Palm Oil Market Size, Share & Trends Analysis Report By Nature (Organic, Conventional), By Product (Fractionated Palm Oil, Crude Palm Oil, Palm Kernel Oil), By End-use (Food & Beverage, Pharmaceuticals), By Region, And Segment Forecasts, 2025 - 2030

Palm Oil Market Summary

The global palm oil market size was estimated at USD 72,844.8 million in 2024 and is projected to grow at a CAGR of 5.3% from 2025 to 2030. The market is driven by exponentially growing demand from the food, beverage, biofuel, energy, personal care, and cosmetics industries.

Major manufacturers are in Asia Pacific region due to tease of availability of raw materials in region. Market is highly competitive as well as comprehensive in nature owing to presence of a large number of all scale players which try to gain a competitive edge over others with their high production, superior distribution networks, product quality, and various competitive strategies.

Indonesia is largest palm oil producer as well as exporter of the same. Country exports product globally. The government also supports cultivators of palm plant. It is a major source of income for many small and medium scale producers in region. The industry is majorly responsible for development and upliftment of cultivators in region.

Similarly, product has witnessed increasing demand from biofuel industry. It is used in production of biofuel which is further used as a sustainable alternative to crude oil in many applications such as engine oil. Biofuel industry is a budding industry with limited applications for now.

Although industry is expected to attain development as many players are involved in research and development of industry. As the industry will gain ground demand for palm oil from industry is expected to increase and drive product market.

Market Concentration & Characteristics

The market is moderately consolidated and highly competitive in nature. The players in the industry are inclined towards expansions, mergers & acquisitions, and new product launches. Players adopt these strategies to increase the reach of their products in the market and availability of their products & services in diverse geographical areas. Key market players adopting the inorganic growth strategies include Godrej Agrovet ltd., Patanjali Foods, 3F Industries, ADM, and IOI Corporation Bhd.

The government of Brazil is focused on sustainable production of palm oil for biodiesel production. The Ministry of Mines and Energy (MME) initiated a RenovaBio Program in December 2016, which legalizes the biofuel manufacturing units. Similarly, in January 2023, Godrej Agrovet Ltd. received the Indian Oil Palm Certification under the Indian Palm Oil Sustainability (IPOS) framework in recognition of the ethical business practices it has implemented in the production. These type of government initiatives are anticipated to contribute to the wellbeing of the palm oil industry in the near future.

Nature Insights

The conventional segment led the market with the largest revenue share of 99.06% in 2024. This is attributable to the low price and easy availability of the segment. Conventional oil palm farms are a crucial source of income for small and medium sized cultivators as they can increase production with the help of synthetic chemicals. The conventional nature segment is more popular in low-income countries with high populations.

The organic segment is anticipated to grow at the fastest CAGR during the forecast period, as it holds a very small share of market due to difficulties in production which reduce availability of products in the market. The stringent regulations for production as well as very expensive products necessary for production such as specialized soil maintenance products, makes it financially infeasible and difficult for the manufacturers to produce in large quantities. Although increasing awareness about the benefits of organic products is anticipated to attain rapid growth rate.

Product Insights

The fractionated segment led the market with the largest revenue share of 39.23% in 2024. This is attributable to the ease of availability of product and economically feasible prices. It is very popular in low-income countries as it is abundantly available as well as affordable for masses. Constituent nature of product makes it more affluent to manufacture in large quantities.

The crude palm oil (CPO) segment is anticipated to grow at the fastest CAGR during the forecast period, owing to its major end use application in the food & beverage industry. The presence of vitamin A gives this product segment edge over the other segments making its utilization in edible products more desirable. Its extensive use in the food industry is expected to drive market demand. There is also significant demand for CPO from cosmetics, and pharmaceutical end-use industries, as it is a crucial ingredient for production of many products from these industries.

End-use Insights

The food & beverages segment led the market with the largest revenue share of 65.98% in 2024. Its high share is attributable to increasing usage of product in end use applications of the industry and increasing product portfolios that demand palm oil as a raw material. The rise in global population has also affected global product growth, boosting product demand in the international market. With a scant difference in their revenue share following the food and beverage end use segment is followed by the personal care & cosmetics and biofuel & energy end use segments. These are a growing segment and are expected to attain prompt growth in the coming years as advancements in technology will occur.

The personal care & cosmetics segment is expected to grow at the fastest CAGR during the forecast period. The diversification in product portfolios and increasing demand for organic and sustainable products that are plant-based are expected to drive demand from this segment.

In contrast to the personal care & cosmetics segment, which is an established market, biofuel is a budding market that is expected to reach its full potential in the foreseeable period as the advancement of technology will take place. In the near future, as the deposits for non-renewable resources are declining, biofuel, which is an environment friendly alternative to conventional fuels, can become a light of hope for the energy industry.

Regional Insights

The palm oil market in North America is anticipated to exhibit at an exponential CAGR during the forecast period, due to the distinguished demography of region, change in eating habits of mass and increase in demand from food industry for making various delicacies. The North America market has a lot of untapped potential currently, which is another reason for the rapid growth of the product in the region.

U.S. Palm Oil Market Trends

The palm oil market in the U.S. has grown in demand due to its versatile applications in food production, cosmetics, and biofuels. Despite this demand, there are ongoing concerns regarding environmental impacts, such as deforestation and habitat destruction associated with palm oil cultivation. As sustainability becomes increasingly important, the market is shifting towards responsibly sourced palm oil. In addition, the U.S. government and various organizations are promoting alternative oils to mitigate reliance on palm oil.

Asia Pacific Palm Oil Market Trends

Asia Pacific dominated the palm oil market with the largest revenue share of 71.18% in 2024. This is attributed to growing consumption by the rising population of the region as well as high demand from end use applications industries, such as the food & beverage industries. Rapid increase in population, changing demographic trends, and diverse food applications in India and China are accountable for high consumption in the region.

This product is a major source of income for countries like Indonesia and Malaysia, which are large producers globally. Income from this business has helped countries producing palm oil to develop and advance. Small and medium players in these countries are solely dependent on revenue from this oil for their livelihood.

The India palm oil market accounted for the largest revenue share of over 20.2% in Asia Pacific in 2024. India, Indonesia & Malaysia accounted for approximately 85% of the global production of palm oil. More than 75% of the production is being exported to international markets, with India being one of the largest importers, followed by China and Europe. Growing imports in the Indian market, due to higher demand for edible oils in the food & beverage industry, are anticipated to contribute to the market growth.

Middle East & Africa Palm Oil Market Trends

The palm oil market in the Middle East & Africa has been experiencing growth due to rising demand for cooking oils and food products. Key countries that import palm oil include Saudi Arabia, the UAE, and Egypt, which rely on palm oil for culinary and industrial uses. The region's increasing population and urbanization contribute to this demand, while sustainability concerns are prompting a shift toward certified sustainable palm oil sources.

The Nigeria palm oil market is anticipated to grow at a significant CAGR during the forecast period. Palm oil consumption in the Middle East has been on a robust growth trajectory owing to a strong economic position and growing demand for various food items from tourists and regional consumers. Furthermore, the boom in the Lagos construction sector, owing to the development of megacity projects and hospitality resources, including restaurants, hotels, and malls, has also contributed to market growth in Nigeria, especially for food & beverage applications.

Key Palm Oil Company Insights

Some of the key players operating in the market include ADM and Wilmar International Ltd., Sime Darby Plantation Berhad, and IOI Corporation Berhad.

• Archer Daniels Midland (ADM) is a global food processing and commodities trading corporation. It operates across the agricultural supply chain, handling the origination, transportation, storage, processing, and marketing of crops such as corn, oilseeds, and wheat. ADM produces ingredients used in food, beverages, animal feed, and industrial products. Headquartered in Chicago, the company has a presence in over 170 countries and manages a network of processing plants, grain elevators, and transportation assets. Its business segments include Ag Services and Oilseeds, Carbohydrate Solutions, and Nutrition.

• Wilmar International Ltd. is a Singapore-based agribusiness group engaged in palm oil cultivation, oilseeds processing, edible oils refining, sugar milling, and specialty trading. It develops and manages oil palm plantations, crushing facilities, refineries, and biodiesel plants across Asia, Africa, and Europe. The company’s product range spans edible oils, oleochemicals, specialty fats, sugar, and grains, distributed through its integrated supply chain and network of joint ventures. With operations in over 50 countries, it serves food, feed, and industrial markets. Wilmar’s structure comprises Plantation, Oilseeds, Grains, and Sugar segments, supported by global logistics and trading platforms.

Recent Developments

• In January 2025, ADM won the 2025 BIG Innovation Award for its regenerative agriculture program. Recognized for advancing sustainability, ADM integrated technology, partnerships, and farming practices to boost soil health and cut emissions. The award highlights ADM's role in building resilient food systems and addressing global environmental and supply chain challenges.

• In October 2024, IOI Corporation won Gold in The Edge Malaysia ESG Awards for reducing GHG emissions by 40% ahead of its 2025 target. This was achieved through biogas power, reforestation, and waste circularity. IOI also launched a digital ESG platform to enhance data transparency and sustainability reporting across operations.

Palm Oil Market Report Scope

Global Palm Oil Market Report Segmentation

This report forecasts revenue and 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 2030. For this study, Grand View Research has segmented the global palm oil market report based on the nature, product, end-use, and region.

• Nature Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Organic

  • Conventional

• Product Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Crude Palm Oil

  • RBD Palm Oil

  • Palm Kernel Oil

  • Fractionated Palm Oil

• End-use Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Food & Beverage

  • Personal Care & Cosmetics

  • Biofuel & Energy

  • Pharmaceuticals

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

    • Russia

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Malaysia

    • Indonesia

  • Latin America

    • Brazil

    • Argentina

    • Colombia

  • Middle East & Africa

    • Saudi Arabia

    • South Africa

    • Turkey

    • UAE

    • Oman

    • Yemen

    • Kenya

    • Nigeria

    • Ghana

    • Egypt