Palm Acid Oil Market Size, Share, Growth, and Industry Growth by Type (PAO Yellowish and PAO Brownish) By Application (Soap, Animal Feeds, Biodiesel, Methyl Ester, Fatty Acids Manufacture) Regional Forecast From 2024 To 2031

Updated On: 08 July 2024

Palm Acid Oil market Report Overview 

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The global palm acid oil market size is estimated to be USD 634.24 million in 2021 & the market is projected to touch USD 1303.48 million by 2031, exhibiting a CAGR of 7.47% during the forecast period.

The global COVID-19 pandemic has been unprecedented and staggering, with palm acid oil experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden spike in CAGR is attributable to demand returning to pre-pandemic levels once the pandemic is over.

Palm Acid Oil (PAO) is a distilled fatty acid produced from palm oil mill effluent that is utilized as a feedstock for biodiesel, animal feed, and soap production (POME). A by-product of chemically refined palm oil, PAO contains neutral oil, over 50% FFA, and just 2% to 3% moisture. Although its FFA is often lower, it shares many of the same characteristics as palm fatty acid distillate (PFAD).

COVID-19 Impact: Pandemic Impede Market Expansion

Firstly, the virus outbreak in China – where a large proportion of the world’s construction dry mortar is produced – has disrupted supply chains and caused prices to rise. Secondly, the lockdown measures implemented in many countries worldwide have led to a slowdown various activity, reducing demand for palm acid oil. Due to the collapse of the automobile industry, the disruption of the supply chain, and the decreased production, it also had some negative effects on the market. However, the ease of restrictions and lockdown is expected to regain the buzzer market growth.

Latest Trends

"Rising Demand from Cosmetic Industry to Transform Market Outlook"

The by-product of palm oil's alkaline refining, palm acid oil, is frequently used to make laundry soaps. Growing consumer demand for soap and laundry detergent is one of the factors boosting the target market's expansion. The expansion of the target market is also driven by rising demand for palm acid oil in cosmetics and personal care products throughout the course of the forecast period. Numerous factors are anticipated to contribute to the target market's expansion, including the expanding population, fast urbanization, growing consumer spending power, and increased awareness of personal hygiene and grooming. One of the key elements projected to fuel the target market's expansion is an increase in research and development for the creation of novel and inventive items.

Palm Acid Oil market Segmentation 

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• By type

Depending on type, the market given are types: PAO Yellowish and PAO Brownish.  

• By Application

The market is divided into Soap, Animal Feeds, Biodiesel, Methyl Ester, Fatty Acids Manufacture.

Driving Factors

"Increasing Investment from prominent Players for High Quality Products to drive Market Growth "

Although there are many rivals in the worldwide palm acid oil market, investors remain optimistic due to the trend toward global recovery. The price of product creation, financial requirements, intellectual property rights, legal constraints, and transitions' unfair competition practices are some of the obstacles that make this market troublesome. Manufacturers will represent fresh investments coming into the market in the future. The study group advises new entrants not to enter this industry if they only have money and lack technological advantages and upstream and downstream support because the market is extremely competitive.

"Increasing Disposable Income of Consumers to Drive Market Share"

Growth in the market is being driven by both rising demand for detergent globally and the adoption of palm kernel acid oil-based products. The global palm acid oil market growth is being driven by changes in the consumption of surfactants. Due to their adaptability, natural origin, and reliable supply, these oleochemicals are employed as the main source for the hydrophobic component of surfactants. The usage of palm acid products for makeup, suntan, moisturizers, and hair care is prevalent as a consequence of growing public awareness of the advantages of organically derived cosmetics and personal care products, which is fueling the expansion of the palm kernel acid oil market. Sales of personal care products are rising along with disposable income among the economically privileged people and an increase in their awareness of beauty.

Restraining Factors

"High Cholesterol to Restrain Market Expansion"

High cholesterol: Regular consumption of meals containing palm oil might raise LDL (or "bad") cholesterol levels. For those who already have elevated cholesterol levels, this could be an issue.

Palm Acid Oil market Regional Insights 

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"Increasing Population to Foster Growth in Asia Pacific"

Asia Pacific is expected to have the largest palm acid oil market share. This is linked to increasing consumption by the region's growing population as well as increased demand from end-use businesses including the food and beverage sectors. The region's high consumption of palm oil can be attributed to India and China's rapid population growth, shifting demographic trends, and variety of food uses.

Due to the region's unique demography, changing eating habits of the populace, and rising demand from the food industry for diverse delicacies, it is expected that the North American region would experience exponential expansion in the near future. Another factor contributing to the product's explosive growth in the region is the large amount of unrealized potential in the North American market.

Key Industry Players

"Key Players Focus on Partnerships to Gain a Competitive Advantage  "

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios.

List of Market Players Profiled

• YAHAR
• Leyenda-Ind
• Kurnia Sari Utama
• Future Prelude Sdn Bhd
• Bio Energy Global Solutions (Hong Kong)
• LIMA Group
• Suryatama Kencana Jaya (Indonesia)
• Tanimas Group (Indonesia)
• PT Energy Feeds (Indonesia)

Report Coverage

This research profiles a report with extensive studies that take into description the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, and restraints. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.