Palm Oil Market Research Report By Application (Food Industry, Personal Care Products, Biofuels, Animal Feed, Industrial Lubricants), By Form (Crude Palm Oil, Refined Palm Oil, Palm Kernel Oil, Fractionated Palm Oil), By Distribution Channel (Direct Sales, Retail, E-commerce, Wholesale), By End Use (Food Processing, Cosmetics Manufacturing, Energy Production, Chemical Manufacturing) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2035

Palm Oil Market Summary

As per MRFR Analysis, the Global Palm Oil Market is projected to grow from USD 71.94 Billion in 2024 to USD 90 Billion by 2035, with a CAGR of 2.05% from 2025 to 2035. The market is driven by increasing demand for sustainable palm oil, particularly in the food, cosmetics, and biofuels sectors, as consumers become more environmentally conscious. The food industry accounts for nearly 60% of global palm oil consumption, while biofuels are gaining traction due to renewable energy initiatives. The market is characterized by a shift towards sustainability, with significant opportunities for innovation in responsible supply chains.

Key Market Trends & Highlights

The Global Palm Oil Market is witnessing significant trends driven by sustainability and diverse applications.

• Food Industry's market value in 2024: USD 40.5 Billion; projected to reach USD 52.0 Billion by 2035.
• Personal Care Products market value in 2024: USD 12.0 Billion; expected to grow to USD 15.0 Billion by 2035.
• Biofuels segment valued at USD 8.0 Billion in 2024; anticipated to increase to USD 10.0 Billion by 2035.
• APAC region's market share in 2024: USD 30.0 Billion; projected to reach USD 37.5 Billion by 2035.

Market Size & Forecast

2023 Market Size: USD 70.5 Billion

2024 Market Size: USD 71.94 Billion

2035 Market Size: USD 90 Billion

CAGR (2025-2035): 2.05%

Largest Regional Market Share in 2024: APAC.

Major Players

Key players include Golden AgriResources, Musim Mas, Wilmar International, Cargill, and IOI Corporation.

Key Palm Oil Market Trends Highlighted

The Palm Oil Market is experiencing notable trends driven by shifting consumer preferences and regulatory changes. One crucial market driver is the increasing demand for sustainable and certified palm oil.

Consumers are becoming more aware of environmental issues, leading to a push for production methods that adhere to sustainability standards.

This trend is influencing major companies to source palm oil that is certified by organizations like the Roundtable on Sustainable Palm Oil (RSPO), reflecting a commitment to reducing deforestation and ecological impact. 

Additionally, there is a growing trend towards the use of palm oil in various sectors beyond food, such as in cosmetics, biofuels, and other industrial applications.

This diversification opens up new channels and opportunities to be explored within the market. The drive for innovation is notable, with companies investing in research to develop higher-yielding and more resilient palm oil varieties. 

Another significant trend is the rise in regulations aimed at reducing the environmental footprint of palm oil cultivation.

Several countries are implementing stricter import regulations and sustainability requirements, shaping how palm oil is produced and marketed.

Producers are exploring opportunities to collaborate with governments and NGOs to improve sustainability practices and enhance their market positioning.

As a result of these dynamics, the Palm Oil Market presents opportunities for stakeholders to engage in collaborative efforts to promote sustainable practices and meet consumer expectations.

The focus on corporate social responsibility and ethical sourcing is expected to shape the market's future landscape, driving growth and adaptation in the industry.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Palm Oil Market Drivers

Increasing Demand for Biofuels and Renewable Energy

The growing need for biofuels and renewable energy sources is a major factor driving the growth of the Palm Oil Market.

The European Union's Renewable Energy Directive, which requires a specific proportion of transportation fuel to originate from renewable sources, is one example of the policies being implemented by governments worldwide to encourage sustainability and the use of renewable energy.

Over the next 10 years, the demand for biodiesel—which is frequently made from palm oil—is predicted to increase by 5% yearly.

The market for palm oil is directly impacted by the rise in the use of biofuel, as palm oil is chosen for the manufacturing of biodiesel due to its high oil output per hectare when compared to other crops.

According to the Malaysian Palm Oil Council, nations like Indonesia and Malaysia, which produce more than 85% of the world's palm oil, are where this trend is most noticeable.

Furthermore, since more palm oil will be required to fulfill the growing demand for biofuels from various sectors globally, the growing interest in green energy solutions is anticipated to support the Palm Oil Market industry even more.

Growth in the Food Industry and Consumer Preferences

One of the key drivers contributing to the expansion of the Palm Oil Market Industry is the growth in the food industry, coupled with shifting consumer preferences towards palm oil. Palm oil is widely used in food products as it enhances texture and stability, making it a popular ingredient in many processed foods, from baked goods to snacks.

The Food and Agriculture Organization of the United Nations has reported that the global demand for palm oil in the food sector is projected to increase by approximately 3% annually, driven by expanding urban populations and rising disposable incomes in developing countries.

As consumers lean towards more affordable food options that maintain quality, palm oil remains a viable ingredient that meets these criteria.

This increased consumption is particularly evident in regions such as Asia-Pacific, which has seen rapid urbanization and subsequent growth in food manufacturing, thus acting as a strong impetus for the Palm Oil Market Industry.

Technological Advancements in Palm Oil Production

Technological improvements in palm oil cultivation and production processes represent a significant market driver for the Palm Oil Market Industry.

Advances in agricultural technology, including precision farming and improved yield varieties, have allowed producers to cultivate palm oil more sustainably and efficiently.

According to the Food and Agriculture Organization, the adoption of these technologies has resulted in yield improvements that can exceed 30% in some regions.

Additionally, the introduction of sustainable farming practices is supported by initiatives from organizations such as the Roundtable on Sustainable Palm Oil, which promotes better agricultural practices and encourages certification.

These advancements not only enhance production efficiency but also attract environmentally conscious consumers and businesses looking to source sustainable products, helping shape a more robust and responsible Palm Oil Market Industry.

Palm Oil Market Segment Insights

Palm Oil Market Application Insights  

The Application segment of the Palm Oil Market plays a crucial role in dictating the industry's landscape, reflecting its diverse usability across various sectors.

By 2024, the overall market is expected to demonstrate robust growth with different applications contributing significantly to its valuation.

In particular, the Food Industry holds a dominant position, valued at 30.0 billion USD in 2024 and projected to reach 38.0 billion USD by 2035, underscoring its majority holding within the palm oil applications; this is attributed to the increasing demand for palm oil as an ingredient due to its stability and versatility in various food products.

The Personal Care Products segment also showcases substantial value at 15.0 billion USD in 2024, set to expand to 19.0 billion USD in the future.

This highlights the importance of palm oil in skincare and cosmetic formulations, where its moisturizing properties are highly valued, driving growth within this sub-segment.

Biofuels, valued at 12.0 billion USD in 2024 and anticipated to grow to 14.0 billion USD by 2035, play a pivotal role in sustainability efforts, as palm oil serves as a renewable source for biodiesel production, thus supporting the global shift towards cleaner energy alternatives.

In the Animal Feed market, which is valued at 10.0 billion USD in 2024 and expected to grow to 11.0 billion USD by 2035, palm oil is crucial for the nutritional component of livestock feed, contributing to the overall enhancement of animal health and productivity.

Lastly, the Industrial Lubricants segment, though smaller, holds significance within the market with a valuation of 4.94 billion USD in 2024, projected to rise to 8.0 billion USD, as palm oil is utilized in eco-friendly lubrication solutions aligned with global environmental standards.

Collectively, these segments illustrate the multifaceted applications of palm oil, driving its relevance in the Palm Oil Market while addressing consumer demands and market trends driven by sustainability and health-consciousness.

The growth trajectories in each application not only reflect the segment's current standing but also indicate potential areas for investment and development within the Palm Oil Market industry.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Palm Oil Market Form Insights  

The Palm Oil Market is a significant segment of the agricultural industry, valued at approximately 71.94 USD Billion in 2024. This market has demonstrated steady growth, driven by increasing demand in various sectors such as food, cosmetics, and biofuels.

Within the Form segment, which includes Crude Palm Oil, Refined Palm Oil, Palm Kernel Oil, and Fractionated Palm Oil, each type plays a crucial role in the overall market dynamics.

Crude Palm Oil holds a dominant position due to its versatility and widespread use in food products, while Refined Palm Oil is increasingly sought after for its refined quality and suitability for cooking.

Palm Kernel Oil is notable for its unique properties used in specialty applications, including personal care products. Fractionated Palm Oil, with its specific fat composition, finds utility in both food and industrial applications, enhancing market growth.

The Palm Oil Market segmentation reveals that the demand for these oils is bolstered by their cost-effectiveness and functional properties, reflecting broader trends in consumer preferences and sustainability considerations in the food industry.

As a result, these developments present both opportunities and challenges in aligning production with environmental regulations while meeting global needs.

Palm Oil Market Distribution Channel Insights  

The Palm Oil Market, valued at 71.94 USD Billion in 2024, showcases diverse Distribution Channels that significantly influence its accessibility and consumer reach.

The importance of Direct Sales cannot be overstated, as it allows producers to establish personal relationships with buyers, ensuring quality and trust in transactions.

Retail channels continue to thrive by providing consumers with convenient access to palm oil products, while the E-commerce segment is rapidly emerging due to the growing trend of online shopping, presenting opportunities for broader market reach.

Wholesale distribution plays a critical role in the supply chain, facilitating bulk transactions that support both export processes and local markets.

Together, these distribution channels contribute to the overall growth strategy within the Palm Oil Market industry by addressing varying consumer preferences and market demands. This segmentation is crucial for understanding Palm Oil Market statistics and data, as each channel presents unique challenges and growth drivers, driving the market's evolution through strategic innovations and consumer-centric solutions.

Palm Oil Market End Use Insights  

The End Use segment of the Palm Oil Market plays a crucial role in driving its overall growth and defining market dynamics. By 2024, the market is expected to reach a valuation of 71.94 USD Billion, with various applications influencing demand patterns across different sectors.

In food processing, palm oil is widely favored due to its versatility, stability, and palatability, making it a predominant ingredient in many culinary applications.

The cosmetics manufacturing sector significantly utilizes palm oil for its emollient properties, with many formulations benefiting from its moisturizing attributes.

Meanwhile, energy production and chemical manufacturing are embracing palm oil as a renewable resource, capitalizing on its ability to serve as a biofuel alternative and a feedstock for producing biochemicals.

The Palm Oil Market statistics reveal that these sectors collectively contribute to a robust market environment, driven by sustainability trends and the increasing need for natural resources.

Factors like population growth and urbanization are key growth drivers, while challenges related to sustainability and environmental impact pose significant hurdles.

Nonetheless, opportunities abound in exploring eco-friendly product development within the palm oil industry, enhancing both its economic and environmental viability.

Palm Oil Market Regional Insights  

The Regional segment of the Palm Oil Market reveals significant variations in market values across different areas, with a total market valuation expected to be 71.94 USD Billion in 2024.

The Asia Pacific region dominates the market with a substantial share, valued at 45.0 USD Billion in 2024, reflecting the area's extensive palm oil production and consumption.

Europe follows with a value of 12.0 USD Billion, indicating strong demand driven by the food and cosmetic industries. North America is also notable, valued at 5.0 USD Billion, as it witnesses increasing adoption of palm oil in food products.

South America represents a smaller portion, valued at 3.5 USD Billion, impacted by limited cultivation opportunities. The Middle East and Africa are valued at 6.44 USD Billion, showing growing interest in palm oil for cooking and industrial applications.

The market dynamics in these regions represent growth drivers such as the rising need for food oils and biofuels, with the Asia Pacific region notably securing the majority holding in production capacity.

Furthermore, the potential environmental challenges associated with palm oil cultivation present both risks and opportunities within the Palm Oil Market industry, driving innovation and sustainability efforts across these regions.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Palm Oil Market Key Players and Competitive Insights

The Palm Oil Market is characterized by intense competition and a dynamic landscape shaped by various factors, including regulatory frameworks, environmental concerns, and consumer preferences. Market players continually adapt to these influences, driving innovation and seeking to enhance their operational efficiency and sustainability practices.

The competitive insights in this market highlight the strategies employed by major firms, including advancements in technology, diversification of product offerings, and expansion into emerging markets.

Companies in this sector are not only focused on supply chain optimization but also on building strong brand identities that resonate with increasingly environmentally-conscious consumers.

As sustainability becomes a focal point, the competition intensifies among various producers, leading to collaborations, partnerships, and strategic mergers aimed at establishing a robust foothold in the global market.

Genting Plantations has established a noteworthy presence in the Palm Oil Market, leveraging its agricultural expertise and commitment to sustainability as key strengths.

The company has invested heavily in modernizing its operations through the use of advanced technology and sustainable farming practices, positioning itself as a forward-thinking player in the industry.

Its strategic focus on research and development has allowed Genting Plantations to enhance palm oil yield and quality while minimizing its environmental impact.

Furthermore, the company's extensive land bank and established supply chain capabilities contribute to its market position, enabling it to meet the growing global demand for palm oil.

Genting Plantations’ commitment to sustainable palm oil production is reflected in its adherence to international environmental and social standards, enhancing its reputation among consumers and stakeholders.

Wilmar International stands as one of the largest agribusiness groups in the Palm Oil Market, with a comprehensive portfolio of products and services that include palm oil refining, processing, and trading. The company's extensive operations span multiple countries, ensuring a significant market presence in key regional markets. Wilmar International's strengths lie in its vertically integrated business model, which allows for better cost control and quality assurance throughout the supply chain.

The company is also known for its innovative solutions that cater to the evolving needs of consumers, including a range of sustainable palm oil products.

Wilmar has actively pursued mergers and acquisitions to bolster its market dominance and expand its capabilities, ensuring that it remains competitive in the rapidly changing global landscape.

Through these strategic initiatives, Wilmar International continues to solidify its position as a leader in the palm oil sector, adapting to trends and demands while maintaining an unwavering commitment to sustainability.

Key Companies in the Palm Oil Market Include

• Genting Plantations


• Wilmar International


• Fuji Oil Holdings


• Kuala Lumpur Kepong Berhad


• Cargill


• Olam International


• Rangoli Oils


• Sime Darby Plantation


• Adani Wilmar


• Golden AgriResources


• BASF


• Louis Dreyfus Company


• Musim Mas


• IOI Corporation


• AustAsia Group

Palm Oil Market Industry Developments

Recent developments in the Palm Oil Market have been characterized by significant fluctuations in pricing, attributed to both climate conditions and regulatory changes.

For instance, in September 2023, the Malaysian Palm Oil Board announced a reduction in palm oil production forecasts due to adverse weather impacts.

This has led to price increases, with concerns over supply chains being further exacerbated by geopolitical tensions.

Companies like Wilmar International and Genting Plantations are actively navigating these challenges while exploring sustainability practices to meet rising consumer demands for responsibly sourced palm oil.

In terms of mergers and acquisitions, August 2023 saw Cargill expanding its palm oil processing capabilities in Southeast Asia through a strategic partnership with Olam International, enhancing their market position.

The financial performance of major players has shown resilience, with Golden Agri-Resources and Kuala Lumpur Kepong Berhad reporting significant revenue growth attributed to increased global consumption and rising biodiesel production.

Furthermore, the industry has faced scrutiny regarding sustainability claims, which has prompted companies like IOI Corporation and Musim Mas to intensify their environmental certifications and ethical sourcing efforts, reflecting a broader trend towards responsible sourcing in the Palm Oil Market.

Palm Oil Market Segmentation Insights

• 
  Palm Oil Market Application Outlook
  
  
  
  • Food Industry
  
  
  • Personal Care Products
  
  
  • Biofuels
  
  
  • Animal Feed
  
  
  • Industrial Lubricants
  
  
  
  

• 
  Palm Oil Market Form Outlook
  
  
  
  • Crude Palm Oil
  
  
  • Refined Palm Oil
  
  
  • Palm Kernel Oil
  
  
  • Fractionated Palm Oil
  
  
  
  

• 
  Palm Oil Market Distribution Channel Outlook
  
  
  
  • Direct Sales
  
  
  • Retail
  
  
  • E-commerce
  
  
  • Wholesale
  
  
  
  

• 
  Palm Oil Market End Use Outlook
  
  
  
  • Food Processing
  
  
  • Cosmetics Manufacturing
  
  
  • Energy Production
  
  
  • Chemical Manufacturing
  
  
  
  

• 
  Palm Oil Market Regional Outlook
  
  
  
  • North America
  
  
  • Europe
  
  
  • South America
  
  
  • Asia Pacific
  
  
  • Middle East and Africa
  
  
  
  

Report Attribute/Metric	Details
Market Size 2023	70.5(USD Billion)
Market Size 2024	71.94(USD Billion)
Market Size 2035	90.0(USD Billion)
Compound Annual Growth Rate (CAGR)	2.06% (2025 - 2035)
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Base Year	2024
Market Forecast Period	2025 - 2035
Historical Data	2019 - 2024
Market Forecast Units	USD Billion
Key Companies Profiled	Genting Plantations, Wilmar International, Fuji Oil Holdings, Kuala Lumpur Kepong Berhad, Cargill, Olam International, Rangoli Oils, Sime Darby Plantation, Adani Wilmar, Golden AgriResources, BASF, Louis Dreyfus Company, Musim Mas, IOI Corporation, AustAsia Group
Segments Covered	Application, Form, Distribution Channel, End Use, Regional
Key Market Opportunities	Sustainable palm oil certifications, Expanding consumer demand in Asia, Biofuel production advancements, Health-conscious product reformulations, Innovations in palm oil substitutes
Key Market Dynamics	Supply chain disruptions, shifting consumer preferences, environmental regulations, price volatility, and increasing demand for sustainability
Countries Covered	North America, Europe, APAC, South America, MEA