Global Palm Oil Market – Industry Trends and Forecast to 2029

Global Palm Oil Market, By Type (Crude Palm Oil, RBD Palm Oil, Fractionated Palm Oil, Palm Kernel Oil, Others), Origin (Organic, Conventional), Usage (Edible Oil, Bio-Diesel, Lubricants, Cosmetics, Others), Application (Household Cooking, Food and Beverages, Oleo Chemicals, Personal Care, Animal Feed, Bio-fuel) – Industry Trends and Forecast to 2029

Market Analysis and Size

Over recent years, the edible oil industry has witnessed an increase in acceptance as well as utilization across the globe. This acceptance and growth is attributed to several health benefits such as the increasing energy, improving eye vision, decreasing premature ageing, boosting the immune system, and lowering the risk of cancer and heart disease. Therefore, the market is estimated to show lucrative growth due to the growing awareness of these health benefits amongst consumers.

Global Palm Oil Market was valued at USD 50.60 billion in 2021 and is expected to reach USD 70.32 billion by 2029, registering a CAGR of 4.20% during the forecast period of 2022-2029. The market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and climate chain scenario.

Report Scope and Market Segmentation

Market Definition

Palm oil is an edible vegetable oil made from the mesocarp of oil palm fruits that originated in West Africa. It is the highest-yielding oil crop on the planet, yielding 5-10 times more per hectare than other major vegetable oil crops. It is cholesterol-free, easy to digest, and high in carotenoids and Vitamin A, which provide several nutritional benefits.

Palm Oil Market Dynamics

This section deals with understanding the market drivers, advantages, opportunities, restraints and challenges. All of this is discussed in detail as below:

Drivers

• Increased Utilization as well as the Demand of Palm Oil

Growing consumption of palm oil in the manufacturing process and increased use of palm oil as a trans-fat alternative in processed foods, on the other hand, would provide enough chances to fuel the expansion of the palm oil market over the forecast period. Furthermore, rising demand for vegetable oil will propel the industry forward. Furthermore, because it is widely used for frying and as an essential element in producing nutritious food recipes, the growing food sector is increasing product demand. Palm oil is also quickly replacing petroleum-based products as a viable option in the transportation and energy industries. It is also used as a mineral oil alternative in power plants for energy production. As a result, the increased utilization of palm oil for various applications is estimated to boost the market growth.

Additionally, the growth in food and beverages sector will also drive market value growth. The palm oil basically has a longer shelf-life and is also cheaper than other vegetable oils, which is projected to bolster the growth of the market.

Opportunities

• Adoption of Technologies and Awareness

Furthermore, adoption of new technologies such as advanced satellite-based technology that helps monitor deforestation and significant initiatives undertaken by governments of various countries such as Denmark and other western European nations extend profitable opportunities to the market players in the forecast period of 2022 to 2029. Additionally, the growing consumer awareness concerning positive health benefits of palm oil will further expand the future growth of the palm oil market.

Restraints/Challenges

• Price Volatility

The growth of the palm oil market is influenced by a variety of market dynamics and supply-demand factors. The palm oil market is expected to face considerable price volatility in crude palm oil rates, as palm oil accounts for the greatest amount of vegetable oils traded globally and new laws and regulations are being implemented against the backdrop of increased attention surrounding unethical plantation practices. This will largely impact the palm oil market's overall outlook and pose a major challenge for the market within the forecast period.

• Concerns about Deforestation and Plant Diversity Loss

There are various concerns regarding the current condition of forests and plant diversities globally. The governments of Indonesia and Malaysia are two major palm oil plantation countries, are focusing on sustainable and organic production. Several constraints on the amount of cultivation and commercialization may be necessary to achieve this. As a result, this factor is expected to challenge the palm oil market growth rate.

This palm oil market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the palm oil market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

COVID-19 Impact on Palm Oil Market

The unexpected outbreak of coronavirus had a negative impact on the palm oil market. The epidemic has shifted consumer preferences away from traditional brick-and-mortar distribution channels and toward online retail platforms for palm oil purchases. According to projections, the food and beverage industry as a whole will lose around 40% of its sales during the outbreak. The COVID-19 epidemic wreaked havoc on the food and beverage industry, causing sales and output to plummet. These factors weighed on the market's revenue trajectory.

On the brighter side, the overall market remained unaffected by the epidemic as the edible oils are consumed regularly by individuals worldwide. Therefore, the effect of the demand of the palm oil market was negligible.

Global Palm Oil Market Scope

The palm oil market is segmented on the basis of type, origin, usage and application. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Type

• Crude Palm Oil
• RBD Palm Oil
• Fractionated Palm Oil
• Palm Kernel Oil
• Others

Origin

• Organic
• Conventional

Usage

• Edible Oil
• Bio-Diesel
• Lubricants
• Cosmetics
• Others

Application

• Household Cooking
• Food and Beverages
• Oleo Chemicals
• Personal Care
• Animal Feed
• Bio-fuel

Palm Oil Market Regional Analysis/Insights

The palm oil market is analyzed and market size insights and trends are provided by country, type, origin, usage and application as referenced above.

The countries covered in the palm oil market report are U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, Israel, Egypt, South Africa, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.

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 market growth over this region is attributed to the increasing disposable income and nutritious and healthy foods in place of conventional meals. Moreover, the presence of key market players within the region also boosts the market growth.

On the other hand, North America is estimated to show lucrative growth over the forecast period of 2022-2029, due to the rapidly increasing market applications of palm oil in various fields coupled with the increasing awareness about low priced oils among the population in the region. Moreover, the entry of new market players is also estimated to accelerate the market growth within the region.

The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.   

Competitive Landscape and Palm Oil Market Share Analysis

The palm oil market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to palm oil market.

Some of the major players operating in the palm oil market are

• 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 Tbk (Indonesia)
• PT Dharma Satya Nusantara Tbk (Indonesia)
• PT Indofood Sukses Makmur Tbk (Indonesia)
• Siat Group (Belgium)