Palm Oil Market By Product Type (Crude Palm Oil, Refined Palm Oil, Palm Kernel Oil, Fractionated Palm Oil), By Source (Sustainable Palm Oil, Conventional Palm Oil), By Application (Food and Beverages, Cosmetics and Personal Care, Biofuels and Energy, Pharmaceuticals, Others), By Distribution Channel (Online, Offline {Supermarkets and Hypermarkets, Convenience Stores, Others}), Global Market Size, Segmental analysis, Regional Overview, Company share analysis, Leading Company Profiles And Market Forecast, 2025 – 2035

Industry Outlook

The Palm Oil market accounted for USD 74.8 Billion in 2024 and is expected to reach USD 133.4 Billion by 2035, growing at a CAGR of around 5.4% between 2025 and 2035. The palm oil market is the total demand and supply of palm oil around the world which is vegetable oil produced from the fruit of oil palm tree. It is usually applied in food, cosmetic products, bioenergy as fuel, and other uses owing to virtues such as being cheap to manufacture, having an extended shelf life, and possessing special characteristics.

There are prescriptions for market development through the consumption increase in developing nations as well as growth of the processed foods market, and rising demand for biofuels. Other sustainability and certification programs are defining market trends, like the RSPO because people and companies care about the responsibility of sourcing their products.

Report Scope:

Market Dynamics

Growing Demand for Palm Oil in Food and Beverages Globally

Ongoing demand for palm oil in consumable products such as food and beverages continue to increase because of the numerous advantages, for instance, cost-effective and versatile ingredients. Palm oil is used in the production of snacks, baked products, margarines, spreads, and known ready-to-eat meals because it gives meals the right texture and has a long shelf life. It is also readily solidifying at low temperatures, but it remains stable at elevated temperatures which makes it appropriate for frying.

Because palm oil does not easily undergo oxidation the lifespan of products containing the oil is longer, this cuts on spoilage hence food waste. With the global population ever rising, the continuously and especially rapidly expanding need for manufactured products worldwide such as edible products, especially in developing countries, is a major factor that boosts the use of palm oil. Also, compared with other cooking oils, its lack of trans fats complies with the increasing trend of consumer consciousness. Consumed in urban areas characterized by significant transformation of the traditional food product supply system, palm oil is slowly but surely making its way into the food chain worldwide.

Increasing Consumer Preference for Sustainable and Certified Palm Oil

With environmental degradation coming up, consumers are increasingly sensitized to the origin of the products they buy, including palm oil. Sustainable palm oil involves the production of this oil without causing harm as everyone knows that today's production of palm oil leads to deforestation, loss of biodiversity, and violation of human rights. The call for more sustainable certified palm oil is also driving more consumers and companies towards the product.

Certifying bodies such as Roundtable on Sustainable Palm Oil (RSPO) will help guarantee the production of palm oil has met reduced damaging impacts standards and first-rate management of labor. This preference had relegated manufacturers who were previously sourcing normal palm oil to settle for certified palm oil to meet the market, consumer, and regulatory approvals.

Currently, many brands are to indicate their environmental responsibility using eco-labels, with consumers appearing willing to outlay more for products that demonstrate their responsible spirit. The new sustainable palm oil is radically transforming a global market that has been characterized by negative impacts on the environment as well as societal dilemmas.

Health Concerns Over the High Saturated Fat Content in Palm Oil

The main drawback of palm oil has been pointed out to be its content of saturated fats that have been seen to elevate the total cholesterol levels, particularly the LDL (low-density lipoprotein) cholesterol in the blood, and thus contribute to cardiovascular diseases on intakes at elevated levels. Such health issues have raised questions about the use of ingredients in foods, especially those that are processed such as snacks, baked products, and fast foods.

With more consumer consciousness being raised to heart health and the risks associated with unhealthy fats, some companies are either trying to find healthy substitutes like unsaturated oils or altering products to contain less saturated fat. This swing of customer preferences is an important driver of the markets, thus creating more demand for healthier oils and products with limited incorporation of palm oil. However, palm oil continues to be widely used because it is cheaper to produce and has certain cooking advantages, while future studies keep on looking for ways to reduce the negative effects on health in its usage.

Rising Demand for Palm Oil-Based Biofuels in Renewable Energy Markets

The growing sophistication of uses of feedstocks in biodiesel manufacturing is making palm oil more famous in the market. Palm oil-based bioenergy is thus an option to traditional fossil-based energy for transport, manufacturing, and other commercial uses. The increase has been attributed to governments around the world pledging to cut emissions of greenhouse gases as well as move toward low-carbon power production. Biofuels derived from palm oil are encouraged since palm oil crops have one of the highest yields per unit area of land among the biofuel crops hence being cheaper.

However, deforestation and changes in land use related to the production of oil have raised an alarm across the globe leading to demand for responsible sourcing. The prospects for renewable energy markets do coincide with the use of palm oil as a biofuel feedstock, but this feedstock must meet sustainability requirements as regards the effect on the environment and society.

The Growing Market for Palm Oil Derivatives in Cosmetics and Personal Care Products

Many industries particularly cosmetics and personal care industries use palm oil derivatives because of their moisturizing effects, emulsifiers, and stabilizers. Stearic acid, glycerin, and tocopherols (Vitamin E) derived from palm oil are used as additives in soaps, shampoos, lotions, and cosmetics to modify texture and preservation and optimization of product performance.

This need has thus pushed for the search for natural products that yield the best results and therefore boost the market share of palm oil derivatives. As consumers prefer products that are not only efficient but also sustainable, several palm oil derivatives obtained from sustainable palm oil production are in high demand.

The use of palm oil and its derivatives is so popular because it is useful for creating a silky feel and enhancing the stability of cosmetics. The industry has a challenge of sourcing palm oil responsibly to have little or no effect on the environment such as through deforestation, thus more emphasis has been placed on certifications such as the RSPO when it comes to the production of these derivatives.

Industry Experts Opinion

“Palm oil has been associated with heart and brain health, especially because it includes tocotrienols, a particular type of vitamin E. One tablespoon of unprocessed red palm oil is high in tocotrienols and provides around 10% of the daily value of vitamin E.”

• Sierra Holley, MS, RDN, LD, Registered Dietitian and Nutritionist at The Ohio State University Wexner Medical Center

“Palm oil consumption can help improve vitamin A status for those who are prone to malabsorption or deficiency of this key nutrient."

• Kristin Gillespie, M.S., R.D., LDN.

Segment Analysis

Based on the product type, the Palm Oil Market has been classified into Crude Palm Oil, Refined Palm Oil, Palm Kernel Oil, and Fractionated Palm Oil. CPO, meaning Crude Palm Oil, is the raw form and is used in the manufacturing industry, especially in the food industry. Refined Palm Oil is a tropical oil that undergoes further treatment to have fewer impurities which is why it is used in high-quality food products and cooking oils.

Palm Kernel Oil, extracted from the kernel, is used in food processing, cosmetics, and pharmaceutical industries because of its specialty. Fractionated Palm Oil is broken down into different sections to suit the requirements for margarine or ice cream. These product categories cover different sectors, given features or the roles that these products play.

Based on the applications, the Palm Oil Market is categorized into Food and Beverages, Cosmetics and Personal Care, Biofuels and Energy, Pharmaceuticals, and others. The largest of all consumers is the food and beverages sector, where palm oil is employed in cooking, frying, and food processing because of its stability and readiness at a low cost.

Many sectors such as cosmetics and personal care need palm oil's derivatives in soap and lotion since they act as emulsifying and lubricating agents. The use of renewable energy derived from the biofuels and energy sector is gradually incorporating palm oil-based biodiesel. In pharmaceuticals, palm oil derivatives act as flowing agents in formulations of medication. There are other uses of palm oil as captured under the 'other uses' bucket which include animal feed use and industrial uses, among others.

Regional Analysis

Asia-Pacific is the leading region for the Palm Oil Market, and as a producer of palm oil in regions such as Indonesia and Malaysia, controls 85% of the global production rate of palm oil. Large plantation space, a tropical climate, and a developed export organization explain why the region leads in this industry. Further, high domestic absorption rates for edible oil and processed food across global markets led by India and China also influence demand. The growing use of palm oil in the production of biodiesel further strengthens the market in the region.

Africa is also the largest growing market because of the rising demand for edible oils, governmental support for the expansion of palm oil plantations, and the growing urbanization of the continent. Nigeria is increasing the production of cassava both for local consumption and the export market; Ghana and Côte d’Ivoire are also liberating their area for cassava cultivation. This growth is further driven by investment costs in sustainable production procedures and the enhancement of processing centers. The region is also getting value from associations with international participants to augment yield and production efficiency.

Competitive Landscape

Large-scale manufacturers and suppliers in the Palm Oil Market are now emphasizing sustainability and productivity. Wilmar International has a vision of achieving 100% sustainably produced palm oil which will be traceable and RSPO certified. Sime Darby Plantation focuses on the application of new productivity and sustainability technologies.

The latter key player, Golden Agri, resumed its no-deforestation policy as its vision to focus on emerging markets. IOI Corporation has a policy that unilaterally states, No Deforestation, No Peat, No Exploitation. Cargill has also employed the use of research to look for substitutes and enhance supply chain openness. They are aimed at satisfying the needs of stakeholders toward sustainable development, increasing organizational productivity, and preserving the firm's long-term growth in a highly coveted region.

Palm Oil Market, Company Shares Analysis, 2024

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Recent Developments:

• In March 2024, Cargill joined forces with significant food firms to encourage the use of sustainable palm oil in packaging. In line with international initiatives to lessen plastic pollution, they have concentrated on cutting down on plastic waste by giving their food goods biodegradable packaging made from palm oil.

Report Coverage:

By Product Type

• Crude Palm Oil
• Refined Palm Oil
• Palm Kernel Oil
• Fractionate Palm Oil

By Source

• Sustainable Palm Oil
• Conventional Palm Oil

By Application

• Food and Beverages
• Cosmetics and Personal Care
• Biofuels and Energy
• Pharmaceuticals
• Others

Distribution Channel

• Online
• Offline
  • Supermarkets and Hypermarkets
  • Convenience Stores
  • others

By Region

North America

• U.S.
• Canada

Europe

• U.K.
• France
• Germany
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Singapore
• Rest of Asia Pacific

Latin America

• Brazil
• Argentina
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC Countries
• South Africa
• Rest of the Middle East & Africa

List of Companies:

• Wilmar International Limited
• Sime Darby Plantation
• Golden Agri-Resources Ltd.
• IOI Corporation Berhad
• Cargill Inc.
• Musim Mas Holdings
• Kuala Lumpur Kepong Berhad
• New Britain Palm Oil Limited
• First Resources Ltd.
• Anglo-Eastern Plantations
• Olam International
• Sinarmas Cepsa
• Malaysian Palm Oil Board
• Astra Agro Lestari
• Bumitama Agri Ltd.

Frequently Asked Questions (FAQs)