Palm Kernel Expellers (PKE) Market

Palm Kernel Expellers (PKE) Market Outlook (2025 to 2035)

The global palm kernel expellers (PKE) market is expected to be valued at USD 6,806.8 million in 2025 and will expand at a noteworthy CAGR 4.2% to end up at USD 10,271.1 million by 2035.

The market for Palm Kernel Expellers is exposed to consistent growth worldwide, attributed to its wide range of applications as an integral ingredient in animal feed, more so in the poultry and livestock industries. PKE is a low-cost, high-protein feed solution obtained by the extraction of palm kernel oil, which is a sustainable crop input utilized to meet the increasing global demand.

Urbanization and population growth have risen the demand for dairy and meat, consequently driving the demand for quality feed for animals. The increase in the application of sustainable farming methods is increasing demand for PKE, as it is consistent with the principles of a circular economy through the utilization of by-products in an effective manner.

Southeast Asia remains the key production region, with Indonesia and Malaysia in the lead, whereas there is more and more demand in North America and Europe as well as emerging agri-business economies in areas of Africa. All major players have also focused on increasing the efficiency of extraction and on searching for new markets for PKE, particularly the bioenergy industry. The prospects of the market are rosy with increasing worldwide efforts towards building sustainable and effective food.

Report Attributes	Details
Palm Kernel Expellers market Size (2024A)	USD 6,532.4 Million
Estimated Market Value (2025E)	USD 6,806.8 Million
Forecast Market Value (2035F)	USD 10,271.1 Million
Global Market Growth Rate (2025 to 2035)	4.2% CAGR
United States Market Growth Rate (2025 to 2035)	3.8% CAGR
Key Companies Profiled	Asian Agri Group; Bumitama Agri; Cargill Palm Oil; Felda Global Ventures; First Resources; Genting Plantations; Golden Agri-Resources; Goodhope Asia Holdings; Indofood Sukses Makmur; IOI Corporation; KLK Oleo; MP Evans Group; Multi Austral Sejahtera; Musim Mas Group; Permata Hijau Group; Salim Ivomas Pratama; Sampoerna Agro; Sime Darby Plantation; Triputra Agro Persada; Wilmar International; Other Prominent Players.

Historic Analysis (2020 to 2024) and Future (2025 to 2035) Pathway Analysis for the Market

A predictive analysis was conducted on the market, for the forecast period of 2025 to 2035, with a historical growth rate of 3.8% from 2020 to 2024. The anticipated growth (2025 to 2035) will rise by 4.2% at a CAGR.

Historical Report Attributes	Details
Market Size (2020A)	USD 5,627.1 million
Market Size (2024A)	USD 6,532.4 million
Historical CAGR (2020 to 2024)	3.8%
Forecasted CAGR (2025 to 2035)	4.2%

• Short Term (2025 to 2028): During this period, the market is will experience moderate growth with the increasing demand for palm oil and its by-products. Greater emphasis on sustainable sourcing and green practices will spur innovation and efficiency in PKE production, increasing market competition and regional demand, particularly in Asia.
• Medium Term (2028 to 2031): In the medium term, the market will profit from improved processing technology and world trade. Use of PKE as a source of renewable energy, animal nutrition, and industry use will expand. Changes in regulation towards sustainability may spur increase in eco-certified PKE production, enlarging market potential.
• Long Term (2031 to 2035): This will be the period of strong growth for the market due to heightened global concern over the environment and bioenergy demands. Market trends will be dictated by sustainability policies and the role of palm oil in circular economies. Waste minimization, substitute uses, and adoption of greener practices will most likely characterize the market.

On the back of the aforementioned facts, the market is anticipated to grow at a CAGR of 4.8% during the forecast period from 2025 to 2035, According to the Fact.MR, a market research and competitive intelligence provider.

Market Dynamics

Growing Livestock Numbers across the World Propelling the Need for Protein-Dense Animal Feed

The growth in the global livestock is one of the key drivers for the expansion of the market. The growing population and shift in dietary habits are compelling an increase in livestock rearing as the demand for meat, dairy, and other animal products continues to grow. This therefore increases the demand for a source of protein in animal feed to keep them healthy and productive.

PKE is a by-product of the production of palm oil. It is a very profitable and friendly component of feed to the ecosystem, rich in protein and fibre, which farmers widely love. Its wide usage in the rearing of livestock, poultry, and fish farming fuels demand. From rapid growth in new markets with surging demand in the Asia-Pacific, Africa, and Latin American regions, livestock farming now represents the most important livelihood source.

PKE feed is reasonably economical compared to other traditional feeds, which makes it attractive where the price is relevant, thus the resulting greater global demand for this feed product.

Rising Palm Oil Cultivation Ensures Abundant PKE Supply as a By-Product, Meeting Global Feed Demand

The growth in palm oil production directly affects the supply of PKE at all levels resulting from the production process. Today, palm oil production are essential input to be found in such different applications as foodstuffs and cosmetics up to the newer area of biodiesel in Asia, Africa, and South America.

The surplus became the most sought-after feedstock, especially in regions that hold the dairy and meat industries paramount. This surplus has even assisted exporters in meeting the increased demand overseas, which even enhanced PKE's presence in the market. It goes well with the principles of sustainability since PKE reduces waste from the palm oil sector through its use as an economic tool.

What are The Challenges Encountered by Manufacturers of PKE?

Sustainability Concerns and Certification Compliance

Manufacturers of Palm Kernel Expellers (PKE) have enormous pressure to comply with sustainable standards, such as the Roundtable on Sustainable Palm Oil (RSPO) certification. The palm oil industry has been criticized for contributing to deforestation, loss of biodiversity, and environmental degradation.

With global sensitivity to the issue of environmental sustainability, manufacturers are now pressured into making sure their manufacturing methods align with high-level sustainability criteria. Adherence to such certifications requires expenditure on sustainable agriculture practices, waste management efficiency, and traceability systems that might increase operational expenses.

Non-compliance risks damaging reputations and limiting access to markets, especially from green consumers and companies. Therefore, the intricacies of certification procedures continue to be a primary challenge for PKE manufacturers looking to maintain market share and attract responsible buyers.

Country-wise Insights

The following table shows the estimated growth rates of the top three territories. China and India are set to exhibit high consumption, recording CAGRs of 6.2% and 5.3%, respectively, through 2035.

Country	CAGR, 2025 to 2035
The U.S.	3.8%
Germany	4.0%
India	5.3%
Japan	2.4%
China	6.2%

Federal Incentives for Sustainable Agriculture Encourage PKE Integration in Animal Feed in the United States

Federal incentives for environmentally friendly agriculture performance a significant role in the adoption of PKE by the US feed sector. Some incentives include subsidized credits and grants as well as federal tax credits to provide greater environmental benefits while promoting renewability and cost-effectiveness from feed sources.

In the context of increasing feed prices and increased environmental legislation, PKE has emerged as a highly desirable feed for animal producers because of its higher nutritional content compared to grain feed and lower carbon impact.

Integration of PKE in formulations to meet sustainability goals, and government support ensures stable supply chain relations with the major producing countries of palm, thus reducing dependence on domestic raw material supply. Federal programs align economic value with environmental objectives, resulting in a two-way benefit: it improves the U.S. feed sector and supports long-term agricultural sustainability, making PKE a foundation of sustainable farming practices.

Demand Outlook in India

India's demand for palm kernel expellers is poised to take a significant rise forward, as India continues to grow at a beyond compare rate in the livestock and dairy sectors, which is the largest consumer of feed in the world. The shift to protein-rich, affordable alternatives like palm kernel expellers has completely revised the marketplace.

Major catalysts to the growth of PKE usage are increased cattle farming for the sustainable increase in milk production and the growth of poultry for protein demands. The initiatives of the Government in encouraging self-reliance in agriculture, feed production, and usage of PKE catalyse the market demand.

The growing capacities and the technological upgradations of feed mills further strengthen the usage of PKE in India. The geographical proximity of palm oil-producing countries with the improvement in import logistics further makes PKE an economical option. Together, all the above factors place India as the country's prime growth centre in the global market for PKE supported by a strong agricultural economy and increasing protein demand amongst all sections.

China Has Increasing Feed Diversification Including PKE as A Critical Ingredient for Growth

As China's feed market becomes increasingly diversified, palm kernel expellers (PKE) will become a significant player in the country's agricultural future. As livestock and aquaculture expand to address the protein demand, producers will look further afield for cheap yet efficient feed alternatives. PKE is not only nutritious but also works well in a variety of feed formulations.

Chinese feed millers are incorporating PKE into their feed formulations to enhance quality while lowering costs. This trend is further supported by government policies that promote green and innovative farming practices. Robust trade ties with palm-producing countries provide a steady supply of PKE, which keeps the supply chain from being interrupted.

With advances in feed-making technology continuously developing and larger modern feed mills pushing in many different directions, PKE perfectly complements China's aspirations for sustainable agriculture and food security, making the company an integral component of the country's changing agricultural picture.

Category-Wise Insights

The Rising Livestock Population Boosting Demand for the Conventional Protein-Rich Feed Solution

Segment	Nature (Conventional)
Value Share (2024)	73.2%

The worldwide growth in livestock has tremendously amplified the demand for conventional protein-rich feed sources such as Palm Kernel Expellers, as livestock farming increases to match rising demands for meat, dairy products, and other animal-based products, it is essential to have affordable feed materials that are nutritionally dense to support growth.

The richness of proteins and fibres in traditional PKE makes it a popular choice for feeding livestock, particularly ruminants such as cattle and goats, as it aids in the encouragement of healthy growth and superior performance.

Feed sources such as PKE are more readily available and less expensive than other specialty feed sources. The use of these feeds enhances feed conversion efficiency, leading to improved resource utilization. A steady global supply of PKE allows improving constant feed production to boost farmers' confidence in meeting their animals' nutritional needs and keeping expenses low.

Animal Feed Dominates the Palm Kernel Expellers (PKE) Market Due to Its High Consumption Rate

Segment	Application (Animal Feed)
Value Share (2024)	43.2%

The animal feed segment occupies the largest share in the global palm kernel expeller market, because this commodity is very much consumed for its inexpensiveness and nutritious value to be an ingredient in livestock feeds. In fact, protein-rich and containing fibre, PKE is the best cattle, poultry, and swine feeding feed due to the superior digestibility and growth performance in animals.

Rising worldwide consumption of meat and dairy products, led by developing economies in the Asia-Pacific and Africa, necessitates cheap feed solutions, for which PKE is a natural replacement for expensive feeds like soybean meal.

Southeast Asia, mainly Indonesia and Malaysia, is the main producer of PKE and exports large volumes to Europe and North America to feed their agribusiness growth. In addition, sustainability initiatives advocating the judicious use of by-products support the position of PKE in circular agriculture. Its lead in animal feed will therefore remain uninterrupted with increasing livestock production and increasing consciousness to optimize farming costs.

Competition Outlook

The competition landscape of the palm kernel expellers (PKE) market is intense. Wilmar International, Cargill Palm Oil, and Golden Agri-Resources are the major market players and contribute significantly in terms of R&D investment as well as further towards the creation of innovative sustainable feed concepts to tackle the market. Such companies also seek to multiply the investment that they can dedicate to the efficient manufacturing of developing palm kernel expellers (PKE), growth rates, as well as the environment.

• In March 2024, Sime Darby Plantation Bhd, the world's largest palm oil producer, expects at least a 5% increase in production next year on better automation and recruitment of locals to reduce dependency on foreign workers for operational efficiency.
• In 2022, Wilmar International Ltd.’s WILSOL SPF booster, a plant based biodegradable sun care ingredient, won the silver prize in the functional category at the 2024 in-cosmetics Asia innovation awards, recognizing its innovation and sustainability.

Segmentation of Palm Kernel Expellers Industry Research

• By Nature :

  • Conventional
  • Organic

• By Product Type :

  • Crude PKE
  • Refined PKE
  • Organic PKE
  • Conventional PKE

• By Application :

  • Animal Feed Industry
  • Food Processing
  • Biofuel Production
  • Cosmetics and Personal Care
  • Pharmaceuticals

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa