Palm Oil Market

Global Palm Oil Market:

The global palm oil market size reached USD 57.2 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 77.5 Billion by 2033, exhibiting a growth rate (CAGR) of 3.42% during 2025-2033. The rising versatility and wide product application, rapid population growth, significant economic development, expanding middle class in emerging markets, cost effectiveness of palm oil production, and increasing awareness about its health benefits are some of the major factors propelling the market growth.

Palm Oil Market Analysis:

• Major Market Drivers: The rising demand for food products, including those containing palm oil, such as processed foods and cooking oils, is primarily driving the market growth. Furthermore, the increasing application of palm oil in non-food industries, such as cosmetics and biofuels, is also creating a positive outlook for the overall market.
• Key Market Trends: The rising utilization of palm oil in biodiesel and other renewable energy sources on account of environmental concerns and the need to reduce greenhouse gas emissions is one of the significant trends catalyzing the market growth.
• Competitive Analysis: Some of the leading companies in the global palm oil market include Archer-Daniels-Midland Company, Asian Agri, Boustead Holdings Berhad, IJM Corporation Berhad, IOI Corporation Berhad, Kuala Lumpur Kepong Berhad, Kulim Malaysia Berhad (Johor Corporation), PT Dharma Satya Nusantara Tbk, PT PP LONDON SUMATRA INDONESIA TBK, PT Sampoerna Agro Tbk, PT. Bakrie Sumatera Plantations tbk, Sime Darby Plantation Berhad, United Plantations Berhad, Univanich Palm Oil Public Company Ltd., and Wilmar International Ltd., among others.
• Geographical Landscape: According to the palm oil market report, Indonesia accounted for the largest market share. Indonesia is the largest producer of palm oil in the world. The tropical climate of the country and vast expanses of suitable land make it exceptionally conducive to palm oil cultivation. The favorable growing conditions, combined with the availability of a skilled labor force, enable Indonesia to produce a substantial quantity of palm oil, which, in turn, influences its dominance in the market. 
• Challenges and Opportunities: Challenges in the palm oil market include environmental concerns such as deforestation and habitat destruction, along with social issues like labor exploitation. Opportunities lie in sustainable practices, technological advancements for efficient production, and expanding markets driven by increasing demand for biofuels and consumer goods. Balancing these factors is crucial for the industry's long-term viability and ethical growth.
   

Palm Oil Market Trends:

Expanding Food and Beverage Industry

Palm oil is widely used in the food and beverage industry for its versatile properties, including its neutral flavor, high smoke point, and high oxidative stability. The expanding food and beverage industry is offering lucrative growth opportunities to the overall market. For instance, total revenue in the Indian food and beverage industry is expected to show an annual growth rate (CAGR 2022-2027) of 14.94%, resulting in a projected market volume of US$ 30.75 Million by 2027. With the expansion of the food and beverage industry, the worldwide production of palm oil has also increased in volume to meet demand. For instance, Indonesia, the leading producer of palm oil, recorded 45.5 million metric tons of palm oil produced in 2022-2023. Besides this, the escalating utilization of palm oil in producing processed and ready-to-cook meals like instant noodles and frozen food snacks is positively impacting the palm oil market outlook. For instance, according to IMARC, the global instant noodles market size reached US$ 55.4 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 82.6 Billion by 2032, exhibiting a growth rate (CAGR) of 4.4% during 2024-2032. The rising preference for ready-to-cook food items on account of hectic work schedules is anticipated to further propel the palm oil market demand.

Increasing Production of Biofuel

Palm oil is a significant feedstock to produce biofuels, particularly biodiesel. Palm oil-based biodiesel is a renewable energy source that helps reduce dependency on fossil fuels, contributing to energy security and diversification of energy sources. The government authorities of various nations are promoting the use of biofuels as alternatives to fossil fuels, which is bolstering demand for palm oil, particularly in regions with biofuel mandates and incentives. For instance, India's Ministry of Petroleum and Natural Gas published its "National Policy on Biofuels" in 2018 and further amended it in June 2022. The policy's objective is to reduce the import of petroleum products by fostering domestic biofuel production. In response to such initiatives, various biofuel manufacturers are increasingly investing in expanding their operations, which is creating a positive outlook for the overall market. For instance, in July 2022, Eni Kenya B.V. completed the construction of the oilseed collection and pressing plant (agri-hub) in Makueni, Kenya, and started production of the first vegetable oil for bio-refineries. According to the company, the first agri-hub had a capacity of 15,000 tons, with an expected output of 2,500 tons in 2022. As a result, numerous programs launched by governing bodies of various nations to promote bio-based goods like palm oils are anticipated to bolster the palm oil market size in the coming years.

Growing Demand for Fortified Palm Oil

Fortified palm oil provides essential vitamins such as vitamin A and vitamin D, which are crucial for overall health and well-being. Additionally, as consumer preferences shift towards healthier food options, the demand for fortified palm oil is rising. Fortifying cooking oils can aid people in consuming 25% to 30% more vitamin D and A than is required. Several nations have started large-scale initiatives to promote the fortification of staple foods, especially oils, in response to growing consumer health awareness. Moreover, concerned government authorities are also acknowledging the importance of food fortification and its potential to support the achievement of international nutrition targets, which is bolstering the palm oil market share. For example, the Food Safety and Standards Authority of India (FSSAI) published a proposal in 2021 calling for the mandatory fortification of cooking/edible oil with vitamins A and D to strengthen immunity and combat malnutrition, particularly deficits in micronutrients. Various palm oil manufacturers are also following sustainable practices and increasingly investing in the development of palm oils that are high in nutrition. For instance, in October 2023, KTC Edibles, the UK’s largest supplier of edible oils, launched Planet Palm, a new range of certified sustainable, traceable, and responsibly sourced palm oil products for food manufacturers in the UK. Similarly, in September 2021, BASF West Africa teamed up with EDCEL Limited and launched the Vitamin A premix for edible oils. Such initiatives are anticipated to propel the palm oil market sales & revenue in the coming years.

Global Palm Oil Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global palm oil market report, along with forecasts at the global and regional levels for 2025-2033. Our report has categorized the market based on application.

Breakup by Application:

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

Household cooking dominates the market

The report has provided a detailed breakup and analysis of the palm oil market segments based on the application. This includes household cooking, food and beverages, oleo chemicals, personal care, animal feed, and biofuel. According to the report, household cooking represented the largest segment.

The ubiquity of palm oil in household kitchens across the globe is a primary driver. It is a staple cooking oil in many cultures due to its affordability, neutral flavor, and versatility. Palm oil's semi-solid state at room temperature makes it ideal for frying, sautéing, and baking, enhancing the taste and texture of a wide array of dishes. Its widespread availability and affordability further cement its place as a preferred choice for cooking purposes in households. Additionally, the sheer size of the global population necessitates a substantial volume of cooking oil. As more people gain access to kitchens and start cooking at home, the demand for cooking oils like palm oil naturally rises. The world's growing middle class, particularly in emerging markets, contributes significantly to this trend as they increasingly opt for home-cooked meals.

Breakup by Region:

• India
• Indonesia
• China
• European Union
• Malaysia
• Others
   

Indonesia exhibits a clear dominance in the market

The market research report has also provided a comprehensive analysis of all the major regional markets, which include India, Indonesia, China, European Union, Malaysia, and others. According to the report, Indonesia accounted for the largest market share.

According to palm oil industry statistics by IMARC, Indonesia is the largest producer of palm oil in the world. The tropical climate of the country and vast expanses of suitable land make it exceptionally conducive to palm oil cultivation. Indonesia is the leading producer of palm oil. The country recorded 45.5 million metric tons of palm oil produced in 2022-2023. Moreover, the favorable growing conditions, combined with the availability of a skilled labor force, enable Indonesia to produce a substantial quantity of palm oil, which, in turn, influences its dominance in the market. Additionally, the Indonesian government has actively supported the palm oil industry through policies and incentives, fostering palm oil market value. For instance, established in 2012, the Sustainable Palm Oil (SPO) Initiative is an alliance between the Government of Indonesia (GoI), the United Nations Development Program (UNDP), the private sector, and other non-government partners that aims to address key challenges in Indonesia's palm oil sector such as deforestation and improving the livelihoods of smallholder farmers. Moreover, Indonesia's strategic geographic location enables efficient export to key markets, such as China and India, both of which have high demand for palm oil.

Competitive Landscape:

Major palm oil producers and consumer goods companies have made commitments to source sustainable palm oil. They have joined initiatives like the Roundtable on Sustainable Palm Oil (RSPO) and adopted responsible sourcing policies. This includes pledges to avoid deforestation, protect biodiversity, and respect the rights of local communities. Additionally, leading palm oil market companies are investing in research to develop more sustainable and productive palm oil varieties. These efforts aim to increase yields per hectare while minimizing the environmental impact of cultivation. Other than this, numerous key players are enhancing traceability in their supply chains. They are implementing systems to track the origin of palm oil and ensure it comes from legal and responsible sources. This transparency helps in identifying and addressing issues related to deforestation and labor rights violations. Besides this, industry leaders are actively engaging with stakeholders, including NGOs, governments, and local communities, to address concerns and collaborate on sustainable practices. This includes dialogues on land use, community development, and conservation efforts.

The market research report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Archer-Daniels-Midland Company
• Asian Agri
• Boustead Holdings Berhad
• IJM Corporation Berhad
• IOI Corporation Berhad
• Kuala Lumpur Kepong Berhad
• Kulim Malaysia Berhad (Johor Corporation)
• PT Dharma Satya Nusantara Tbk
• PT PP LONDON SUMATRA INDONESIA TBK
• PT Sampoerna Agro Tbk
• PT. Bakrie Sumatera Plantations tbk
• Sime Darby Plantation Berhad
• United Plantations Berhad
• Univanich Palm Oil Public Company Ltd.
• Wilmar International Ltd.
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Global Palm Oil Recent Developments:

• May 2024: Leading geospatial intelligence AI technology firm Dabeeo commenced its latest AI monitoring project of palm oil farms in Indonesia. The company inked a deal with Tunas Sawa Erma Group, one of Indonesia's major palm oil producers, for the project, spanning across a total of 765 square kilometers.
• May 2024: India's first integrated Oil Palm Processing Unit by 3F Oil Palm started its commercial operations. This integrated Oil Palm project includes a cutting-edge oil palm factory (Palm Oil Processing and Refinery), a zero-discharge effluent plant, a palm waste-based power plant, and additional structures and go-downs for support purposes. This factory marks the first Oil Palm factory in Arunachal Pradesh and India's first Oil Palm Factory under NMEO-OP.
• January 2024: Karnataka-based MK Agrotech, an edible oil and food company, and M11 Industries announced the launch of an oil palm plantation program in Odisha. The company signed a memorandum of understanding (MoU) with the Government of Odisha under the National Mission on Edible Oils–Oil Palm (NMEO-OP).

Palm Oil Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the palm oil market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global palm oil market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the palm oil industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.