Palm Oil Market Size, Share, Growth, and Industry Analysis, By Type (Palm Crude Oil, Palm Olein and Others), By Application (Food Industry, Bio-Diesel, Surfactants, Cosmetics Industry and Others), Regional Insights, and Forecast From 2024 To 2031

Updated On: 22 April 2024

Palm Oil Market Report Overview

• 

• Request a Free Sample to learn more about this report

The global palm oil market size was USD 49660 million in 2021 and is projected to touch USD 71110 million by 2031, exhibiting a CAGR of 5.2% during the forecast period.

Palm oil is an edible vegetable oil obtained from the mesocarp (reddish pulp) of the oil palm fruit. The oil is used in the production of food, cosmetics, and as a biofuel. In 2014, palm oil accounted for approximately 33% of all world oils produced from oil crops. They are easier to stabilise and preserve flavour and consistency in processed goods, hence they are widely used by food manufacturers. In 2015, humans consumed 7.7 kilogrammes (17 lb) of oil per person on average worldwide. Demand for other uses, such as cosmetics and biofuels, has also expanded, putting greater pressure on supply and driving the expansion of palm plantations in tropical countries.

COVID-19 Impact: The Skincare and Pharmaceuticals Benefits Among Consumers to Increase Market Demand

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

The COVID-19 outbreak caused slow growth in several industries and companies. As the number of COVID-19 cases dramatically increased, numerous countries adopted restrictions to contain the new virus. The demand for the oil was also damaged by the pandemic. Consumers are becoming more aware of the detrimental effects of artificial additives, which has led them to choose natural products. Aromatherapy is increasingly in demand. Previously, it was thought of as a complimentary therapy, but it is now seen as a mainstream treatment. The palm oil market growth is probably being driven by the rising demand for organic products.

LATEST TRENDS

"The Application of the Product as a Biofuel to Advance the Market Share"

Biofuel is a developing market that is projected to reach its full potential in the foreseeable future as technology advances. As non-renewable resource deposits decline, biofuel, an environmentally benign alternative to conventional fuels, may become a beacon of hope for the energy industry in the near future. The biofuel business has seen an increase in demand for the product. It is used to make biofuel, which is then utilised as a sustainable alternative to crude oil in a variety of applications, including motor oil. For the time being, the biofuel business is in its early stages with few uses.

Although there are numerous firms active in the industry's research and development, it is anticipated that the sector will flourish. The demand for the industry is anticipated to rise as the sector gains root and drive the palm oil market for the product.

Palm Oil Market Segmentation

• 

• Request a Free Sample to learn more about this report

• By Type

Based on type; the palm oil market is divided into crude oil, palm olein and others.

• By Application

Based on the application; the palm oil market is divided into food industry, bio-diesel, surfactants, cosmetics industry and others.

DRIVING FACTORS

"Wide Utilization in the Food Industry to Uplift the Market Demand"

With a bigger market share, food and drink dominated the palm oil market. The industry's end use applications are using the product more frequently, and there are more products on the market that use it as a raw material, which accounts for its high market share. The increase in global population has also had an impact on product growth, driving up demand for goods on the world market. Because of its highly saturated makeup, the oil is solid at room temperature in temperate climates, offering it an affordable alternative to butter or hydrogenated vegetable oils for applications requiring solid fat, like the production of pastry dough and baked products.

The oil is used in West African dishes such as egusi soup and okra soup. Concerns about trans fats in hydrogenated vegetable oils may have contributed to the increased usage of palm oil in the food industry. The oil is occasionally used as a minor ingredient in calf milk replacer.

"The Rising Demand for Oil in Cosmetics and Personal Care to Drive the Market Growth"

The personal care and cosmetics end use category is predicted to contribute significantly to the worldwide revenue share by the end of the forecast period, owing to its moderate growth rate. By 2022, the category would have contributed 16% of the product market's global revenue share. Diversification of product portfolios and rising demand for organic and sustainable plant-based products will increase demand from this market.

RESTRAINING FACTORS

"The Rise in Deforestation and Destruction of Rainforests to Restrain the Market Growth"

Because agricultural space is limited, land used for other crops or the tropical forest must be destroyed in order to plant monocultures of oil palms. The degradation of rainforests in Indonesia is thus a huge environmental issue. Environmental groups have expressed worry about the usage of palm oil due to deforestation in the tropics where palms are cultivated, and it has been noted as a role in social problems due to charges of human rights violations among growers and thus hindering the palm oil market growth.

Palm Oil Market Regional Insights

• 

• Request a Free Sample to learn more about this report

"Asia Pacific Region to Lead the Market with Volume Production and Growing Population"

More than quarter of the palm oi market share was accounted for by the Asia Pacific region. This is due to rising consumption by the region's growing population, as well as high demand from end-use application industries like as food and beverage. The rapid expansion in population, shifting demographic trends, and numerous food applications in India and China are to blame for the region's high consumption the oil. Because raw resources are readily available in the region, major manufacturers are concentrated in the Asia Pacific region. This product is an important source of revenue for nations such as Indonesia and Malaysia, who are big producers globally. Income from this sector has helped the oil producing countries flourish and advance. Small and medium-sized businesses in these countries rely exclusively on oil earnings for survival.

KEY INDUSTRY PLAYERS

"Key Industry Players to Indulge in the Market Expansion"

The market's expansion was significantly impacted by the techniques employed by market participants in recent years, such as extensions. The report covers details and information about the firms and their interactions with the market.

List of Market Players Profiled

• FGV Holdings Berhad (Malaysia)
• IOI Group (Malaysia)
• Sime Darby Berhad (Malaysia)
• Musim Mas (Indonesia)
• Astra Agro Lestari (Indonesia)
• Bumitama Agri (Indonesia)
• Genting Group (Malaysia)
• Kuala Lumpur Kepong Berhad (KLK) (Malaysia)
• Wilmar International (Singapore)
• Royal Golden Eagle (Singapore)
• Indofood Agri Resources (Singapore)
• Golden Agri-Resources (Singapore)
• First Resources (U.S.A)
• Sampoerna Agro (Indonesia).

REPORT COVERAGE

This report covers a comprehensive backdrop analysis, an assessment of the parent market, intensive study in the market dynamics. Past historical, current, and projected size of the market from the point of both value and volume. Researching of recent industry developments, deep study on market shares and strategies of major players and the emerging niche segments and regional market areas are covered in the report.