Palm Oil Market (2025 - 2035) Size, Share & Trends Analysis Report By Nature (Organic, Conventional), By Product (Crude Palm Oil, Palm Kernel Oil, RBD Palm Oil), By Application (Food & Beverage, Pharmaceuticals, Biofuel & Energy, Personal Care & Cosmetics), By Region, And Segment Forecasts

Palm Oil Market Summary

The global palm oil market size was estimated at USD 74.5 billion in 2024 and is projected to reach USD 113.9 billion by 2035, growing at a CAGR of 4.2% from 2025 to 2035. The global market for palm oil is primarily driven by the growing demand from the food and beverage sector.

Palm oil’s versatility, low cost, and long shelf life make it a preferred ingredient in bakery, confectionery, and processed food products. Its widespread use as a cooking oil and in margarine and instant noodles continues to support market growth. The expanding global population and rising consumption of packaged foods are further amplifying this demand.

Another key driver for the global palm oil industry is the increasing use of palm oil in biodiesel production. Governments across Asia, Europe, and Latin America are promoting biofuel blending mandates to reduce carbon emissions and dependence on fossil fuels. Palm oil’s high yield and energy efficiency make it a popular feedstock choice for biodiesel manufacturers. This trend is creating strong demand from the energy sector, especially in Indonesia and Malaysia.

A major opportunity in the global palm oil industry lies in the growing demand for sustainably sourced and certified palm oil. Increasing consumer awareness about environmental and social impacts is pushing companies to adopt RSPO-certified and traceable supply chains. This trend is opening new growth avenues for producers investing in eco-friendly cultivation, deforestation-free sourcing, and transparent trade practices. As global brands prioritize sustainability commitments, the market for certified palm oil is expected to expand significantly.

Market Concentration & Characteristics

The global palm oil industry is moderately concentrated, with a few major players such as Wilmar International, ADM holding a significant share. These companies dominate due to their integrated operations, from cultivation and processing to refining and global distribution. However, the presence of several regional producers and smallholders across Southeast Asia, Africa, and Latin America maintains a competitive balance in the market.

The market is characterized by high production volumes, cost efficiency, and strong trade flows across developing and developed economies. It is highly influenced by agricultural productivity, climatic conditions, and government policies on exports and sustainability. Additionally, the market exhibits cyclical price trends linked to supply fluctuations and crude oil prices, while growing emphasis on traceability and sustainability is reshaping operational standards globally.

Nature Insights

The conventional segment dominated the market with a revenue share of 93.4% in 2024. The market is supported by its high production efficiency, cost-effectiveness, and widespread availability. It remains the preferred choice for food processing, industrial use, and biodiesel production due to its consistent quality and lower price compared to organic alternatives. The dominance of conventional palm oil is also reinforced by established supply chains across major producing countries like Indonesia and Malaysia, which cater to global demand at scale.

The organic segment is the fastest-growing segment with a CAGR of 4.4% during the forecast period, driven by rising consumer awareness of sustainability and health concerns. Growing demand for chemical-free, traceable, and ethically sourced products is encouraging food, cosmetic, and personal care brands to adopt organic palm oil. Certification standards such as RSPO and Fairtrade are further boosting trust and market acceptance. As eco-conscious consumers and global retailers shift toward clean-label products, the organic palm oil segment is expected to gain significant traction in the coming years.

Product Insights

The crude palm oil segment dominated the market with a revenue share of 76.7% in 2024. The market is primarily driven because of its high production volume and versatility across food, biofuel, and industrial applications. Its cost-effectiveness and widespread availability make it the primary choice for large-scale manufacturers, sustaining its dominant position in the market.

The palm kernel oil segment is the fastest-growing segment with a CAGR of 4.4% during the forecast period. Growth is driven by driven by rising demand in specialty food products, cosmetics, and personal care applications. Innovations in PKO derivatives and its suitability as a cocoa butter substitute are expanding their market adoption globally.

Application Insights

The food & beverage sector dominated the market with a revenue share of 72.7% in 2024, fueled by its extensive use in cooking oils, bakery products, snacks, and processed foods. Palm oil’s stability at high temperatures and long shelf life make it a preferred ingredient for manufacturers worldwide. Increasing consumer demand for affordable and versatile edible oils continues to reinforce its leading position.

The biofuel & energy segment is witnessing significant growth with the fastest CAGR of 4.1%, during the forecast period. The segment is growing as governments and industries adopt sustainable energy solutions. Palm oil-derived biodiesel is gaining traction for its renewable nature and carbon reduction potential. Supportive policies and rising energy security concerns are further driving global investments in this space.

Regional Insights

Asia Pacific palm oil industry dominated the global market with the largest revenue share of 74.5% in 2024. Rising demand for edible oils and processed food products is directly driving growth in the Asia Pacific market. Expanding food processing industries, coupled with large-scale production capacities in Indonesia and Malaysia, are boosting supply to meet domestic and international demand, making the region the most dominant globally.

Indonesia Palm Oil Market Trends

Indonesia palm oil industry dominated the Asia Pacific market with a revenue share of 42.1% in 2024. Indonesia stands as the largest producer and exporter of palm oil, backed by extensive plantations and an ideal tropical climate. Efficient, high-yield cultivation practices and advanced processing infrastructure ensure a reliable supply for both domestic consumption and global markets. Strong international demand, combined with supportive government policies and strategic investments in sustainable practices and value-added derivatives, solidifies its leadership in the region.

Europe Palm Oil Market Trends

Europe palm oil industry represents a significant market for palm oil with a revenue share of 10.7%, driven by growing demand in biofuels, processed foods, and personal care products. Stringent sustainability regulations and increasing consumer preference for certified and traceable palm oil are shaping market dynamics. Investment in green energy initiatives and the adoption of renewable feedstocks are key factors propelling growth across the region.

Germany palm oil industry is a leading market within Europe, fueled by its strong biofuel sector and large-scale food processing industry. Rising environmental awareness and policies promoting sustainable sourcing are driving the demand for certified palm oil. Additionally, Germany’s strategic position in Europe enables it to serve as a hub for distribution and innovation in palm oil-derived products.

North America Palm Oil Market Trends

North America palm oil industry, with a revenue share of 8.3% is growing due to rising demand in processed foods, snacks, and bakery products. Increasing adoption of convenience foods and expanding fast-food chains are driving consumption. Additionally, investments in sustainable sourcing and certifications are shaping the market while enhancing supply chain transparency.

The U.S. palm oil industry is fueled by strong growth in the food processing and personal care industries. Rising consumer preference for plant-based and multifunctional ingredients is boosting demand. Strategic import channels and partnerships with leading producers ensure a steady supply, supporting the country’s market expansion.

Latin America Palm Oil Market Trends

Latin America palm oil industry is gaining traction due to expanding food processing and edible oil industries. Rising demand for affordable cooking oils and growing urban populations are driving consumption. Strategic investments in local cultivation and processing facilities are enabling countries in the region to gradually reduce import dependency.

Middle East & Africa Palm Oil Market Trends

The Middle East & Africa palm oil industry is primarily driven by increasing demand for edible oils and biofuels, supported by growing industrial and food manufacturing sectors. Rapid urbanization, rising disposable incomes, and trade partnerships with major producers are boosting imports. Additionally, government initiatives to secure reliable edible oil supply chains are shaping market growth across these regions.

Key Palm Oil Company Insights

ADM and Wilmar International Ltd. dominate the market due to their extensive global supply chains and large-scale production capacities. Their strong distribution networks and diversified product portfolios ensure consistent market leadership.

• ADM is engaged in procuring, transporting, storing, processing, and merchandising agricultural commodities. The company operates through four business segments, namely agricultural services, corn processing, oilseed processing, and wild flavors & specialty ingredients.

• Wilmar International Ltd is a global manufacturer of palm oil and related products with business operations in food products, feed & industrial products, plantations, and fertilizers. Its product offerings include consumer products, specialty fats, and oleochemicals.

Recent Developments

• On October 2, 2024, Wilmar International introduced the PROSPEK program, aiming to empower 26,000 palm oil smallholders in Indonesia. This initiative builds upon previous development efforts and underscores Wilmar's commitment to sustainable practices and community support in the palm oil sector.

Palm Oil Market Report Scope

Global Palm Oil Market Report Segmentation

This report forecasts revenue & volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2035. For this study, Grand View Research has segmented the global palm oil market report based on product, nature, end-use, and region:

• Nature Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2035)

  • Organic

  • Conventional

• Product Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2035)

  • Crude Palm Oil

  • Palm Kernel Oil

  • RBD Palm Oil

  • Fractionated Palm Oil

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2035)

  • Food & Beverage

  • Personal Care & Cosmetics

  • Biofuel & Energy

  • Pharmaceuticals

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2035)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • Italy

    • Spain

    • France

    • Russia

  • Asia Pacific

    • Malaysia

    • Indonesia

    • China

    • Japan

    • South Korea

    • India

  • Latin America

    • Brazil

    • Argentina

    • Colombia

  • Middle East & Africa

    • Saudi Arabia

    • South Africa