Palm Oil Market Size to grow by USD 57 billion between 2024-2028
According to a research report “ Palm Oil Market” by Application (Edible oil, Surfactants, Bio-diesel, Others) Type (Conventional, Organic) Geography (APAC, Middle East and Africa, Europe, North America, South America)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 57 billion, at a CAGR of 10.07% during the forecast period. Palm oil, recognized for its natural properties, presents a significant growth opportunity in the health-conscious consumer market. The demand for this versatile oil, primarily used for cooking, has surged, leading to a substantial increase in consumption. In the global palm oil market, crude palm oil (CPO) dominates with a 58.3% revenue share. Furthermore, palm kernel oil (PKO), another distinguished segment, accounts for 23.0% of the total market revenue. These segments collectively drive the market growth due to their inherent health benefits and extensive applications.
Browse market data tables, figures, and in-depth TOC on “Palm Oil Market” by Application (Edible oil, Surfactants, Bio-diesel, Others) Type (Conventional, Organic) Geography (APAC, Middle East and Africa, Europe, North America, South America) Global Forecast to 2028. Download Free Sample
By Application, the Edible oil segment is projected to dominate the market size in 2024
In the global market, conventional palm oil represents the standard variety of this edible vegetable oil, derived from palm fruits through traditional farming practices and industrial processing techniques. This commodity is extensively utilized across various industries, including food and beverage manufacturing, personal care product formulation, and biofuel production. Indonesia and Malaysia, as the world's leading palm oil producers, are the primary sources for this commodity. The palm fruits are meticulously harvested and transported to large-scale milling facilities where they undergo sterilization, de-fruiting, and pressing to yield crude palm oil.
By Type, Conventional segment is expected to hold the largest market size for the year 2024
Palm oil, a widely utilized edible oil, particularly in Asian markets, holds significant market share due to its versatility and affordability. Two primary forms of palm oil exist: palm fruit oil and palm kernel oil. Palm fruit oil is predominantly used for cooking and is incorporated into various food products, including those in packaging. Compared to hydrogenated oils, palm oil is perceived as a healthier alternative. The lower cost of palm oil, relative to other vegetable oils, also contributes to its expanded market presence. With substantial production volumes and increasing applications in the food processing sector, palm oil remains a leading choice for businesses due to its lower trans fat content.
APAC is forecasted to hold the largest market size by region in 2024
The palm oil market is a significant player in the global edible oils industry, with robust demand driven by its versatile applications in food, cosmetics, and industrial sectors. Palm oil production is concentrated in Southeast Asia, particularly in Indonesia and Malaysia, making these countries key suppliers. Market growth is influenced by factors such as population growth, increasing demand for biodiesel, and government policies. Companies in this sector focus on sustainable production and certification to mitigate environmental concerns and maintain market reputation.
The Palm Oil Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:
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Research Analysis Overview
Palm oil is a widely used edible oil derived from the mesocarp of the fruit of the oil palm tree. It is a major feedstock for various industries, including food, cosmetics, and biofuel. The production of palm oil, however, has been linked to deforestation of tropical forests, leading to the loss of biodiversity and contributing to climate change. White palm oil is the refined and deodorized version of crude palm oil, commonly used in food industries. Unrefined palm oil, also known as red palm oil, is rich in antioxidants and carotenoids but has a distinct taste and color. Trans fats and minerals oil are sometimes used as substitutes, but they have health risks, including increasing the risk of heart disease. Organic farming practices are increasingly being adopted to promote sustainable production of palm oil. Agrochemicals are used in conventional farming, but organic production avoids their use. Palm oil is used in various products, including biodiesel, palm kernel oil, RBD palm oil, and in the production of detergents, shampoos, candles, cereals, instant noodles, and vegetable oil. Palm fruits provide employment opportunities for millions of people in countries like Indonesia and Malaysia. Rapeseed oil is a common alternative, but palm oil is more cost-effective and has a higher yield per hectare.
Market Research Overview
The Palm Oil market encompasses various edible oils, with Univanich Palm Oil being a notable player. Edible oils, including palm oil, are essential in the food industry for cooking and as ingredients in consumer goods. However, concerns over trans fats and saturated fats, found in palm oil, have led to a shift towards healthier alternatives like rapeseed oil. The biofuel industry also utilizes palm oil as a feedstock, contributing to deforestation and environmental concerns. The palm oil market includes White Palm Oil, derived from the mesocarp, and Palm Kernel Oil, extracted from the kernel. Unrefined palm oil and fractionated palm oil are other forms of this versatile oil. Palm oil is used in various industries, including biodiesel, lubricants, surfactants, and even in the production of detergent, shampoos, candles, and cereals. The market is segmented into organic and conventional segments. Organic production, free from insecticides and pesticides, is gaining popularity due to its sustainable production and health benefits. The conventional segment, however, is still the major contributor to the market. Palm oil imports are significant, with cooking oil and diesel being the primary uses. The palm oil industry provides employment opportunities and contributes to the economy of tropical regions. However, concerns over its impact on tropical forests, cholesterol level, and saturated fat content continue to be a challenge. The industry is exploring sustainable production methods and alternatives to palm oil, such as soybean and sunflower oil, to address these concerns.
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