Palm Oil Market Size, Share & Trends Report

Palm Oil Market Size, Share & Trends Analysis Report By Origin (Organic, Conventional), By Product (Crude, RBD, Palm Kernel Oil, Fractionated), By End Use, By Region, And Segment Forecasts, 2020 - 2027

  • Published Date: Mar, 2020
  • Base Year for Estimate: 2019
  • Report ID: 978-1-68038-462-8
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 110

Report Overview

The global palm oil market demand was estimated 74.6 million tons in 2019 and is projected to register a volume-based CAGR of 2.3% from 2020 to 2027. Significant growth in demand for the product from end-use industries coupled with rising consumer awareness regarding positive health benefits of palm oil are expected to be the prime drivers of market growth.

Asia Pacific countries such as Malaysia and Indonesia are the top producers, accounting for more than 80% of the global production. Palm Oil Investigations states that palm oil is used in nearly 50% of all consumer products sold on a daily basis.  Increasing disposable income and rising per capita expenditure on consumer products across the geographies is driving the demand.

U.S. palm oil market

Growing concerns regarding the large-scale deforestation caused by widespread plantation has resulted in the introduction of stricter regulations governing plantation across the geographies. This factor is expected to impact market growth negatively by decreasing the plant cultivation area and yield.

Consequently, Sustainable Palm Oil Production Program (SPOPP) was launched by the governing bodies in order to control the deforestation and consequent plant diversity losses. Further, the adoption of new technologies such as advanced satellite-based technology that helps monitor deforestation has assisted to cater the above mentioned market growth restraints and is expected to create new opportunities of development for the market. It is further accelerated by the growing manufacturer’s focus towards sustainable and organic cultivation.

Origin Insights

The government across prominent palm oil plantation nations i.e. Indonesia and Malaysia are focused on sustainable and organic production. Growing consumer awareness regarding the harmful effects of agrochemicals used for the cultivation of conventional crops on environment and human health has created the demand for organic product. Organically grown crops negate the application of any kind of chemicals or agrochemicals from the point of cultivation to processing and final product packaging. Therefore, the demand for organic segment of product origin is expected to grow at a lucrative rate over the forecast period.

Product Insights

Crude palm oil (CPO) emerged as a prominent segment of the palm oil market in 2019 accounting for 58.3% of the total revenue share followed by palm kernel oil (PKO). Increasing consumption in oleo chemicals production of agrochemicals and cleaning products is expected to boost market growth over the forecast period.

PKO was one of the prominent segments in 2019 that accounted for 23.0% of the total market revenue share. The segment is expected to gain momentum owing to its beneficial properties such as 80% saturated fat content and high medium chain fatty acids (capric, lauric acids, and caprylic) content. Additionally, its exclusive use as feedstock for animal feed and biomass is projected to boost the sales of product over the forecast period.

Rest of the segments, RBD and fractionated palm oil (Olein and Stearin) also held significant shares of the market revenue in 2019. Edible oil and meals made by their application are the prime contributors of growth. Also, growing consumption of cooking oils across the geographies is contributing to the growing demand for the product.

End-use Insights

The biofuel and energy end-use segment accounted for a significant revenue share of 15.1% in 2019 and is expected witness a lucrative growth throughout the forecast period. This is anticipated to be a consequence of the rising demand for biofuels across the geographies. Biodiesel has gained tremendous popularity among consumers as an effective substitute for diesel in the past years. In terms of feedstock, palm oil is emphasized as the traditional feedstock for biodiesel production and is considered to be an economical alternative to soybean. From the starting of 2020, several policies and mandates that have been initiated in different nations are expected to change the end-user trend of market in a long run. For instance, from the 1st of Jan 2020, Indonesia increased the crude palm oil and diesel blend to 30% (B30). This mandate is likely to increase palm oil consumption in the country. Similarly, France discontinued biofuel tax, a move that would incline its economy towards biofuels or biodiesel.

Global palm oil market

The food and beverage industry is another prominent end-user, where palm oil finds major applications as edible cooking oil. It is considered as an economical alternative to other cooking oils such as the ones sourced from soybean and sunflower and has high acceptance among food processors which is expected to boost segment growth.

Regional Insights

The market includes five regions that are North America, Europe, Asia Pacific, Central and South America, and Middle East and Africa. Asia Pacific is dominant in terms of production as countries like Indonesia and Malaysia are the prominent producers. Other regions such as North America and Europe are highly dependent on imports from the Asia Pacific countries.

The product demand is expected to grow from the biofuel and energy end-use segment in Europe and North America where, the changing government mandates are increasing the penetration of biodiesel in the nations. Further, the market in these regions is expected to witness a higher demand for organic palm oil from the food and beverage and personal care and Cosmetics end-use segments.

Asia Pacific is expected to witness a significant demand for the product in industrial end-use, where palm oil finds applications in surfactants and lubricants. This is majorly driven by the prominence of industrial product manufacturing industries in China.

Palm Oil Market Share Insights

Some of the prominent market players include Wilmar; Sime Darby; IOI Corporation; Kuala Lumpur Kepong; and United Plantations Berhad. The market is fairly consolidated as some of the top players hold major share of the market in terms of revenue. Most of the companies have their own land to harvest oil kernels for easy availability of raw materials and thus are backward integrated. But few companies outsource the product.

Manufacturers have established partnership with farmers to grow palm groves for production as well as to provide training and support to produce excellent quality products. Manufacturers are focusing on creating advanced product portfolio by making significant investments in R&D activities.

Numerous corporations in this sector are constantly investing in the research activities to improve their palm oils product portfolio by supplying a broader end use application base and withstand in the market. Technological inventiveness along with extensive foreign funds in the industry are predicted to generate noteworthy opportunities for industry members across the globe.

Report Scope

Attribute

Details

Base year for estimation

2019

Actual estimates/Historical data

2016 - 2018

Forecast period

2020 - 2027

Market representation

Volume in Kilotons, Revenue in USD Million, and CAGR from 2020 to 2027

Regional Scope

North America, Europe, Asia Pacific, Latin America, Middle East & Africa

Country Scope

U.S., Canada, Germany, U.K., France, Italy, Netherlands, Spain, Russian Federation, China, India, Japan, South Korea, Malaysia, Indonesia, Brazil, Mexico, Argentina, Saudi Arabia, South Africa

Report coverage

Volume forecast, revenue forecast, competitive landscape, growth factors and trends

15% free customization scope (equivalent to 5 analysts working days)

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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 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global palm oil market report on the basis of origin, product, end-use, and region:

  • Origin Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

    • Organic

    • Conventional

  • Product Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

    • Crude Palm Oil

    • RBD Palm Oil

    • Palm Kernel Oil

    • Fractionated Palm Oil

  • End-use Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

    • Food & Beverage

    • Personal Care & Cosmetics

    • Biofuel & Energy

    • Pharmaceutical

    • Industrial (Surfactants, Lubricants, etc.)

  • Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

    • North America

      • U.S

      • Canada

    • Europe

      • Germany

      • France

      • U.K.

      • Italy

      • Netherlands

      • Spain

      • Russian Federation

    • Asia Pacific

      • China

      • India

      • Japan

      • South Korea

      • Malaysia

      • Indonesia

    • Latin America

      • Brazil

      • Argentina

      • Mexico

    • Middle East & Africa

      • South Africa

      • Saudi Arabia

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