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

• 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.

• In June 2021, Cargill is constructing a new $200 million coconut oil refinery in Lampung, Indonesia, which will speed the company's efforts to establish a sustainable palm supply chain and offer clients verified deforestation-free goods.

The global palm oil market encompasses a diverse range of products and applications across various geographical regions from 2020 to 2030. One of its primary products is Crude Palm Oil (CPO), which serves as a raw material for various industries. Refined, Bleached, and Deodorized (RBD) Palm Oil is derived from CPO through refining processes, making it suitable for edible oil applications due to its neutral flavor and stability. Palm Stearin and Palm Olein are by-products obtained during the fractionation of palm oil. Palm Stearin finds application in the production of margarine and shortening, while Palm Olein is preferred for cooking oils and frying due to its liquid consistency at room temperature.Another significant component is Palm Kernel, which yields Palm Kernel Oil and Palm Kernel Cake. Palm Kernel Oil is utilized in cosmetics, soaps, and detergents due to its moisturizing properties, while Palm Kernel Cake serves as a valuable ingredient in animal feed due to its protein content.

In terms of applications, palm oil and its derivatives are extensively used in Edible Oil products across the globe, meeting the demand for cooking oils, margarines, and processed foods. The Cosmetics industry utilizes palm oil derivatives in skincare products and cosmetics due to their emollient properties. The Bio-Diesel sector benefits from palm oil's potential as a renewable energy source, contributing to efforts in reducing carbon emissions. Palm oil derivatives are also integral to the production of Lubricants for machinery and vehicles, enhancing performance and longevity. Additionally, Surfactants derived from palm oil find applications in detergents, cleaning products, and personal care items.

The global palm oil market has been segmented by nature into organic and conventional categories. Organic palm oil is produced without the use of synthetic pesticides, fertilizers, or genetically modified organisms (GMOs), and is increasingly in demand due to growing consumer preference for environmentally friendly and sustainable products. Organic certification ensures that the palm oil is produced in an eco-conscious manner, making it particularly popular in the food, cosmetics, and personal care industries, where consumers are more inclined towards natural and organic products. On the other hand, conventional palm oil is the more widely produced and cost-effective type, grown using traditional agricultural practices, and remains dominant in the global market. Conventional palm oil is used in a variety of industries, including food, biofuels, and detergents, due to its lower production costs and versatile applications. While organic palm oil represents a growing niche, conventional palm oil continues to hold a significant share of the market.

Geographically, the market spans North America, Europe, Asia Pacific, Middle East and Africa, and Latin America. Asia Pacific dominates both production and consumption due to extensive palm oil cultivation in countries like Indonesia and Malaysia. Europe and North America are major importers, driven by demand in food processing and industrial applications. The Middle East and Africa show increasing consumption for food and industrial purposes, while Latin America focuses on production and export capabilities.Throughout the forecast period from 2020 to 2030, the global palm oil market is poised for growth, driven by expanding applications across diverse industries and regions, despite challenges such as environmental concerns and regulatory scrutiny. This growth is supported by technological advancements, shifting consumer preferences, and increasing awareness of sustainable practices in palm oil production and usage.

Global Palm Oil Segment Analysis

In this report, the Global Palm Oil Market has been segmented by Product, Application and Geography.

Global Palm Oil Market, Segmentation by Nature

The Global Palm Oil Market has been segmented by Nature into Organic and Conventional.

Organic palm oil is produced through methods that avoid the use of synthetic pesticides, fertilizers, and genetically modified organisms (GMOs). This type of palm oil is increasingly popular due to the rising consumer demand for environmentally friendly and sustainably sourced products. Organic palm oil is often used in industries such as food, cosmetics, and personal care, where there is a growing trend toward natural and organic ingredients. Its environmentally-conscious production methods, which focus on sustainability and biodiversity, make it a preferred choice among eco-conscious consumers.

On the other hand, conventional palm oil remains the dominant segment in the market. It is produced using traditional agricultural practices, which may involve the use of synthetic inputs such as pesticides and fertilizers. Conventional palm oil is more cost-effective to produce and is widely used in a variety of industries, including food processing, biofuels, detergents, and animal feed. While organic palm oil represents a growing niche market, conventional palm oil continues to have a larger market share due to its affordability and versatility. However, as sustainability concerns increase, the demand for organic and sustainably sourced palm oil is expected to continue growing in the coming years.

Global Palm Oil Market, Segmentation by Product

The Global Palm Oil Market has been segmented by Product into Crude Palm Oil and Palm Kernel.

In the global palm oil market, various by-products play crucial roles, each offering distinct characteristics and applications. Crude Palm Oil (CPO) serves as the primary product derived from palm fruit, extracted through milling and refining processes. CPO is widely used as a cooking oil and in food processing due to its natural antioxidant properties and high beta-carotene content. It also finds applications in industries such as cosmetics, detergents, and biofuels. Refined, Bleached & Deodorized (RBD) Palm Oil, a derivative of CPO, undergoes further processing to remove impurities and odors, making it suitable for higher-value applications like frying oils, margarine, and confectionery products.

Palm stearin and palm olein are key fractions obtained through fractionation of CPO. Palm stearin, the solid fraction, is utilized in the production of margarine, shortenings, and bakery fats due to its high melting point and stability. On the other hand, palm olein, the liquid fraction, is favored for its fluidity and resistance to oxidation, making it ideal for cooking oils and salad oils. These fractions provide versatility in food applications and are essential components in the oleochemical industry for manufacturing soaps, detergents, and cosmetics.

From palm kernels, two main products are derived: palm kernel oil and palm kernel cake. Palm kernel oil is extracted through crushing and pressing kernels, finding use in food products as well as in the manufacturing of soaps, cosmetics, and pharmaceuticals due to its high lauric acid content. Palm kernel cake, a by-product of palm kernel oil extraction, serves as a valuable source of protein for animal feed formulations, contributing to the economic viability of palm oil processing. These products from palm kernels complement the broader spectrum of applications and economic opportunities within the palm oil industry, supporting both food and non-food sectors worldwide.

Global Palm Oil Market, Segmentation by Application

The Global Palm Oil Market has been segmented by Application into Edible Oil, Cosmetics, Bio-Diesel, Lubricants, Surfactants and Others.

Palm oil plays a crucial role across various applications globally, with significant consumption in edible oil, cosmetics, biodiesel, lubricants, surfactants, and other industries. In the edible oil sector, palm oil is valued for its high yield per hectare and versatile applications in cooking oils, margarine, and processed foods. Its stable properties and affordability make it a preferred choice for food manufacturers worldwide, catering to both household and industrial culinary needs.

In cosmetics, palm oil and its derivatives are extensively utilized due to their emollient properties, providing moisturization and texture enhancement in skincare products, soaps, and cosmetics. Its presence in personal care items underscores its role in enhancing product performance and appeal to consumers seeking effective and affordable skincare solutions.

The bio-diesel sector benefits from palm oil's potential as a renewable energy source. As a feedstock for biodiesel production, palm oil contributes to reducing greenhouse gas emissions compared to fossil fuels, aligning with global efforts to mitigate climate change through sustainable energy alternatives. This application highlights palm oil's dual role in supporting energy security and environmental sustainability initiatives globally.

Furthermore, palm oil finds application in lubricants and surfactants, where its chemical composition and lubricating properties make it suitable for industrial machinery lubrication and as an essential ingredient in cleaning agents, detergents, and industrial solvents. These applications leverage palm oil's functional attributes to enhance product performance and durability, crucial in various manufacturing and maintenance operations worldwide.

Beyond these primary applications, palm oil continues to explore new avenues, including pharmaceuticals, animal feed, and nutraceuticals, driven by ongoing research and technological advancements. Its versatility and economic viability underscore its pivotal role in multiple industries, shaping global markets and consumer preferences across diverse sectors.

Global Palm Oil Market, Segmentation by Geography

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

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

The global palm oil market is anticipated to exhibit varied trends and dynamics across different regions from 2020 to 2030. In North America, the market is expected to witness moderate growth driven by increasing consumer preference for products with natural ingredients and sustainable sourcing practices. Regulatory scrutiny over palm oil's environmental impact may pose challenges, although technological advancements and rising demand in sectors like biofuels could present opportunities for market expansion.

In Europe, stringent regulations on sustainable palm oil sourcing are likely to shape market trends significantly throughout the forecast period. Consumer awareness about environmental issues associated with palm oil cultivation continues to drive demand for certified sustainable palm oil products. Despite regulatory pressures, technological innovations in refining processes and increasing applications in the food processing and biofuels industries may support market growth.

Asia Pacific remains the dominant region in the global palm oil market, fueled by extensive production and consumption in countries like Indonesia and Malaysia. Economic growth, urbanization, and a growing population contribute to robust demand for palm oil in food, cosmetic, and industrial sectors. However, environmental concerns and efforts towards sustainable palm oil production are gaining momentum, influencing both production practices and market dynamics.

In the Middle East and Africa, the palm oil market is poised for steady growth, driven by expanding applications in food processing and increasing investments in agricultural infrastructure. The region's growing population and rising disposable incomes are expected to bolster consumption. However, the market faces challenges related to land availability, infrastructure development, and environmental sustainability concerns, which may shape the industry landscape over the next decade.

Latin America presents opportunities for market expansion driven by favorable climatic conditions for palm oil cultivation. Countries like Colombia and Brazil are emerging as significant producers and exporters. Infrastructure development and government policies supporting agricultural expansion are expected to facilitate market growth. However, environmental conservation efforts and the need for sustainable practices are becoming increasingly crucial, influencing the market trajectory in the region.

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

Drivers, Restraints and Opportunity

Drivers:

• Versatility and Industrial Applications
• Productivity and Yield Advantages

• Global Economic Trends-Global economic trends significantly impact the dynamics of the global palm oil market. Economic growth in emerging markets, particularly in regions like Asia and Africa, has been a major driver of increased palm oil consumption. As these economies develop, there is a rising demand for processed foods, cooking oils, and personal care products, all of which rely heavily on palm oil. The growing middle-class population in these regions, with higher disposable incomes, further fuels this demand. Additionally, urbanization plays a crucial role, as it leads to a shift in dietary preferences towards convenience foods, which often contain palm oil as a key ingredient due to its affordability and functional properties.

  Conversely, economic downturns or fluctuations in major economies can impact palm oil demand and prices. During periods of economic uncertainty or recession, consumers may cut back on discretionary spending, affecting the consumption of processed foods and other palm oil-based products. Moreover, exchange rate fluctuations can influence the competitiveness of palm oil exports from major producing countries like Indonesia and Malaysia, which dominate the global market. Changes in global trade policies and tariffs also play a pivotal role in shaping the market landscape, impacting the flow of palm oil between regions and affecting pricing dynamics.

  Investments in infrastructure and logistics within palm oil-producing countries are crucial economic factors. Improvements in transportation networks and storage facilities can enhance supply chain efficiency, reducing costs and potentially boosting production volumes. Conversely, inadequate infrastructure can constrain production capacities and increase operational costs, thereby affecting market dynamics. Overall, understanding and responding to these economic trends are essential for stakeholders in the global palm oil market to navigate market fluctuations and capitalize on growth opportunities effectively.

Restraints:

• Health Concerns
• Market Volatility

• Supply Chain Issues-Supply chain issues in the global palm oil market encompass a range of challenges that impact production, distribution, and market stability. One significant issue revolves around the complexities of palm oil sourcing and production in tropical regions. These areas often face difficulties related to land rights, labor practices, and social conflicts. Conflicting land claims and disputes over indigenous land rights can lead to disruptions in palm oil supply chains, affecting both local communities and international stakeholders. Moreover, issues such as inadequate infrastructure and logistical challenges in remote production areas can hinder efficient transportation and distribution of palm oil products.

  Another critical aspect of supply chain issues in the palm oil market relates to sustainability and environmental impact. Deforestation and habitat destruction for palm oil plantations have drawn global scrutiny due to their detrimental effects on biodiversity and climate change. Regulatory efforts to curb deforestation often lead to stricter standards and certification requirements, which can pose compliance challenges for producers. Additionally, ensuring sustainable practices throughout the supply chain—from cultivation to processing and transportation—is essential to meet evolving consumer and regulatory expectations.

  The palm oil supply chain is susceptible to market-driven pressures and price volatility. Fluctuations in palm oil prices can impact profitability along the entire supply chain, influencing decisions on cultivation, investment, and export strategies. Market dynamics, including competition from alternative vegetable oils and changing consumer preferences, further complicate supply chain management. Adapting to these market shifts requires agility and strategic planning from stakeholders across the palm oil supply chain, including growers, processors, traders, and end-users.

  Addressing supply chain issues in the global palm oil market necessitates collaborative efforts among governments, industry players, and civil society. Promoting transparency, accountability, and responsible sourcing practices can help mitigate risks associated with supply chain complexities. Embracing sustainable agriculture practices, investing in infrastructure development, and supporting community engagement initiatives are integral to fostering a resilient and ethical palm oil supply chain. By addressing these challenges proactively, stakeholders can work towards a more sustainable and socially responsible palm oil industry globally.

Opportunities:

• Alternative Uses
• Emerging Markets

• Certification and Branding-Certification and branding initiatives play crucial roles in shaping the global palm oil market by addressing sustainability concerns and enhancing consumer trust. The Roundtable on Sustainable Palm Oil (RSPO) certification, for instance, establishes standards for sustainable palm oil production, including criteria for environmental responsibility, social equity, and economic viability. Companies certified by RSPO adhere to these standards, promoting transparency and accountability throughout the palm oil supply chain. This certification helps mitigate environmental impacts such as deforestation and biodiversity loss, crucial for meeting global sustainability goals.

  Branding efforts further amplify the impact of certification by creating market differentiation and consumer awareness. Brands that commit to using certified sustainable palm oil can attract environmentally conscious consumers who prioritize ethical sourcing and responsible production practices. Effective branding communicates a company’s commitment to sustainability, fostering brand loyalty and trust among consumers. Moreover, it incentivizes other stakeholders in the palm oil industry to adopt similar practices, thereby driving broader adoption of sustainable palm oil sourcing.

  In addition to RSPO, other certification schemes and initiatives focus on various aspects of sustainability and ethical production. These include certifications that address labor rights, land rights, and community engagement within palm oil-producing regions. By obtaining multiple certifications or adhering to stringent voluntary standards, companies can strengthen their market position, gain access to premium markets, and mitigate reputational risks associated with unsustainable practices. Ultimately, certification and branding initiatives not only support sustainable palm oil production but also contribute to the overall reputation and long-term viability of companies in the global palm oil market.

Key players in Global Palm Oil Market include:

• Kala Gostaran Sabz Andish Co Ltd
• Middle East Gold Star Co
• Golbarg Baharan
• Savola Behshar Company
• Jahan Vegetable Oil Company

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