The global palm oil market reached a production volume of 73 Million Tons in 2017, registering a CAGR of 7% during 2010-2017. The market volume is further projected to reach around 96 Million Tons by 2023, expanding at a CAGR of nearly 5% during 2018-2023. Originated from West-Africa, palm oil refers to an edible vegetable oil procured from the mesocarp of the fruit of oil palm. It is the world’s highest yielding oil crop, with an output 5–10 times greater per hectare than other leading vegetable oils. Due to its unique chemical composition, palm oil has longer shelf-life, low price and reported nutritional benefits. It is cholesterol-free, easy to digest, and rich in carotenoids as well as Vitamin A. Thus, palm oil has the ability to enhance energy levels, prevent premature ageing, improve eye vision, boost immune system, and reduce the risk of cancer and heart diseases.
Global Palm Oil Market Drivers:
Expanding applications of palm oil in both edible and non-edible sectors remain the major growth-inducing factor for the market. On account of various health benefits provided by palm oil, it is considered suitable for a number of applications in the food industry. It contains 20-22% solid fats due to which palm oil is utilised in shortening, margarines and other fat products. It can also be combined with harder fat fractions in order to give them the required consistency without resorting to hydrogenation. Some of the other common palm oil products include cooking and frying oils, vegetable ghee, and non-dairy creamers. Rising awareness about these health benefits among the consumers is boosting the demand for palm oil worldwide. Further, palm oil is readily replacing petroleum-based products as an effective alternative for fossil fuels in transportation and energy industries. Apart from this, it is also employed as a substitute to mineral oil in power stations for energy production. Moreover, initiatives undertaken by several governments across the world to curb trans-fat consumption is envisaged to boost the market growth.
Breakup by Application:
On the basis of application, the market has been categorised into foods, consumer products and energy. Amongst these, food products represent the largest segment for palm oil, accounting for more than two-thirds of the total market share. As palm oil is resistant to oxidation, it has longer shelf-life in comparison with other edible oils in the market.
On a geographical front, India enjoys the leading position in the global palm oil market. Initiatives taken by the Government, such as cutting down the import duty, resulted in the low price of palm oil, thereby making it affordable for the consumers in the region. India is followed by Indonesia, China, European Union, Malaysia and Others.
The palm oil industry is concentrated in nature as it involves a large number of established manufacturers across the globe, with strong business interests and fundamentals across the entire supply chain. Some of the leading players operating in the market are:
- Wilmar International
- Sime Darby Berhad
- IOI Corporation
- Astra Agro Lestari
- Kuala Lumpur Kepong Berhad
- Golden Agri
This report provides a deep insight into the global palm oil industry covering all its essential aspects. This ranges from macro overview of the market to micro details of the industry performance, recent trends, key market drivers and challenges, SWOT analysis, Porter’s five forces analysis, value chain analysis, etc. The report also provides a comprehensive analysis for setting up a palm oil manufacturing plant. The study analyses the processing and manufacturing requirements, project cost, project funding, project economics, expected returns on investment, profit margins, etc. This report is a must-read for entrepreneurs, investors, researchers, consultants, business strategists, and all those who have any kind of stake or are planning to foray into the palm oil industry in any manner.
Key Questions Answered in This Report:
- How has the global edible oil market performed so far and how will it perform in the coming years?
- What are the popular product types in the global edible oil market?
- How has the global palm oil market performed so far and how will it perform in the coming years?
- What are the key regional markets in the global palm oil market?
- What are the major application segments in the global palm oil market?
- What are the price trends of palm oil?
- What are the various stages in the value chain of the global palm oil market?
- What are the key driving factors and challenges in the global palm oil market?
- What is the structure of the global palm oil market and who are the key players?
- What is the degree of competition in the global palm oil market?
- What are the profit margins in the global palm oil market?
- What are the key requirements for setting up a palm oil manufacturing plant?
- How is palm oil manufactured?
- What are the various unit operations involved in a palm oil manufacturing plant?
- What is the total size of land required for setting up a palm oil manufacturing plant?
- What are the machinery requirements for setting up a palm oil manufacturing plant?
- What are the raw material requirements for setting up a palm oil manufacturing plant?
- What are the packaging requirements for palm oil?
- What are the transportation requirements for palm oil?
- What are the utility requirements for setting up a palm oil manufacturing plant?
- What are the manpower requirements for setting up a palm oil manufacturing plant?
- What are the infrastructure costs for setting up a palm oil manufacturing plant?
- What are the capital costs for setting up a palm oil manufacturing plant?
- What are the operating costs for setting up a palm oil manufacturing plant?
- What will be the income and expenditures for a palm oil manufacturing plant?
- What is the time required to break-even?