
    • Social Impact
    • Technical Impact
    • Environmental Impact
    • Legal Impact

Market Size by Region

  • Chart on Market share by geography 2021-2027 (%)
  • Data Table on Market share by geography 2021-2027(%)
  • North America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • USA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Canada
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Europe
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Germany
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Spain
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • France
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • UK
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Europe
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Asia Pacific
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • China
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • India
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Japan
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Korea
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Asia Pacific
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Latin America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Brazil
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of South America
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Middle East & Africa (MEA)
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • GCC Countries
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Africa
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of MEA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)

KEY COMPANY PROFILES

  • Competitive Landscape
    • Total number of companies covered
      • Exhibit: companies covered in the report, 2021
    • Top companies market positioning
      • Exhibit: company positioning matrix, 2021
    • Top companies market Share
      • Exhibit: Pie chart analysis on company market share, 2021(%)

Methodology

For the Palm Oil Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:

1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.

2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Palm Oil Market.

3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.

4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.

Analyst Support

Customization Options

With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Palm Oil Market:

Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.

Regional Analysis: Further analysis of the Palm Oil Market for additional countries.

Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.

Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.

Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.

Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.

Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.

Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.

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FAQs

Palm Oil Market size was valued at USD 63.99 billion in 2019 and is poised to grow from USD 67.3 billion in 2023 to USD 101.6 billion by 2031, growing at a CAGR of 5.1% in the forecast period (2024-2031).

The palm oil market is fairly concentrated, with a few big and medium-sized market participants accounting for a large portion of market revenue. Major players are implementing numerous tactics, including mergers and acquisitions, strategic agreements and contracts, and the development and testing of palm oil platforms. 'IOI Group Berhad', 'Wilmar International Limited', 'Sime Darby Plantation Berhad', 'Kuala Lumpur Kepong Berhad', 'Golden Agri-Resources Ltd.', 'Musim Mas Group', 'Cargill Inc.', 'Archer Daniels Midland Company', 'Bunge Limited', 'Louis Dreyfus Company', 'Astra Agro Lestari Tbk PT', 'United Plantations Berhad', 'PT Smart Tbk', 'IOI Loders Croklaan', 'Godrej Agrovet Limited', 'Asian Agri', 'Olam International Limited', 'IOI Oleochemical Industries Berhad', 'Felda Ventures Holdings Berhad', 'Genting Plantations Berhad.'

The use of palm oil in biodiesel is one of the most lucrative driving factors that will push the demand for palm oil. This will lead to multi-fold growth in the consumption of crude palm oil (CPO) through the analysis period. The rapid expansion of packaged and processed foods necessitates the use of vegetable oil in processing, PKO is the most cost-effective option for the manufacturing of processed foods. Because the processed food and beverage sector accounts for a sizable share of the market. As a result, an increase in demand in this sector will drive the demand for more items.

Raising crude oil prices is driving countries to switch to biofuels. Palm oil plays a major role in the production of biodiesel and this, in turn, is rapidly increasing the demand for palm oil around the globe.

The Asia Pacific is dominant in the manufacturing of palm oil as countries like Indonesia and Malaysia are the major producers. These countries alone contribute to 80% of total palm oil production in the world.  Other regions such as North America and Europe are enormously dependent on imports from the Asia Pacific countries.

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Global Palm Oil Market

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