Palm Oil and Palm Oil Derivatives Market

Palm Oil and Palm Oil Derivatives Market Size (2024 to 2029)

Palm Oil and Palm Oil Derivatives Market size was estimated at USD 97.91 billion in 2024 and is expected to reach an over of USD 137.32 billion by the end of the assessment period. The Palm Oil and Palm Oil Derivatives Market is expected to experience moderate growth to record a CAGR of about 7% throughout the forecast period 2024 to 2029. 

Palm Oil and Palm Oil Derivatives market is expected to grow at a lucrative growth rate due to the increasing use of palm kernel meal in livestock feed due to its nutritional benefits. Moreover, the surge in demand for biodiesel in automotive and industrial applications may offer growth opportunities for the Palm Oil and Palm Oil Derivatives market. North America's business was fuelled by the US Palm Oil and Palm Oil Derivatives market. The USA could see gains due to the broader reach in the personal care industry. Companies are focusing on product development, and technological advancement will drive regional growth.

Palm oil is among the most widely used edible vegetable oils in the world, derived from the mesocarp of oil palm trees. It is distinct from palm kernel oil and coconut oil, as it is derived from the oil palm kernel and coconut palm, respectively. Palm oil is very economical compared to other vegetable oils such as soy, peanut, and rapeseed. It is often used as a first-generation biofuel and prevents many diseases such as cancer, vitamin A deficiency, malaria/a, aging, high blood pressure, and obesity. Palm oil is naturally reddish due to the pigments of antioxidants known as carotenoids, including high beta-carotene. Palm kernel oil is a prominent source of the derivatives of palm oil. The derivatives and fractions of palm oil are used as preservatives, antioxidants, and sweeteners in the food industry, as lubricants, insect repellents, adhesives, and paints in industrial products, and as lacquers, shampoos, conditioners, and cosmetics in personal care products and health products. It is also used in the making of renewable fuels in the transportation, energy, heating, and cooling sectors. 

MARKET DRIVERS AND RESTRAINTS:

The profitability and edible nature of palm oil have made it an active ingredient in the production of packaged foods and healthy products. The growing spectrum of palm oil in food, cosmetics, and personal care products has resulted in significant growth in the global market for palm oil and palm oil derivatives. The growing demand for food and changes in people's eating habits have increased the need for nutrient-rich food products to meet the nutritional needs of consumers. The use of healthy ingredients and efficient food processing technologies are emphasized. Palm oil is considered the healthiest cooking oil compared to all other vegetable oils due to its nutrient content and healthy fats. Consumption of palm oil in the food industry is anticipated to grow more than 4% during the forecast period.

The Palm Oil and Palm Oil Derivatives market is expected to grow at a lucrative growth rate due to the increasing use of palm kernel meal in livestock feed due to its nutritional benefits. Moreover, the surge in demand for biodiesel in automotive and industrial applications may offer growth opportunities for the Palm Oil and Palm Oil Derivatives market. Automotive policies around the world are moving towards the use of B20 (biodiesel), and palm oil biodiesel has significant potential as an alternative to petroleum-based fuels. However, environmental concerns related to palm oil production limit market growth. Palm oil production is considered one of the main factors in the destruction of tropical forests in Asia and America. This diverts consumer interest in the use of biodiesel from palm oil, particularly in automotive applications.

REPORT COVERAGE: 

SEGMENTAL ANALYSIS

Global Palm Oil and Palm Oil Derivatives Market Analysis By Type:

The Global Palm Oil and Palm Oil Derivatives Market is segmented on the basis of type, application, and region. Palm oil derivatives are segmented into crude palm oil, palm kernel oil, palm kernel cake, Oleochemicals, and others. The crude oil segment was a leading segment followed by the kernel oil and cake.

Global Palm Oil and Palm Oil Derivatives Market Analysis By Application:

The application segment consists of edible oil, food, cosmetics, agrochemical, bio-diesel, personal care, lubricants, surfactants, and others. Edible oil is expected to have the largest share in the global market followed by surfactants and lubricants. Biodiesel is the fastest-growing segment due to the increasing usage of biodiesel in power and fuel generation.

REGIONAL ANALYSIS   

The world market for Palm Oil and Palm Oil Derivatives has been studied in four regions, namely North America, Europe, Asia-Pacific, and the rest of the world. The North American Palm Oil and Palm Oil Derivatives market was further segmented in the United States, Canada, and Mexico. The European Palm Oil and Palm Oil Derivatives market has been ranked in the United Kingdom, Germany, France, Italy, Spain, and the rest of Europe. The Asia-Pacific Palm Oil and Palm Oil Derivatives market has been divided into China, India, Japan, Australia, and New Zealand, and the rest of the Asia-Pacific. 

The Asia Pacific, led by Japan, India, Malaysia, and China, in the Palm Oil and Palm Oil Derivatives market could post significant gains due to the rise in the food industries' animal and cosmetic and personal care. Malaysia is registered as the largest exporter and India as the largest importer in the Asia Pacific. Furthermore, a free trade agreement between Malaysia and other countries for export and import activities will stimulate the growth of the regional industry.

The size of the Palm Oil and Palm Oil Derivatives market in Europe, led by the United Kingdom, France, and Germany, could see significant gains during the projection period. The Netherlands is the largest importer, and around 93% of certified sustainable palm oil (CSPO) is imported into the UK. Most European retailers and manufacturers focus on using 100% CSPO during the forecast period. 

North America's business was fueled by the US Palm Oil and Palm Oil Derivatives market. The USA could see gains due to the broader reach in the personal care industry. Companies are focusing on product development, and technological advancement will drive regional growth. Latin America and several African countries may experience increased manufacturing capacity due to the availability of arable land and favorable weather conditions that could attract more business and increase the size of the Palm Oil and Palm Oil Derivatives market. The volatility of raw material costs and high transportation costs can create an imbalance in supply and affect the trend in the market price of Palm Oil and Palm Oil Derivatives.

RECENT HAPPENINGS IN THE MARKET

• In April 2018, the African Palm Oil Corporation opened a new palm oil production plant in Guinea-Bissau, West Africa, and plans to expand to seven million hectares in West Africa over the next five years.
• In August 2017, MP Evans Group PLC completed the acquisition Sunrich Plantations Pte Ltd, which has a significant stake in palm oil plantations covering 10,000 hectares in Indonesia.
• L'Oréal purchases directly less than 370 tons of palm oil each year, but consumes, through ingredients purchased from its suppliers, palm oil or palm oil derivatives in an amount approximately equivalent to 71,000 tons of palm oil.
• AIC, the trade group representing the interests of the animal feed manufacturing industry and other agri-food companies in the UK, said its new Palm Oil Credit Program (APOCS) had been developed according to the Roundtable on Sustainable Palm Oil (RSPO) for purchases palm oil credits on behalf of AIC members.

KEY PLAYERS IN THE GLOBAL PALM OIL AND PALM OIL DERIVATIVES MARKET

Key Players In The Global Palm Oil And Palm Oil Derivatives Market are Cargill Inc, United Palm Oil Industry Public Company Limited, Sime Darby, Wilmar International Ltd, Godrej Agrovet Limited, Golden Agri-Resources Ltd, PT Astra Agro Lestari Tbk, IOI Corp, London Sumatra, Kulim Bhd and Trade Winds Plantation.

DETAILED SEGMENTATION OF GLOBAL PALM OIL AND PALM OIL DERIVATIVES MARKET INCLUDED IN THIS REPORT      

This research report on the Global Palm Oil And Palm Oil Derivatives Market has been segmented and sub-segmented based on Type, Application, & region

By Type:

• Crude Palm Oil
• Palm Kernel Oil
• Palm Kernel Cak
• Oleo chemicals
• Others

By Application:

• Edible Oil
• Food
• Cosmetics
• Agrochemical
• Bio-diesel
• Personal Care
• Lubricants
• Surfactants
• Others

By Region:

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East and Africa