Palm Oil Market Report 2026

The palm oil market size has grown steadily in recent years. It will grow from $69.46 billion in 2025 to $72.71 billion in 2026 at a compound annual growth rate (CAGR) of 4.7%. The growth in the historic period can be attributed to expansion of palm plantation acreage, rising global edible oil consumption, growth in personal care product manufacturing, increasing use in industrial applications, development of large-scale refining infrastructure.

The palm oil market size is expected to see steady growth in the next few years. It will grow to $88.15 billion in 2030 at a compound annual growth rate (CAGR) of 4.9%. The growth in the forecast period can be attributed to increasing demand for sustainable oils, rising biofuel blending mandates, expansion of certified supply chains, growing investments in plantation modernization, increasing adoption of digital plantation management tools. Major trends in the forecast period include increasing adoption of certified sustainable palm oil, rising demand for biofuel-grade palm oil, growing integration of traceability systems, expansion of downstream refining capacity, enhanced focus on yield optimization.

Increasing demand from the biofuel industry is expected to propel the growth of the palm oil market going forward. Biofuels are fuels produced from biomass, also known as organic matter, and palm oil is widely used as a feedstock for biodiesel production. Through a process called transesterification, palm oil is converted into biodiesel, making it a preferred raw material due to its high yield, wide availability, and cost efficiency. The use of palm-oil-based biofuels also supports cleaner energy initiatives by contributing to improved air quality and reduced dependence on fossil fuels. For instance, in September 2025, according to GOV.UK, a UK-based public sector information website, 153 million liters of biofuel used in the UK road transport market in 2025 were produced from UK-grown crops. Therefore, the increasing demand from the biofuel industry is driving the growth of the palm oil market.

The increasing global trade is also expected to boost the growth of the palm oil market going forward. Global trade refers to the exchange of goods, services, and capital across international borders and plays a critical role in expanding market access for palm oil producers. By enabling exports to multiple regions, global trade reduces dependence on individual domestic markets, promotes price stability, and encourages economic growth, employment, and investment in palm-oil-producing countries. For instance, in September 2023, according to a report published by the United Nations Conference on Trade and Development (UNCTAD), maritime trade was projected to increase by 2.4% in 2023 and by more than 2% annually from 2024 to 2028. Additionally, as pandemic-related constraints eased, global oil and gas trade volumes in the energy sector rose by 6% and 4.6%, respectively, in 2022. Therefore, the expansion of global trade is further driving the growth of the palm oil market.

In April 2024, IRGA, a Malaysia-based agritech company specializing in solutions for plantation crops and organic farms, acquired Kingoya Enterprise Sdn. Bhd. for an undisclosed sum. This acquisition is intended to strengthen IRGA's market position, broaden its product range, and capitalize on synergies to drive innovation within the agricultural sector. Kingoya Enterprise Sdn. Bhd., also based in Malaysia, manufactures a range of products, primarily focused on agricultural and industrial supplies.

Major companies operating in the palm oil market 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 2025. 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, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the palm oil market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The palm oil market consists of sales of palm kernel oil, and fractionated palm oil. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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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