NEW
YORK, July 5, 2024 /PRNewswire/ -- The
global palm oil market size is estimated to grow by
USD 57 billion from 2024-2028,
according to Technavio. The market is estimated to grow at a CAGR
of 10.07% during the forecast
period. Increasing consumer awareness regarding health
benefits of palm oil is driving market growth, with a
trend towards new growth avenue for palm oil in biodiesel.
However, concerns about deforestation and plant diversity
losses poses a challenge. Key market players include Agarwal
Industries P Ltd., Alami Commodities Sdn Bhd, Alfa Laval AB, Archer
Daniels Midland Co., Asian Agri, Best Industry Group, Cargill Inc.,
Charleston Holdings Pte Ltd., Crowe LLP, Godrej and Boyce
Manufacturing Co. Ltd., Gujarat Ambuja Exports Ltd., IOI Corp.
Berhad, Kuala Lumpur Kepong Berhad, Musim Mas Group, Nisshin OilliO
Group Ltd., Oil Palm India Ltd., Patanjali Ayurved Ltd., Sime Darby
Plantation Berhad, Sinar Mas, and
Univanich Palm Oil Public Co. Ltd..
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Forecast
period
|
2024-2028
|
Base Year
|
2023
|
Historic
Data
|
2018 - 2022
|
Segment
Covered
|
Application (Edible
oil, Surfactants, Bio-diesel, and Others), Type (Conventional and
Organic), and Geography (APAC, Middle East and Africa, Europe,
North America, and South America)
|
Region
Covered
|
APAC, Middle East and
Africa, Europe, North America, and South America
|
Key companies
profiled
|
Agarwal Industries P
Ltd., Alami Commodities Sdn Bhd, Alfa Laval AB, Archer Daniels
Midland Co., Asian Agri, Best Industry Group, Cargill Inc.,
Charleston Holdings Pte Ltd., Crowe LLP, Godrej and Boyce
Manufacturing Co. Ltd., Gujarat Ambuja Exports Ltd., IOI Corp.
Berhad, Kuala Lumpur Kepong Berhad, Musim Mas Group, Nisshin OilliO
Group Ltd., Oil Palm India Ltd., Patanjali Ayurved Ltd., Sime Darby
Plantation Berhad, Sinar Mas, and Univanich Palm Oil Public Co.
Ltd.
|
Key Market Trends Fueling Growth
Palm oil is a significant contributor to the biodiesel market,
accounting for approximately 10% of global production. This
vegetable oil, derived from the fruit of the oil palm tree, is an
efficient and cost-effective first-generation feedstock. Compared
to other oilseeds, oil palm yields more oil per hectare annually,
making it an attractive choice for biodiesel production. With
around 70 million tons of palm oil produced annually, its adoption
in the biodiesel industry is on the rise. As the world shifts
towards more sustainable and cleaner fuel options, the demand for
biodiesel is increasing. Palm oil's high yield and
cost-effectiveness position it well to meet this demand, driving
growth in the palm oil market during the forecast period.
Palm oil, derived from palm fruits, is a popular vegetable oil
used in various industries. It's a key ingredient in instant
noodles, cereals, candles, shampoos, and detergents. Crude palm oil
and RBD (refined, bleached, and deodorized) palm oil are the main
types, with palm kernel oil used for biofuel production.
Sustainable and organic production methods are trending to address
concerns over agrochemicals, pesticides, and deforestation. Palm
oil's saturated fat content and potential link to heart disease
have raised health concerns. Biofuels, such as biodiesel, are
growing segments. Unrefined palm oil and fractionated palm oil have
their uses, with the latter in edible oil and biofuels. Imports of
palm oil, including from countries like Indonesia and Malaysia, are significant. The market includes
both conventional and organic segments. Agrochemicals, pesticides,
insecticides, and surfactants are used in palm oil production.
Mesocarp, the edible part of the fruit, is extracted for oil.
Sustainable farming practices and the use of feedstock like soybean
oil are important for reducing the environmental impact. Mineral
oil and transfats are alternatives, but their production and use
have drawbacks. Rapeseed oil is a competitor, but palm oil's
versatility gives it a competitive edge.
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Market Challenges
- The palm oil market faces significant challenges, including
deforestation and loss of plant diversity, scarcity of natural
resources, and climate change. These issues pose threats to the
global food production system. In response, Indonesia and Malaysia, which account for 85% of the world's
palm oil production, have prioritized sustainable and organic
farming methods. Additionally, efforts are being made to protect
endangered species, such as the Orangutan and Sumatran Rhino, from
palm oil tree plantations. Regulations like the Forest Policy of
1988 and Forest Conservation Act of 1980 restrict cultivation and
marketing in certain areas, limiting palm oil market
expansion.
- The palm oil market faces several challenges in both the
conventional and organic segments. In conventional production, the
use of agrochemicals, pesticides, and insecticides raises concerns
over sustainability and health issues like saturated fat and
cholesterol levels. In the organic segment, the focus is on
sustainable farming practices, but challenges include higher
production costs and smaller yields. Biodiesel and diesel
industries utilize palm oil as feedstock, but competition from
other sources like soybean and rapeseed oil, as well as biofuels
like bioethanol, can impact market share. The health concerns
surrounding saturated and trans fats in palm oil also impact the
edible oil market. Deforestation is a significant challenge due to
the conversion of tropical forests into palm oil plantations.
Consumer goods and industries using palm oil as an ingredient or
feedstock face reputational risks due to these sustainability
concerns. The organic farming movement offers a solution, but
requires significant investment and adherence to strict
regulations. Fractionated palm oil, unrefined palm oil, and palm
kernel oil are key products, with applications in surfactants,
lubricants, and biofuels. The market for unrefined palm oil is
growing due to its health benefits, but its higher price compared
to refined palm oil is a challenge. White palm oil and mineral oil
are also used in various industries. In summary, the palm oil
market faces challenges from health concerns, competition from
other oils, sustainability issues, and reputational risks. Organic
farming and sustainable practices offer solutions, but require
significant investment and regulatory compliance.
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challenges - Download a Sample Report
Segment Overview
This palm oil market report extensively covers market
segmentation by
- Application
- 1.1 Edible oil
- 1.2 Surfactants
- 1.3 Bio-diesel
- 1.4 Others
- Type
- 2.1 Conventional
- 2.2 Organic
- Geography
- 3.1 APAC
- 3.2 Middle East and
Africa
- 3.3 Europe
- 3.4 North America
- 3.5 South America
1.1 Edible oil- Palm oil is a widely used edible
oil, particularly in Asian markets. Two primary forms exist: palm
fruit oil and palm kernel oil. Palm fruit oil is primarily used for
cooking, while packaging foods often includes palm oil. Compared to
hydrogenated oils, palm oil is considered healthier. Its
affordability compared to other vegetable oils also boosts its
market share. With fewer harmful trans fats, food processors
benefit from using it. The global demand for palm oil is increasing
in various regions, driving growth in this sector during the
forecast period.
For more information on market segmentation with
geographical analysis including forecast (2024-2028) and historic
data (2018 - 2022) - Download a Sample Report
Research Analysis
Palm oil, derived from the fruits of the palm tree, is a
versatile vegetable oil widely used in food, cosmetics, and
industrial sectors. It is rich in nutrients and employed in the
production of instant noodles, cereals, candles, shampoos,
detergents, and biofuels. Crude palm oil and RBD (refined,
bleached, and deodorized) palm oil are the primary forms, while
palm kernel oil is extracted from the seeds. Sustainable and
organic production methods are increasingly adopted to mitigate
concerns over deforestation and agrochemical use in tropical
forests. Unrefined palm oil, palm seed oil, and mineral oil are
alternative options. However, high trans-fat content and links to
heart disease remain concerns. Mesocarp, the edible part of the
fruit, is used in cooking, while rapeseed oil is a common
alternative. Agrochemicals are used in palm oil production, but
efforts are made to minimize their impact on the environment. Palm
oil feedstock is a significant commodity in the global market.
Market Research Overview
Palm oil is derived from the fruits of the palm tree, which is
native to the tropical regions of Africa. It is a versatile vegetable oil that
is widely used in various industries, including food, cosmetics,
and biofuels. Palm oil is rich in saturated fats and is commonly
used in the production of instant noodles, cereals, candles,
shampoos, detergents, and biodiesel. The demand for palm oil is
high due to its affordability and versatility. However, the
production of palm oil has been linked to deforestation,
particularly in tropical regions where palm plantations are
expanding. Sustainable and organic production methods are being
adopted to address these concerns. The global palm oil market can
be segmented into crude palm oil, refined, bleached, and deodorized
(RBD) palm oil, palm kernel oil, fractionated palm oil, and
biofuels. Palm oil is used as a feedstock in the production of
surfactants, lubricants, and other industrial products. The
conventional segment and organic segment of the palm oil market are
growing at different rates due to increasing consumer awareness and
demand for sustainable and healthier alternatives. The use of palm
oil in the biofuel industry is also increasing due to its high
energy density and low carbon footprint compared to mineral oil.
However, the high saturated fat and trans fat content in palm oil
has been linked to heart disease and other health concerns. The
palm oil market is expected to continue growing due to its wide
range of applications and the increasing demand for affordable
vegetable oils. Imports of palm oil and its derivatives are
significant in many countries, particularly in Europe and North
America. The palm oil market is a complex and dynamic
industry that involves various stakeholders, including producers,
processors, traders, consumers, and governments. The use of
agrochemicals, including pesticides and insecticides, in palm oil
production is a concern for environmental and health advocates. The
palm oil industry is also facing competition from other edible
oils, such as rapeseed oil, soybean oil, and kernel oil. The future
of the palm oil industry depends on its ability to adapt to
changing market conditions, consumer preferences, and regulatory
requirements while ensuring sustainable and ethical production
practices.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- Application
-
- Edible Oil
- Surfactants
- Bio-diesel
- Others
- Type
-
- Geography
-
- APAC
- Middle East And Africa
- Europe
- North America
- South America
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory
company. Their research and analysis focuses on emerging market
trends and provides actionable insights to help businesses identify
market opportunities and develop effective strategies to optimize
their market positions.
With over 500 specialized analysts, Technavio's report library
consists of more than 17,000 reports and counting, covering 800
technologies, spanning across 50 countries. Their client base
consists of enterprises of all sizes, including more than 100
Fortune 500 companies. This growing client base relies on
Technavio's comprehensive coverage, extensive research, and
actionable market insights to identify opportunities in existing
and potential markets and assess their competitive positions within
changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
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