Press Release

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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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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Mr. Ken Mathews

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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

Consumer Goods and Retail | Nov, 2023

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.

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