Palm Oil Market Size, Trends, Share, Growth, and Opportunity Forecast, 2024 - 2031 Global Industry Analysis By Nature (Organic, and Conventional), By Product Type (Fractionated Palm Oil, Crude Palm Oil), By Application (Food & Beverages, Pharmaceuticals, Cosmetics & Personal Care, Biofuel & Energy, and Others), and By Geography (North America, Europe, Asia Pacific, South America, and Middle East & Africa)

Palm Oil Market Size and Forecast 2024 to 2031

The Global Palm Oil Market was valued at USD 70.21 Billion in 2023 and is anticipated to reach a value of USD 98.65 Billion by 2031 expanding at a CAGR of 4.4% between 2024 and 2031.

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Palm oil is oil that is derived from the fruit of palm trees, is a versatile vegetable oil widely used in various industries worldwide. Palm oil is relatively high in saturated fats compared to other liquid oils. There are two types of palm oil, including fractionated palm oil, and crude palm oil. Crude palm oil is primarily used for cooking, and fractionated palm oil is used for non-edible purposes because it remains semi-solid at room temperature. Its unique composition makes it suitable for diverse applications, including food, cosmetics, pharmaceuticals, and biofuels. The palm oil market has been witnessing rapid growth influenced by factors such as growing use of palm oil in biofuel production, applications in food & beverage industry, rapid urbanization and population growth, and expanding cosmetics sector. Palm oil is edible and is used in processed foods such as chocolate, biscuits, margarine, frozen desserts, frying fats, and others.

Palm Oil Market Major Driving Forces

·         Growing Use of Palm Oil in Biofuel Production: The increasing demand for palm oil from the biofuel industry is driving the market growth.  It is used in production of biofuel which is further used as a sustainable alternative to crude oil in many applications.  

·         Applications in Food & Beverage Industry: The rising applications of palm oil in food and beverage industries is another significant factor boosting the market growth. Palm oil is edible and is used in processed foods, such as chocolate biscuits, frozen desserts, and others.

·         Rapid Urbanization and Population Growth: The increasing urbanization and population growth, particularly in developing nations also contributes to the palm oil market growth. With the global population grows, there is greater demand for packaged foods, convenience products.  

·         Expanding Cosmetics Sector: The growing demand in the cosmetics and personal care industries is significantly contributes to the market growth. Palm oil and its derivatives are extensively used in cosmetics and personal care products.

Palm Oil Market Key Opportunities

·         Increasing Demand for Plant-based Foods: The increasing demand for plant-based foods and products due to rising health consciousness create significant opportunities for market growth. Palm oil is increasingly used as a key ingredient in plant-based alternatives, which is expected to boost the market demand.

·         Technological Advancements: Technological innovation in palm oil production processes is revolutionizing the palm oil industry. These innovations are enhancing efficiency, and sustainability in the industry. Moreover, adoption of new technologies in palm oil cultivation and production process has led to increased yields, and efficiency.

·         Focus on Sustainable Production: The shift toward sustainable palm oil production is anticipated to provide lucrative opportunity for market expansion. Consumers are increasingly seeking ethically sourced products.

Palm Oil Market Key Trends

·         The increasing demand for palm oil in the cosmetics and personal care industry

·         Increasing health consciousness is driving the demand for plant-based foods and products

·         Significant rise in environmental awareness, consumers and corporations are increasingly demanding sustainable palm oil products

·         Research initiatives focus on enhancing palm oil sustainability, improving extraction processes, and developing value-added products  

·         The increasing use of palm oil in biofuel production is significantly driving market growth

·         The expansion of the food processing sector and the rising population across developing countries fuels demand for palm oil

·         The growing demand for packaged food, bakery products, and convenience food is also influencing demand for palm oil

Region-wise Market Insights

Asia Pacific accounted for the largest market share at 34.4% in 2023 whereas, Middle East & Africa is expected to register the fastest growth, expanding at a CAGR of 4.8% between 2024 and 2031.

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Asia Pacific region dominated market with largest share due to growing consumption of processed foods, rising population, changing consumer preference, and high demand from food and beverage industries. Additionally, growing application of palm oil in cosmetics and personal care industry and its rising application as a biofuel contributes to the regional market growth. The North American Palm oil market leads in the second number in terms of market share. In North America, the demand is driven by the expanding food outlets, packaged fried food and snacks, and bakery foods. In Europe, the factors favoring market growth are the increasing demand for packaged food and the expansion of the food and beverage sector. The Middle East and Africa has been witnessing a growing demand for palm oil driven by rising demand for various food products, development of hospitality sectors, urbanization, and expansion of palm oil production whereas, in South America, the market is influenced by economic factors, with increasing focus on sustainable palm oil production.

Market Competition Landscape

The global palm oil market is characterized by high degree of competition among a large number of manufacturers. Key players in the palm oil market engage in strategies aimed at gaining a competitive edge. These strategies include product innovation, design differentiation, and the incorporation of sustainable and eco-friendly materials to meet evolving consumer preferences. Established brands leverage their reputation for quality and reliability to maintain market share, while newer entrants focus on disruptive innovations and unique selling propositions.

Key players in the global palm oil market implement various organic and inorganic strategies to strengthen and improve their market positioning. Prominent players in the market include:

·         Archer-Daniels-Midland Company(ADM)

·         Cargill Inc.

·         Asian Agri

·         Boustead Holdings Berhad

·         Wilmar International Limited

·         Bunge Limited

·         IJM Corporation

·         Sime Darby Plantation Berhad

·         Kuala Lumpur Kepong Berhad

·         United Plantations Berhad

·         IOI Corporation Berhad

·         Kulim Malaysia Berhad

·         PT Sampoerna Agro, Tbk

·         PT. Bakrie Sumatera Plantations tbk

·         United Plantations Berhad