Palm Oil Market

Palm Oil Market Outlook (2022-2032)

The global palm oil market is anticipated to secure US$ 34.33 Billion in 2022. During the forecast period of 2022-2032, the market for palm oil is expected to display a CAGR of 4.04% while securing US$ 51 Billion.

The development of the market can be attributed to the expansion of the food processing sector and the rising population across developing markets.

Report Attributes	Details
Anticipated Base Year Value (2021)	US$ 33 Billion
Expected Market Value (2022)	US$ 34.33 Billion
Projected Forecast Value (2032)	US$ 51 Billion
Global Growth Rate (2022-2032)	4.04%
Palm Oil Providers	American Vegetable Oils Cargill Foods Inc. Grief Inc. Fuji Oil Holdings Bunge Limited. Associated British Foods Ruchi Soya Industries

Palm oil is a vegetable oil extracted from the reddish pulp or mesocarp of fruits of oil palm trees. The oil experienced significant demand for food applications progress of the market, and a notable increase in palm oil uptake in industrial applications has also been observed, making the market more dynamic.

Palm oil represents a major ingredient in almost 50% of all food and non-food items in a grocery store or supermarket owing to its technical superiority and economic benefits.

2017-2021 Revenue Analysis of Palm Oil Market vs. Future Outlook 2022-2032

From 2017-21, the global palm oil market is expected to display a CAGR of 3.9%. The expansion of the market can be attributed to the benefits offered such as preventing premature aging, boosting energy levels, enhancing eye vision, and lessening the risk of heart and cancer diseases.

The growing awareness about such health benefits among consumers is one of the major factors supporting the market expansion. Furthermore, the expanding food industry is developing the product demand as it is extensively used for frying and is a key ingredient in the preparation of healthy food. Attributed to such factors, the market for palm oil is anticipated to have shown growth opportunities during the aforementioned time period.

During the forecast period of 2022-2032, the global palm oil market is projected to expand at a CAGR of 4.04%. The development of the market can be attributed to the expanding food and beverage sector. The growing consumers demand for high-quality products is met by transparency which is expected to favor the market growth during the forecast period.

The rising demand for packaged meals is likely to benefit the market substantially. For instance, Oleo-fats Incorporated, a Philippines-based company, offers a broad range of edible oils for industrial purposes. To provide consumers with various options, the organization focuses on product development and innovation. Such factors are expected to benefit the market during the forecast period.

Major Factors Driving the Palm Oil Market Growth

Growing Demand for Convenience Food to stimulate demand for Palm Oil

Increasing demand for packaged food, bakery, and convenience food is expected to drive the demand for palm oil during the forecast period. Cakes, snacks, and pastries are gaining significant traction among consumers across the globe owing to their delicious flavors. The application of palm oil is rising for the production of such packaged foods.

Consumption of packaged food and convenience food has risen as a result of the unstable and modern lifestyle. The oil is witnessing a significant demand as it provides a distinctive taste to the food and also offers longer shelf to products.

In addition, various initiatives to expand the application is expected to benefit the industry in the forecast period. For instance, in August 2021, Malaysian tech firm DiBiz launched the world's first online marketplace for sustainable palm oil to encourage sales of products certified as environmentally compliant as buyers have avoided the more expensive goods.

The trading platform, known as Trustparent Marketplace, will link palm oil buyers and sellers across the supply chain and has additional measures for traceability to assure the industry's commitment to "No Deforestation, No Peat and No Exploitation". Such factors are projected to augment the market size in the forecast period.

Growing Initiatives by Governments to Favor the Palm Oil Market

Emerging nations are expected to make a significant contribution to developing the market during the forecast period. Developing countries like India, China, and Japan are likely to make notable contributions.

In August 2021, the Indian Prime Minister Shri Narendra Modi gave his approval to launch a new Mission on Oil palm to be known as the National Mission on Edible Oils – Oil Palm (NMEO-OP) as a new Centrally Sponsored Scheme with a special focus on the Northeast region and the Andaman and Nicobar Islands.

The scheme aims to benefit oil palm farmers, enhance capital investment, and create job opportunities. Such factors are expected to offer significant opportunities for growth in the forecast period.

Factors Hampering the Global Palm Oil Market Growth

High Price Volatility to Hamper the Palm Oil Market

The growth of the palm oil market is projected to be hampered by high price volatility and the presence of various substitutes. Further, environmental concerns such as deforestation is another salient factor that is likely to hinder the market growth in the assessment period.

On the other hand, the advent of the palm biodiesel variant is projected to counter the hampering factors and favor market growth during the forecast period.

Comparative View of Palm Oil Market

Palm Oil Market :

Attributes	Palm Oil Market
CAGR (2022-2032)	4.04%
Market Value (2032)	US$ 51 Billion
Growth Factor	Increasing demand for packaged food, bakery, and convenience food is expected to drive the demand for palm oil during the forecast period.
Opportunity	Increasing favorable initiatives by developing countries are projected to offer significant growth opportunities to the market during the forecast period.

Algal Oil Market :

Attributes	Algal Oil Market
CAGR (2022-2032)	4.7%
Market Value (2032)	US$ 3.1 Billion
Growth Factor	The growing application of algal oil in the food and beverage sector and growing inclination towards organic food products are expected to benefit the algal oil market during the forecast period.
Opportunity	Growing health consciousness along with rising environmental concerns are expected to offer significant growth opportunities in the market during the forecast period.

Cottonseed Oil Market :

Attributes	Cottonseed Oil Market
CAGR (2022-2032)	4%
Market Value (2032)	US$ 7 Billion
Growth Factor	The cottonseed oil aid in reducing the risk of abnormal heartbeats or arrhythmias, which is projected to benefit the global palm oil market during the forecast period.
Opportunity	Increasing demand for cottonseed oil in moisturizers, anti-aging, and anti-inflammatory products is expected to offer significant growth opportunities during the forecast period.

Segmentation Analysis

By End User, which Category is expected to generate Maximum Demand for Palm Oil?

Demand to emerge the strongest across the Foodservice Category

The foodservice category is expected to dominate the global palm oil market during the forecast period. In 2022, the segment is anticipated to secure about 65% of the global market revenue. The domination of the segment can be attributed to the rapid expansion of the food and beverage sector.

Furthermore, the growing usage of the product end-use applications of the sector and expanding product portfolio that demand palm oil as a raw material are expected to be other salient factors contributing to the segmental growth.

Regional Analysis

How is Increasing Demand for Vegetable Oil Affecting the Palm Oil Market in North America?

As per the analysis, the global palm market is anticipated to be dominated by North America. In 2021, the region is projected to have secured US$ 12 Billion, claiming 27% of the global revenue. The U.S is anticipated to make the maximum contribution in developing the market during the forecast period.

The rapid development of the market can be attributed to the growing preference for consuming vegetable oils. The region possesses a lot of untapped market opportunities, which is likely to present growth scope to the region in the coming time.

How is Expanding Food and Beverage Sector Benefitting the Palm Oil Market in the Asia Pacific?

As per the analysis, the palm oil market across the Asia Pacific is expected to grow at a CAGR of 7% from 2022 to 2032. The rapid development of the regional market can be attributed to the rising consumption of oil among the expanding population as well as the high demand from the end-use sectors such as food and beverage. The rapid rise in population, changing demographic trends, and diverse food applications in China and India are other salient factors driving the industry growth in the forecast period.

The product offers significant income opportunities in countries like Malaysia and Indonesia which are known producers of the product. Income from this business has helped nations in the production of palm oil to develop and advance. SMEs in these nations are solely dependent on this revenue from this oil for their livelihood. Thus, the region is projected to expand notably in the coming time.

What is the Contribution of Europe in Strengthening the Palm Oil Market?

The palm oil market in Europe is projected to display a CAGR of 4% during the forecast period. Countries such as the Netherlands, Spain, Germany, and Italy are projected to make the maximum contribution to developing the market. Other factors favoring market growth are the increasing demand for packaged food and the expansion of the food and beverage sector.

Competition Analysis

Key players in the global palm oil industry include American Vegetable Oils, Cargill Foods Inc., Grief Inc., Fuji Oil Holdings, Bunge Limited., Associated British Foods, and Ruchi Soya Industries.

Recent Development in the Market :

• In May 2022, Ruchi Soya announced the acquisition of Patanjali’s food retail business. The initiative aims to acquire Patanjali’s food retail business undertaking which comprises packaging, manufacturing, labeling, and retail trading of certain food products along with manufacturing plants located in various parts of India.
• In January 2021, Cargill Inc. announced the acquisition of ProPortion Foods. With the initiative, Cargill gained two further-processed protein plants in Round Rock, Texas, and Vernon, California. The Round Rock and Vernon facilities will deliver a variety of quality, fully-cooked protein products for Cargill’s retail and food service channel customers.

Key Segments Covered in the Palm Oil Market Study

• By Product Type :

  • Processed Palm Oil
  • Virgin Palm Oil

• By End User :

  • Foodservices
  • Food Processors
  • Retail

• By Distribution Channel :

  • Modern Trade Channels
  • Franchise Outlets
  • Specialty Stores
  • Online Channels

• By Region :

  • North America 
  • Latin America 
  • Europe 
  • Japan 
  • APEJ 
  • Middle East & Africa