Palm Oil Market to Grow with a CAGR of 5.1% Globally through to 2028
Rise in the demand from the food, beverage sectors,
increasing demand for palm oil derivatives and oleochemicals from different
end-use industries are factors driving the global palm oil market in the
forecast period 2024-2028.
According to TechSci Research report, “Global Palm
Oil Market - Industry Size, Share, Trends, Competition Forecast &
Opportunities, 2028”, the Global Palm Oil Market stood at USD 65.3 billion
in 2022 and is anticipated to grow with a CAGR of 5.1% in the forecast period,
2024-2028. The global palm oil market is vast and multifaceted, comprising a
wide range of products and applications. Palm oil is known for its semi-solid
consistency at room temperature, making it a preferred choice for many food and
non-food products. Its versatility, cost-efficiency, and high yield per hectare
have contributed to its widespread adoption.
Palm oil's unique chemical composition, semi-solid
state at room temperature, and neutral flavor make it suitable for a diverse
array of applications, including cooking oils, margarines, personal care
products, biofuels, and industrial uses.
The
oil palm tree's high yield per hectare, efficient oil extraction rate, and
suitability for tropical climates have made palm oil production cost-effective,
contributing to its widespread use.
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Oil Market”
The growth of the global population, coupled with
increasing urbanization, has led to greater demand for palm oil in both food
and non-food products. The pursuit of
renewable energy sources has driven the use of palm oil in biodiesel
production, as it is an energy-rich feedstock with compatibility in existing
diesel engines. Emerging
economies, particularly in Asia, have become major consumers of palm oil due to
rising incomes and changing dietary habits. Government policies, both domestic and international,
can significantly influence the palm oil market through trade regulations,
sustainability requirements, and environmental considerations.
The industry is increasingly focused on
sustainable practices, including certification programs like the RSPO, to
address environmental and social concerns. Greater emphasis is placed on
traceability and transparency in the palm oil supply chain to ensure
responsible sourcing and ethical production practices. Palm oil faces
competition from alternative vegetable oils, such as high oleic oils, avocado
oil, and olive oil blends, as consumers seek healthier and more sustainable
options. Advances in technology, including precision agriculture and innovative
plant breeding, are improving the efficiency and sustainability of palm oil
production. New players and markets are emerging, with Africa becoming a
significant producer and changing consumer preferences influencing Asian
markets.
Smallholder farmers are increasingly
recognized as key participants in the palm oil supply chain, with efforts to
improve their livelihoods and promote sustainable practices. Governments
worldwide are implementing policies and regulations to address environmental
and social challenges in palm oil production. The industry will continue to
prioritize sustainability, with sustainable palm oil production and responsible
sourcing practices gaining prominence. Consumer preferences for healthier and
sustainable options will drive innovation and product development in the palm
oil market. Ongoing advancements in technology will further improve the
efficiency and sustainability of palm oil production. Changes in regulations,
such as labelling requirements and sustainability standards, will influence
product formulations and market access.
The Global Palm Oil Market is segmented into type, application,
nature, regional distribution, and company.
Based on Nature, Conventional segment dominated the
market for palm oil with a revenue share in 2022. This can be attributed to the
segment's affordable pricing and simple accessibility. Small and medium sized
farmers depend heavily on the income from conventional oil palm fields because
they can use synthetic chemicals to boost production. In low-income nations with large people, the
traditional nature segment is more common.
Based on region, Asia Pacific region dominated the
market with largest revenue share in 2022. This is attributed to the growing
consumption by the rising population of the region as well as high demand from
the end use applications industries, such as food & beverage industries.
Rapid increase in population, changing demographic trends, and diverse food
application in India and China is accountable for high consumption of palm oil
in the region.
Major companies operating in Global Palm Oil Market
are:
- ADM
- Wilmar International Ltd.
- Sime Darby Plantation Berhad
- IOI Corporation Berhad
- Kuala Lumpur Kepong Berhad
- United Plantations Berhad
- Kulim (Malaysia) Berhad
- IJM Corporation Berhad
- PT Sampoerna Agro, Tbk
- Univanich Palm Oil Public Company Ltd.
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“The palm oil market has witnessed remarkable growth
driven by its versatility, cost-efficiency, and high yield per hectare. With
wide-ranging applications in food, cosmetics, biofuels, and industrial
processes, palm oil has become a global staple. The market has expanded further
due to the rising global population, urbanization, and demand in emerging
economies. However, it also faces environmental and social challenges such as
deforestation, sustainability concerns, and labor practices. To sustain its growth,
the industry is increasingly focusing on sustainability, transparency, and
technological advancements while adapting to shifting consumer preferences and
regulatory changes.,” said Mr. Karan Chechi, Research Director with TechSci
Research, a research-based management consulting firm.
“Palm Oil
Market – Global Industry Size, Share, Trends, Opportunity, and Forecast,
Segmented By Type (Crude Palm Oil, RBD Palm Oil, Palm Kernel Oil, Fractionated
Palm Oil), By Application (Food & Beverage, Personal Care & Cosmetics,
Biofuel & Energy, Pharmaceuticals, Others), By Nature (Organic,
Conventional), By Region, By Competition, 2018-2028”, has evaluated
the future growth potential of Global Palm Oil Market and provides statistics
& information on market size, structure and future market growth. The
report intends to provide cutting-edge market intelligence and help decision
makers take sound investment decisions. Besides, the report also identifies and
analyzes the emerging trends along with essential drivers, challenges, and
opportunities in Global Palm Oil Market.
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