Global Palm Oil Derivatives Market Growth, Share, Size, Trends and Forecast (2025 - 2031)

• In December 2018, Wilmar International announce some changes to its sustainability policy and the company will no longer procure palm oil from suppliers found to violating its policy. The Wilmar International is key player in the palm oil industry and supplies 40% of the world palm oil.

• In March 2019, Sime Darby announced plans to increase its refining capacity of 3.8 million tonnes a year by expanding existing plants and via new refineries in key markets India and China. The expansion plans include doubling capacity at its 330,000 tonnes Malaysian edible oils and fats refinery, and at its 60,000 tonnes domestic biodiesel refinery.

The global palm oil derivatives market is segmented by type, application, and region. By type, the market includes palm olein, palm stearin, palm kernel oil, palm kernel cake, palm mid-fraction, and others. Palm olein, widely used as cooking oil and in food processing, represents a significant portion of the market due to its favorable frying properties and stability. Palm stearin, a solid fraction of palm oil, is extensively used in the production of margarine, shortenings, and as an ingredient in industrial applications. Palm kernel oil and its derivatives are highly valued in the cosmetics and personal care industries for their moisturizing properties and are also used in the production of soaps and detergents.

By application, the market is divided into food and beverages, personal care and cosmetics, pharmaceuticals, and industrial sectors. The food and beverages sector is the largest consumer of palm oil derivatives, driven by the demand for processed foods, confectionery, bakery products, and cooking oils. In the personal care and cosmetics industry, palm oil derivatives are utilized for their emollient properties, enhancing the texture and stability of skincare and haircare products. The pharmaceutical industry leverages these derivatives in various formulations, including excipients and active ingredient carriers. Industrial applications include the use of palm oil derivatives in biodiesel production, lubricants, and surfactants. Geographically, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America, with Asia Pacific leading the market due to its significant palm oil production and consumption. The region's robust food processing industry and growing personal care market further drive the demand for palm oil derivatives.

Global Palm Oil Derivatives Market Analysis

The Global Palm Oil Derivatives Market has been segmented by Type, Application and Geography.

Global Palm Oil Derivatives Market, Segmentation by Type

The Global Palm Oil Derivatives Market has been segmented by Type into RBD Palm Oil, RBD Palm Olein & Stearin, Oleochemicals, Palm Kerenel Fatty Acid Distillates, Palm Kernel Meal and Others.

The global palm oil derivatives market is segmented by type into several categories, reflecting the diverse applications and processing stages of palm oil and palm kernel oil. Refined, Bleached, and Deodorized (RBD) palm oil and RBD palm olein & stearin are among the most prominent segments, widely used in cooking oils, margarine, and various food applications due to their neutral flavor and high oxidative stability. RBD palm olein, a liquid fraction of RBD palm oil, is particularly favored for its resistance to oxidation at high temperatures, making it ideal for frying and deep frying purposes. RBD palm stearin, the solid fraction, finds applications in bakery fats, confectionery, and as a texturizing agent in food products.

Oleochemicals derived from palm oil, such as fatty acids, alcohols, and glycerol, serve as essential ingredients in the production of soaps, detergents, cosmetics, and pharmaceuticals. These derivatives are valued for their biodegradability, functional properties, and cost-effectiveness compared to synthetic alternatives. Palm kernel fatty acid distillates (PKFAD) are another critical segment, utilized in the production of fatty acids for industrial applications and as feedstock in biodiesel production. Palm kernel meal, a by-product of palm kernel oil extraction, serves as a valuable source of protein and fiber in animal feed formulations, contributing to its demand in the agricultural sector. The diversity within these segments underscores the integral role of palm oil derivatives across multiple industries, driven by their functional versatility and economic feasibility.

Global Palm Oil Derivatives Market, Segmentation by Application

The Global Palm Oil Derivatives Market has been segmented by Application into Food , Cosmetics & Personal Care, Pharmaceuticals, Biofuel, Animal Feed and Others.

The global palm oil derivatives market is segmented by application into several key sectors, each representing significant demand drivers for various derivatives of palm oil and palm kernel oil. In the food industry, palm oil derivatives are extensively used as cooking oils, frying fats, and ingredients in processed foods due to their neutral taste, high stability, and cost-effectiveness. They are integral in the production of snacks, baked goods, margarine, and spreads, catering to consumer preferences for products with longer shelf life and desirable texture. Additionally, palm oil derivatives find applications in confectionery, where they serve as emulsifiers and texturizing agents in chocolates and candies, ensuring product consistency and quality.

The cosmetics and personal care sector is another major consumer of palm oil derivatives, leveraging their moisturizing properties in skincare products such as creams, lotions, and soaps. Palm oil derivatives act as emollients and conditioning agents, enhancing the smoothness and hydration of skin and hair care formulations. In pharmaceuticals, palm oil derivatives play a crucial role as excipients and carriers for active ingredients in drug formulations, benefiting from their stability and compatibility with a wide range of pharmaceutical compounds. The biofuel industry utilizes palm oil derivatives, particularly palm methyl ester, as a feedstock for biodiesel production, contributing to renewable energy initiatives and reducing dependence on fossil fuels. Furthermore, palm kernel meal, a by-product of palm kernel oil extraction, is utilized in animal feed formulations, providing essential protein and fiber to livestock and poultry. The diverse applications of palm oil derivatives across these sectors underscore their versatility and economic importance in global markets.

Global Palm Oil Derivatives Market, Segmentation by Geography

The Global Palm Oil Derivatives Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.

Global Palm Oil Derivatives Market Share (%), by Geographical Region, 2024

The global palm oil derivatives market is segmented geographically into five key regions: North America, Europe, Asia Pacific, Middle East and Africa, and Latin America. Each region presents unique dynamics and opportunities for the palm oil derivatives market.

North America and Europe are prominent markets driven by stringent regulations favoring sustainable and responsibly sourced palm oil derivatives. The food industry in these regions demands high-quality derivatives for processed foods, baking, and cooking oils, with increasing consumer awareness about the environmental and health impacts of palm oil production influencing purchasing decisions. Additionally, the cosmetics and personal care sectors in North America and Europe utilize palm oil derivatives extensively in skincare and haircare products due to their moisturizing and conditioning properties, further boosting market growth.

Asia Pacific holds the largest share in the global palm oil derivatives market, primarily due to its dominant position in palm oil production and consumption. Countries like Malaysia and Indonesia are major producers, catering to both domestic demand and exports across various industries. The region's robust food processing industry, rapid urbanization, and expanding middle-class population drive significant demand for palm oil derivatives in cooking oils, snacks, confectionery, and personal care products. Moreover, Asia Pacific is witnessing growing applications of palm oil derivatives in biofuel production, supported by governmental initiatives promoting renewable energy sources. In contrast, the Middle East and Africa, along with Latin America, are emerging markets where increasing industrialization and urban development are fueling demand for palm oil derivatives in food, cosmetics, pharmaceuticals, and industrial applications. These regions present opportunities for market expansion as awareness of sustainable practices and regulatory frameworks continue to evolve.

This report provides an in depth analysis of various factors that impact the dynamics of Global Palm Oil Derivatives Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity Analysis

Key players in Global Palm Oil Derivatives Market include:

• Cargill
• Wilmar International Ltd
• Golden Agri-Resources Ltd
• London Sumatra

• BASF

In this report, the profile of each market player provides following information:

• Company Overview and Product Portfolio
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis