Global Palm Oil Market, Size, Forecast 2023-2028, Industry Trends, Growth, Share, Outlook, Impact of Inflation, Opportunity Company Analysis

Global Palm Oil Market, Size, Forecast 2023-2028, Industry Trends, Growth, Share, Outlook, Impact of Inflation, Opportunity Company Analysis

The global palm oil market is anticipated to grow to US$ 87.40 Billion by 2028, according to Renub Research. Palm oil is a vegetable oil obtained from the fruit of oil palm trees. It is technically known as Elaeis guineensis. It is available in two forms: crude palm oil, acquired by pressing the fleshy section of the fruit, and palm kernel oil, produced by crushing the stone within the fruit. Oil palm trees, which are native to Africa, were imported to Southeast Asia as an attractive tree crop. Palm oil has been used for cooking in Southeast Asia and tropical Africa for millennia. However, because of its functional advantages, adaptability, and broad availability, the food industry has embraced refined palm oil in recent decades.

Oil palm plants outperform other vegetable crops such as soy, sunflower, and mustard, producing 4–10 times more per unit of land. This high productivity is critical to world food security and nutrition. Additionally, oil palm farms are becoming more and more important on a worldwide scale because of their productivity and affordability.

With a CAGR of 3.30% between 2023 and 2028, the global palm oil market is anticipated to grow.

Consumers worldwide are increasingly drawn to palm oil, particularly due to its elimination of GMOs, gluten, and milk from edible fats, making it a popular choice in the global market. Palm Oil's longer shelf life and lower price compared to other vegetable oils are expected to drive market expansion as more consumers become aware of these health advantages. The governments of major palm oil producers, like Indonesia and Malaysia, prioritize sustainable and organic practices in response to rising public concerns about agrochemicals and the demand for organic products. Crops that are grown organically are never exposed to any chemicals or agrochemicals, from planting through processing to packaging the finished product. The demand for low-cost palm oils in underdeveloped countries has risen, offering a more accessible alternative to other vegetable oils. However, environmental worries resulting from deforestation and habitat damage linked to palm oil extraction restrain the market. As a result, the global palm oil market was worth US$ 74.32 Billion in 2023.

The Indonesian government's higher mandatory blending rates for biodiesel have boosted palm oil demand in the energy sector, promoting renewable energy usage.

The United States, Brazil, Indonesia, India, China, the European Union, Malaysia, Pakistan, Thailand, Nigeria, Bangladesh, Colombia, the Philippines, Egypt, Vietnam, and Others are the consumption categories in the worldwide palm oil industry. According to the United States Department of Agriculture (USDA), Indonesian consumption of palm oil will reach 19.4 million metric tons in 2022–2023. The implementation of increased mandatory blending rates by the government has led to an increase in demand from the biodiesel business, which is accountable for this increase. According to a Foreign Agricultural Service (FAS) report, Indonesia's energy ministry has raised the mandatory blending rate from 30% (B30) to B35, increasing industrial palm oil utilization to 12.3 million metric tons in 2022–23.

The growing population and changing dietary preferences have also driven the widespread use of palm oil in the food industry. Its applications in industries like cosmetics, soaps, and detergents have further fuelled consumption due to the expanding manufacturing sector and rising consumer demand. The affordability, versatility, high yield, and wide availability of palm oil in Indonesia have made it a popular choice across industries, leading to its consumption growth.

Crude Oil has dominated the global palm oil market since it has less saturated fat than the other types.

The Global Palm Oil Market is classified into four types: Palm Kernel Oil, Crude Palm Oil, RBD Palm Oil, and Others. The versatility and high energy density of crude oil make it critical for transportation, industry, and power production. The successful distribution network of the palm oil industry is supported by a well-established infrastructure fueled by large reserves and historical affordability. The economics of scale and technological innovations associated with crude oil production strengthen its position.

A sizeable portion of the global palm oil market was accounted for by the end-use segment for biofuel and energy.

Food and Beverage, Personal care and Cosmetics, Biofuel and energy, Pharmaceuticals, and Others are the various end-users in the Global Palm Oil Market. Rising demand for biofuels, especially biodiesel as a diesel substitute, is predicted to cause the industry to grow. Palm oil is a preferred feedstock for the manufacturing of biodiesel since it is more affordable than soybeans. Market trends are anticipated to vary as a result of policies and regulations adopted by various nations. In the electricity and mobility industries, particularly energy production in power plants, palm oil is progressively replacing petroleum-based products. The need for palm oil is further boosted by consumers' growing preference for renewable and environmentally friendly resources, which are fueling market, demand overall, and segment growth.

Palm oil production is continuously growing in Indonesia.

Indonesia, Malaysia, Thailand, Colombia, Nigeria, and others mainly constitute the production segment of the Global Palm Oil Market. According to the USDA, Indonesia produced 44.7 million metric tons (MMT) of palm oil in 2022–2023. Indonesia's palm oil output has been steadily increasing, owing to a variety of causes. The nation benefits from ideal climatic conditions for palm oil growth. Government initiatives, such as incentives and restrictions, have aided in the growth of the business. The availability of adequate cultivable land contributes to improved output. Palm oil is vital to the Indonesian economy, providing both jobs and revenue prospects. The high global demand for palm oil, driven by its numerous applications, has also propelled the industry's growth. Abundant sunlight and rainfall contribute to high yields. Government policies, incentives, and infrastructure support increased production. Vast land allows for plantation expansion. Palm oil's economic importance encourages investment. Versatile applications drive global demand. Advancements in technology and sustainable practices improve efficiency.

The growing population and rising incomes have made China a major importer of palm oil globally.

The biggest importers in the worldwide palm oil industry include the United States, India, China, the European Union, Pakistan, Bangladesh, Malaysia, Egypt, the Philippines, Kenya, and a number of other nations. The affordability, versatility, and cost-effectiveness of palm oil compared to other vegetable oils all support the need for its import. In the past few years, China has been a significant importer of Malaysian palm oil, mostly in the form of palm olein, which is the liquid portion of palm oil. This palm olein is widely used in the Chinese food sector, notably in the manufacture of instant noodles, snack foods, milk powder, margarine, and shortening. While palm oleic is popular cooking oil in tropical homes, its high melting point makes it unsuitable for usage in temperate and northern China. Palm oil's appropriateness for frying and cooking, as well as the appeal of fried food and its use in food service outlets, stimulates import growth. Favorable geopolitical and economic reasons, such as trade agreements and collaborations with palm oil-producing nations, have made it possible for China to grow its imports of palm oil.

Due to Indonesia's extensive landmass, hospitable climate, and well-established infrastructure, palm oil exports predominate there.

The global palm oil market is split up based on exports between Indonesia, Malaysia, Guatemala, Colombia, Papua New Guinea, and other nations. Indonesia, as one of the major producers, meets the global demand for palm oil by offering it at a low cost and utilizing its wide range of economic applications. The Indonesian government's assistance in the form of laws, rewards, and trade agreements strengthens the sector even more. Indonesia's competitiveness is boosted by its proximity to major palm oil-consuming regions and its commitment to sustainability, which solidifies its market leadership.

Key Players

Competing firms in the global palm oil market include Archer-Daniels, Wilmar, AAK (Aarhus Karlshamn), Bunge, Cargill, POSCO, Sime Darby, and Unilever.

Renub Research latest report “Global Palm Oil Market, Consumption (Indonesia, India, China, the European Union, Malaysia, Pakistan, Thailand, the United States, Nigeria, Bangladesh, Colombia, the Philippines, Egypt, Vietnam, Brazil, and Others), Form (Palm Kernel Oil, Crude Palm Oil, RBD Palm Oil, and Others), End-Use (Food & Beverage, Personal Cre & Cosmetics, Biofuel & energy, Pharmaceuticals, and Others), Production (Indonesia, Malaysia, Thailand, Colombia, Nigeria, and others), Import (India, China, the European Union, Pakistan, the United States, Bangladesh, Malaysia, Egypt, the Philippines, Kenya, and various other countries), Export (Indonesia, Malaysia, Guatemala, Colombia, Papua New Guinea, and other nations), Companies (Archer-Daniels, Wilmar, AAK (Aarhuskarlshamn), Bunge, Cargill, POSCO, Sime Darby, and Unilever)” provides a detailed analysis of Global Palm Oil Market.

Market & Volume – Global Palm Oil has been covered from 16 viewpoints:

1. Indonesia

1.1 Market
1.2 Volume

2. India

2.1 Market
2.2 Volume

3. China

3.1 Market
3.2 Volume

4. European Union

4.1 Market
4.2 Volume

5. Malaysia

5.1 Market
5.2 Volume

6. Pakistan

6.1 Market
6.2 Volume

7. Thailand

7.1 Market
7.2 Volume

8. United States

8.1 Market
8.2 Volume

9. Nigeria

9.1 Market
9.2 Volume

10. Bangladesh

10.1 Market
10.2 Volume

11. Colombia

11.1 Market
11.2 Volume

12. Philippines

12.1 Market
12.2 Volume

13. Egypt

13.1 Market
13.2 Volume

14. Vietnam

14.1 Market
14.2 Volume

15. Brazil

15.1 Market
15.2 Volume

16. Others

16.1 Market
16.2 Volume

Form – Global Palm Oil Market has been covered from 4 viewpoints:

1. Palm Kernel Oil
2. Crude Palm Oil
3. RBD Palm Oil
4. Others

End-Use – Global Palm Oil Market has been covered from 5 viewpoints:

1. Food & Beverage
2. Personal Cre& Cosmetics
3. Biofuel & energy
4. Pharmaceuticals
5. Others

Production – Global Palm Oil Market has been covered from 6 viewpoints:

1. Indonesia
2. Malaysia
3. Thailand
4. Colombia
5. Nigeria
6. Others

Import – Global Palm Oil Market has been covered from 11 viewpoints:

1. India
2. China
3. the European Union
4. Pakistan
5. the United States
6. Bangladesh
7. Malaysia
8. Egypt
9. the Philippines
10. Kenya
11. Other countries

Export – Global Palm Oil Market has been covered from 6 viewpoints:

1. Indonesia
2. Malaysia
3. Guatemala
4. Colombia
5. Papua New Guinea
6. Other nations

Company has been covered from 3 Viewpoints:

• Overview
• Recent Development
• Revenue

Company Analysis:

1. Archer-Daniels
2. Wilmar
3. AAK (Aarhuskarlshamn)
4. Bunge
5. Cargill
6. POSCO
7. Sime Darby
8. Unilever