How Has The Palm Oil Market Size Evolved Historically?
The palm oil market has seen considerable growth due to a variety of factors.
• In recent times, the size of the palm oil market has experienced consistent growth. The market is anticipated to expand from $66.99 billion in 2024 to $70.21 billion in 2025 with a Compound Annual Growth Rate (CAGR) of 4.8%. Factors contributing to the growth during the historical period include an increase in global population, industrialization in the food processing sector, economic progression in emerging markets, wide-ranging applications, increased consumer preference for processed foods, and trade liberalization.
What Does Future Hold for The Palm Oil Market?
The Palm Oil market is expected to maintain its strong growth trajectory in upcoming years.
• In the forthcoming years, the palm oil industry is predicted to witness robust expansion. It's going to escalate to $85.47 billion by 2029, with a compound annual growth rate (CAGR) of 5.0%.
The enhancement during the prediction period is due to global biofuel policies, the demand for sustainable and certified palm oil, alternate applications in non-food sectors, deforestation regulatory actions, and changes in food habits. Key trend drivers for the forecast period are certification initiatives, transparency and traceability improvements, R&D for sustainable breeds, cooperation throughout the supply chain, and technological advancements in plantation methods.
What Are The Primary Growth Drivers In The Palm Oil Market?
The upward trend in the palm oil market is anticipated to be further driven by escalating demands from the biofuel sector. Biofuel essentially refers to any fuel generated from biomass, or organic material. Palm oil can be transformed into biofuel via a procedure known as transesterification, which morphs the oil into biodiesel. Given its high yield and wide accessibility, palm oil is favored as a key ingredient in biodiesel production, contributing to enhanced air purity. For example, the Department for Transport, a government body located in the UK, revealed in November 2023 that the instances of road traffic accidents leading to personal injury was 6.8% in 2022, marking an upsurge from the 5.4% noted in 2021. This corresponds to the view that rising demands in the biofuel industry are fostering the expansion of the palm oil market.
What Is The Segmentation Of The Global Palm Oil Market?
The palm oil market covered in this report is segmented –
1) By Product: Crude Palm Oil, RBD Palm Oil
2) By Nature: Organic, Conventional
3) By End Use: Food And Beverage, Personal Care And Cosmetics, Biofuel And Energy, Pharmaceutical, Industrial
Subsegments:
1) By Crude Palm Oil (CPO): Refined Crude Palm Oil, Raw Crude Palm Oil
2) By RBD Palm Oil: RBD Palm Olein, RBD Palm Stearin
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What Emerging Trends Are Shaping The Palm Oil Market Landscape?
The utilization of cutting-edge technology is a defining trend in the palm oil industry. This comes as top-tier companies in the market focus on leveraging new technologies to optimize the delivery of palm oil products and maintain their market standing. For example, a UK-based consumer goods entity known for its emphasis on sustainable palm oil, Unilever PLC, put into action a ground-breaking project centered on SAP blockchain technology for tracing the source of its palm oil in March 2022. This move could drastically improve transparency, traceability, and sustainability in the production of palm oil. Additionally, this initiative encourages the participation of minor producers situated in the source countries, thereby enhancing the sustainability of the supply chain.
Who Are the Key Players In The Palm Oil Market?
Major companies operating in the palm oil market include:
• 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
What Are The Regional Insights Into The Palm Oil Market?
Asia-Pacific was the largest region in the palm oil market in 2024. 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
