The global palm kernel oil market size attained a value of USD 15.80 Billion in 2024. The market is expected to grow at a CAGR of 4.30% between 2025 and 2034, reaching almost USD 24.07 Billion by 2034.

This statistic shows the production volume of palm kernel oil worldwide from 2012/13 to 2024/25. In 2023/24, the global production volume of palm kernel oil amounted to **** million metric tons. This is forecast to increase to about **** million metric tons in 2024/25.

Refined Palm Kernel Oil Market Outlook

The global market size for refined palm kernel oil is projected to grow significantly from USD 8.5 billion in 2023 to USD 12.3 billion by 2032, exhibiting a CAGR of 4.1%. One of the primary growth factors contributing to this market expansion is the increasing demand for sustainable and versatile vegetable oils in various industries, including food and beverages, personal care, and cosmetics.

One of the key growth drivers for the refined palm kernel oil market is its widespread application in the food industry. The oil's high stability and long shelf life make it an ideal ingredient for baked goods, confectionery, and snacks. Additionally, the growing consumer preference for plant-based and natural ingredients in food products is further fueling the demand for refined palm kernel oil. Innovations in food processing and increased health consciousness are also contributing to market growth, as consumers seek healthier alternatives to traditional cooking oils.

Another significant growth factor is the rising utilization of refined palm kernel oil in the personal care and cosmetics industry. The oil's moisturizing properties and rich content of lauric acid make it a popular ingredient in skin care and hair care products. As consumers increasingly prioritize natural and sustainable products, manufacturers are incorporating refined palm kernel oil into their formulations. This trend is expected to continue driving market growth, as the beauty and personal care sector continues to expand globally.

Industrial applications of refined palm kernel oil are also contributing to market expansion. The oil's unique chemical properties make it suitable for use in the production of biodiesel, lubricants, and surfactants. The growing emphasis on sustainable and eco-friendly industrial processes is leading to increased adoption of palm kernel oil as a raw material. Additionally, the versatility of refined palm kernel oil in various industrial applications is expected to drive its demand in the coming years.

Regionally, the Asia Pacific region holds the largest share of the refined palm kernel oil market, driven by high production and consumption in countries such as Malaysia and Indonesia. The region's strong agricultural base and favorable climatic conditions support palm oil cultivation, contributing to market growth. Additionally, the rising population and increasing disposable incomes in Asia Pacific are boosting the demand for food products, personal care items, and industrial goods, further driving the market. North America and Europe are also significant markets, with a growing demand for sustainable and natural ingredients in various industries.

In recent years, Brazil has emerged as a significant player in the global palm oil market, particularly with its focus on sustainable practices. The country's vast agricultural landscape and favorable climate conditions make it an ideal location for palm oil cultivation. Brazil Palm Oil is gaining attention due to its commitment to reducing deforestation and promoting environmentally friendly farming techniques. This approach not only enhances the country's reputation in the international market but also aligns with the growing consumer demand for sustainable and ethically sourced products. As Brazil continues to invest in sustainable palm oil production, it is expected to play a crucial role in meeting the increasing global demand for palm oil, while also contributing to the preservation of biodiversity and local ecosystems.

Product Type Analysis

The refined palm kernel oil market can be segmented into RBD (Refined, Bleached, and Deodorized) palm kernel oil, fractionated palm kernel oil, and hydrogenated palm kernel oil. RBD palm kernel oil is one of the most widely used forms, known for its purity and versatility. It undergoes a refining process that removes impurities, resulting in a high-quality product suitable for various applications. The demand for RBD palm kernel oil is driven by its extensive use in the food industry, particularly in baking and frying, where its high smoke point and stability are advantageous.

Fractionated palm kernel oil is another significant segment, produced by separating the oil into its liquid and solid components through controlled cooling. This process results in oils with different melting points, making them suitable for specific applications such as confectionery and cosmetics

Palm Kernel Oil Market Outlook 2032

The global palm kernel oil market size was USD 15.0 Billion in 2023 and is likely to reach USD 21.7 Billion by 2032, expanding at a CAGR of 4.14% during 2024–2032. The market growth is attributed to the increasing demand for plant-based oils and the versatile applications of palm kernel oil.



Increasing demand for plant-based oils is a significant driver for the palm kernel oil market, fueled by shifting consumer preferences toward healthier and sustainable dietary choices. Consumers are increasingly opting for oils that are perceived as natural and beneficial for health,as awareness of the health benefits associated with plant-based diets grows.

Palm kernel oil, with its high content of medium-chain fatty acids and other beneficial nutrients, is gaining popularity as a healthier alternative to animal fats and some other vegetable oils that are higher in unsaturated fats. This trend is reinforced by the rising vegan and vegetarian populations globally, as well as by consumers looking to reduce their environmental impact, since plant-based oils generally have a lower carbon footprint compared to animal-based fats.

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  In March 2023, KTCachieved a new milestone in sustainability by obtaining RSPO sustainable segregated certification for its hard palm kernel oil (HPKO). This certification ensures that the palm derivative used in HPKO is sourced exclusively from RSPO SG-certified suppliers. It is ideal for use in ice cream and confectionery products. HPKO is crafted from 100% vegetable oil, specifically palm and palm kernel oils. It is vegan-friendly and low in trans fats, making it a versatile and adaptable product that caters to a broad spectrum of dietary needs.

  
  

Palm Kernel Oil Market Dynamics

Major Drivers

The global Palm Kernel Oil market stood at approximately 7700 thousand tonnes in 2024 and is anticipated to grow at a CAGR of 5.08% during the forecast period until 2035.

Global Palm Kernel Oil Market size worth at USD 14.68 Billion in 2023 and projected to USD 21.41 Billion by 2032, with a CAGR of around 4.28% between 2024-2032.

Global Palm Kernel Oil Market Size Volume by Country, 2023 Discover more data with ReportLinker!

According to Cognitive Market Research, the global palm and palm kernel oil market size will be 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 an...

Forecast: Palm Kernel Oil Market Size Volume in South Korea 2024 - 2028 Discover more data with ReportLinker!

Palm Kernel Acid Oil Market Outlook

The global palm kernel acid oil market is anticipated to witness significant growth, with the market size projected to expand from approximately USD 1.2 billion in 2023 to USD 1.9 billion by 2032, growing at a compound annual growth rate (CAGR) of 5.7% during the forecast period. The increasing demand for sustainable and bio-based products is a major growth factor driving this market. The diverse applications of palm kernel acid oil, ranging from food and beverages to personal care and industrial applications, underscore its importance across various sectors. This multi-faceted demand, combined with the push for eco-friendly and renewable resources, illustrates the potential for considerable market expansion over the coming years.

One of the primary growth factors for the palm kernel acid oil market is the increasing consumer preference for natural and organic ingredients, particularly in the personal care and cosmetics industry. As consumers become more aware of the potential harm caused by synthetic chemicals in their daily products, there is a marked shift towards using oils and ingredients derived from natural sources. Palm kernel acid oil, known for its emollient properties, is increasingly used in skincare and haircare products, driving demand in this segment. Additionally, the oil’s unique fatty acid composition makes it a versatile ingredient in numerous formulations, boosting its popularity among formulators and manufacturers alike.

Another significant growth driver is the expanding food and beverage industry, which is continuously exploring new ingredients to enhance product quality and appeal. Palm kernel acid oil is often used as an emulsifier and stabilizer in various food items, thereby increasing its utility in this sector. The oil’s ability to improve texture and extend the shelf life of food products makes it an attractive choice for food manufacturers. Moreover, as plant-based diets and veganism gain traction globally, palm kernel acid oil is being adopted as a substitute for animal-derived oils, further propelling its demand in the food industry. This trend is expected to continue as more consumers opt for sustainable and ethical food choices.

The industrial application of palm kernel acid oil also contributes to market growth, particularly in the production of biofuels and lubricants. As global industry regulations tighten around carbon emissions and environmental impact, industries are increasingly turning to bio-based solutions. Palm kernel acid oil, with its renewable nature and biodegradability, offers an alternative to traditional petroleum-based products. This shift not only aids in reducing environmental footprints but also opens new avenues for market expansion. Additionally, the oil's chemical properties make it suitable for use in the production of detergents and surfactants, broadening its industrial applications.

Regionally, the Asia Pacific market holds a dominant share in the palm kernel acid oil industry, driven by the abundance of palm oil plantations and significant production capacity in countries like Indonesia and Malaysia. The region benefits from favorable climatic conditions and government initiatives promoting the palm oil industry, thus ensuring a steady supply of raw materials. Additionally, the growing population and rising disposable incomes in emerging markets within Asia Pacific are boosting demand for various applications of palm kernel acid oil, particularly in food, personal care, and industrial sectors. This regional dominance is expected to continue, supported by robust manufacturing infrastructure and increasing investment in sustainable agriculture.

Product Type Analysis

The palm kernel acid oil market is segmented into two primary product types: crude palm kernel acid oil and refined palm kernel acid oil. The crude palm kernel acid oil segment represents the initial stage of processing, where the oil is extracted directly from the kernel without further refining. This type is often characterized by its higher content of impurities and natural compounds, which can sometimes be advantageous for specific industrial applications that require minimal processing. Industries engaged in producing biofuels and certain types of lubricants may prefer crude palm kernel acid oil due to its cost-effectiveness and natural properties.

Refined palm kernel acid oil, on the other hand, undergoes a series of purification processes to remove impurities and enhance its quality. This type of oil is predominantly used in sectors that require higher purity levels, such as the food and be

Explore Market Research Intellect's Crude Palm Kernel Oil Market Report, valued at USD 4.5 billion in 2024, with a projected market growth to USD 6.2 billion by 2033, and a CAGR of 4.5% from 2026 to 2033.

In Q1 2025, the Palm Kernel Oil (PKO) market in North America experienced a gradual transition from initial supply constraints to a more balanced environment. At the beginning of the quarter, low inventory levels and limited shipments from major producing nations created upward pressure on prices. However, as the quarter progressed, revised production forecasts from key exporters like Malaysia and Indonesia eased earlier concerns. The improved supply outlook helped stabilize the market, while demand-side factors remained sluggish, leading to a generally soft pricing environment.

Latin America Palm Kernel Oil Market is expected to grow during 2025-2031

Discover the latest market trends in Japan's palm kernel oil industry and learn about the projected growth in consumption over the next decade. By 2035, the market volume is expected to reach 80K tons and the market value to hit $107M in nominal prices.

Forecast: Palm Kernel Oil Market Size Volume Per Capita in China 2024 - 2028 Discover more data with ReportLinker!

Learn about the anticipated growth in the palm kernel and babassu oil market in Asia, with projections of a +1.1% increase in volume and +2.6% increase in value by 2035.

Explore the projected growth of the palm kernel oil market in the European Union, with an expected increase in consumption over the next decade. Anticipated CAGR rates for both volume and value indicate a positive trend, reaching 758K tons and $1B respectively by 2035.

palm kernel oil and coconut oil-based natural fatty acids market worth at $7.16 Bn in 2024, is surpass $11.46 Bn by 2034, a CAGR of 4.5% from 2025 to 2034.

Discover how the demand for palm kernel and babassu oil in Latin America and the Caribbean is driving market growth, with market volume projected to reach 702K tons and market value to reach $935M by 2035.

Crude Palm Kernel Oil Market Outlook

The global crude palm kernel oil market size was valued at approximately USD 8.1 billion in 2023 and is projected to reach USD 13.8 billion by 2032, growing at a compound annual growth rate (CAGR) of 6.1% during the forecast period. Key growth factors driving this market include rising demand for edible oils, increasing applications in the biofuel sector, and expanding use in the cosmetics and pharmaceutical industries. The versatility and cost-effectiveness of crude palm kernel oil make it a pivotal ingredient in multiple domains, presenting significant growth opportunities.

One of the major growth factors for the crude palm kernel oil market is the booming food industry. With an ever-increasing global population and rising disposable incomes, there is a growing demand for nutritious and cost-effective edible oils. Crude palm kernel oil, known for its high saturated fat content, is extensively used in cooking and food processing. This oil's long shelf life and stability at high temperatures make it an attractive option for manufacturers. Additionally, the oilÂ’s neutral flavor makes it suitable for a range of culinary applications, further boosting its demand in the food sector.

Another significant growth driver for the crude palm kernel oil market is the biofuel industry. As the world shifts towards renewable energy sources, biofuels are gaining traction as a cleaner and more sustainable alternative to fossil fuels. Crude palm kernel oil is increasingly being used as a feedstock for biodiesel production due to its high oil content and relatively low cost. Governments across various regions are introducing policies and incentives to support biofuel production, which in turn is augmenting the demand for crude palm kernel oil. This trend is expected to continue over the forecast period, thereby fueling market growth.

The cosmetics and pharmaceutical industries also significantly contribute to the growth of the crude palm kernel oil market. In cosmetics, the oil is valued for its moisturizing properties and is commonly used in the formulation of soaps, lotions, and creams. Its anti-inflammatory and antioxidant properties make it a popular ingredient in skincare products. In the pharmaceutical sector, crude palm kernel oil is utilized for its medicinal benefits, including anti-microbial and anti-fungal properties. The growing consumer awareness regarding the benefits of natural and organic ingredients in personal care products is expected to drive the market further.

In addition to its widespread use in various industries, Plum Kernel Oil is gaining attention as a valuable alternative in the cosmetics sector. Known for its rich emollient properties and high content of nourishing fatty acids, Plum Kernel Oil is increasingly being incorporated into skincare products. Its ability to deeply moisturize and rejuvenate the skin makes it a sought-after ingredient in creams, lotions, and serums. The oil's antioxidant properties also help in protecting the skin from environmental stressors, making it a popular choice for natural and organic beauty formulations. As consumer demand for sustainable and effective skincare solutions grows, Plum Kernel Oil is poised to become a staple in the beauty industry.

Regionally, the Asia Pacific region holds the largest share of the crude palm kernel oil market, driven by significant production capacities in countries such as Indonesia and Malaysia. These countries are among the leading producers and exporters of palm kernel oil, benefiting from favorable climatic conditions and robust agricultural practices. Furthermore, the growing economies in the Asia Pacific region are witnessing an increase in the consumption of edible oils and biofuels, further propelling market growth. North America and Europe are also witnessing substantial growth due to the rising demand for organic and natural ingredients in food and cosmetics, coupled with supportive biodiesel policies.

Product Type Analysis

The crude palm kernel oil market is segmented into edible oil and non-edible oil based on product type. The edible oil segment holds a dominant share owing to its extensive use in cooking and food processing industries. Crude palm kernel oil is valued for its high saturated fat content, making it stable at high temperatures and ideal for frying and baking. The long shelf life of this oil further adds to its attractiveness in the food industry. With the rising global population and increasing dispo