The palm oil market is expected to expand its roots at an average CAGR of 4.48% during the forecast period. The market is likely to hold a revenue of USD 70.95 billion in 2023 while it is anticipated to cross a value of USD 109.97 billion by 2033.
The research report on the palm oil market states various benefits of unrefined vs refined palm oil for cooking as well as their integration in different food items processing such as cereals, chocolate, coffee creamers, margarine, and other baked goods like bread, cookies, and muffins.
The higher availability and affordability of palm oil are making it the first choice for the industries such as food and beverages, packaged food items, and other applications. Furthermore, the rising consumption of palm oil as an alternative to vegetable oil. With the increased number of oil palm plantations along with the year-round hand harvesting and pests and disease control methods in the market, the industry flourishes.
Another factor that drives the palm oil industry is its non-food and food-based applications that have increased through the restoration of many industries post covid-19. Its usage as a bioenergy source, fertilizers, and other oil by-products.
Palm oil market analysis explains that different stages of palm oil being refined have certain applications, helping the advanced biofuel industry. The rising concerns around pollution, climate change, and limited resources are led by the government transitioning to sustainable energy resources. Thus, the increased demand for palm oil has increased over the last decade. Alongside this, the trend for higher application of plant-based fuel options.
| Attributes | Details |
|---|---|
| Market CAGR (2023 to 2033) | 4.48% |
| Market Size (2023) | USD 70.95 billion |
| Market Size (2033) | USD 109.97 billion |
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Short-term Growth (2023 to 2026): The biofuel industry fuels the usage of palm oil through different stages of refining procedures. Furthermore, its varied verticals include packaged food, detergents, cosmetics, and biofuel. With this wide range of applications, the market is expected to hold USD 70.95 billion in 2023 while it is likely to reach USD 80.92 billion by 2026.
Mid-term Growth (2026 to 2029): An estimated data state that palm oil is in nearly 50% of the packaged products that we find in supermarkets. These food items include chocolate, donuts, pizza, deodorant, toothpaste, lipstick, and shampoo. Apart from the applications, the new oil business enthusiast extends their research and development programs to produce highly refined palm oil. This takes a market value from USD 80.92 billion in 2026 to a value of USD 92.29 billion in 2029.
Long-term Growth (2029 to 2033): This period is likely to be driven by the health advantages of palm oil as it contains no trans-fat. Harvard nutrition expert explains that palm oil is better than trans-fat and butter as it is less harmful to the heart. Thus, the Palm Oil market is anticipated to thrive at a steady CAGR of 4.48% between 2023 to 2033.
The large set of applications, its usage as a better alternative, and its affordable rates are not the only growth drivers for the palm oil market. The advanced usage of palm oil as a biofuel is trending in Southeast Asia. It’s the bleached, refined, deodorized (RBD) palm oil that qualifies to become the biodiesel for vehicles. It transforms in the presence of excess methanol and base catalysts while being heated. This process is known as the esterification process.
With the nations transitioning from conventional fuels to alternate options, palm oil is one source that is emerging faster as it is affordable and doesn’t require much process. Furthermore, with the restoration of the bakery industry, the application of palm oil has skyrocketed as it acts as an ingredient lubricant, emulsifier, and flavor additive to the market.
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Some of the major restraints for the market are its alternatives and its adverse effects on the human body as it carries excess carbon. Furthermore, its biofuel application is also limited as it has a viscosity of about 10 times higher than that of diesel. Though, its multi-purpose applications are only going to help the market in overcoming these challenges.
| Region | Revenue Share % (2022) |
|---|---|
| North America | 13.3% |
| Europe | 10% |
| Asia Pacific | 72% |
| Latin America | 3% |
| Middle East And Africa | 1.7% |
Rising Awareness around the Health Benefits, Affordable Rates, and Easy Availability makes Palm Oil a Prominent Choice of Oil in the Region
The North American Palm oil market leads in the second number in terms of market share. The region held a market share of 13.3% in 2022. The growth is attributed to the expanding food outlets, packaged fried food and snacks, and bakery foods. Some of these products involve pastries, ice creams, packaged chips, and other local cuisines. Furthermore, the enhanced product demand in other nations with increased effects of globalization and higher trade are also fueling the demand for palm oil in the United States.
Long List of Applications from Biofuel to Cooking Oil and Food Additive, Palm Oil flourishes the Regional Growth
Asia Pacific region is anticipated to lead the global palm oil market as it held a major market share of 72% in 2022. The boom in the demand is attributed to the expanding transforming food habits as people consume a high amount of ready-to-eat food and snacks. While another growth factor is its rising application as a biofuel in Southeast Asia. The expanding business of palm oil in coastal areas with palm tree farming is likely to increase the overall production of palm oil. Lastly, expanding population, average per capita income, and limited natural fossil fuels are the main growth drivers for this region. India also consumes a big chunk of palm oil as it is used at its local food outlets.
The restoration of Packaged Food Items Industry is consuming a Big Chunk of the Global Palm Oil Market in the European Region
The United Kingdom is another significant market for palm oil. The European region held a market share of 10% of this region. The growth is attributed to the higher sales of food items as it witnesses a big amount of tourist footfall. Furthermore, palm oil is a cheaper alternative to olive oil and other vegetable oil, expanding the market boundaries in the region.
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| Category | By Nature |
|---|---|
| Leading Segment | Conventional |
| Market Share (2022) | 98% |
| Category | By Product Type |
|---|---|
| Leading Segment | Fractionated |
| Market Share (2022) | 40% |
Based on nature type, the conventional segment leads as it held a market share of 98% in 2022. The easy accessibility, better production once used with synthetic pesticides, and affordable cost of production are flourishing the segmental growth. Furthermore, it’s a viable source of income for small and mid-range palm oil suppliers.
Based on the product type, the fractionated segment held the major share of 40% in 2022. The growth is attributed to the limited prices, easy availability, and higher absorption through low-income nations. The product's constituent nature makes it more cost-effective to produce in large quantities.
The key players focus on launching different palm oil grades for different industries and verticals. The higher demand for naturally processed palm oil is also pushing vendors to apply machines that produce a higher proportion of pure oil. The clean label packaging also helps the vendors in attracting different types of end-users.
Market players in the palm oil market are working on five major strategies.
Market Developments
Wilmar International Ltd. Has extended its oil palm plantation and milling through joint
The global palm oil market may reach a valuation of USD 70.95 billion in 2023.
The global cod fish market is projected to retain its growth rate at 4.48% per year through 2033.
Archer Daniels, Wilmar, and Sime Darby are the leading suppliers in the global market.
Palm oil obtained from fractionated process constituted 40% of the market share in 2022.
China is anticipated to remain the most attractive market with 72% market share in 2022.
1. Executive Summary | Palm Oil Market 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Nature 5.1. Organic 5.2. Conventional 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Product Type 6.1. Crude 6.2. RBD 6.3. Palm Kernel Oil 6.4. Fractionated 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End User 7.1. Food & Beverages 7.2. Personal Care & Cosmetics 7.3. Pharmaceuticals 7.4. Biofuel & Energy 7.5. Others 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 8.1. North America 8.2. Latin America 8.3. Europe 8.4. Asia Pacific 8.5. MEA 9. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Asia Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Key Countries Market Analysis 15. Market Structure Analysis 16. Competition Analysis 16.1. Archer Daniels Midland 16.2. Wilmar International Ltd. 16.3. Sime Darby Plantation 16.4. IOI Corporation 16.5. Kuala Lumpur Kepong 16.6. United Plantations 16.7. Kulim (Malaysia) Berhad 16.8. IJM Corporation 16.9. PT Sampoerna Agro 16.10. Univanich Public Company Ltd. 16.11. PT. Bakrie Sumatera Plantations 16.12. Asian Agri 16.13. Agropalma S.A. 16.14. Boustead Holdings 16.15. Fuji Vegetable Oil, Inc. 16.16. New Britain Limited 17. Assumptions & Acronyms Used 18. Research Methodology
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Palm Oil Market
