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Around the world, a variety of products use palm oil. Palm oil is valued for its adaptability and thus palm oil market is increasing. It is used in everything from food to cosmetics, cleaning supplies, and even biofuel. A substantial portion of the worldwide vegetable oil market is made up of palm oil and palm kernel oil blends, which compete with other oils like soybean. Its primary applications include those of cooking oil, a component of household goods (such as processed meals, detergents, and cosmetics), and biodiesel.
The Palm Oil Market is showing growth at a CAGR of 5.19% in 2021 and is expected to witness a robust growth rate at a CAGR of 6.69% during the period 2023 to 2028. The market is valued at USD 67.11 Billion in 2021 which is expected to reach in 2028 at USD 104.73 Billion. When demand is broken down by worldwide regions, Asia is by far the biggest and fastest-growing consumer of palm oil, accounting for two-thirds of global consumption in 2021, with a significant portion of all palm oil going to the food industry coming from India, China, and Indonesia. The consumption of palm oil in the United States and the European Union (EU) is about proportional; however, the demand in the EU is significantly higher. The demand for palm oil will continue to rise, especially in Asia, in part because it is less expensive than other vegetable oils and is marketed as being healthier.
The Global Palm Oil Market is expected to grow in the forecast period and register a market value of USD 104.73 billion in 2028 at a CAGR of 6.69% during the forecast period. The most common vegetable oil used in food and industrial purpose worldwide is still palm oil. Expanded global demand for palm oil from China, the European Union, and many other nations is supported by more production and lower pricing. The two countries that produce the most palm oil are Indonesia and Malaysia. China and India would still be the two biggest importers of palm oil. Growth in the population and income are related to the rise of the edible oil market. The demand for non-edible oils also expanded concurrently, primarily due to government initiatives and subsidies.
The food and beverage sector processes about 60 percent of palm oil. As a result of the expanding world population, demand has only continued to rise. In addition to being used in food products and for cooking, palm oil is also used in biodiesel, cosmetics, and personal care items like shampoo and soap. Perhaps the main factor in the value of palm oil is its adaptability, which accounts for the expansion of the palm oil booming industry.
Following the huge increase in overall demand for vegetable oils is the rise of palm oil. Although several nations in Southeast Asia, South America, and Africa grow a little quantity of palm oil, Indonesia and Malaysia dominate the global market.
Invest resources in transforming the world's palm oil market into sustainable palm oil Opportunity to introduce consumers to different palm oil products. By choosing CSPO rather than conventional palm oil, palm oil end-users can exert their impact on the sustainable market transformation of the global palm oil business.
Europe has led the way in the development of sustainable palm oil over the past 20 years. While the demand for sustainable palm oil has increased significantly throughout Europe.
The transition to sustainable palm oil production, commerce, and consumption continues to receive support from Europe. It directly emphasizes on global sustainable palm oil production. Companies may engage in particular initiatives in palm oil sustainable production, depending on the sustainability maturity of the end-user of the palm oil.
CPO is a widely used oil that may be found in practically all applications including in the food and beverage industry. Even though it is made from fruit pulp, raw fruit's yield is far greater. In the transportation and energy sectors, CPO is swiftly displacing petroleum-based products as a practical alternative. In addition, CPO is utilized in power plants as a mineral oil substitute. The value growth of the CPO segment will also be fuelled by the expansion of the food and beverage industry.
Customers are growing more aware of social issues and the environment. They are growing more curious about the origin and health implications of the products they consume. It is still a niche market, though. Crops that are grown organically don't use any agrochemicals or pesticides of any type. Thus, it is expected that during the upcoming years, demand for the organic product segment would increase at a profitable rate.
Regional Insights
According to Azoth Analytics Estimates, Asia-pacific accounts for the largest revenue share in 2021. Growth in the Asia-Pacific palm oil market is supported by factors such as a growing population, surging biofuel production, expanding cosmetics sector, and escalating application in various markets. However, the market growth would be challenged by growing labor challenges, rising economic and social issues, and increasing environmental concerns. The significant driver is improving economic conditions, rising living standards, changing eating habits in emerging countries, and demand as a feedstock for biodiesel production. The market is expected to experience certain trends like accelerating baked goods & confectionery retail sales, rapid adoption in the laundry detergent market, rising initiatives to ban Trans Fat, and a growing shift towards palm oil crop transplanting
Global Palm Oil Market is fragmented with the top 10 companies accounting for a significant revenue share in 2021. Leading companies and brands in the market are executing different strategies and partnerships to strengthen their foothold and increase their competitiveness and product offerings in the market.
IOI Corporation Berhad, Sime Darby Plantation Berhad, Wilmar International Limited, and Kuala Lumpur Kepong Berhad, among others are the leading companies in the Global Palm Oil Market.
Leading companies in the Global Palm Oil Market include:
IOI Corporation Berhad
Sime Darby Plantation Berhad
Wilmar International Limited
Kuala Lumpur Kepong Berhad
Golden-Agri Resources
United Plantations Berhad
Kulim (Malaysia) Berhad
Univanich Palm Oil
Recent Investment in the Palm Oil Market
Segmentations in the Report
By Oil Type
By Oil Nature
By End-use
By Region
Frequently Asked Questions
What is the expected market value of the Palm Oil Market in 2028?
Global Palm Oil Market is expected to be valued at USD 104.73 Billion in 2028.
At what growth rate is Palm Oil Market expected to grow in the forecast period?
During 2023-2028, Palm Oil Market is expected to grow at a CAGR of 6.69%.
Which Region dominates the Palm Oil Market?
Asia-pacific contributes the largest revenue share in the Palm Oil Market and is expected to continue in the forecast period as well.
Which are the leading companies in the Palm Oil Market?
The leading companies in Palm Oil Market are IOI Corporation Berhad, Sime Darby Plantation Berhad, Wilmar International Limited, Kuala Lumpur Kepong Berhad, Golden-Agri Resources, United Plantations Berhad, Kulim (Malaysia) Berhad, Univanich Palm Oil.
At what rate will China's Palm Oil Market Grow?
During 2023-2028, China Palm Oil Market is expected to grow at a CAGR of 7.48%.
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