North America Palm Kernel Oil Market By Sales Channel (Direct Sales, Indirect Sales), By End Use (Food (Confectionary, Baking, Dairy Alternatives, Frying, Others), Cosmetics & Personal Care, Pharmaceuticals, Others), By Product Type Palm Kernel Stearin, Palm Kernel Olein ), By Country, Competition, Forecast & Opportunities, 2020-2032F

North America Palm Kernel Oil Market was valued at USD 2547.04 Million in 2024 and is expected to reach USD 4944.16 Million by 2032 with a CAGR of 8.75% during the forecast period. The North America palm kernel oil market has witnessed gradual development over the past decade, influenced by evolving consumer preferences, regulatory policies, and increasing demand for natural and plant-based ingredients. Derived from the seed of the oil palm fruit (Elaeis guineensis), palm kernel oil is distinct from palm oil, possessing unique fatty acid profiles and functional properties that make it desirable across a wide range of industries, including food and beverages, personal care and cosmetics, and industrial applications.

In the food industry, palm kernel oil's semi-solid consistency at room temperature and high oxidative stability make it an attractive option for bakery fats, confectionery coatings, and frying oils. Its neutral taste and extended shelf life contribute to its utility in processed and packaged food products. Furthermore, growing awareness about trans fat reduction has encouraged food manufacturers to explore palm kernel oil as a healthier fat alternative to partially hydrogenated oils.

Key Market Drivers

Rising Demand in the Food Processing Industry

The rising demand in the food processing industry is a significant driver of the North America palm kernel oil market. As consumer preferences shift towards processed, ready-to-eat, and convenience foods, food manufacturers are increasingly relying on palm kernel oil due to its versatile applications, stable shelf life, and cost-effectiveness. Palm kernel oil is widely used as a cooking fat and in the production of margarine, confectionery, baked goods, and snacks. Its semi-solid consistency at room temperature and high oxidative stability make it particularly attractive for industrial food production.

The growing trend of using plant-based ingredients in food formulations is further supporting the demand for palm kernel oil. As food processing companies seek to replace animal fats with vegetable-based alternatives, palm kernel oil stands out due to its similar properties and favorable nutritional profile. This shift is particularly evident in bakery and confectionery segments, where texture, flavor, and product stability are essential considerations. According to data from the Bureau of Economic Analysis, the agriculture, food, and related industries contributed approximately $1.537 trillion to the U.S. gross domestic product (GDP) in 2023, representing 5.5% of the total GDP.

The expansion of the processed food sector across North America, driven by changing lifestyles, urbanization, and increasing disposable incomes, has led to a surge in the consumption of ingredients like palm kernel oil. The presence of large-scale food processing companies in the region, coupled with advancements in production technology, ensures a steady demand for high-quality and sustainably sourced palm kernel oil. As a result, the North America palm kernel oil market is expected to experience continued growth in alignment with the evolving needs of the food processing industry. According to the USDA, food expenditures represented an average of 12.9% of total household spending in the United States in 2023, up slightly from 12.8% in 2022. Among major spending categories, food ranked third, following housing at 32.9% and transportation at 17.0%.

Expansion of the Cosmetics and Personal Care Sector

The expansion of the cosmetics and personal care sector is significantly driving the growth of the North America palm kernel oil market. With increasing consumer awareness of personal grooming, wellness, and skincare routines, there has been a steady rise in demand for products that offer moisturizing, anti-aging, and cleansing benefits. Palm kernel oil, known for its high lauric acid content and emollient properties, has become a preferred ingredient in the formulation of soaps, lotions, creams, and hair care products. This has resulted in a consistent uptick in its consumption across the region. According to the Personal Care Products Council, the personal care products industry continued to play a vital role in the U.S. economy in 2022. Generating $210.6 billion in sales, the industry demonstrated strong commercial performance and made a significant economic impact by contributing $82.3 billion in federal, state, and local tax revenues.

The shift toward natural and sustainable ingredients has further strengthened the position of palm kernel oil in the personal care industry. Manufacturers are increasingly adopting palm kernel oil as a plant-based alternative to synthetic chemicals, aligning their product portfolios with evolving consumer preferences and clean-label trends. As leading cosmetic brands continue to innovate and diversify their offerings to cater to a wide demographic, the demand for functional and versatile raw materials like palm kernel oil is expected to rise accordingly. North America’s robust retail infrastructure and the growing popularity of e-commerce channels have made it easier for consumers to access a wide range of personal care products. This has further contributed to increased production volumes, indirectly boosting the demand for palm kernel oil as a key input. As a result, stakeholders in the palm kernel oil supply chain—ranging from processors to distributors—are experiencing heightened growth opportunities due to the expanding cosmetics and personal care sector. According to the American Chemical Society, the cosmetics industry's growing emphasis on sustainability is evidenced by the expanding market for natural ingredients, which is projected to increase from USD 642 million in 2022 to USD 1,095 million by 2030. This growth underscores a notable shift in consumer preferences, with more than 40% of consumers now prioritizing natural ingredients in their beauty and personal care purchases.

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Key Market Challenges

Sustainability and Environmental Concerns

Environmental concerns have also contributed to negative consumer sentiment towards palm-based products. In North America, consumers are becoming increasingly eco-conscious, prompting brands to reformulate products to avoid ingredients associated with deforestation and biodiversity loss. This shift in consumer preferences has led to reduced demand for palm kernel oil in sectors such as cosmetics and packaged foods, with many companies actively seeking plant-based alternatives like coconut oil or shea butter that are perceived as more environmentally friendly. Another major hurdle lies in the supply chain and logistics. Since palm kernel oil is primarily produced in tropical regions such as Southeast Asia, the North American market relies heavily on imports. Disruptions in international shipping—caused by geopolitical instability, port congestion, or pandemic-induced supply chain breakdowns—have a direct impact on product availability and pricing. The high transportation and insurance costs further exacerbate the challenge, making palm kernel oil less competitive compared to locally sourced or more easily accessible vegetable oils. Price volatility remains a persistent challenge in the North American palm kernel oil market. Prices are significantly influenced by fluctuations in global crude palm oil prices, currency exchange rates, and seasonal production cycles. The lack of price stability complicates long-term procurement strategies for manufacturers and affects the predictability of costs, particularly for small enterprises that may lack hedging capabilities or flexible sourcing alternatives.

Key Market Trends

Technological Advancements in Processing and Fractionation

Technological advancements in processing and fractionation are playing a significant role in driving the growth of the North America palm kernel oil market. With the integration of modern machinery and automated systems, producers are now able to extract palm kernel oil more efficiently, with improved yield and reduced processing time. This has translated into cost-effective operations, enabling companies to meet growing demand across industries such as food and beverage, personal care, and industrial manufacturing. Advanced technologies also allow for better quality control, ensuring consistent oil quality that meets stringent regulatory standards in North America.

Fractionation technologies have seen substantial progress, allowing manufacturers to separate palm kernel oil into distinct components with targeted applications. This has opened new avenues for high-value product development, such as specialty fats used in confectionery and bakery items, as well as non-food applications like bio-lubricants and oleochemicals. These innovations are particularly beneficial in a market like North America, where consumers and businesses prioritize product performance, sustainability, and compliance with health and environmental standards. As a result, companies investing in state-of-the-art processing and fractionation technologies are gaining a competitive edge, enhancing their production capabilities while aligning with evolving market demands. This trend is expected to continue driving market expansion, as technological progress remains a key enabler of innovation, efficiency, and product diversification in the palm kernel oil industry across North America.

Segmental Insights

Sales Channel Insights

Based on Sales Channel, the Direct Sales Channel has emerged as the fastest growing segment in the North America Palm Kernel Oil Market in 2024. This growth is primarily driven by the increasing preference among manufacturers and end-users to engage in direct procurement from suppliers, thereby bypassing intermediaries and reducing procurement costs. Businesses operating in the food processing, cosmetics, and personal care sectors are particularly inclined towards direct sourcing, as it allows for better control over product quality, pricing, and delivery timelines.

The shift toward direct sales is also influenced by the rising demand for customized formulations and bulk purchasing, especially from industrial users who require large quantities of palm kernel oil with specific quality standards. Direct interaction with suppliers enables these buyers to negotiate favorable contract terms and ensure consistency in product specifications. Furthermore, many suppliers are investing in their online platforms and distribution infrastructure, making it easier for buyers to place orders and manage logistics directly. The growing focus on sustainability and traceability within the palm oil supply chain is encouraging companies to establish transparent relationships with trusted suppliers. Direct sales channels facilitate this by allowing buyers to track the origin of the product and ensure compliance with environmental and ethical standards. As a result, the direct sales model is gaining traction as a preferred channel for long-term partnerships and strategic sourcing in the North America Palm Kernel Oil Market.

End Use Insights

Based on End Use, Food has emerged as the fastest-growing segment in the North America Palm Kernel Oil Market during the forecast period, driven by a combination of consumer demand, industry preferences, and functional benefits of the oil. Palm kernel oil is valued for its high saturation content, oxidative stability, and long shelf life, which makes it a preferred choice in the formulation of processed foods, baked goods, and confectionery items. In recent years, as manufacturers look to extend the shelf life of packaged foods while maintaining texture and taste, palm kernel oil has become an attractive alternative to other fats and oils.

The growing trend toward convenience and ready-to-eat meals has further accelerated the use of palm kernel oil in the food sector. Additionally, with the rise of vegan and plant-based diets, food producers are increasingly using palm kernel oil as a plant-based fat source in dairy alternatives and meat substitutes. The oil's semi-solid consistency at room temperature also makes it a suitable replacement for partially hydrogenated oils, aligning with the region’s regulatory shift away from trans fats. The demand for cost-effective ingredients in large-scale food production is contributing to the oil's rising popularity. Palm kernel oil’s competitive pricing, compared to cocoa butter or coconut oil, makes it favorable for mass-market food applications. As food processing companies continue to innovate and reformulate products for health-conscious consumers while keeping costs in check, palm kernel oil is poised to maintain its growth trajectory as the fastest-growing segment by end use in the North American market.

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Country Insights

Based on Country, the United States has emerged as the dominating region in the North America Palm Kernel Oil Market in 2024, driven by strong industrial demand, a well-established food processing sector, and growing awareness of sustainable sourcing practices. The nation benefits from a highly developed infrastructure for importing, refining, and distributing palm kernel oil, which is largely sourced from Southeast Asian countries. This oil is widely used across several industries in the U.S., including food and beverage, cosmetics, personal care, and biofuels, fueling consistent demand. The U.S. market is characterized by a strong presence of multinational corporations and manufacturers that utilize palm kernel oil in a variety of formulations due to its functional benefits, such as its high lauric acid content, which offers superior foaming and moisturizing properties. Increasing consumer preference for natural and organic ingredients in skincare and personal care products has also contributed to the surge in demand for sustainably sourced palm kernel oil. Additionally, regulatory frameworks and certification systems such as the Roundtable on Sustainable Palm Oil (RSPO) have supported a shift toward traceable and ethical supply chains, which U.S. companies are increasingly adopting to meet environmental, social, and governance (ESG) standards. These factors collectively position the United States as the leading contributor to the growth and value of the North America Palm Kernel Oil market.

Recent Development

• In May 2024, Solidaridad renewed its collaboration with AAK in Mexico, a company specializing in plant-based oils and fats, to advance sustainable practices within the oil palm value chain. The primary objective of the Knowing the Small Producer project, a joint initiative by AAK, Solidaridad, ANIAME, and the Roundtable on Sustainable Palm Oil (RSPO), is to assess and identify the conditions of smallholder producers within AAK’s supply chain in Mexico.
• In November 2023, the Nisshin OilliO Group established Nisshin OilliO America Inc., a business management subsidiary, to initiate operations in the North American market. The company aims to leverage the Group’s expertise across multiple sectors in the region, including food service (such as oils and fats for ready-to-eat meals, restaurants, and food processing manufacturers), confectionery fats, and cosmetic ingredients.
• In October 2023, Cargill partnered with the civil society organization Solidaridad to launch a joint initiative valued at $4.6 million across five countries. The initiative aimed to enhance the livelihoods of palm oil and soy farmers, promote climate-smart agricultural practices, and strengthen land conservation efforts. This collaboration built upon Cargill’s broader commitment to sustainable agriculture, complementing its ongoing initiatives across various sectors. Notably, it aligned with the company’s Cocoa Promise programme, which was developed to support cocoa farmers in addressing persistent sector-wide challenges such as deforestation and child labour, issues that continue to be actively addressed by the wider industry.
• In October 2023, Cargill became one of the first large-scale U.S. suppliers to exclusively offer palm oil certified by the Roundtable on Sustainable Palm Oil (RSPO). As of that date, the company discontinued the sale of conventional palm oil within its U.S. portfolio. This strategic decision to supply only RSPO-certified palm oil from its U.S. refineries responded to growing demand from consumers, food manufacturers, and retailers for more sustainable sourcing practices.

 Key Market Players

• Bunge North America, Inc.
• Wilmar Oleo North America LLC
• AAK USA Inc.
• Nisshin OilliO America Inc.
• Cargill, Incorporated

Report Scope

In this report, the North America Palm Kernel Oil Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• North America Palm Kernel Oil Market, By Sales Channel:

o   Direct Sales

o   Indirect Sales

• North America Palm Kernel Oil Market, By End Use:

o   Food

o   Cosmetics & Personal Care

o   Pharmaceuticals

o   Others

• North America Palm Kernel Oil Market, By Product Type:

o   Palm Kernel Stearin

o   Palm Kernel Olein

• North America Palm Kernel Oil Market, By Country:

o   United States

o   Canada

o   Mexico

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the North America Palm Kernel Oil Market.

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Company Information

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