Palm Butter Market By type (Crude Palm Oil and Palm Olein), By Application (Foods, Bio-Diesel, Surfactants and Cosmetics), and Regional Insights and Forecast to 2035

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PALM BUTTER MARKET OVERVIEW

The global palm butter market size at USD 1.49 billion in 2025 and is projected to reach USD 1.6 billion in 2026, growing further to USD 3.1 billion by 2035 at an estimated CAGR of 7.5% from 2026 to 2035.

Oil palm fruit is rendered into palm butter, which is utilized for both culinary and cosmetic applications. Moambe or Nyembwe is a sauce from western Middle Africa that is likewise derived from palm oil fruit and is also known as palm butter. The oil palm fruit is used to make palm butter, a food with several uses. Palm butter is sometimes referred to as Nyembwe or Moambe, which are sauces used in cookery. Cosmetics and personal hygiene products contain palm butter. It is claimed to help hydrate and tone the skin.

Certain civilizations place a high value on butter in their cuisine and culture, which contributes to the ongoing or rising demand for butter globally. Additionally, consumers' preferences for minimally processed food items have significantly changed. The vast number of brands that serve the B2C market by providing high-quality goods at various price points further defines the market under study. As a result, it is projected that during the study period, new product offerings from up-and-coming market players would significantly boost butter demand. This factor has augmented the Palm Butter Market growth.

KEY FINDINGS

COVID-19 IMPACT

Market Growth Obstructed by Pandemic due to Lockdown

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

This has affected the overall supply and demand chains of the particular market. As a result of the government's lockdown and other steps to stop the coronavirus from spreading, all supply activities were postponed, which decreased the amount of product related to consumer goods. The market suffered during the COVID-19 outbreak because a rigorous lockdown disrupted the delivery of raw materials to the manufacturing facilities. Businesses and stores were also shut down, which further decreased sales of the shea butter product. Patterns of food intake and consumer behavior have been affected by the COVID-19 epidemic. Although supply chains have been interrupted and demand has temporarily changed as a result of the epidemic, the market for palm butter has suffered overall.  Therefore, a small influence from COVID-19 is anticipated on the Palm Butter Market share.

LATEST TRENDS

Environmental Friendly Production to Drive Market Growth

A latest trend has been witnessed to proliferate the market growth. This particular trend has been recorded to be the most profiting trends that have been upgraded to augment the overall market growth. Because of their concerns about the effects of food production on the environment, many consumers look for items that reflect their sustainability beliefs. Pasture-based grazing systems and minimal or no use of synthetic chemicals are examples of ecologically friendly practices commonly used in the production of organic and grass-fed butter. Environmentally conscious shoppers therefore give preference to food labels and goods with straightforward, identifiable constituents. This specific trend has influenced the market growth so much so that the revenue and share numbers of this particular product is touching the skies and soaring over.

• According to the Malaysian Palm Oil Board, oil palm plantations in Malaysia cover about 5.61 million hectares, supporting the growing production of palm-based derivatives such as palm butter.
• As per data from the United States Department of Agriculture, Indonesia contributes nearly 58 % and Malaysia about 25 % of global palm oil output, indicating strong supply stability for the palm butter segment.

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PALM BUTTER MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Crude Palm Oil and Palm Olein.

• Crude Palm Oil: It is nothing but a type of Palm Butterwith the Crude Palm Oil.

• Palm Olein: It is basically a type  that of Palm Butterwith the Palm Olein.

By Application

Based on application, the global market can be categorized into Foods, Bio-Diesel, Surfactants and Cosmetics.

• Foods: It is just an application where it is used by Foods.

• Bio-Diesel: It is nothing but an application where it is used by Bio-Diesel.

• Surfactants: It is an application used by Surfactants.

• Cosmetics: It is one of the application of the market.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

Eco Friendly Production  to Boost the Market

This is the major factor attributing the growth of this particular market. This factor is majorly involved in taking the revenue numbers above the skies and soaring greater heights and also the sales and demands have been proliferation and increased its value to greater extent. Consumers are choosing better dairy substitutes as a result of the increased emphasis on health and wellbeing. People who are concerned about their health are drawn to vegan butter because of its reduced saturated fat level. Consumer decisions have been impacted by ethical concerns about animal welfare and knowledge of how animal agriculture affects the environment. An eco-friendly and cruelty-free alternative is vegan butter. This particular factor has been proved to a boon for this particular product market. These factors are anticipated to drive the market growth during the forecast period.

• Based on figures from the United States Department of Agriculture, Indonesia and Malaysia together account for around 83 % of the world’s palm oil production, ensuring an abundant raw material base for palm butter manufacturing.
• According to the World Wildlife Fund, certified-sustainable palm oil production continues to expand and provides an added premium value of around 10 %–15 % in the market, enhancing economic viability for downstream products such as palm butter.

Expansion of Diets of consumers to Expand the Market

This is the second major factor attributing the growth of this particular  market and has resulted in the hike of revenue numbers so much so that they are touching the skies. Clients benefit from it. This particular product market has touched new levels of lucrative revenue numbers and has also recorded to be the boon for this particular product market growth. One of the main factors propelling the palm butter market is the rising number of people following plant-based and vegan diets. Traditional butter can be replaced with palm butter as people try to cut out animal products from their diets. This factor has attributed the overall growth of this market and helped with the hike of revenue numbers as well. These factors are anticipated to drive the market growth in the present times and also during the forecast period.

Restraining Factor

High Cost of Raw Materials to Impede Market Growth

These particular solutions have been very helpful yet extremely costly as well. This particular restraining factor has caused the revenue numbers to impede with extremely low yields and declining the sales and demand for this market. For some customers, vegan butter's cost and availability may be a barrier. Palm butter has becoming more popular, however in some places it might not be as easily available or as reasonably priced as regular butter. Regarding butter, some customers could have particular expectations regarding its flavor and consistency. To be more widely accepted, palm butter might need to live up to these standards. This particular factor is anticipated to restrain the market growth and drastically reduce the sales and demands of this particular product market.

• The Malaysian Palm Oil Board reports that heavy rainfall and flooding can lower crude palm oil production by approximately 5 % to 8 %, and in extreme conditions by 10 %–20 %, restricting supply availability for palm butter processing.
• As indicated by the Malaysian Palm Oil Board, the fungal disease Ganoderma boninense affects about 13.7 % of oil-palm areas, causing potential yield losses of 15 %–20 % in severely infested plantations, thereby impacting the overall supply chain.

Past-Time Activities To Create Opportunity for the Product in the Market

Opportunity

This particular opportunity has been attributing the market growth immensely. Manufacturers have the chance to be creative and create new palm butter tastes, types, and formulas to satisfy a range of consumer preferences. Market expansion can also be fueled by geographic expansion. The market share of Palm Butter is growing rapidly as a result of all these causes.

• The global fats and oils market is valued at around USD 268 billion, showing significant potential for value-added segments like palm butter in both food and cosmetic industries.
• The palm butter market holds an estimated valuation of approximately USD 1.39 billion, reflecting growing demand for natural and sustainable fat alternatives in global markets.

High Expectations Could Be a Potential Challenge for Consumers

Challenge

There are several limitations that will prevent the market from expanding. Regarding butter, some customers could have particular expectations regarding its flavor and consistency. To be more widely accepted, vegan butter might need to live up to these expectations. This particular factor has been drastically challenging for the market growth and has become another major restraining factor.

• Data from Felda Global Ventures indicates an average oil extraction rate target of around 20.8 %–21 %, and maintaining consistent extraction efficiency remains a key operational challenge for producers.
• IOI Corporation Berhad manages an organic oil-palm estate of 1,128 hectares, with expansion plans up to 4,000 hectares; scaling organic production without yield loss presents ongoing challenges in palm butter supply.

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PALM BUTTER MARKET REGIONAL INSIGHTS

• North America

The North American region has augmented a lot in the past few years in this particular product market. The United States Palm Butter Market has anticipated to augment immensely over the forecast period. Almost all of the worldwide revenue share came from North America. Because fishing is such a popular pastime in this region, North America now leads the fishing rods market and is expected to maintain its position of dominance for the foreseeable future.

• Europe

The European market for this particular market has been accounted for attributing the over all global shares for this particular product service market.

• Asia

Asia-Pacific is anticipated to expand at the fastest rate during the projection period due to a rise in the demand for cutting-edge technologies. This particular region has experienced immense proliferation in the market shares and has attributed to the global market revenue. Thanks to rising consumer discretionary income and rising fish consumption, Asia-Pacific will see significant gains.

KEY INDUSTRY PLAYERS

Leading Players adopt Acquisition Strategies to Stay Competitive

Several players in the market are using acquisition strategies to build their business portfolio and strengthen their market position. In addition, partnerships and collaborations are among the common strategies adopted by companies. Key market players are making R&D investments to bring advanced technologies and solutions to the market.

• Felda Global Ventures Holdings Berhad (FGV): The company oversees approximately 335,000 hectares of planted area across more than 200 estates, contributing nearly 4 % of global crude palm oil output, strengthening its leadership in palm-based derivatives like palm butter.
• IOI Corporation Berhad: Operating around 98 estates and 15 mills across Malaysia and Indonesia, IOI maintains a strong integrated value chain that supports consistent palm butter production and export performance.

List Of Top Companies

• Felda Global Ventures (Malaysia)
• IOI (Malaysia)
• Sime Darby Berhad (Malaysia)
• Musim Mas (Singapore)
• Astra Agro Lestari (Indonesia)

KEY INDUSTRY DEVELOPMENT

2023: Market participants have responded to changing customer demands by launching a variety of inventive vegan butter products with varying flavors, textures, and formulas. Businesses are collaborating and establishing strategic alliances with foodservice providers and retailers in order to increase product availability and market reach.

REPORT COVERAGE

This research profiles a report with extensive studies that take into description the firms that exist in the 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 market affecting the forecasting period. With detailed studies done, it also offers a comprehensive.