Palm Oil Market Global Expansion Trends: Opportunities in Emerging Markets
The global palm oil market size is expected to reach USD 100.4 billion by 2030, expanding at 5.1% CAGR from 2024 to 2030, according to a new report by Grand View Research, Inc. The growth is driven by increasing demand for food applications and eco-friendly, organic, and sustainable products. Personal care products and cosmetic industries are also major sectors accountable for the growth of products.
Palm oil is an edible oil that is derived from the mesocarp of the palm fruit. Indonesia and Malaysia are the largest producers as well as exporters of the product globally. It is extensively used in the food, cosmetic, and personal care products industries, among others. Asia pacific region is the largest consumer of palm oil owing to its key application for food preparation in the region.
The global product market is amalgamated as well as competitive in nature. It is one of the well-established companies with a developed value chain. Internationally, the product market has a resilient network of distributors, traders, and strong relationships with manufacturers. The overall product market is considered to have an extremely cohesive supply chain and increasing demand for the product for an expansive range of end-use applications comprising biodiesel, food & beverages, and personal care & cosmetics, among others.
Gather more insights about the market drivers, restrains and growth of the Global Palm Oil Market
Fractionated palm oil product segment appeared to be the largest segment in the international market, accounting for the highest share in 2022 of the global revenue of the market. This segment is the most popular due to its easy economic availability worldwide and manufacturing ease owing to 50% unsaturated and 50% fatty acid constituent nature of palm oil. The segment is expected to expand over the forecast period owing to its extensive utilization by the people.
Palm Oil Market Report Highlights
- Conventional segment dominated the market with a revenue share of more than 99% in 2023. This is attributable to the low price and easy availability of the segment.
- Fractionated palm oil dominated the market with a revenue share of over 39.2% in 2023. This is attributable to the ease of availability of product and economically feasible prices.
- Food & beverages end-use dominated the market with a revenue share of more than 66.5% in 2023. Its high share is attributable to increasing usage of product in end use applications of the industry and increasing product portfolios that demand palm oil as a raw material.
- Asia Pacific region dominated market with a revenue share of 68.9% in 2023. This is attributed to growing consumption by rising population of the region as well as high demand from end use applications industries, such as food & beverage industries.
Key Companies & Market Share Insights
The market has presence of multinational companies such as ADM and Wilmar International Ltd. which make market more competitive. Major players have acquired plantations or contracts with cultivators to ensure constant supply of raw materials. Volatility in prices of raw material adversely affect profitability of product. For the same, in 2023, Nagaland government signed memorandum of understanding (MoU) with Patanjali Food palm oil cultivation.
- The products manufacturers are engaged in continuous R&D activities, capacity expansion, mergers & acquisitions, and other strategies to gain a competitive advantage over others. For example, In November 2019, PT. Mahkota Group acquired a palm oil mill in South Sumatra, through subsidiary, PT Berlian Inti Mekar. This plant produces CPO based products such as cooking oil or olein and processing about 400 tons of palm kernel oil per day.
List of Key Players of Palm Oil Market
- ADM
- Wilmar International Ltd.
- Sime Darby Plantation Berhad
- IOI Corporation Berhad
- Kuala Lumpur Kepong Berhad
- United Plantations Berhad
- Kulim (Malaysia) Berhad
- IJM Corporation Berhad
- PT Sampoerna Agro, Tbk
- Univanich Palm Oil Public Company Ltd.
- Bakrie Sumatera Plantations tbk
- Asian Agri
Order a free sample PDF of the Palm Oil Market Intelligence Study, published by Grand View Research.
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