Snapshot img

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?

Get Key Insights on Market Forecast (PDF) Request Free Sample

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.

Request Free Sample

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.

Request Free Sample

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.

See How Palm Oil Market Demand is Rising in APAC Request Free Sample

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

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.

In 2024/25, Indonesian production volume of palm oil amounted to **** million metric tons. This is more than twice as much as the production volume in Malaysia, which had the second-highest production levels worldwide in that year. Palm oil is an edible vegetable oil commonly used for food products, detergents, and cosmetics. Palm oil production worldwide The leading palm oil export markets for Malaysia are India, the European Union, and China. Almost ********** of Malaysia's palm oil exports go to these three markets. Colombia, which ranks ****** in total palm oil production worldwide, produces nearly twice as much as any other Latin American palm oil-producing country. In Nigeria, the production of palm oil has continuously increased during the last decade. The world’s leading palm oil production company, based on market capitalization, is Wilmar International Limited. The Singapore-based agricultural company's palm oil market capitalization amounted to approximately *** billion U.S. dollars in 2022. Palm oil in Indonesia Between 2013 and 2019, Indonesia’s palm oil production increased from around 28 million metric tons to about 47 million metric tons. Production levels have remained relatively steady in recent years at around 45 million metric tons. A breakdown of the palm oil production by Indonesian provinces shows that about one-fifth of Indonesia’s total palm oil production is manufactured in the province of Riau, which is more than in any other Indonesian province. Indonesian exports of palm oil amounted to approximately 26 million metric tons in 2022. India is by far the leading recipient of Indonesian palm oil. The share of Indonesia’s crude palm oil exports going to India amounted to more than three-quarters of its total crude palm oil exports.

Future Outlook and Projections for Indonesia Palm Oil Market on the Basis of Revenues in USD Billion, 2024-2029 The Indonesia palm oil market is projected to grow steadily by 2029, driven by increasing global demand for vegetable oils, government mandates for biodiesel, and advancements in sustainable production practices. This growth is expected to be supported by innovations in technology, export expansion, and regulatory measures promoting sustainability. What Lies Ahead for Indonesia Palm Oil Market?

Palm Oil Market Outlook

The global palm oil market size stood at USD 42 billion in 2023 and is projected to reach USD 65 billion by 2032, growing at a CAGR of 4.9% from 2024 to 2032. The growth of the market is significantly driven by the rising demand for sustainable and versatile vegetable oils across various industries. Palm oil is highly favored due to its cost-effectiveness and efficiency in yield compared to other vegetable oils. Moreover, its unique properties make it a vital ingredient in food production, personal care, cosmetics, and biofuel industries, further boosting its market growth. The expanding global population and the subsequent increase in food and energy demands serve as critical growth factors for the palm oil market.

One of the primary growth factors for the palm oil market is the increasing inclination towards biofuels as an alternative energy source. With growing environmental concerns and the push for reducing carbon footprints, biofuels have gained prominence, and palm oil serves as a crucial feedstock for biodiesel production. Countries across Europe and North America are investing heavily in biofuel outputs to meet clean energy policies and carbon reduction targets, reinforcing the demand for palm oil. Additionally, the energy crisis has emphasized the need for alternative energy solutions, wherein palm oil-based biofuels are gaining traction. This shift towards sustainable and eco-friendly energy sources is driving the palm oil market significantly.

Another pivotal factor propelling the palm oil market is its extensive application in the food and beverages industry. As a versatile ingredient, palm oil is used in a variety of food products ranging from baked goods, margarine, confectioneries, to frying oils. Its ability to enhance texture, flavor, and shelf-life of food products makes it indispensable. With the expanding food industry and rising consumer demand for processed and ready-to-eat meals, the utilization of palm oil is witnessing a notable upsurge. Additionally, the emerging trend of veganism and preference for plant-based diets have further fueled the demand for palm oil as a substitute for animal-based fats.

The increasing usage of palm oil in the personal care and cosmetics industry also contributes significantly to market growth. Palm oil and its derivatives are extensively used in the formulation of skincare and haircare products due to their moisturizing and nourishing properties. The global cosmetics industry has witnessed a surge in demand for organic and natural products, driving the usage of palm oil in formulations. Furthermore, the anti-aging and regenerative qualities of palm oil have bolstered its application in premium cosmetic products. The continued innovation and development of new personal care products are expected to support the growth of the palm oil market in this segment.

Regionally, the Asia Pacific dominates the palm oil market and is expected to maintain its leading position throughout the forecast period. The region's dominance can be attributed to the high consumption rates, particularly in countries like Indonesia and Malaysia, which are also the leading producers and exporters of palm oil. Meanwhile, North America and Europe are witnessing a rising demand for sustainable palm oil due to stringent regulations and increasing consumer awareness about environmental concerns. In contrast, the Middle East & Africa and Latin America are anticipated to offer lucrative growth opportunities for market players, driven by the increasing demand in food and energy sectors.

Product Type Analysis

In the palm oil market, product type segmentation plays a crucial role in understanding the diverse applications and demand patterns across various sectors. Crude palm oil (CPO) is the most significant segment, largely due to its fundamental role in food manufacturing and the production of refined palm oil. CPO is processed further to produce refined, bleached, and deodorized (RBD) palm oil, which is a staple in the cooking industry. The growth of this segment is buoyed by the rising demand in the food sector, particularly in rapidly urbanizing regions where processed foods are becoming integral to daily living.

Palm kernel oil is another vital segment, distinguished by its unique composition and fatty acid profile, making it ideal for specific industrial applications. It is prominently used in the production of non-dairy creamers, confectionery fats, and as a raw material in detergents and cosmetics. The evolving consumer preferences towards plant-based and sustainable products have increased the significance

Market Size for Indonesia Palm Oil Industry on the Basis of Revenues in USD Billion, 2018-2024 In 2023, Wilmar International announced an initiative to strengthen sustainable palm oil sourcing through digital traceability tools and collaborations with smallholder farmers. Key production regions, including Sumatra and Kalimantan, continue to dominate the market due to their favorable climatic conditions and extensive plantation infrastructure. The Indonesia palm oil market reached a valuation of USD 30 billion in 2023, driven by increasing global demand for vegetable oils, growing consumption of biodiesel, and rising awareness of sustainable palm oil production practices. Indonesia is the world's largest producer and exporter of palm oil, accounting for approximately 60% of global output. Key players in the market include Wilmar International, Golden Agri-Resources, Musim Mas, and Indofood Agri Resources, all recognized for their extensive plantation assets, strong export networks, and innovation in downstream processing.

Palm Oil Market Outlook

According to our latest research, the global palm oil market size in 2024 stands at USD 66.8 billion, registering a robust annual growth trajectory. The market is exhibiting a strong compound annual growth rate (CAGR) of 5.2% from 2025 to 2033, driven primarily by surging demand from the food and beverage sector, increasing biofuel production, and expanding applications in the personal care industry. By 2033, the palm oil market is forecasted to reach a valuation of USD 105.4 billion, highlighting its position as one of the most dynamic and influential segments within the global edible oils industry. As per our latest research, the market is being propelled by both supply-side expansions in Southeast Asia and demand-side innovations in value-added palm oil derivatives across multiple end-use industries.

One of the most significant growth factors for the palm oil market is its unparalleled versatility and cost-effectiveness compared to other vegetable oils. Palm oilÂ’s unique composition, high yield per hectare, and relatively low production costs have made it the preferred choice for food manufacturers, especially in developing economies where affordability is paramount. The global populationÂ’s increasing reliance on processed and packaged foods, where palm oil is a key ingredient due to its stability and texture-enhancing properties, continues to drive robust demand. Additionally, the shift towards plant-based diets and the growing consumer preference for trans-fat-free products have further cemented palm oilÂ’s status as a staple in the global food industry. These factors collectively ensure a steady and resilient demand base, even as the market navigates sustainability and regulatory challenges.

Another pivotal growth driver is the expanding use of palm oil in non-food applications, particularly in the biofuel and personal care sectors. Governments worldwide are implementing policies to promote renewable energy sources, and palm oil-based biodiesel is gaining traction as a viable alternative to fossil fuels. The European Union and several Asian countries have introduced blending mandates that require a certain percentage of biofuel in transportation fuels, which has significantly boosted palm oil consumption for energy purposes. In parallel, the cosmetics and personal care industry is increasingly utilizing palm oil and its derivatives for their emollient and moisturizing properties, spurred by rising disposable incomes and heightened awareness of personal grooming. These trends are expected to accelerate, supported by ongoing research into sustainable palm oil production and certification schemes that enhance traceability and consumer confidence.

Sustainability and traceability initiatives are also reshaping the palm oil market landscape, fostering growth by addressing consumer and regulatory concerns around deforestation, biodiversity loss, and labor practices. The adoption of certification programs such as the Roundtable on Sustainable Palm Oil (RSPO) and the Indonesian Sustainable Palm Oil (ISPO) standard is gaining momentum, with major producers and buyers committing to sourcing only certified sustainable palm oil. This transition is being driven by both legislative measures in key import markets and heightened corporate social responsibility commitments among global retailers and manufacturers. As these initiatives become more entrenched, they are expected to unlock new market opportunities, particularly in premium product segments and environmentally conscious consumer demographics, further bolstering the long-term growth prospects of the palm oil market.

Palm Oil Biomass is emerging as a significant byproduct of the palm oil industry, offering a sustainable solution for energy generation and waste management. The fibrous residue from palm oil processing, including empty fruit bunches, palm kernel shells, and mesocarp fibers, can be converted into bioenergy, reducing reliance on fossil fuels. This biomass is not only a renewable energy source but also contributes to the circular economy by minimizing waste and enhancing resource efficiency. As the industry seeks to improve its sustainability credentials, the utilization of palm oil biomass is gaining traction, supported by technological advancements in biomass conversion and government incentives for renewable energy projects. This development aligns with global effor

Palm Oil fell to 4,546 MYR/T on October 10, 2025, down 1.04% from the previous day. Over the past month, Palm Oil's price has risen 2.09%, and is up 4.51% compared to the same time last year, 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 October of 2025.

Indonesia is the world’s largest exporter of palm oil. In 2024, its total palm oil exports amounted to **** million metric tons, indicating a decrease from the previous year. Palm oil exports The bulk of Indonesia’s palm oil was made up of crude palm oil and refined palm oil, with crude palm oil (CPO) exports reaching around ** million metric tons in 2022. In that year, the export value of this commodity was about **** billion U.S. dollars. Main export markets The main export market for Indonesian CPO was India, which made up more than ** percent of the total CPO exports in 2022. India was in turn the world’s largest importer of palm oil in that year. In 2019, India introduced higher import duties on palm oil, leading to a decline in demand from this market. However, Indonesian palm oil exports were buffeted by increased demand from China, which sought alternative vegetable oil supplies due to restrictions caused by the trade war with the U.S.

In 2024, the domestic consumption of palm oil in Indonesia was forecasted to reach around ***** million metric tons. This is expected to increase significantly in the coming years, resulting from the planned expansion of palm oil usage in biodiesel. Indonesian palm oil production Indonesia’s domestic palm oil consumption in that year was but a fraction of the volume of palm oil it produced. Most of the palm oil produced were exported to larger markets, such as India and China. Indonesia is the largest producer and exporter of palm oil globally, including for crude palm oil exports and its derivatives. Crude palm oil as basis for biodiesel In December 2019, President Joko Widodo launched a program to implement the mandatory use of biodiesel with 30 percent bio-content, derived from crude palm oil. This was part of a plan to reduce Indonesia’s energy imports. The consumption of biodiesel had increased exponentially in the last ten years and was estimated to reach *** million liters in 2020. The production of biodiesel in Indonesia had already reached a six-year high as of the third quarter of 2019. In 2020, the biodiesel program would be further expanded to allow the use of biodiesel with higher bio-content, such as B40 and B50 mixes. This would ensure a steady demand for Indonesia’s palm oil, which is currently facing threats of weaker demand from the European Union. It was projected that the value-added from using CPO for biodiesel would reach **** trillion Indonesian rupiah in 2020.

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...

Snapshot img

Sustainable Palm Oil Market Size 2025-2029

The sustainable palm oil market size is forecast to increase by USD 2.54 billion, at a CAGR of 4.7% between 2024 and 2029.

The market is experiencing significant growth, driven by the increasing demand for trans-fat-free products among health-conscious consumers. This trend is leading to a rise in the adoption of sustainable palm oil as a viable alternative to its traditional counterpart. Furthermore, advancements in sustainable cultivation methods are making palm oil production more environmentally friendly, addressing concerns over deforestation and carbon emissions. However, the market faces challenges, including the rising availability of substitutes such as soybean and sunflower oils.
Sustainable palm oil's growing popularity presents a significant market potential for businesses committed to producing and supplying eco-friendly products, while navigating the challenges posed by substitutes and evolving consumer preferences. However, the market faces challenges, including the rising availability of substitutes for sustainable palm oil, such as soybean and sunflower oils. Companies seeking to capitalize on this market's opportunities must stay abreast of these trends and address the challenges effectively through innovation, strategic partnerships, and sustainable business practices.

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

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
Request Free Sample

The market continues to evolve, shaped by dynamic market forces and shifting industry trends. The complex interplay of carbon emissions, processing technologies, and palm oil derivatives drives innovation in areas such as carbon offsets and renewable energy targets. Palm kernel shells and fiber waste are increasingly being repurposed for biodiesel production and biogas generation, reducing the environmental footprint of palm oil production. Sustainability certifications, such as those focusing on sustainable agricultural practices and peatland protection, are gaining traction. Animal feed and food applications remain significant sectors, with a growing emphasis on traceability systems and supply chain transparency. Palm kernel oil, fresh fruit bunches, and crude palm oil are integral components of this evolving landscape.

Land use change, disease control, and pest management are ongoing concerns, with a focus on sustainable sourcing and brand image. The food industry's increasing demand for sustainable palm oil drives the adoption of segregated palm oil and renewable energy in palm oil mills. Storage facilities and transportation logistics are optimized to minimize water usage and waste. Sustainable agriculture, social impact assessments, and community engagement are essential elements of the circular economy. Renewable energy, biogas generation, and wastewater treatment are integrated into palm oil mill operations to minimize carbon emissions and reduce the environmental footprint. The market's continuous dynamism underscores the importance of ongoing monitoring systems for labor practices, biodiversity conservation, and deforestation monitoring.

How is this Sustainable Palm Oil Industry segmented?

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

Type

  Edible oil
  Surfactants
  Biofuels
  Others


Distribution Channel

  Offline
  Online


End-user

  Household
  Commercial
  Industrial


Geography

  North America

    US


  Europe

    France
    Germany
    UK


  APAC

    China
    India
    Indonesia
    Malaysia
    Pakistan


  Rest of World (ROW)

By Type Insights

The edible oil segment is estimated to witness significant growth during the forecast period. Sustainable palm oil production is gaining momentum in the edible oil market due to rising consumer awareness and preference for environmentally responsible and ethically sourced ingredients. This shift is driven by the increasing recognition of the environmental and social issues linked to traditional palm oil production methods. The focus on sustainable practices encompasses various aspects, such as the use of advanced processing technologies, carbon emissions reduction, fair wages for laborers, and effective fiber waste management. Water usage is minimized through recycling processes, while biodiesel production from palm kernel shells contributes to renewable energy targets. Harvesting methods prioritize supply chain transparency and disease control, ensuring the health of oil palm trees and the protection of biodiversity.

Sustainable agricultural practices, including pest manage

Palm Oil Market Outlook

According to our latest research, the Global Palm Oil market size was valued at $71.5 billion in 2024 and is projected to reach $109.8 billion by 2033, expanding at a CAGR of 4.8% during 2024–2033. The palm oil market continues to experience robust growth, primarily driven by the increasing demand for versatile and cost-effective edible oils in both developed and emerging markets. Palm oil’s unique properties, wide availability, and its role as a critical ingredient in food processing, personal care products, and biofuels are fueling its global expansion. Furthermore, ongoing innovations in sustainable cultivation and processing methods are expected to further bolster market growth, addressing both environmental concerns and regulatory requirements.

Regional Outlook

The Asia Pacific region dominates the global palm oil market, accounting for the largest share of over 60% of total market revenue in 2024. This region’s leadership is anchored by the presence of major palm oil-producing countries such as Indonesia and Malaysia, which together supply nearly 85% of the world’s palm oil. The mature infrastructure, favorable agro-climatic conditions, and supportive government policies in these countries have fostered a thriving industry. Additionally, the presence of large-scale processing facilities and robust export networks has enabled Asia Pacific to maintain its competitive edge in the global market. The region’s extensive use of palm oil in food manufacturing, personal care, and industrial applications further cements its market dominance.

The fastest-growing region in the palm oil market is Latin America, which is projected to register a CAGR of 6.1% between 2024 and 2033. Countries such as Colombia, Guatemala, and Brazil are investing heavily in expanding their palm oil plantations and modernizing processing facilities. These investments are driven by increasing domestic demand, favorable climatic conditions, and the desire to diversify agricultural exports. Latin America’s palm oil industry is also benefiting from growing interest in sustainable production practices and certifications, which help attract environmentally conscious buyers from North America and Europe. The region’s proximity to key export markets and its focus on improving supply chain efficiency are expected to further accelerate growth.

Emerging economies in Africa are witnessing increased adoption of palm oil cultivation, although they face unique challenges such as limited access to modern farming technologies, land tenure issues, and inconsistent government support. Despite these hurdles, countries like Nigeria and Ghana are making concerted efforts to revitalize their palm oil industries through policy reforms and public-private partnerships. Localized demand for affordable edible oils and the potential for export-driven growth are encouraging smallholder participation. However, the success of these initiatives hinges on addressing infrastructural bottlenecks, improving access to quality seedlings, and fostering sustainable agricultural practices. The African palm oil market is poised for gradual growth as these challenges are addressed and international investment flows into the sector.

Report Scope

Export values and market shares for Indonesia’s palm oil buyers, led by India and China.

Global crude palm oil market analysis for 2024-2035: consumption to reach 93M tons, market value to hit $95.7B. Key insights on production, trade, and leading countries Indonesia and Malaysia.

Palm Oil Derivatives Market Outlook

The global palm oil derivatives market size in 2023 is estimated at USD 35 billion, with a projected growth to reach USD 58 billion by 2032, exhibiting a CAGR of 5.5% from 2024 to 2032. The robust growth of this market is primarily driven by the increasing demand for sustainable and versatile ingredients in various industrial applications, including food and beverages, personal care and cosmetics, pharmaceuticals, and others.

One of the key factors fueling the growth of the palm oil derivatives market is the wide application spectrum of these derivatives. Palm oil derivatives such as palm kernel oil, palm kernel cake, and oleochemicals are extensively utilized in the food and beverage industry due to their excellent cooking properties, stability, and cost-effectiveness. Moreover, the rising global population and the subsequent increase in food consumption requirements bolster the demand for palm oil derivatives, thereby driving market growth.

Another significant growth driver is the increasing consumer awareness and preference for natural and sustainable products. With a growing emphasis on eco-friendly and sustainable sourcing, industries are shifting towards the use of palm oil derivatives that are sustainably produced and certified by organizations such as the Roundtable on Sustainable Palm Oil (RSPO). This trend is particularly evident in the personal care and cosmetics industry, where there is a high demand for natural ingredients, boosting the usage of palm oil derivatives.

The cultivation of Date Palm has been integral to the agricultural landscape in many regions, particularly in the Middle East and North Africa. This ancient crop is renowned not only for its sweet fruit but also for its economic and cultural significance. In recent years, the global interest in Date Palm has surged due to its nutritional benefits and versatility in various culinary applications. The fruit is rich in essential nutrients and is often used in health foods and natural sweeteners. Furthermore, the by-products of Date Palm, such as its fibers and seeds, are being explored for innovative uses in sustainable packaging and biofuel production. This growing interest in Date Palm aligns with the broader trend towards sustainable and natural ingredients, complementing the demand for palm oil derivatives.

Technological advancements and innovations in the production and processing of palm oil derivatives also play a crucial role in market expansion. Improved extraction and refining techniques have led to higher yield and better quality of derivatives, making them more attractive for industrial use. Additionally, ongoing research and development activities are focused on developing new applications and enhanced functionalities of palm oil derivatives, further driving market growth.

Regionally, the Asia Pacific holds a dominant position in the palm oil derivatives market, accounting for significant market share. The region's dominance can be attributed to the extensive cultivation of palm oil in countries like Indonesia and Malaysia, which are the leading producers globally. Additionally, the high demand for palm oil derivatives in the food and beverage industry and the growing personal care and cosmetics sector in this region contribute to its prominent market position. North America and Europe are also notable regions with substantial market shares, driven by the increasing adoption of sustainable ingredients and the robust industrial sectors.

Palm Kernel Expeller (PKE) is an important by-product of the palm oil extraction process, primarily used as a high-protein feed ingredient in the livestock industry. Its nutritional profile makes it a valuable addition to animal diets, particularly for cattle and poultry. The increasing demand for sustainable and cost-effective animal feed solutions has led to a rise in the utilization of PKE. This trend is supported by the expanding animal husbandry sector and the emphasis on optimizing feed efficiency. Additionally, the environmental benefits of using PKE, such as reducing waste and promoting circular economy practices, further enhance its appeal. As the palm oil industry continues to innovate, the role of Palm Kernel Expeller in sustainable agriculture is expected to grow.

Product Type Analysis

The palm oil derivatives market is se

The global crude palm oil market expanded modestly to $72.3B in 2024, picking up by 4.1% against the previous year.

Explore crude palm oil Indonesia export from 2018 to early 2025 and what awaits.

Red Palm Oil Market Outlook

According to our latest research, the global red palm oil market size reached USD 13.4 billion in 2024, reflecting robust demand across multiple industries. The market is expected to grow at a CAGR of 5.1% during the forecast period from 2025 to 2033, reaching an estimated USD 20.9 billion by 2033. The consistent growth trajectory is primarily driven by rising consumer awareness regarding the health benefits of red palm oil, its expanding utilization in the food and beverage sector, and increasing application in personal care and pharmaceutical products. As per our latest research, sustainability initiatives and technological advancements in extraction and refining processes are also playing a significant role in shaping the marketÂ’s future growth outlook.

One of the primary growth factors for the red palm oil market is the increasing awareness of the oilÂ’s nutritional profile, particularly its rich content of antioxidants such as tocotrienols and carotenoids. These compounds are known for their health-promoting properties, including supporting cardiovascular health, improving immune function, and providing anti-inflammatory benefits. As consumers worldwide become more health-conscious, there is a discernible shift towards natural and minimally processed oils, with red palm oil gaining traction as a preferred choice. Furthermore, the rising prevalence of lifestyle-related diseases has prompted food manufacturers to reformulate products with healthier ingredients, thereby boosting the adoption of red palm oil in processed foods, spreads, and cooking oils.

Another critical driver is the expanding application scope of red palm oil beyond the food industry, particularly in cosmetics, personal care, and pharmaceuticals. The oilÂ’s unique composition makes it an attractive ingredient in skincare and haircare formulations, offering moisturizing and antioxidant properties that appeal to consumers seeking natural beauty solutions. Pharmaceutical companies are also leveraging red palm oilÂ’s bioactive compounds in developing supplements and functional foods aimed at improving overall wellness. Additionally, the animal feed industry has recognized red palm oil as a valuable energy source, thus expanding its market base. This diversification of applications not only strengthens the marketÂ’s resilience but also opens up new revenue streams for manufacturers and suppliers.

Sustainability and responsible sourcing have become central themes in the red palm oil market, influencing both consumer preferences and corporate strategies. Increasing scrutiny over deforestation and environmental impact has led to the adoption of certification schemes such as RSPO (Roundtable on Sustainable Palm Oil), which promote sustainable cultivation and fair trade practices. Companies investing in traceable supply chains and eco-friendly production processes are gaining a competitive edge, as environmentally conscious consumers and regulatory bodies demand greater transparency. This shift towards sustainability is fostering innovation in extraction technologies and encouraging the development of value-added products, further propelling market growth.

The Ita Palm Fruit, native to South America, is gaining attention for its potential to complement the red palm oil market. Known for its rich nutrient profile, the Ita Palm Fruit offers a unique blend of vitamins and antioxidants, making it an attractive ingredient for both food and cosmetic applications. As consumers increasingly seek natural and health-promoting products, the incorporation of Ita Palm Fruit into red palm oil formulations could enhance the oil's nutritional value and appeal. This synergy not only broadens the application scope of red palm oil but also aligns with the growing trend of utilizing exotic fruits in global markets. By exploring the benefits of Ita Palm Fruit, manufacturers can tap into new consumer segments and drive innovation in product development.

Regionally, the Asia Pacific region dominates the red palm oil market, accounting for the largest share in both production and consumption. Countries like Indonesia and Malaysia are major producers, while rising disposable incomes and changing dietary habits in China and India are driving demand. North America and Europe are witnessing steady growth due to increasing health awareness and the i