Domestic palm oil consumption in the United States (U.S.) amounted to approximately 1.8 million metric tons in 2024. There has been a decrease of over 1,000 metric tons in comparison to the previous year. Palm oil in the U.S. Palm oil is an edible vegetable oil. It is used for food manufacturing as well as in non-edible products such as beauty products and biofuel. A division of palm oil usage in the U.S. by purpose type shows that the vast majority of palm oil is for edible usage. Palm oil is the third most frequently consumed type of edible oil in the United States. Americans consume about 1.8 million metric tons of palm oil, compared to about 11.6 and 2.8 million metric tons of soybean and rapeseed oil, respectively. The volume of imports of palm oil to the U.S. amounts to around 3.6 billion pounds annually. The market for palm oil worldwide Among the different types of vegetable oils consumed worldwide, palm oil is the most consumed type of vegetable oil. The worldwide consumption of palm oil amounts to more than 76.04 million metric tons. Palm oil also has the highest import volume of vegetable oils worldwide, with just under 50 million metric tons of imports annually. In total, the global production of vegetable oils is approximately 218 million metric tons and expected to increase further.

Palm Oil decreased 155 MYR/MT or 3.49% since the beginning of 2025, 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 March of 2025.

The demand for palm oil in the United States is expected to continue growing over the next decade, with the market projected to reach 2.3M tons and $2.6B in value by 2035.

This statistic depicts the estimated market share of palm oil in the United States in 2016 and 2025, by application. In 2016, the cosmetic segment held about 5.4 percent of the U.S. palm oil market share.

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Palm Oil Market Size 2025-2029

The palm oil market size is forecast to increase by USD 54.4 billion at a CAGR of 9% between 2024 and 2029.

The market presents a dynamic and complex landscape for global investors and businesses. Key drivers include the increasing consumer awareness and preference for palm oil due to its health benefits, particularly in food and cosmetic industries. This trend is expected to continue, providing significant growth opportunities for market participants. However, challenges persist, with concerns over deforestation and the resulting losses in plant diversity threatening the industry's sustainability and reputation. To navigate these challenges, companies must adopt responsible sourcing practices and invest in sustainable production methods. The emergence of a new growth avenue for palm oil in the biodiesel sector further underscores the market's potential. As the demand for renewable energy sources continues to rise, the integration of palm oil into the biodiesel value chain offers a strategic opportunity for market players. Companies seeking to capitalize on these trends and mitigate risks should focus on innovation, transparency, and collaboration with stakeholders to ensure long-term success.

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

Request Free SampleThe market encompasses the production and trade of palm fruits and their derived oils, including crude palm oil, RBD palm oil, palm kernel oil, and unrefined palm oil. Palm oil is a widely used edible vegetable oil, prominent in various industries such as food, cosmetics, and biodiesel. Its versatility is evident in its application in diverse products, from instant noodles and confectionery to soaps and cosmetics. The market size is substantial, with continued growth driven by increasing demand for edible oils, particularly in developing countries. Palm oil's affordability and high energy value make it a preferred choice for industries and households alike. However, concerns over sustainability and environmental impacts, such as deforestation and the conversion of tropical forests, have led to a growing focus on sustainable and organic production. Palm oil competes with other edible oils like rapeseed oil, mineral oil, and unrefined palm oil. Health-conscious consumers are increasingly seeking alternatives to palm oil due to its association with heart disease. Despite these challenges, the market remains dynamic, with ongoing research and development efforts aimed at improving production methods and addressing sustainability concerns.

How is this Palm Oil Industry segmented?

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. ApplicationEdible oilSurfactantsBio-dieselOthersTypeConventionalOrganicGeographyAPACChinaIndiaIndonesiaMalaysiaPakistanMiddle East and AfricaQatarUAEEuropeGermanyUKNorth AmericaSouth America

By Application Insights

The edible oil segment is estimated to witness significant growth during the forecast period.Palm oil is a widely used edible oil, predominantly sourced from the palm fruit and palm kernel. Palm fruit oil is primarily utilized for cooking and is a common ingredient in various food products, particularly in Asian markets. Compared to other hydrogenated oils, palm oil is considered healthier due to its lower trans fat content. The affordability of palm oil, as a vegetable oil, has also contributed to its expanding market share. With significant production volumes, palm oil plays a substantial role in the food processing sector. Its versatility extends beyond cooking, as it is also used in the production of instant noodles, oleochemicals, biodiesel fuel, and various consumer goods. The market encompasses both conventional and organic segments, with a growing emphasis on sustainable and eco-friendly production methods. The health benefits of palm oil, including its nutritional value and uses in personal care products, further underscore its importance in various industries.

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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.

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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Palm oil is a versatile vegetable oil derived from the fruits of the oil palm tree. The primary contributors to the expansion of the market in the APAC region are China, Australia, Thail

This statistic depicts the average annual prices for palm oil from 2014 through 2026*. In 2023, the average price for palm oil stood at 886 nominal U.S. dollars per metric ton.

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Sustainable Palm Oil Market Size 2024-2028

The sustainable palm oil market size is forecast to increase by USD 2.75 billion at a CAGR of 5.24% between 2023 and 2028.

The market is experiencing significant growth due to increasing consumer awareness and regulatory pressures regarding the detrimental effects of production of palm oil on habitats and greenhouse gas emissions. Common goods such as food, beverages, biofuels, and personal care products in the US continue to rely heavily on palm oil. 
However, the market is witnessing trends towards the adoption of sustainable cultivation methods and the availability of substitutes, including sunflower oils. The beverage industry and energy sector are major consumers of palm oil, and their shift towards sustainability is driving market growth. Companies are investing in research and development to produce palm oil with minimal environmental impact while exploring alternatives like sunflower oils to reduce dependence on palm oil.

What will be the Size of the Market During the Forecast Period?

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Sustainable palm oil is a type of vegetable oil derived from the fruits of the palm tree, grown in tropical regions. The market for sustainable palm oil has gained significant attention due to increasing concerns over deforestation, wildlife habitat destruction, and extinction. Product labeling and procurement practices play a crucial role in ensuring ethical production and minimizing the detrimental effects on the environment and social perspective. The production of palm oil, red palm oil, white palm oil, fractional palm oil, and palm kernel oil can lead to habitat damage and greenhouse gas emissions. The beverage industry, biofuel industry, and producers, exporters, and cultivators are major contributors to the palm oil market.

The demand for sustainable palm oil as a sustainable alternative to crude oil in biodiesel production is on the rise. Sustainable production practices, such as organic farming, are gaining popularity to reduce the environmental impact. Small farmers are also being encouraged to adopt sustainable farming practices to ensure long-term sustainability. The use of sustainable palm oil in common goods is becoming increasingly important to meet ethical and environmental standards. The market for sustainable palm oil is expected to grow significantly in the coming years, providing opportunities for stakeholders to contribute to the cause of sustainable production and minimize the negative impacts on wildlife and the environment.

Market Segmentation

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Type

  Edible oil
  Surfactants
  Biofuels
  Others


Distribution Channel

  Offline
  Online


Geography

  APAC

    China
    India


  Europe

    UK
    France


  Middle East and Africa



  North America



  South America

By Type Insights

The edible oil segment is estimated to witness significant growth during the forecast period. Palm oil, a widely used vegetable oil, is exported extensively from countries like Indonesia and Malaysia. However, the production of palm oil has been linked to habitat destruction, particularly in the case of peatlands. Small farmers, a significant portion of the palm oil industry, often face pressure to maximize yields, leading to unsustainable practices. In recent years, the biofuels sector's demand for palm oil has poured, contributing to the expansion of palm oil plantations. This, in turn, has led to the conversion of forests and peatlands, resulting in negative environmental impacts. Fractionated palm oil, a derivative of palm oil, is used in various industries, including food and beverage, biofuel, and energy.

The market is gaining traction as consumers and businesses seek to reduce the environmental and social impacts of palm oil production. The demand for sustainable palm oil is driven by increasing consumer awareness and the need for ethical and environmentally responsible business practices.

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The edible oil segment accounted for USD 5.98 billion in 2018 and showed a gradual increase during the forecast period.

Regional Insights

APAC is estimated to contribute 63% 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 demand for sustainable palm oil in the Asia Pacific (APAC) region has been on the rise over the past five years. This trend is driven by increasing consumer awareness of the health benefits of s

Discover the latest market trends in the United States for refined palm oil, with forecasts showing an upward consumption trend over the next decade. The market is projected to reach 9.3M tons and $11.9B in value by 2035.

Learn about the projected growth of the palm oil market in the United States, with consumption expected to increase steadily over the next decade. Market performance is forecasted to expand with a CAGR of +2.8% in volume and +4.3% in value from 2024 to 2035, reaching 2.3M tons and $2.6B respectively by the end of 2035.

This statistic depicts the average monthly prices for palm oil worldwide from January 2014 through January 2025. In January 2025, the average monthly price for palm oil worldwide stood at 1,070.31 nominal U.S. dollars per metric ton.

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

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

The palm oil market is expected to expand its roots at an average CAGR of 4.48% during the forecast period. The market is likely to hold a revenue of US$ 70.95 billion in 2023 while it is anticipated to cross a value of US$ 109.97 billion by 2033.

Country-wise Insights

Category-Wise Landscape

In 2016, the value amounted to four billion U.S. dollars and it is expected to rise to about 5.2 billion U.S. dollars by 2021.

The Price of RBD Palm Oil in China for Q4 2023 reached 992 USD/MT in December. In Malaysia, RBD palm oil prices reached 812 USD/MT in December 2023.

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 Oil Market Size Volume in South America 2023 - 2027 Discover more data with ReportLinker!

The article discusses the bleak outlook for the crude palm oil market in the United States, with shrinking demand expected to continue over the next decade. Forecasts project a decline in market volume to 29K tons and a decrease in market value to $46M by the end of 2035.

Wilmar International Limited, a Singapore based agricultural business, is the leading palm oil production company in the world, in terms of market capitalization. In 2024, Wilmar International’s palm oil market capitalization amounted nearly three billion U.S. dollars. Palm Oil Production Palm oil production is on the rise worldwide. In 2023/2024, around 76 million metric tons of palm oil were produced, a substantial increase from 58.9 million metric tons in the 2015/2016 crop year. Palm oil has been the subject of some controversy in recent years as much of the deforestation in Southeast Asia is attributed to palm oil cultivation, resulting in the deaths of countless endangered species and threatening the lives of many more. However, there are ways to produce palm oil sustainably, giving hope to that industry and wildlife activists. Uses of Palm Oil in the United States In the United States, palm oil has many different applications, including as an edible oil, as biodiesel, or in the production of cosmetics. Around 70 percent of the palm oil in the United States is used in food production or sold as a cooking oil, according to 2016 figures. Cosmetics account for a relatively small share of the palm oil market, at 5.4 percent. It is estimated that these proportions won’t change significantly by 2022.

According to Cognitive Market Research, the global Soy Oil & Palm Oil market size will be USD XX million in 2024. It will expand at a compound annual growth rate (CAGR) of 7.00% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.2% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD XX million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 9.0% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 6.4% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 6.7% from 2024 to 2031.
The biofuel category is the fastest growing segment of the Soy Oil & Palm Oil industry

Market Dynamics of Soy Oil & Palm Oil Market

Key Drivers for Soy Oil & Palm Oil Market

Growing Demand for Plant-Based Oils in Food Industry to Boost Market Growth

The increasing consumer preference for plant-based oils has been a significant driver for the soy oil and palm oil market. With a growing awareness of health benefits, consumers are opting for oils like soy and palm, which are rich in essential fatty acids and have a balanced nutrient profile. Palm oil, in particular, is widely used in processed foods, snacks, and cooking oils due to its versatility and cost-effectiveness. The rising trend towards plant-based diets, driven by concerns about animal welfare and environmental impact, further bolsters the demand for these oils. Additionally, as urbanization and income levels rise, there is a shift toward packaged foods, further increasing the demand for soy and palm oil in food processing. This growing preference in the food industry is expected to sustain the market’s growth trajectory, especially in developing economies. For instance, Corteva, Inc. (NYSE: CTVA) cements its position as a global leader in the rapidly expanding Biologicals market with today's announcement that it has closed the acquisitions of Symborg, an expert in microbiological technologies based in Murcia, Spain, and Stoller, one of the largest independent companies in the Biologicals industry, based in Houston, Texas, US

Increasing Use of Soy Oil and Palm Oil in Biofuels to Drive Market Growth

Governments worldwide are increasingly investing in biofuels as part of their energy transition plans to reduce reliance on fossil fuels and decrease carbon emissions. Both soy oil and palm oil are used in biodiesel production due to their high oil content and efficient conversion into biofuels. The adoption of biofuels is being driven by favourable regulations and incentives aimed at promoting sustainable energy. In regions like Europe and North America, biofuels are seen as a cleaner alternative to traditional diesel fuels. As countries pursue greener, more sustainable energy solutions, the demand for these oils in the biofuel sector is set to rise, creating a significant growth opportunity for soy and palm oil markets.

Restraint Factor for the Soy Oil & Palm Oil Market

Environmental and Sustainability Concerns will Limit Market Growth

The production of soy oil and palm oil faces significant scrutiny due to their environmental impact, particularly in terms of deforestation and habitat destruction. In palm oil production, large-scale deforestation in regions like Southeast Asia has led to the loss of biodiversity and contributed to climate change. Similarly, the cultivation of soybeans, particularly in South America, often results in deforestation of the Amazon rainforest. These practices have prompted global calls for more sustainable farming practices and increased pressure from environmental organizations and governments. As consumers become more environmentally conscious, demand for certified sustainable products, like certified sustainable palm oil (CSPO) or responsibly sourced soy oil, is increasing.

Impact of Covid-19 on the Soy Oil & Palm Oil Market

The COVID-19 ...