Palm Kernel Oil Market, By Type (Primary Palm Kernel Oil and Fractionated Palm Kernel Oil), By Application (Edible Oil, Cosmetics, Biodiesel, Lubricants and Surfactants), and Regional Insights and Forecast to 2033

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PALM KERNEL OIL MARKET OVERVIEW

The global Palm Kernel Oil Market stood at USD 73.21 billion in 2024 and is expected to rise to USD 77.06 billion in 2025, maintaining a strong growth forecast to reach USD 117.18 billion by 2033, with a CAGR of 5.42% from 2025 to 2033.

The oil palm tree's kernel, or seed, is the source of palm kernel oil, an edible oil. It's not the same as palm oil, which comes from the same fruit's pulp. A common ingredient in cooking, confections, and other industrial applications, palm kernel oil is notorious for having a high saturated fat level. The palm tree's kernels or nuts are used to make palm kernel oil. Tropical oil, another name for kernel oil, is a highly nutritious oil. Oil has a special blend of fatty acids that offer a number of advantages. Palm kernel oil contains a fatty acid that is non-toxic and has a long shelf life.

Prosperity has been observed for this particular product market with amusing numbers. The utilization of palm kernel acid oil based and the rising global demand for detergent are fueling market expansion. The global palm kernel oil market is being driven by trends in surfactant consumption. Since they are natural, versatile, and reliable, these oleochemicals are the main source of the wet component of surfactants. The palm kernel acid oil market is also expanding as a result of growing consumer awareness of the advantages of organically based cosmetics and personal care items, which has led to the widespread usage of palm kernel acid products for hair care, makeup, suntans, and moisturizers. Rising disposable money and increased beauty awareness among the wealthy population are driving up sales of personal care products. A lot of growth has been observed in the recent times because of this particular factor that contributed and also acted as a catalyst to the overall development of the product market. It is expected that these factors will continue to impact the industry in the years to come.

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 services. Labor shortages in the nation's oil palm fields were brought on by travel and trade restrictions. The countries' production of palm oil has decreased as a result of this. Therefore, a small influence from COVID-19 is anticipated on the Palm Kernel Oil Market share.

LATEST TREND

"Growing Vegeterian Population to Drive Market Growth"

A better substitute for animal fats and certain other vegetable oils that are higher in unsaturated fats, palm kernel oil is becoming more and more well-liked due to its high concentration of medium-chain fatty acids and other advantageous nutrients. As plant-based oils often have a lower carbon footprint than animal-based fats, consumers seeking to lessen their environmental effect and the growing vegan and vegetarian populations worldwide are supporting this movement. This product has grown due to this specific trend. Rapid urbanization in developing regions is another important factor responsible for the upliftment of the market growth. This trend has increased the growth of this market. There has been an increased growth because of this trend.

PALM KERNEL OILMARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Primary Palm Kernel Oil and Fractionated Palm Kernel Oil.

• Primary Palm Kernel Oil: The first or major component or source of palm kernel oil is referred to as primary. It is the most basic and accessible type of palm kernel oil since it is created by extracting the oil straight from the oil palm fruit's kernel.

• Fractionated Palm Kernel Oil: This particular segment is quite efficient and also is considered to be most beneficial for the market. Palm Kernel Stearin (PKS) and Palm Kernel Olein (PKO) are the two main fatty acid components that are separated from palm kernel oil using a processing method called fractionated palm kernel oil.

By Application

Based on application, the global market can be categorized intoEdible Oil, Cosmetics, Biodiesel, Lubricants and Surfactants.

• Edible Oil: This particular has been recorded to be the most profitable segment for the stated market product service and its shares and revenues systems. Unlike palm oil, which is taken from the fruit pulp, palm kernel oil is an edible oil that is made from the seed (kernel) of the oil palm fruit. This particular segment helps in maintaining the average of the revenue shares as it completely contributes to the market growth.

• Cosmetics: It is considered to be a leading segment of this market. In cosmetics, palm kernel oil is typically used as an emollient, emulsifier, or surfactant. Not to mention but this particular segment has actually risen the share and revenue numbers for the market.

• Biodiesel: When palm kernel oil (PKO) is used to produce biodiesel, it means that the oil that is produced from the oil palm fruit's kernel is used as a renewable feedstock.

• Lubricants: Palm kernel oil, a natural oil made from the oil palm fruit's kernels, can be utilized as a lubricant in a variety of industrial settings, such as cutting fluids and machinery.

• Surfactants: Because palm kernel oil can produce a bio-based hydrophobe, it is utilized in surfactants, particularly amphoteric surfactants.

MARKET DYNAMICS

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

Driving Factors

"Increased Demand To Boost the Market"

The food and cosmetics industries' growing demand is driving the industry. Because it is thought to be a safer and more sustainable substitute for synthetic components, palm kernel oil is in high demand in the cosmetics industry due to consumers' growing desire for natural and organic goods. It has been observed that this particular market will witness growth like never before due to this driving factor. This particular factor has made a great amount of growth for this market. The market has seen an increased demand because of this driving factor. This primary factor has certainly made a faster growth in this market. This factor has augmented Palm Kernel Oil Market growth.

"Bio-Based Palm Kernel Oils to Expand the 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. Applications of bio-based chemicals are expanding, which is driving the market. These goods are essential to many different businesses, such as industrial manufacturing, cleaning, and pharmaceuticals. Its demand for bio-based applications is further supported by the fact that its usage in the manufacturing of biodiesel, a renewable energy source, is in line with international initiatives to lessen dependency on fossil fuels and cut greenhouse gas emissions.This particular factor has been proved to be a boon for this particular product market.

Restraining Factor

"High Cost to Impede Market Growth"

Variations in raw material costs are detrimental to the market. A number of variables, such as weather patterns, insect infestations, political unrest, and modifications to national agricultural policies in the nations that produce them, cause the price of palm kernels to vary greatly. These swings have a big effect on palm kernel oil production costs, which makes it hard for producers to keep their profit margins and prices steady. The market is also vulnerable to some risks that could impede its expansion. Threats to the market exist despite the opportunities. Threats and limiting factors are not absent from the market.

Opportunity

"Reasearch and Development To Create Opportunity for the Product in the Market"

The market for palm kernel oil has a big chance to expand because of the growing customer demand for organic and sustainable products. Opportunity has been creating a path for easy success for this particular market segment if seized on time. Product innovations give market participants access to more lucrative prospects. Additionally, the market will grow as a result of research and development efforts to improve the product. This opportunity has shone light upon many such trends and benefits that have improved the market stability altogether also resulting in enormous revenue and share growth. The market is expanding at a medium rate and is now in a growth stage.

Challenge

"Environmental Issues Could Be a Potential Challenge for Consumers"

Its production raises environmental issues and deforestation, especially the degradation of habitat and deforestation that frequently coincide with the growth of oil palm plantations. This particular factor has been drastically challenging for the market growth and has become another major restraining factor. This particular factor has been proved to be a bane for this industry which has in terms affected the shares and revenue systems for this particular market drastically on a global level.

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PALM KERNEL OIL MARKET REGIONAL INSIGHTS

North America

The North American region has augmented a lot in the past few years in this particular product market. North America has been the most popular region amongst the market. This region has seen a great demand for this product. The market shall grow more in this region. Because of the rising demand for organic components in the cosmetic and personal care sectors as well as consumer knowledge of the health advantages of plant-based oils, North America accounted for a sizable portion of the market. The US and Canada are major consumers, and the market is bolstered by established offline and online distribution channels. Furthermore, the region's market dynamics and customer preferences have been impacted by the greater need for verified ecological palm kernel oil brought about by the movement toward ethically and sustainably derived goods. The United States Palm Kernel Oil Market has anticipated to augment immensely over the forecast period. A large portion of revenue came from North America. This particular region is actually growing a lot and is anticipated to augment more over the years.

Europe

The European market for this particular market has been accounted for attributing the over all global shares for this particular product service market. It is projected that the industry would expand gradually with the help of ongoing innovation and a significant emphasis on utility and design. The market for palm kernel oil in Europe is significantly impacted by strict regulations pertaining to product sustainability and quality.

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. Over the forecast period, a growth rate is anticipated in the Asia Pacific region. The region with the fastest growth rate throughout the projected period is anticipated to be Asia Pacific. This region has also been developing the market growth. The market has seen tremendous growth in this region. There are plenty of resources to foster this market growth.

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 Top Palm Kernel Oil Companies

• Cargill Inc. (U.S.)
• United Palm Oil Industry Public Company Limited (Thailand)
• Sime Darby (Malaysia)
• Golden Agri Resources Limited (Singapore)
• PT Astra Agro Lestari Tbk (Indonesia)

KEY INDUSTRY DEVELOPMENT

June 2023: This particular company has attributed the market growth in terms of revenue and shares system. A line of carbon-neutral organic palm oil has been introduced by the Daabon Group. According to a life cycle assessment (LCA), Daabon's carbon-neutral organic palm oil has a CO2eq of -977 kg per tonne from cradle to gate, making it an excellent option for palm oil users who are dedicated to sustainability and lowering their Scope 3 carbon emissions. This particular development and investment the global market has been recorded to be a boon for the market growth.

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.