Palm Kernel Fatty Acids Market Report 2026

The palm kernel fatty acids market size has grown strongly in recent years. It will grow from $8.13 billion in 2025 to $8.68 billion in 2026 at a compound annual growth rate (CAGR) of 6.7%. The growth in the historic period can be attributed to growth in palm oil processing capacity, expansion of personal care products, demand for fatty acid emulsifiers, industrial lubricant consumption, textile chemical usage.

The palm kernel fatty acids market size is expected to see strong growth in the next few years. It will grow to $10.96 billion in 2030 at a compound annual growth rate (CAGR) of 6%. The growth in the forecast period can be attributed to sustainable oleochemical demand, bio-based plastic growth, clean label cosmetics, industrial greases demand, regulatory focus on traceable palm sourcing. Major trends in the forecast period include rising use in bio-based surfactants, growing demand from personal care formulations, expansion of palm-based oleochemicals, increasing application in industrial lubricants, focus on sustainable palm sourcing.

The growth in personal care and cosmetics is expected to propel the development of the palm kernel fatty acid market going forward. Personal care and cosmetics include a wide range of products aimed at maintaining and enhancing personal hygiene, grooming, and physical appearance, such as skincare, haircare, makeup, and fragrances. Adoption of personal care and cosmetics is rising due to increasing consumer awareness and demand for health-conscious, eco-friendly, and sustainable products. Palm kernel fatty acid is used in these products for its moisturizing properties, as an emulsifying agent, and to improve texture and stability. For instance, in September 2024, Cosmetica Italia, an Italy-based national trade association, reported that at the end of 2023, Italy’s cosmetics market reached $14.5 billion (€12,530 million), reflecting a 9.4% increase over 2022, with the industry’s total turnover reaching $17.5 billion (€15.1 billion). Therefore, the growth in personal care and cosmetics is driving the growth of the palm kernel fatty acid market.

Major companies operating in the palm kernel fatty acid market are focusing on developing sustainable palm kernel oil alternatives to reduce environmental impact and promote biodiversity conservation while meeting consumer demand for eco-friendly products. Sustainable palm kernel oil alternatives are substitutes for palm kernel oil produced through methods that minimize environmental impact, avoid deforestation, and promote biodiversity. For instance, in October 2023, Agile BioFoundry, a US-based consortium of national laboratories, and C16 Biosciences, a US-based biotechnology company, collaborated to develop pathways to sustainable palm kernel oil alternatives, both mid-chain fatty acids and fatty alcohols, in oleaginous yeast. The collaboration demonstrated novel metabolic routes to produce lipids containing mid-chain fatty acids as an alternative to palm kernel oil. The partnership combined C16 Biosciences' expertise in strain construction and commercial scale-up with ABF's advanced testing platform and multi-omics capabilities to streamline the design-build-test-learn (DBTL) cycles, fostering an efficient cooperative dynamic for microbial development.

In April 2023, KLK OLEO, a Malaysia-based provider of oleochemical products, acquired Temix Oleo SpA for an undisclosed amount. The acquisition aims to consolidate their positions in the palm kernel fatty acid market by integrating production capabilities and leveraging synergies to enhance efficiency and innovation in the industry. Temix Oleo SpA is an Italy-based specializing in palm-based fatty acids and derivatives.

Major companies operating in the palm kernel fatty acids market are Cargill Incorporated, Archer Daniels Midland Company, Bunge Limited, Louis Dreyfus Company, Kao Corporation, Golden Agri Resources Ltd., Musim Mas Holdings Pte Ltd, Mewah Group, KLK OLEO, Fuji Oil Holdings Inc., IOI Corporation Berhad, Croda International Plc, Astra Agro Lestari, Marico Limited, First Resources, Permata Hijau Group, Emery Oleochemicals, Ecogreen Oleochemicals GmbH, Oleon NV, International Oils and Fats Limited, Soon Soon Oilmills Sdn Bhd, Twin Rivers Technologies Inc., Vance Bioenergy Sdn Bhd, Pacific Oleochemicals Sdn Bhd, Timur Oleochemicals.

Asia-Pacific was the largest region in the palm kernel fatty acids market in 2025. The regions covered in the palm kernel fatty acids market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the palm kernel fatty acids market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The palm kernel fatty acids market consists of sales of product types such as crude palm kernel oil, refined palm kernel oil, palm kernel fatty acid distillate. 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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