Palm Oil Market

Palm Oil Market Size, Share, Growth (2023-2028)

Palm Oil Market size was worth US$ 64.94 billion in 2023 and is anticipated to reach a valuation of US$ 83.67 billion by 2028 with a CAGR of 5.20% 

Overview:

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.

Palm Oil Market Recent Trends:

• Palm oil is a widely used vegetable oil and a common ingredient in margarine, cookies, instant noodles, bread, lipsticks, cereals, chocolates, candies, ice cream, shampoos, and detergents. Palm oil is low in trans-fat and profitable due to its higher demand worldwide. A technological invention coupled with significant foreign funds in the field for sustainable production methods is estimated to create many opportunities for participants from all over the world. It is presumed that a higher production price due to the adoption of sustainable production processes is an essential limitation for new market participants.

• Palm oil is a monetarily critical and flexible vegetable oil that is used as raw material for food and subsistence items. Prominent red and orange "new natural product packages" are developed in oil palms, which can be separated into individual organic products. The fragile living creature and the small natural product give palm oil. Palm Oil Innovation Group (POIG) is committed to manufacturing extremely pure palm oil, free of trans-fats and that can be used as cooking oil. Created in 2013, the activity was created in partnership with driving NGOs, as well as with dynamic palm oil manufacturers.

• During the last two decades, the increasing use of palm oil and the simultaneous expansion in the area have been censored by common society associations as drivers of deforestation, as well as the displacement and disruption of populations and human creatures.

REPORT COVERAGE:

Palm Oil Market Drivers and restraints:

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.

Palm Oil Market Regional Analysis:

• North America Region Insights

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.

• Europe Region Insights

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.

• Asia Pacific Region Insights

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.

• Middle East and Africa Region insights

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.

Palm Oil Market Segmentation:

Based on Derivative:                

• Crude Palm Oil      

• Palm Kernel Oil     

• Palm Kernel Cake       

Based on Application:                

• Edible Oil 

• Cosmetics

• Bio-diesel

• Lubricants

• Surfactants            

Palm Oil Market Key Players:

1. Golden Agri Resources Limited

2. Godrej Agrovet Limited

3. PT Astra Agro Lestari Tbk

4. Cargill Inc

5. United Palm Oil Industry Public Company Limited

6. Wilmar International Limited

7. Sime Darby

8. IOI Corp

9. London Sumatra

10. Kulim Bhd

11. Musim Mas Group

12. Alami Group

13. Archer Daniels Midland