Palm Oil Market Research Report: Information by Type (Crude Palm Oil, Palm Kernel Oil and others) Application (Edible Oil, Bio-Diesel, Lubricants, Cosmetics and others) and Region (North America, Europe, Asia Pacific and Row) – Forecast till 2030

Palm Oil Market Overview:

Palm Oil Market will touch USD 98.8 billion by 2030, at a 5.2% CAGR from 2022 to 2030. Palm oil is one of the nutritious edible oils. Palm oil is produced from palm fruits that are found in Western Africa. Also, palm fruits can flourish in climates where heat and rainfall are abundant. Palm oils are of different types like crude palm oil, palm kernel oil, and others. Crude palm oil is produced from the oil palm tree fruit and due to its rich dark red color in its unprocessed natural state, it is called red palm oil. On the other hand, palm kernel oil is produced from the kernel or seed of the palm fruit. This oil has a high oxidation resistance and hence has a long shelf life.

Palm oil is used in the production of greases, lubricants, and candles which increases the growth of the market. This oil is used in nearly 50% of the daily basis consumer products. Various benefits are offered by the usage of palm oil like preventing premature aging, enhancing energy levels, improving eye vision, boosting the immune system, and reducing the risk of cancer and heart diseases.

COVID-19 Analysis

The COVID-19 pandemic has affected almost every industry across the globe severely. It has affected the palm oil market drastically due to the continuous lockdowns by the government to avoid spreading the virus, supply chain disruptions, shutdowns of the manufacturing industries, and closing of the food & beverages sectors, lagging in transportation, lack of labor, and many more.

Palm oil is mostly used in food items like frying, hot chips, roadside foods, and cosmetics. Restaurants and roadside foods are stopped due to the lockdowns which reduce the demand for the palm oil market. Due to the lack of labor, eliminating the incentives from the palm tree to produce palm oil is halted which hampers the growth of the market. But usage of palm oil in pharmaceuticals is in moderate growth which is little affected by this pandemic situation. The efficient key players have to take necessary steps like rising awareness regarding the benefits of palm oil to boost the growth of the market.

Market Dynamics

Drivers

Globally, rising disposable income and per capita expenditure on consumer products is driving the growth of the market. For its various applications in the market, palm oil is witnessing a high demand globally. It is applicable as cooking oil, biodiesel, lubricants, cosmetics, and others are the factors that drive the growth of the palm oil market. Apart, it is used in the biofuels market as feedstock in the production of biodiesel and as an alternative to mineral oils for use in power stations which enhances the growth of the market. The fatty acid derivatives in palm oil are used in the production of various applications like bactericides, pharmaceuticals, cosmetics, and water treatment products.

The manufacturing process of soaps and detergents rises the consumption of palm oil that boosts the growth of the market. Rising usage of palm oil as a substitute for trans-fat in processed foods is accelerating the growth of the palm oil market. Due to its high nutritional benefits, palm oil has high demand over the market. By the awareness campaigns of the World Health Organization (WHO) to control trans-fat consumption boost the growth of the palm oil market.

Restraint

For the production of palm oil, the incentives eliminated cause destruction of forests. Increasing concerns regarding deforestation and plant diversity losses are hindering market growth. Focus on sustainable and organic products is growing by the Palm oil plantation nations i.e. Indonesia and Malaysia. Consumers are preferring organic products due to the increasing awareness regarding the harmful effects of agrochemicals used for the cultivation of crops and human health.

Opportunities

Increasing awareness regarding the health benefits of palm oil may accelerate the growth of the palm oil market share.

Challenges

Palm oil shows a negative impact on the environment which is the major challenge of the palm oil industry. Price fluctuation is also the other major challenge.

Study Objectives

• To provide detailed information about the palm oil market structure along with various forecast segments and sub-segments for the next 10 years.


• To provide the factors that are affecting the growth of the palm oil industry value.


• To analyze the palm oil industry based on porter’s five force analysis, factors-price analysis, supply chain analysis, etc.


• To provide history and forecast revenue segments and sub-segments of the palm oil market revenue for the five main geographies.


• To provide country-level analysis of the current palm oil market size and future prospective. 


• To provide a country-level analysis of the palm oil industry growth by region, form, and application.


• To provide a strategic profile of the key players in the market, analyze their core competencies, and draw a global market growth landscape.


• To track and analyze new product developments, strategic alliances, and global market research.

Segment Overview

The palm oil market research has been segmented based on the type, application, and region.

Based on Type

The global palm oil industry based on the type is segmented into crude palm oil, palm kernel oil, and others. Out of these, crude palm oil has dominated the market for its less saturated fat feature. Also, palm oil has a high level of tocotrienols that contains a huge source of vitamin E and a powerful antioxidant that drives the palm oil market growth. Moreover, increasing consumption in oleochemicals production of agrochemicals and cleaning products.

Palm kernel oil also gains significant market growth for the exclusive use as feedstock for animal feed and biomass and high medium-chain fatty acids content.

Based on Application

Based on application, the global palm oil industry is classified into cooking oil, bio-diesel, lubricant, cosmetics, and others. Among all these, the cooking oil segment enhances the market. Further, the cosmetic segment is expected to witness significant growth during the forecast period.

Based on Region

Regionally, the palm oil industry is segmented into North America, Europe, Latin America, Asia-Pacific, and the Rest of the world. Out of these, the Asia-Pacific region enhances the market and is predicted to have substantial growth during the assessment period for the rising consumption of palm oil in different industries.

Regional Analysis

The global palm oil market based on the region is segmented into North America, Latin America, Europe, Asia-Pacific, and the Rest of the World (ROW). Among these regions, the Asia-Pacific region dominates the market and is expected to have significant growth during the review period for increasing palm oil consumption in different industries. The major producer and exporters of palm fruit, Indonesia and Malaysia are highly contributing to the growth of the palm oil market in this region. Moreover, palm oil is also used in surfactants and lubricants. From January 1st, 2020, in Indonesia, the government has increased the crude palm oil and diesel blend to 30% which increases the palm oil consumption in this country.

North America and Europe are expected to have moderate growth during the forecast period for their increasing penetration of biodiesel. Additionally, it is expected to witness high demand for organic palm oil for the use of food & beverage and personal care & cosmetics end-use segments. Latin America and the Middle East & Africa are expected to be the fastest-growing region in the palm oil market over the estimated period.

Competitive Landscape

The prominent key players in the palm oil market trends are the following:

• Cargill Inc., (U.S)


• Wilmar International Limited (Singapore)


• Sime Darby (Malaysia)


• IOI Corp. (Malaysia)


• Golden Agri Resources Limited (Singapore)


• Kulim BHD (Malaysia)


• Godrej Agrovet Limited (India)


• London Sumatra (Indonesia)

Recent Developments

In August 2019, the prominent key player Academics and Asian Agri collaborate for the national seminar regarding sustainable palm oil.

In June 2020, the Green Fund palm oil sector invest in PT Dharma Satya Nusantara Tbk.

In June 2020, one of the leading plantations, Sime Darby Plantation published its palm oil genome for supporting the company’s ambition of a deforestation-free industry.

Report Overview

This global palm oil market research includes the Market Overview, COVID-19 analysis, Market Dynamics, Study Objectives, Segment Overview, Regional Analysis, Competitive Landscape, Recent developments, Segmentation Table, and FAQs. The market dynamics include the palm oil market drivers, restraints, challenges, and opportunities. The global market forecast segments are type, application, and region.

Segmentation Table

The palm oil market outlook is segmented into type, application, and region.

By Application

Cooking oil, biodiesel, lubricant, cosmetics, and others.

By Type

Crude palm oil, palm kernel oil, and others are some of the types of palm oil.

By Region

Asia-Pacific, Europe, North America, Latin America, and the Middle East & Africa are the main geographies included in this market.