Derived from the mesocarp of oil palm fruits originating in West Africa, palm oil is a versatile and highly productive edible vegetable oil. It has exceptional yield, palm oil outperforms other major vegetable oil crops by producing 5-10 times more oil per hectare. The global dependency on palm oil can be attributed to several factors. Palm oil's versatility, high productivity, and relatively low cost make it an attractive ingredient for various industries, including food, cosmetics, and biofuels. Its wide range of applications, such as cooking oil, processed foods, and personal care products, has driven its demand. Its long shelf life and heat stability also make it ideal for commercial purposes.
According to Data Bridge Market Research the Palm Oil Market accounted at USD 50.60 billion in 2021 and is expected to reach USD 0.32 billion by 2029. The market is expected to grow with a CAGR of 4.20% in the forecast period of 2022 to 2029.
“Increasing utilization of palm oil boosts the market’s growth”
The palm oil market is experiencing growth due to increased utilization across various industries. Palm oil is widely used in food processing, cosmetics, personal care products, and biofuels. Palm oil's versatile properties and cost-effectiveness make it a preferred choice for manufacturers. Growing consumer awareness of sustainable sourcing practices and certifications has also contributed to the market's growth. With its wide range of applications and favourable properties, the increased utilization of palm oil is driving the expansion of the market.
What restraints the growth of the palm oil market?
“Price volatility restraints the market’s growth”
The growth of the palm oil market is hindered by price volatility. Palm oil prices are influenced by various factors such as weather conditions, global supply and demand dynamics, and government policies. Sharp price fluctuations can create uncertainty for market players, making planning and investing in the sector challenging. Price volatility also affects profit margins, leading to financial risks for palm oil producers and traders. Consequently, the unstable pricing environment acts as a restraint on the overall growth of the palm oil market.
Segmentation: Palm Oil Market
The palm oil market is segmented on the basis of type, origin, usage, and application.
- On the basis of type, the palm oil market has been segmented into crude palm oil, RBD palm oil, fractionated palm oil, palm kernel oil, and others.
- On the basis of origin, the palm oil market has been segmented into organic, conventional.
- On the basis of usage, the palm oil market has been segmented into edible oil, bio-diesel, lubricants, cosmetics, and others.
- On the basis of application, the palm oil market has been segmented into household cooking, food and beverages, oleo chemicals, personal care, animal feed bio-fuel.
Regional Insights: Asia-Pacific dominates the palm oil market
Asia-Pacific dominates the palm oil market in terms of market share and market revenue and will continue to flourish its dominance during the forecast period of 2022-2029. The growth of the market in this region can be attributed to two key factors. Firstly, the increasing disposable income of consumers has led to a shift towards nutritious and healthy food options instead of traditional meals. This growing preference for healthier choices has created opportunities for market growth.
North America is estimated to show lucrative growth over the forecast period of 2022-2029, the rapid expansion of palm oil applications across diverse industries, enhancing its market demand. Additionally, there is a growing awareness among the population about the affordability of palm oil compared to other oils, further stimulating its consumption.
To know more about the study visit, https://www.databridgemarketresearch.com/reports/global-palm-oil-market
The Prominent Key Players Operating in the Palm Oil Market Include:
- Fuji Oil USA (U.S.)
- Genting Plantations Berhad (Malaysia)
- Wilmar International Ltd., (Singapore)
- Godrej Agrovet Limited (India)
- Golden Agri-Resources Ltd (Singapore)
- PT Smart Tbk (Indonesia)
- Intercontinental Specialty Fats Sdn. Bhd. (Malaysia)
- IOI Corporation Berhad (Malaysia)
- Kuala Lumpur Kepong Berhad (Malaysia)
- PT Astra Agro Lestari (Indonesia)
- Musim Mas (Singapore)
- PT PP London Sumatra Indonesia (Indonesia)
- PT Dharma Satya Nusantara (Indonesia)
- PT Indofood Sukses Makmur (Indonesia)
- Siat Group (Belgium)
Above are the key players covered in the report, to know about more and exhaustive list of palm oil market companies contact, https://www.databridgemarketresearch.com/contact
Research Methodology: Global Palm Oil Market
Data collection and base year analysis are done using data collection modules with large sample sizes. The market data is analyzed and estimated using market statistical and coherent models. In addition, market share analysis and key trend analysis are the major success factors in the market report. The key research methodology used by DBMR research team is data triangulation which involves data mining, analysis of the impact of data variables on the market, and primary (industry expert) validation. Apart from this, data models include Vendor Positioning Grid, Market Time Line Analysis, Market Overview and Guide, Company Positioning Grid, Company Market Share Analysis, Standards of Measurement, Global vs Regional and Vendor Share Analysis. Please request analyst call in case of further inquiry.
