Palm Oil Global Market Report 2024

The palm oil market size has grown steadily in recent years. It will grow from $63.92 billion in 2023 to $66.99 billion in 2024 at a compound annual growth rate (CAGR) of 4.8%. The growth observed in the historical period can be attributed to factors such as the rise in the global population, increased industrialization in food processing, economic development in emerging markets, the versatility of applications, consumer demand for processed foods, and the impact of trade liberalization.

The palm oil market size is expected to see steady growth in the next few years. It will grow to $81.31 billion in 2028 at a compound annual growth rate (CAGR) of 5.0%. The anticipated growth in the forecast period can be attributed to factors such as global biofuel policies, increasing demand for sustainable and certified palm oil, alternative uses in non-food industries, regulatory measures addressing deforestation concerns, and shifts in culinary preferences. Major trends expected in the forecast period encompass the implementation of certification programs, a focus on transparency and traceability, research and development for sustainable varieties, collaboration across the supply chain, and technological innovations in plantation practices.

The palm oil market is anticipated to experience growth driven by the increasing demand from the biofuel industry. Biofuel, derived from organic matter or biomass, includes fuel produced from palm oil through the transesterification process, where the oil is converted into biodiesel. Palm oil is a favored feedstock for biodiesel due to its high yield and widespread availability, contributing to improved air quality. Notably, the International Energy Agency projects a 28% growth in global biofuel demand, equivalent to 41 billion liters, from 2021 to 2026. Hence, the surge in biofuel demand is a key driver for the palm oil market.

The palm oil market is poised for growth with the rise in global trade. Global trade involves the exchange of goods, services, and capital across borders, benefiting palm oil producers by expanding their customer base and reducing reliance on specific markets. This dynamic fosters market stability, economic growth, job creation, and increased sectoral investment in producing countries. A report by the United Nations Conference on Trade and Development predicts a 2.4% increase in maritime trade in 2023, with continued growth from 2024 to 2028. This trend contributes to the upward trajectory of the palm oil market by promoting broader international trade.

Technological advancements emerge as a prominent trend in the palm oil market, with major companies incorporating new technologies to enhance supply chain efficiency and maintain market leadership. Unilever plc, a UK-based consumer goods company focusing on sustainable palm oil, exemplifies this by implementing SAP blockchain technology in a pilot project to verify the origin of its palm oil. This initiative aims to revolutionize transparency, traceability, and sustainability in palm oil production, involving small-scale producers from the countries of origin.

Innovative product development, such as bioengineered palm oils, is a strategy employed by major companies to expand their customer base, drive sales, and increase revenue in the palm oil market. Bioengineered palm oil, derived from genetically modified or engineered oil palm trees, offers a sustainable alternative. C16 Biosciences, a US-based oil and fats-producing company, launched Palmless in November 2022. Palmless, produced through sustainable fermentation, provides a responsible alternative to traditional palm oil sourcing, addressing environmental concerns associated with agricultural practices.

In October 2021, Cargill, a US-based company in the palm oil sector, collaborated with JDE Peet, a Netherlands-based beverages company, with a focus on supporting independent smallholders toward sustainable oil palm production in Indonesia.

Major companies operating in the palm oil market report are Wilmar International Ltd, Sime Darby Plantation Berhad, IOI Corporation Berhad, Kuala Lumpur Kepong Berhad, United Plantations Berhad, Kulim Berhad, PP London Sumatra Indonesia, The Archer-Daniels-Midland Company, Asian Agri, Cargill Inc., Godrej Agrovet Limited, Golden Agri Resources Limited, IJM Corporation Berhad, Boustead Plantations, Asiatic Development Berhad, PT Sampoerna Agro Tbk, Univanich Palm Oil Public Company Ltd., PT. Bakrie Sumatera Plantations tbk, Musim Mas Group, Astra Agro Lestari Tbk, Genting Plantations Berhad, Felda Global Ventures Holdings Berhad, First Resources Limited, PT Astra Agro Lestari Tbk, Darmex Agro Group, Salim Ivomas Pratama Tbk, Sipef, Bumitama Agri Ltd., PT Dharma Satya Nusantara Tbk, Fuji Oil Holdings.

Asia-Pacific was the largest region in the palm oil market in 2023. North America is expected to be the fastest-growing region in the palm oil market report during the forecast period. The regions covered in the palm oil market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the palm oil market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary types of palm oil include crude palm oil and RBD (refined, bleached, and deodorized) palm oil. Crude palm oil is an edible oil obtained from the pulp of palm fruit, produced through methods that can be either organic or conventional. These oils are utilized across diverse industries such as food and beverage, personal care and cosmetics, biofuel and energy, pharmaceuticals, and industrial processes.

The palm oil market research report is one of a series of new reports that provides palm oil market statistics, including palm oil industry global market size, regional shares, competitors with a palm oil market share, detailed palm oil market segments, market trends and opportunities, and any further data you may need to thrive in the palm oil industry. This palm oil market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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