Palm Oil Market size was worth US$ 68.32 billion in 2024 and is anticipated to reach a valuation of US$ 88.03 billion by 2029 with a CAGR of 5.20%
The global palm oil market is growing at a breakneck pace. Palm oil is an economically essential and versatile vegetable oil that is used as a raw material for food and non-food products. It is used worldwide and is found in supermarkets ranging from sweets, cakes, margarine, cereals, detergents, and cosmetics. Palm oil is also used as a first-generation biofuel. It is also used to prevent vitamin A deficiency, cancer, brain disease, aging, and treat malaria, high blood pressure, cholesterol, and cyanide poisoning. Most of this oil is produced in regions like Asia, Africa, and South America because trees need warm temperatures, sunlight, and lots of rain to maximize agricultural production.
Various government initiatives regarding blending conventional fuel with bio-based fuel, as well as the increasing use of products such as bio-based diesel, have gained worldwide acceptance in recent years. Consumers around the world know cosmetics, lubricants, and surfactants of organic origin, which has also stimulated the Palm Oil market. We note that several government regimes such as RSPO, POIG and more have a positive impact on the global palm oil market. Several multinationals in this field are continually investing in their R&D department to improvise their product portfolio, thus responding to a broader application base and supporting the Palm Oil market. Technological improvisation together with a significant foreign investment in the field for sustainable production methods should create many opportunities for industry participants worldwide.
In addition to several favorable factors, the strict environmental regulations that govern the production, on the other hand, should hinder growth in the global Palm Oil market. It is believed that a higher production cost due to the adoption of sustainable production methods is another market constraint and should prevent new ones from entering the business. The Palm Oil Market is characterized by strict government regulations that require companies to comply with the sustainability of production and extraction. The transition of consumer preferences for fuels and carbon sources leads to increased demand for biodiesel applications.
The United States and Canada have relatively low per capita consumption due to the predominance of national soybean and corn oils in the market. As a result, the issue of sustainable sourcing has not been a high priority for companies in North America and the level of awareness of the impacts of their products among consumers is still relatively low. Therefore, the region is expected to grow at a slower pace than developing areas such as Asia-Pacific and the MEA.
In Europe, the high income of consumers and the growing influence of social networks have driven the demand for high-end cosmetics and personal care. Men are also rapidly adapting to new trends in the consumer cosmetics market, using products such as hair and beard care products. These trends have encouraged cosmetic companies to develop specific products with unique characteristics aimed at this demographic.
The Asia Pacific is home to several large emerging markets, including India, Vietnam, Thailand, Malaysia, and Indonesia, most of which are large producers and exporters. Most of these countries are also committed to a high level of sustainability, with innovations to achieve greater efficiency in life and maximize production in the global Palm Oil market growth. Another factor that contributes to the growth of the industry is the accelerated replanting and mechanization of various harvesting and processing techniques.
The demographic transition in the Middle East and Africa, which includes the growing workforce, has increased spending on goods related to health and well-being. Clean and natural products are also consumed to a large extent, as consumers realize the benefits of these products, compared to others that contain artificial additives. This trend is particularly marked among white-collar workers, nonresidential foreign returnees and expatriates working in the region. These factors have resulted in a change in the direction towards sustainable and organic sources in culinary and other applications.
REPORT METRIC |
DETAILS |
Market Size Available |
2023 to 2029 |
Base Year |
2023 |
Forecast Period |
2024 to 2029 |
CAGR |
5.2 % |
Segments Covered |
By Derivative, Application And Region |
Various Analyses Covered |
Global, Regional and Country Level Analysis; Segment-Level Analysis; DROC; PESTLE Analysis; Porter’s Five Forces Analysis; Competitive Landscape; Analyst Overview of Investment Opportunities |
Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
Market Leaders Profiled |
Golden Agri Resources Limited, Godrej Agrovet Limited, PT Astra Agro Lestari Tbk, Cargill Inc, United Palm Oil Industry Public Company Limited, Wilmar International Limited, Sime Darby, IOI Corp, London Sumatra, Kulim Bhd, Musim Mas Group, Alami Group, Archer Daniels Midland. |
Key players in palm oil market are Golden Agri Resources Limited, Godrej Agrovet Limited, PT Astra Agro Lestari Tbk, Cargill Inc, United Palm Oil Industry Public Company Limited, Wilmar International Limited, Sime Darby, IOI Corp, London Sumatra, Kulim Bhd, Musim Mas Group, Alami Group, Archer Daniels Midland.
By Derivative:
By Application:
By Region
Frequently Asked Questions
Palm oil is used in a wide range of products, including cooking oil, margarine, baked goods, processed foods, personal care products, and detergents
Factors driving the demand for palm oil include its high productivity, versatility, relatively low cost, and unique properties such as its ability to remain stable at high temperatures.
Palm oil production has been associated with deforestation, habitat loss, biodiversity loss, greenhouse gas emissions, and soil and water pollution. Sustainable palm oil production practices aim to mitigate these environmental impacts by promoting responsible land use, conservation, and best management practices.
Related Reports
Access the study in MULTIPLE FORMATS
Purchase options starting from $ 1800
Didn’t find what you’re looking for?
TALK TO OUR ANALYST TEAM
Need something within your budget?
NO WORRIES! WE GOT YOU COVERED!
Call us on: +1 888 702 9696 (U.S Toll Free)
Write to us: [email protected]
Reports By Region