Palm Oil fell to 4,372 MYR/T on October 27, 2025, down 1.09% from the previous day. Over the past month, Palm Oil's price has fallen 0.27%, and is down 3.49% 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.

The Palm Oil Market report segments the industry into Product Type (Palm Kernel Oil, Crude Palm Oil, Others), Nature (Conventional, Organic), Application (Food & Beverages, Pharmaceuticals, Personal Care & Cosmetics, Biofuels, Others), and Geography (North America, Europe, Asia-Pacific, South America, Middle East & Africa). Includes historical data and five-year forecasts.

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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

The global palm oil market is expected to grow from USD 76.8 billion in 2025 to USD 119.1 billion by 2035, reflecting a CAGR of 4.5%.

Semi-Annual Market Update

Country-Wise Insights

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

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

Palm Oil Market reaching USD 119.65 billion by 2034 from USD 73.40 billion in 2024 | 5.0% CAGR, Unlock high-yield tropical crop innovations reshaping biodiesel production & packaged food industry applications.

Global Palm Oil Market is projected to reach USD 98.7 Billion by 2034, with a 4.3% CAGR from 2025 to 2034.

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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.
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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

India Palm Oil Market was valued at USD 8.20 Billion in 2025 and is expected to reach USD 10.89 Billion by 2031 with a CAGR of 4.89%

The global crude palm oil market expanded modestly to $72.3B in 2024, picking up by 4.1% against the previous year. Overall, the total consumption indicated temperate growth from 2012 to 2024: its value increased at an average annual rate of +3.4% over the last twelve years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2024 figures, consumption decreased by -9.7% against 2022 indices.

Palm Oil Market size is expected to reach USD 105.22 Bn by 2032, from USD 71.38 Bn in 2025, exhibiting a CAGR of 5.7% during the forecast period 2025-2032

Global Palm Oil market size 2021 was recorded $60.405 Billion whereas by the end of 2025 it will reach $74.26 Billion. According to the author, by 2033 Palm Oil market size will become $112.232. Palm Oil market will be growing at a CAGR of 5.298% during 2025 to 2033.

Available data formats for the Palm Oil Market Size, Share, Opportunities, And Trends By Type (Crude Oil, Refined), By Industry Verticals (Food and Beverage, Personal Care, Energy and Power, Others), By Distribution Channel (Online, Offline), And By Geography - Forecasts From 2025 To 2030 report.

In 2023, domestic market sales accounted for 73 percent of the total sales of palm oil in Colombia, while the export markets accounted for 27 percent. Edible oils and fats accounted for almost half of the total sales of palm oil in the country that year. That year, the crude palm oil production value reached over 1.8 million metric tons, and the area of oil palm cultivated surpassed 590 thousand hectares.

Global palm oil market worth at USD 66.85 Billion in 2024, is expected to surpass USD 106.84 Billion by 2034, with a CAGR of 4.8% from 2025 to 2034.

Forecast: Palm Oil Market Size Volume in Philippines 2023 - 2027 Discover more data with ReportLinker!

By 2035, the Palm Oil Market is estimated to expand to USD 133.4 Billion, showcasing a robust CAGR of 5.4% between 2025 and 2035, starting from a valuation of USD 74.8 Billion in 2024.

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

The Colombia palm oil market attained a volume of 1.81 MMT in 2024. The industry is expected to grow at a CAGR of 1.70% during the forecast period of 2025-2034 to attain a volume of 2.14 MMT by 2034.