Palm Oil Market Size was valued at USD 68.15 billion in 2023. The Palm Oil industry is projected to grow from USD 69.31 billion in 2024 to USD 109.39 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.87% during the forecast period (2024 - 2032). Increasing demand for palm oil for the manufacture of biofuels and increasing public understanding of palm oil's health advantages are the key market drivers enhancing the palm oil market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
After surpassing all other edible oils in 2015, palm oil is now the most widely used oil in the world. The fruit flesh and seed of the oil palm are used to obtain palm oil and palm kernel oil, which are used as feedstock for biofuels and components in various food and personal care items. According to consumption breakdown by industry sector, the processed food business utilizes around 72% of the total palm oil production, followed by the personal care and cleaning goods sector at 18% and the biofuel sector at 10%. Typically, palm oil is exported; in 2016, 48.9 million tonnes of total palm oil production—or around 75%—was exported. In the same year, the export values of crude and refined palm oil and palm kernel oil were USD 28.2 billion and USD 3.7 billion, respectively. The sector's (retail) market value was at least USD 65 billion in 2016. It contributed significantly to the economy by generating USD 39 billion in GDP and USD 4.3 billion in tax revenues.
Figure 1: Palm oil production (1960-2020)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The need for reasonably priced edible oils and fats is expected to fuel growth in the palm oil industry in the upcoming years. The crop's excellent yields, which are 5 to 10 times higher than those of other vegetable oil crops, and its long shelf life, appealing health benefits, and adaptability fuel this demand. Demand has benefited greatly from the restriction on trans fats, which has led the food sector to choose palm oil as its preferred trans-fat substitute component. Recent research questions the possible health advantages because it contains more saturated fats than other vegetable oils. When worldwide regions break down demand, Asia is by far the biggest and fastest-growing consumer accounting for two-thirds of consumption in 2016, with 40% of all palm oil intended for the food sector going to India, China and Indonesia. This increase in the use in India and China has been linked to rising wealth and a shift in consumer tastes toward processed meals.
Additionally, the growth of oil palm plantations has contributed significantly to greenhouse gas emissions by destroying tropical forests and peatlands, which are major carbon sinks. 40 Natural ecosystems nearby may be impacted by synthetic fertilizers and pesticides for oil palm growth. 40 For the sector's survival and to reduce any potential negative repercussions, it is urgent that these issues be resolved. This is crucial since switching to alternate vegetable oil sources like soybean, sunflower, and rapeseed oil might lead to even greater food insecurity and negative environmental effects because they need more land to produce the same quantity of oil.
The Palm Oil market segmentation, based on type, includes Crude Palm Oil, Palm Kernel Oil and Others. Because it has less saturated fat than the others, crude palm oil has dominated the market. Additionally, the tocotrienol content of palm oil, a significant source of vitamin E and a potent antioxidant, fuels the market's expansion. Additionally, there is a rise in oleochemical usage in manufacturing agrochemicals and cleaning goods. Due to its high level of medium-chain fatty acids and exclusive usage as a feedstock for animal feed, palm kernel oil is also seeing substantial palm oil expansion.
Figure 2: Palm Oil Market by Type, 2022 & 2032 (USD Million)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Based on application type, the Palm Oil market segmentation includes Edible Oil, Bio-Diesel, Lubricants, Cosmetics and Others. By the end of the projection period, the cooking sector, which has a modest growth rate, is anticipated to make a sizable contribution to the worldwide revenue share. The segment's share of the worldwide product market's sales in 2021 was 16%. Demand for this market is anticipated to be driven by the diversification of product portfolios and rising demand for plant-based, organic goods.
By Region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. Asia Pacific Palm Oil market accounted for USD 28.39 billion in 2021 and is expected to exhibit a significant CAGR growth during the study period. In 2017, Indonesia (USD 18.7 billion), Malaysia (USD 9.8 billion), and the Netherlands (re-export) were the top exporters of crude palm oil and its fractions (refined or not), while India (USD 6.5 billion), China (USD 3 billion), and Pakistan were the top importers (USD 2.2 billion). In general, the supply has exceeded the demand in recent years, resulting in inventories in palm oil-producing nations rising from over 8 million to 11 million tonnes from 2015 to 2018. Demand began to outpace supply starting in 2018, and by 2020, stockpiles are expected to drop to about 8 million tonnes.
Figure 3: PALM OIL MARKET SHARE BY REGION 2021 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Further, the major countries studied in the market report are The U.S., Canada, Germany, France, the U.K., Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Due to the Region's unique demographics, changing eating habits of the populace, and rising demand from the food industry for diverse delicacies, it is expected that the North American Palm Oil market region will experience exponential expansion shortly. Another factor contributing to the product's explosive growth in the Region is the large amount of unrealized potential in the North American market. Further, the US Palm Oil market held the largest market share, and the Canada Palm Oil market was the fastest-growing market in the European Region
European American Palm Oil market is the second fastest growing region. About 14% of the world's palm oil consumption is driven by demand in the European Union (E.U.) and the United States. In the E.U., demand is substantially higher. Nearly 8 million tonnes of palm oil were consumed in this Region in 2018, compared to over 1.5 million tonnes in the United States, where locally produced maize and soybean oil are more widely used. Since 2008, sustained demand growth has been the consequence of E.U. efforts to promote biofuels, with 50% of all imports going toward the creation of biodiesel. However, as governments work to lessen the detrimental ecological and socioeconomic effects of oil palm agriculture, policy and financial support as a feedstock for biodiesel production is anticipated to decrease drastically by 2032. Further, the Germany Palm Oil market held the largest market share, and the UK Palm Oil market was the fastest-growing market in the European Region
Major market players are investing a lot of money in R&D to expand their product portfolios, which will spur further market growth for cervical fusion. With significant industry changes, including new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, market participants are also undertaking various strategic activities to expand their presence. To grow and remain in a market that is becoming increasingly competitive, Palm Oil industry competitors must provide affordable products.
Manufacturing locally to cut operational costs is one of the main business tactics used by the Palm Oil industry to serve customers and increase the market sector. The Palm Oil industry has recently given medicine some of the most important advantages. The Palm Oil market major player such as Cargill Inc. (U.S.), Wilmar International Limited (Singapore), Sime Darby (Malaysia), IOI Corp. (Malaysia), Golden Agri Resources Limited (Singapore), Kulim BHD (Malaysia), Godrej Agrovet Limited (India), London Sumatra (Indonesia).
An Indonesian plantation business with an emphasis on the production of palm oil, rubber, tea, and cocoa is known as London Sumatra Indonesia Tbk (PP London Sumatra Indonesia, often known as Lonsum). Over 110,000 hectares of its estates are spread over Sumatra, Java, Kalimantan, and Sulawesi islands. The Salim Group, one of Indonesia's largest conglomerates, owns Lonsum, one of the nation's oldest plantation enterprises.
A Malaysian trade conglomerate called Sime Darby Berhad (MYX: 4197) operates. The industrial, automotive, and logistics industries, as well as the healthcare and insurance sectors, are all served by the company's key activities. One of the top planters, Sime Darby Plantation, released its palm oil genome in June 2021 to support the company's goal of an industry free from deforestation.
Palm Oil Industry Developments
| Attribute/Metric | Details |
| Market Size 2023 | USD 68.15 billion |
| Market Size 2024 | USD 69.31 billion |
| Market Size 2032 | USD 109.39 billion |
| Compound Annual Growth Rate (CAGR) | 5.87% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2020 & 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Product Type, Operating Platforms, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The U.S, Canada, Germany, France, the U.K., Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Cargill Inc. (U.S.), Wilmar International Limited (Singapore), Sime Darby (Malaysia), IOI Corp. (Malaysia), Golden Agri Resources Limited (Singapore), Kulim BHD (Malaysia), Godrej Agrovet Limited (India), London Sumatra (Indonesia) |
| Key Market Opportunities | Increasing public understanding health advantages |
| Key Market Dynamics | Increasing demand for the manufacture of biofuels |
Palm Oil Market Highlights:
Frequently Asked Questions (FAQ) :
The Palm Oil market size was valued at USD 65.89 Billion in 2021.
The market is projected to grow at a CAGR of 5.20% during the forecast period, 2024-2030.
Asia Pacific had the largest share of the market
The key players in the market are Cargill Inc. (U.S.), Wilmar International Limited (Singapore), Sime Darby (Malaysia), IOI Corp. (Malaysia), Golden Agri Resources Limited (Singapore), Kulim BHD (Malaysia), Godrej Agrovet Limited (India), London Sumatra (Indonesia).
The crude Palm Oil category dominated the market in 2021.
Cooking palm oil had the largest share in the market.
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