Palm Oil

Palm Oil

Global Palm Oil Market to Reach US$117.9 Billion by 2030

The global market for Palm Oil estimated at US$79.3 Billion in the year 2023, is expected to reach US$117.9 Billion by 2030, growing at a CAGR of 5.8% over the analysis period 2023-2030. Crude Palm Oil, one of the segments analyzed in the report, is expected to record a 5.1% CAGR and reach US$63.8 Billion by the end of the analysis period. Growth in the Palm Kernel Oil segment is estimated at 7.1% CAGR over the analysis period.

The U.S. Market is Estimated at US$3.1 Billion While China is Forecast to Grow at 6.7% CAGR

The Palm Oil market in the U.S. is estimated at US$3.1 Billion in the year 2023. China, the world`s second largest economy, is forecast to reach a projected market size of US$13.9 Billion by the year 2030 trailing a CAGR of 6.7% over the analysis period 2023-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 4.2% and 3.6% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 3.2% CAGR.

Global Palm Oil Market - Key Trends & Drivers Summarized

Palm oil is one of the most widely used vegetable oils in the world, derived from the fruit of the oil palm tree, primarily the African oil palm (Elaeis guineensis). It is a highly versatile oil, found in numerous products ranging from food items such as margarine, chocolate, and baked goods to non-food products like soaps, detergents, and cosmetics. The oil`s popularity stems from its high yield and low cost of production compared to other vegetable oils, as well as its stability at high temperatures, making it ideal for frying and extended shelf life. The oil palm tree is predominantly cultivated in tropical regions, with Indonesia and Malaysia accounting for approximately 85% of global production. This intensive cultivation has, however, raised significant environmental and social concerns, including deforestation, habitat destruction, and human rights issues.

Technological advancements and sustainability initiatives have increasingly shaped the palm oil industry. Efforts to improve yield and reduce environmental impact have led to the development of more sustainable practices, such as the adoption of certified sustainable palm oil (CSPO) standards by the Roundtable on Sustainable Palm Oil (RSPO). These standards encourage the protection of primary forests, biodiversity, and the rights of workers and local communities. In addition, advancements in agricultural technology, including the use of better breeding techniques and precision agriculture, have enhanced productivity and reduced the need for land expansion. Biotechnology also holds promise, with research focusing on developing disease-resistant and higher-yielding oil palm varieties. Despite these efforts, achieving widespread sustainability remains a complex challenge due to the industry`s scale and the varied implementation of practices across different regions.

The growth in the palm oil market is driven by several factors, including rising global demand for vegetable oils, increasing population, and economic growth in emerging markets. The affordability and versatility of palm oil make it a staple in the food industry, where it is used extensively in processed foods. Additionally, the growing demand for biofuels, especially in Europe and Asia, has boosted the consumption of palm oil as a feedstock for biodiesel production. The expansion of the middle class in developing countries has led to higher consumption of palm oil-containing products, further driving market growth. Furthermore, initiatives promoting the use of sustainable palm oil and government policies supporting biofuel mandates are likely to influence market dynamics. Despite the ongoing challenges related to environmental sustainability and social responsibility, the palm oil market is poised for continued expansion, driven by both traditional uses and emerging applications.

Select Competitors (Total 124 Featured) -

• AAA Oils & Fats Pte Ltd. , A subsidiary of Apical Group
• Archer Daniels Midland Company
• AAK AB
• Agropalma Group
• 3F Industries Ltd.
• Alami Vegetable Oil Products Sdn. Bhd.
• Alnor Oil Company
• Anglo-Eastern Plantations PLC
• Asian Agri
• BLD Plantation Bhd.
• Agroindustrial Palmasa S/A
• ANJ
• Andira Agro
• AgriSmart
• Boto Farms Limited

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