Palm Oil Market Size, Share & Trends Analysis Report By Nature (Organic & Conventional), By Product (RBD Palm Oil), By End-use (Pharmaceuticals), By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global palm oil market size was valued at USD 63.7 billion in 2021 and is anticipated to grow at a compound annual growth rate (CAGR) of 5.1% in terms of revenue from 2022 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 the Asia Pacific region due to the ease of availability of raw materials in the region. The market is highly competitive as well as comprehensive in nature owing to the presence of a large number of all-scale players who try to gain a competitive edge over others with their high production, superior distribution networks, product quality, and various competitive strategies.

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

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

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

Nature Insights

Conventional segment dominated the market with a revenue share of more than 99% in 2021. This is attributable to the low price and easy availability of the segment. Conventional oil palm farms are a crucial source of income for the small and medium-size 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. 

Contemporary to conventional nature segment is organic nature segment which holds a very little share of the market due to difficulties in production which reduce the availability of the product in the market. The stringent regulations for the production as well as very expensive products necessary for the production such as specialized soil maintenance product 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 a rapid growth rate. 

Product Insights

Fractionated palm oil segment dominated the market with a revenue share of over 39% in 2021. This is attributable to the ease of availability of the product and economically feasible prices. It is very popular in low-income countries as it is abundantly available as well as affordable for the masses. The constituent nature of the product makes it more affluent to manufacture in large quantities.

Another major product segment following the fractionated palm oil product segment is the Crude Palm Oil (CPO) product segment which added a substantial share of 25% to the global revenue 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 the market demand. There is also significant demand for CPO from cosmetics, and pharmaceuticals end-use industries as it is a crucial ingredient for the production of many products from these industries.

End-use Insights

Food & beverages dominated the market with a revenue share of more than 65% in 2021. Its high share is attributable to increasing usage of the product end-use applications of the industry and increasing product portfolios that demand palm oil as a raw material. The rise in the global population has also affected the global product growth boosting the product demand in the international market.

With a scanty difference between their revenue share following the food and beverage end-use segments are personal care & cosmetics and biofuel & energy end-use segments. These are growing segments and are expected to attain prompt growth in the coming years as the advancement of technologies will occur.

The personal care & cosmetics end-use segment has a moderate growth rate and is expected to contribute significantly to the global revenue share by the end of the forecast period. In 2021, the segment contributed 16% to the global revenue share of the product market. The diversification in the product portfolios and increasing demand for organic and sustainable products that are plant-based is expected to drive the demand for this segment.

Contrary to the personal care & cosmetics segment which is an established market biofuel is a budding market that is expected to gain its full potential in the foreseen 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 convention fuels can become a light of hope for the energy industry.

Regional Insights

Asia Pacific region dominated the market with a revenue share of over 71% in 2021. This is attributed to the growing consumption by the rising population of the region as well as high demand from the end-use applications industries such as food & beverage industries. The rapid increase in population, changing demographic trends, and diverse food applications in India and China is accountable for the high consumption of palm oil in the region.

This product is a major source of income for the countries like Indonesia and Malaysia which are large producers globally. Income from this business had helped the countries producing palm oil to develop and advance. Small and medium players in these countries are solely dependent on this revenue from this oil for their livelihood. During the forecast period the product market in the region of expected to grow rapidly owing to increased demand from a growing population.

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

Key Companies & Market Share Insights

The global palm oil market is consolidated and highly competitive. The prices of the product in the international market are highly volatile and are affected by international crude oil prices. The market has the presence of multinational companies such as ADM and Wilmar International Ltd. which make the market more competitive. Major players have acquired plantations or contracts with the cultivators to ensure a constant supply of raw materials. Volatility in the prices of the raw material adversely affects the profitability of the product. 

The product manufacturers are engaged in continuous R&D activities, capacity expansion, mergers & acquisitions, and other strategies to gain a competitive advantage over others. For example, In November 2019, PT. Mahkota Group acquired a palm oil mill in South Sumatra, through its 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. Some prominent players in the global palm oil market include:

• ADM

• Wilmar International Ltd.

• Sime Darby Plantation Berhad

• IOI Corporation Berhad

• Kuala Lumpur Kepong Berhad

• United Plantations Berhad

• Kulim (Malaysia) Berhad

• IJM Corporation Berhad

• PT Sampoerna Agro, Tbk

• Univanich Palm Oil Public Company Ltd.

• PT. Bakrie Sumatera Plantations tbk

• Asian Agri

Palm Oil Market Report Scope

Segments Covered in the Report

This report forecasts revenue 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  nature, product type, end-use, and region:

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

  • Organic

  • Conventional

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

  • CPO

  • RBD Palm Oil

  • Palm Kernel Oil

  • Fractionated Palm Oil

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

  • Food & Beverage

  • Personal Care & Cosmetics

  • Biofuel & Energy

  • Pharmaceuticals

  • Others

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

  • North America

    • U.S.

    • Mexico

    • Canada

  • Europe

    • Germany

    • U.K.

    • France

    • Spain

    • Italy

    • Russia

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Malaysia

    • Indonesia

  • Central & South America

    • Brazil

    • Argentina

    • Colombia

  • Middle East & Africa

    • South Africa

    • Saudi Arabia