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.

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.

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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 rose rapidly to $88.3B in 2024, increasing by 15% against the previous year. Over the period under review, consumption continues to indicate a pronounced increase. Global consumption peaked at $98.2B in 2022; however, from 2023 to 2024, consumption remained at a lower figure.

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%.

Attributes	Description
Estimated Market Size (2025E)	USD 76.8 billion
Projected Market Value (2035F)	USD 119.1 billion
Value-based CAGR (2025 to 2035)	4.5%

Semi-Annual Market Update

Particular	Value CAGR
H1 (2024 to 2034)	4.2%
H2 (2024 to 2034)	4.3%
H1 (2025 to 2035)	4.3%
H2 (2025 to 2035)	4.5%

Country-Wise Insights

Countries	CAGR 2025 to 2035
USA	4.5%
Germany	5.0%
China	3.4%
Japan	3.7%
India	4.0%

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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

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.

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.

The Indian refined palm oil market reached $5.9B in 2024, approximately reflecting the previous year. The market value increased at an average annual rate of +3.5% over the period from 2012 to 2024; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. Refined palm oil consumption peaked at $6.3B in 2022; however, from 2023 to 2024, consumption failed to regain momentum.

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.

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.

The Brazil palm oil market size was estimated at USD 738.2 million in 2018 and is projected to register a CAGR of 13.6 % from 2019 to 2025. Significant rise in consumption owing to its cheaper prices coupled with rising awareness regarding its health benefits are anticipated to drive the market growth

This dataset provides values for PALM OIL reported in several countries. The data includes current values, previous releases, historical highs and record lows, release frequency, reported unit and currency.

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 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.

The Nigerien palm oil market was estimated at $1.3B in 2024, increasing by 5.2% against the previous year. Over the period under review, consumption continues to indicate measured growth. Over the period under review, the market hit record highs at $1.9B in 2022; however, from 2023 to 2024, consumption failed to regain momentum.

The Brazil palm oil market is projected to reach a value of 1,856.3 million by 2033, exhibiting a CAGR of 13.6% during the forecast period (2025-2033). The growth of the market is attributed to increasing demand for palm oil in the food and beverage industry, rising awareness about the health benefits of palm oil, and growing demand for palm oil-based biofuels. The market is segmented by product into crude palm oil, palm kernel oil, palm kernel cake, and palm kernel oilseed. The crude palm oil segment holds the largest market share due to its extensive use in cooking and food processing. By application, the market is divided into edible oil, cosmetics, biodiesel, lubricants, surfactants, and others. The edible oil segment dominates the market, accounting for a significant share, as palm oil is widely used in cooking and food preparation.

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

Market Research Intellect's RBD Palm Oil Market Report highlights a valuation of USD 4.2 billion in 2024 and anticipates growth to USD 6.5 billion by 2033, with a CAGR of 5.5% from 2026-2033.Explore insights on demand dynamics, innovation pipelines, and competitive landscapes.

In Q3 2025, North America, the Palm Oil Price Index rose by 4.54% quarter-over-quarter, reflecting tighter export pressures. Check detailed insights for Europe and APAC.