Palm Oil rose to 4,134 MYR/T on December 2, 2025, up 1.00% from the previous day. Over the past month, Palm Oil's price has risen 0.46%, but it is still 18.56% lower than a year ago, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. Palm Oil - values, historical data, forecasts and news - updated on December of 2025.

This statistic depicts the average annual prices for palm oil from 2014 through 2027*. In 2025, the average price for palm oil stood at 1,020 nominal U.S. dollars per metric ton.

Indonesia International Indicators: International Commodity Price: Crude Palm Oil (CPO) data was reported at 1,070.597 USD/Metric Ton in Feb 2025. This records an increase from the previous number of 1,039.440 USD/Metric Ton for Jan 2025. Indonesia International Indicators: International Commodity Price: Crude Palm Oil (CPO) data is updated monthly, averaging 678.477 USD/Metric Ton from Jan 2014 (Median) to Feb 2025, with 134 observations. The data reached an all-time high of 1,652.529 USD/Metric Ton in Mar 2022 and a record low of 435.238 USD/Metric Ton in Nov 2018. Indonesia International Indicators: International Commodity Price: Crude Palm Oil (CPO) data remains active status in CEIC and is reported by Bank Indonesia. The data is categorized under Indonesia Premium Database’s Monetary – Table ID.KAI002: Financial System Statistics: Macroeconomic Indicator.

Graph and download economic data for Global price of Palm Oil (PPOILUSDM) from Jan 1990 to Jun 2025 about oil, World, food, and price.

This statistic depicts the average monthly prices for palm oil worldwide from January 2014 through October 2025. In October 2025, the average monthly price for palm oil worldwide stood at ******** nominal U.S. dollars per metric ton.

Get the latest insights on price movement and trend analysis of Crude Palm Oil in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East Africa).

Monthly and long-term palm oil price data (US$/mt): historical series and analyst forecasts curated by FocusEconomics.

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Palm Oil Market Size 2025-2029

The palm oil market size is valued to increase USD 54.4 billion, at a CAGR of 9% from 2024 to 2029. Increasing consumer awareness regarding health benefits of palm oil will drive the palm oil market.

Major Market Trends & Insights

APAC dominated the market and accounted for a 73% growth during the forecast period.
By Application - Edible oil segment was valued at USD 54.00 billion in 2023
By Type - Conventional segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 92.90 billion
Market Future Opportunities: USD 54.40 billion
CAGR : 9%
APAC: Largest market in 2023

Market Summary

The market encompasses the production, refining, and distribution of palm oil and its derivatives. This dynamic market is driven by the increasing demand for palm oil in core applications, such as food, cosmetics, and biodiesel. According to recent reports, the food industry accounts for approximately 65% of palm oil consumption, with the biodiesel sector emerging as a significant growth avenue. However, the market faces challenges from environmental concerns, particularly regarding deforestation and plant diversity losses. In 2020, it was estimated that around 10 million hectares of forest were lost due to palm oil cultivation. Despite these challenges, opportunities for sustainable production and innovative technologies continue to unfold, ensuring the market remains a vital and evolving sector in the global economy.

What will be the Size of the Palm Oil Market during the forecast period?

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How is the Palm Oil Market Segmented and what are the key trends of market segmentation?

The palm oil industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Application

  Edible oil
  Surfactants
  Bio-diesel
  Others


Type

  Conventional
  Organic


Geography

  Europe

    Germany
    UK


  Middle East and Africa

    Qatar
    UAE


  APAC

    China
    India
    Indonesia
    Malaysia
    Pakistan


  Rest of World (ROW)

By Application Insights

The edible oil segment is estimated to witness significant growth during the forecast period.

Palm oil, a widely used edible oil, holds significant importance in various industries, particularly in Asia. Approximately 45% of global palm oil production is attributed to palm fruit oil, primarily used in food processing due to its lower trans fat content and cost-effectiveness. Palm kernel oil, the other form, accounts for around 25% of the production. The food sector's reliance on palm oil is increasing, with an estimated 67% of its usage in food manufacturing. Moreover, the environmental impact of palm oil production is a growing concern. To address this, initiatives focusing on deforestation monitoring, water use efficiency, extraction rate optimization, and carbon footprint reduction are gaining traction.

The industry is also investing in soil nutrient management, palm oil byproducts utilization, and traceability systems to enhance supply chain transparency. The market's future growth is promising, with an anticipated 20% increase in demand for palm oil byproducts in the next five years. Additionally, there is a rising trend towards sustainable palm oil production, with RSPO certification becoming increasingly common. Oil palm cultivation is also evolving, with the adoption of high-yielding varieties, integrated pest management, and oil palm genetics. In terms of production processes, improvements in palm oil fractionation, fertilizer application techniques, biodiesel production, and irrigation efficiency are essential for maintaining competitiveness.

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The Edible oil segment was valued at USD 54.00 billion in 2019 and showed a gradual increase during the forecast period.

Furthermore, biomass utilization and palm oil refining are being explored to minimize waste and optimize resource utilization. Smallholder farmers are also receiving support to improve their productivity and sustainability through various initiatives. These efforts aim to ensure the long-term viability of the palm oil industry while minimizing its environmental impact.

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Regional Analysis

APAC is estimated to contribute 73% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The market in the Asia Pacific (APAC) region experiences significant growth, driven by the expanding economies of China, Australia, Thailand, South Ko

Nigeria Commodity Price: Palm Oil data was reported at 873.670 USD/Metric Ton in Jun 2024. This records an increase from the previous number of 859.150 USD/Metric Ton for May 2024. Nigeria Commodity Price: Palm Oil data is updated monthly, averaging 762.830 USD/Metric Ton from Jan 2009 (Median) to Jun 2024, with 186 observations. The data reached an all-time high of 1,776.960 USD/Metric Ton in Mar 2022 and a record low of 483.490 USD/Metric Ton in Sep 2015. Nigeria Commodity Price: Palm Oil data remains active status in CEIC and is reported by Central Bank of Nigeria. The data is categorized under Global Database’s Nigeria – Table NG.P001: Commodity Prices.

View monthly updates and historical trends for Malaysia Palm Oil Price. Source: World Bank. Track economic data with YCharts analytics.

According to Cognitive Market Research, the global palm and palm kernel oil market size was USD 15240.5 million in 2024. It will enlarge at a compound annual growth rate (CAGR) of 5% from 2024 to 2031.

North America held the majority market share for more than 40% of the global revenue with a market size of USD 6096.2 million in 2024 and will prosper at a compound annual growth rate (CAGR) of 3.2% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 4572.2 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 3505.3 million in 2024 and will thrive at a compound annual growth rate (CAGR) of 7% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 762 million in 2024 and will flourish at a compound annual growth rate (CAGR) of 4.4% from 2024 to 2031.
Middle East & Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 304.8 million in 2024 and will heighten at a compound annual growth rate (CAGR) of 4.7% from 2024 to 2031.
The refined type is the fastest-growing category of the palm and palm kernel oil industry.

Market Dynamics of Palm and Palm Kernel Oil Market

Key Drivers for Palm and Palm Kernel Oil Market

Rising Consumption of Palm Oil in Food Processing and Manufacturing to Promote Market Share

Palm oil is a highly versatile ingredient extensively used in food processing due to its stability, long shelf life, and cost-effectiveness. Its ability to remain stable at high temperatures makes it ideal for frying, and its semi-solid consistency at room temperature eliminates the need for hydrogenation, thus reducing trans fats. These qualities make palm oil a key ingredient in products such as margarine, baked goods, snacks, instant noodles, and ready-to-eat meals. In addition to its practical benefits, palm oil is also a more economical alternative to other vegetable oils, as it yields more oil per hectare compared to alternatives like soybean or sunflower. This makes it a preferred choice for large-scale food manufacturers aiming to keep costs low while maintaining the quality and consistency of their products. The neutral taste and versatile texture of palm oils enable it to be used in a wide range of products without altering the flavor profile, making it an essential ingredient in many processed foods.

Increased Use of Palm Oil for Biodiesel Production as a Renewable Energy Source to Drive Market Growth

Palm oil has emerged as a key feedstock for biodiesel production, which aligns with the global push for renewable energy solutions to combat climate change. Biodiesel derived from palm oil is renewable, biodegradable, and has a high energy output compared to other biofuels. Its production is particularly significant in countries like Indonesia and Malaysia, which account for the majority of global palm oil output. These countries have implemented government mandates and incentives to promote palm oil-based biodiesel, both for domestic use and export. The appeal of palm oil for biodiesel lies in its cost-effectiveness and high oil yield per hectare, which is considerably greater than that of alternative feedstocks like soy or rapeseed. As nations seek to reduce their reliance on fossil fuels and meet carbon reduction targets, biodiesel has become a critical component of energy strategies, especially in the transportation and industrial sectors.

Restraint Factor for the Palm and Palm Kernel Oil Market

Competition from Alternative Vegetable Oils like Soy and Sunflower Oil to Limit Market Size

The palm & palm kernel oil market faces significant competition from alternative vegetable oils, such as soy, sunflower, and canola oils. These oils are widely used in food processing, cosmetics, and industrial applications, and they offer alternatives to palm oil in many products. Some consumers view alternatives like sunflower or canola oil as healthier choices, as they tend to have lower saturated fat content compared to palm oil. This has led to a shift in consumer preferences, especially in markets where health-conscious buying trends are increasing. As the demand for plant-based products rises, manufacturers are increasingly exploring substitutes for palm oil in response to both health and environmental concerns. The increased availability and pr...

Sunflower Oil rose to 1,426.40 INR/10 kg on December 2, 2025, up 0.68% from the previous day. Over the past month, Sunflower Oil's price has risen 0.79%, and is up 8.44% compared to the same time last year, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. This dataset includes a chart with historical data for Sunflower Oil.

Palm and Palm Kernel Oil Market Outlook

The global palm and palm kernel oil market size was valued at approximately USD 65 billion in 2023 and is projected to reach around USD 108 billion by 2032, growing at a CAGR of 6%. This significant growth is driven by the increasing demand for palm oil in multiple industries, including food and beverages, personal care, and biofuel sectors, as well as its cost-effectiveness and versatile application range compared to other vegetable oils.

One of the primary growth factors of the palm and palm kernel oil market is its extensive use in the food and beverage industry. Palm oil's semi-solid nature at room temperature and its stability at high temperatures make it an ideal ingredient in many food products, from margarine and baked goods to frying oils. The growing global population, coupled with rising disposable incomes, has resulted in increased consumption of processed and packaged foods, which in turn fuels the demand for palm oil.

Another significant growth factor is the increasing utilization of palm oil in the personal care and cosmetics industry. Palm oil and its derivatives are commonly used in the formulation of soaps, shampoos, lotions, and other skincare products due to their moisturizing properties and ability to produce a creamy texture. As consumers become more conscious of the ingredients in their personal care products, the demand for sustainably sourced palm oil is also expected to rise, prompting manufacturers to seek eco-friendly and ethical options.

The biofuel industry also contributes to the market's growth. Governments worldwide are increasingly adopting policies that promote the use of biofuels as an alternative to fossil fuels in an effort to reduce greenhouse gas emissions and combat climate change. Palm oil is a key feedstock for biodiesel production due to its high yield and relatively low production costs. Consequently, the drive for renewable energy sources is anticipated to spur demand for palm oil-based biofuels, further boosting market growth.

Palm Acid Oil, a by-product of palm oil refining, is gaining attention due to its potential applications in various industries. It is primarily used in the production of biodiesel, where its fatty acid content makes it an efficient and cost-effective feedstock. The growing emphasis on renewable energy sources and the need for sustainable alternatives to fossil fuels have positioned Palm Acid Oil as a valuable resource in the biofuel sector. Additionally, its use in the manufacture of soaps and detergents highlights its versatility and economic viability. As industries continue to explore eco-friendly solutions, Palm Acid Oil is expected to play a significant role in meeting the demand for sustainable raw materials.

From a regional perspective, Asia Pacific dominates the palm and palm kernel oil market due to the presence of leading producers like Indonesia and Malaysia, which together account for a substantial portion of the global supply. Additionally, the region's high population density and growing middle class drive the consumption of palm oil in food and personal care products. Other regions, such as North America and Europe, are witnessing increased demand driven by the biofuel sector and the consumer shift towards natural and organic ingredients in personal care products.

Product Type Analysis

In the palm and palm kernel oil market, the product type segment can be divided into four key categories: crude palm oil, palm kernel oil, refined palm oil, and fractionated palm oil. Crude palm oil (CPO) is the unrefined form of palm oil extracted from the fruit of the oil palm tree. This type of oil is rich in carotenoids, which give it a distinctive reddish color. It is primarily used as an intermediate product in the production of refined palm oil, but it also finds direct applications in various food processing industries. The demand for CPO is driven by its lower cost compared to other vegetable oils and its versatility in different industrial applications.

Palm kernel oil, extracted from the seeds of the oil palm fruit, differs significantly in composition from crude palm oil. It is higher in saturated fats and is often utilized in the manufacture of non-edible products such as soaps, detergents, and cosmetics. The demand for palm kernel oil is particularly strong in the personal care and cosmetics industry due to its excellent moisturizing properties and ability to create a crea

As of December 2024, the average monthly price for crude palm oil in Malaysia was approximately 5,120 Malaysian ringgit per metric ton, an increase compared to the same period in the previous year. The average price of Malaysian crude palm oil has been increasing in that year.

The global production of palm oil was around ***** million metric tons in the marketing year 2023/24, decreasing from approximately ***** million metric tons in 2022/23. In that period, Indonesia and Malaysia were the leading exporters of palm oil worldwide. Leading palm oil producers Palm oil grows mainly in Asia, Africa and Latin America. Indonesia and Malaysia are the main palm oil producers, followed by Thailand, Colombia, and Nigeria. Unsurprisingly, Indonesia and Malaysia have the largest certified area planted with palm trees. In 2017, the Roundtable on Sustainable Palm Oil (RSPO) certified area planted with palm trees in Indonesia reached *** million hectares, up from **** million hectares in 2016. Global market Import volume of palm oil has increased worldwide over the past few years. According to the World Bank, in 2021, the average price for palm oil stood at ***** nominal U.S. dollars per metric ton. It is expected to drop to about ***** nominal U.S. dollars per metric ton by 2024.

The size of the Africa Fats and Oil Market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 4.49% during the forecast period. The Africa fats and oils market encompasses the production, processing, distribution, and consumption of edible fats and oils across the African continent. This market includes a diverse range of products derived from both vegetable and animal sources, such as palm oil, soybean oil, sunflower oil, canola oil, and animal fats. In Africa, palm oil is a dominant component due to its widespread cultivation in countries like Nigeria, Ghana, and Côte d'Ivoire, where it plays a crucial role in local diets and economies. Soybean oil and sunflower oil are also significant, driven by both domestic production and imports to meet the growing demand for edible oils. The market is influenced by factors such as population growth, urbanization, and changing dietary preferences, which increase the demand for processed and convenience foods. Additionally, the market is impacted by agricultural practices, trade policies, and economic conditions, which affect the supply chain and pricing of fats and oils. Regional variations exist within the market, with different countries focusing on specific oil types based on local agricultural resources and consumption habits. As the market evolves, stakeholders are focusing on enhancing production efficiency, sustainability, and meeting the diverse needs of a rapidly changing consumer base. Recent developments include: March 2023: Wilmar International Ltd (WILMAR) initiated the construction of an edible oil plant located in Richards Bay, KwaZulu-Natal, South Africa. This USD 81 million project encompasses the development of a fractionator, a shortening plant, and a packaging facility. Notably, this endeavor commenced in 2020., July 2022: Eni introduced the first vegetable oil production facility for biorefining in Kenya. This venture involved the establishment of an oilseed collection and pressing plant, which marked the inception of vegetable oil production for bio-refineries., June 2021: WA Group made a substantial investment of USD 114 million in a processing plant aimed at boosting edible oil production in Ethiopia. This strategic investment enabled the company to cease importing edible oils and, instead, focus on refining crude palm oil sourced from other countries, as well as processing locally cultivated oilseeds such as sesame seeds, peanut seeds, niger seeds, soya beans, and haricot beans.. Key drivers for this market are: Wide Applications of Oils and Fats in Different End-Use Industries, Government Initiatives and Key Players Adopting Innovative Market Expansion Strategies. Potential restraints include: Volatility in Imports and Supply Chain of Oils. Notable trends are: Wide Applications of Oils and Fats in Different End-Use Industries.

Palm Acid Oil Market was valued at USD 1.25 Billion in 2024 and is expected to reach USD 2.25 Billion by 2032, growing at a CAGR of 6.7% during the forecast period of 2026-2032.Global Palm Acid Oil Market DriversThe market drivers for the Palm Acid Oil Market can be influenced by various factors. These may include:Growing Demand from the Animal Feed Sector: High nutritional value and cost-effectiveness of palm acid oil are anticipated to drive its usage in livestock and poultry feed formulations.Increasing Production of Biodiesel: Rising use of palm acid oil as a low-cost feedstock in biodiesel manufacturing is expected to boost market growth, particularly in Europe and Southeast Asia.High Availability of Palm-Based Byproducts: Large-scale palm oil processing activities in countries like Indonesia and Malaysia are projected to result in an increased supply of palm acid oil.