Palm Oil Market Analysis: Industry Market Size, Plant Capacity, Production, Operating Efficiency, Demand & Supply Gap, End-User Industries, Sales Channel, Regional Demand, Company Share, Manufacturing Process, 2015-2034

The global Palm Oil market stood at approximately 71 million tonnes in 2023 and is anticipated to grow at a CAGR of 3.5% during the forecast period until 2034. Indonesia and Malaysia are the largest producers and suppliers of Palm Oil across the globe. 

 

Palm oil, recognized as the most extensively utilized vegetable oil globally, is derived from the pulp of the fruit of the oil palm tree, scientifically referred to as Elaeis Guineensis. Palm oil, extracted from the fruit of oil palm trees, finds extensive application across diverse industries. In the food sector, it serves as a key ingredient in cooking oil, margarine, chocolate, and various processed foods owing to its semi-solid consistency at room temperature and neutral flavour profile. Additionally, palm oil derivatives are prevalent in the cosmetics and personal care industry, where they contribute moisturizing properties to products like soaps, shampoos, lotions, and cosmetics. Its versatility extends into the realm of biofuels, as palm oil serves as a feedstock for biodiesel production, offering a renewable alternative for powering vehicles and machinery. Moreover, palm oil derivatives feature prominently in household items such as candles, detergents, and cleaning agents, where they enhance lathering and improve product consistency. Industrial applications also benefit from palm oil, with its utilization in lubricants, paints, and coatings owing to its viscosity and oxidative stability. 

 

The palm oil market growth is driven by several key factors. Firstly, its versatility and widespread applicability across various industries, mainly food industry, create a robust market demand. This versatility allows palm oil to serve as a cooking oil, an ingredient in processed foods, and a component in cosmetics and personal care products, among other applications. Additionally, population growth, coupled with changing dietary preferences towards processed and convenience foods, further fuels the demand for palm oil globally. Economic development and urbanization in emerging markets lead to higher disposable incomes and increased consumption of packaged and processed foods, contributing to the market's expansion. Furthermore, government policies promoting renewable energy sources and the need to reduce greenhouse gas emissions drive the demand for palm oil as a feedstock for biodiesel production. Palm oil's cost-effectiveness and high yield per hectare compared to other vegetable oils make it an economically attractive option for both producers and consumers. The expansion of oil palm plantations, particularly in regions like Southeast Asia and Africa, to meet growing global demand also contributes to market growth. Moreover, continued investments in research and development aimed at improving palm oil production processes, sustainability practices, and product innovation enhance efficiency and sustainability, further driving market expansion. Overall, these factors collectively contribute to the steady growth and expansion of the palm oil market on a global scale. The primary purchasers of palm oil include China, India, Indonesia, and Europe. India and China do not domestically produce palm oil, thus relying entirely on imports to fulfil their demand. The global Palm Oil market is likely to reach approximately 103 million tonnes in 2034. 

 

Geographically, the Asia Pacific region stands out as the largest consumer of palm oil, and this trend is expected to persist in the coming years due to several key factors. Firstly, the region's large and rapidly growing population, particularly in countries like China, India, and Indonesia, drives significant demand for food products, including those containing palm oil. Additionally, changing dietary habits towards processed and convenience foods contribute to increased consumption of palm oil-based products. Furthermore, the expanding industrial and manufacturing sectors in the region utilize palm oil for various applications, such as in biofuels, cosmetics, and household products. Moreover, the absence of domestic palm oil production in many Asia-Pacific countries necessitates reliance on imports to meet demand, further bolstering the region's position as the largest consumer of palm oil. Indonesia, recognized as the foremost palm oil producer globally, also leads in consumption, with a substantial portion allocated for domestic cooking needs. India is a major importer of palm oil, fuelled by its vast population and escalating requirement for cost-effective cooking oil. Meanwhile, China's consumption of palm oil will most likely witness consistent growth, propelled by the expansion of its food industry and surging demand for processed food products. Overall, these factors collectively contribute to the Asia-Pacific region's dominance in palm oil consumption and are likely to sustain its leading position in the years to come.

 

Based on the end-user industry, the global Palm Oil market is divided into Personal Care & Cosmetics, Food & Beverages, Biofuel, and Others. Among these, Food & Beverages is the major segment and held about 70% of the global Palm Oil market in 2023 and is anticipated to prevail the similar trend in the upcoming years.  Palm oil offers prolonged stability, maintaining product taste throughout its shelf life due to its superior resistance to oxidation compared to other vegetable oils. Its neutral taste and odour make deodorized palm oil ideal for various foods without altering their flavour, allowing ingredients like milk, cocoa, and hazelnuts to shine. With the ability to be fractionated into liquid and solid parts, palm oil's versatility meets diverse texture and flavour requirements in end products. It enhances mouthfeel, imparting a smooth, creamy texture, such as in chocolate spreads, while serving as a trans-fat alternative.

 

Major players in the Global Palm Oil market are 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., PT. Bakrie Sumatera Plantations tbk, and Others. 

 

Years considered for this report:

 

Historical Period: 2015- 2022

Base Year: 2023

Estimated Year: 2024

Forecast Period: 2025-2034

 

Objective of the Study: 

 

• To assess the demand-supply scenario of Palm Oil which covers production, demand and supply of Palm Oil market in the globe.

• To analyse and forecast the market size of Palm Oil   

• To classify and forecast Global Palm Oil market based on end-use and regional distribution.

• To examine competitive developments such as expansions, mergers & acquisitions, etc., of Palm Oil market in the globe.

 

To extract data for Global Palm Oil market, primary research surveys were conducted with Palm Oil manufacturers, suppliers, distributors, wholesalers and Traders. While interviewing, the respondents were also inquired about their competitors. Through this technique, ChemAnalyst was able to include manufacturers that could not be identified due to the limitations of secondary research. Moreover, ChemAnalyst analyzed various segments and projected a positive outlook for Global Palm Oil market over the coming years. 

 

ChemAnalyst calculated Palm Oil demand across the globe by analyzing the volume of Palm Oil consumed by the end-user industries and the forecast is calculated based on the growth rate of end-use industries. ChemAnalyst sourced these values from industry experts and company representatives and externally validated them by analyzing the historical sales data of respective manufacturers to determine the overall market size. Various secondary sources such as company websites, association reports, annual reports, etc., were also studied by ChemAnalyst. 

 

Key Target Audience:

 

• Palm Oil manufacturers and other stakeholders

• Organizations, forums and alliances related to Palm Oil distribution

• Government bodies such as regulating authorities and policy makers

• Market research organizations and consulting companies

 

The study is useful in providing answers to several critical questions that are important for industry stakeholders such as Palm Oil manufacturers, customers and policy makers. The study would also help them to target the growing segments over the coming years (next two to five years), thereby aiding the stakeholders in taking investment decisions and facilitating their expansion.

 

Report Scope:

 

In this report, Global Palm Oil market has been segmented into following categories, in addition to the industry trends which have also been detailed below: 

 

Attribute	Details
Market size Volume in 2023	71 million tonnes
Market size Volume in 2034	103 million tonnes
Growth Rate	CAGR of 3.5% from 2024 to 2034
Base year	2023
Estimated year	2024
Historical Data	2015 – 2022
Forecast period	2025 – 2034
Quantitative units	Demand in million tonnes and CAGR from 2024 to 2034
Report coverage	Industry Market Size, Capacity by Company, Capacity by Location, Operating Efficiency, Production by Company, Demand by End- Use, Demand by Region, Demand by Sales Channel, Demand-Supply Gap, Company Share, Manufacturing Process.
Segments covered	By End-Use: (Personal Care & Cosmetics, Food & Beverages, Biofuel, and Others) By Sales Channel: (Direct Sale and Indirect Sale)
Regional scope	North America, Europe, Asia Pacific, Middle East and Africa, and South America.
Pricing and purchase options	Avail customized purchase options to meet your exact research needs. Explore purchase options

 

Available Customizations:

 

With the given market data, ChemAnalyst offers customizations according to a company’s specific needs.

 

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