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The Palm Oil Market size is projected to increase by USD 50.26 billion, and the market is estimated to grow at a CAGR of 9.63% between 2022 and 2027. In 2017, the size of the market was valued at USD 75.26 billion.
This palm oil market report extensively covers market segmentation by 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). It also includes an in-depth analysis of drivers, trends, and challenges.
The increasing demand for biofuels is driving market growth. The need for biofuels is rising, owing to concerns regarding the depletion of traditional fuel sources. The demand for biofuels produced from crops such as rapeseed and palm oil has increased significantly in recent years. Biodiesel has become a popular alternative to diesel in recent years.
Palm oil is a conventional feedstock for biodiesel production and is considered a more cost-effective option than soybean. Regulations and mandates implemented in different countries are expected to impact the market in the long run. For instance, Indonesia increased the crude palm oil and diesel blend to 30% (B30) from January 1, 2021. This mandate is expected to boost palm oil consumption in the country. Similarly, France eliminated the biofuel tax, which will shift the country's economy toward biofuels or biodiesel. Thus, the global palm oil market is expected to grow during the forecast period.
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New growth avenue for palm oil in biodiesel is a key trend in the market, although factors such as concerns about deforestation and plant diversity losses may impede market growth. Our researchers analyzed the data with 2022 as the base year, along with the key trends, and challenges. A holistic analysis of drivers, trends, and challenges will help stakeholders in the value chain refine their marketing strategies to gain a competitive advantage.
New growth avenue for palm oil in biodiesel is a key trend in the market. The application of biofuel as an alternative fuel is increasing. Biofuels are raw or extracted products from plant biomass that can release energy. Biodiesel is considered more sustainable and cleaner than other fuel options. Edible vegetable oils such as soybean oil, palm oil, and sunflower oil are used to produce biodiesel.
Palm oil trees account for around 10% of biodiesel production. Palm palm is the most efficient and cost-effective biodiesel feedstock in terms of oil yield per unit hectare of cultivation land area per annum when compared to other oilseeds such as soybeans, rapeseed, or sunflower. Palm oil has a higher yield of biodiesel production when compared to other bioresources. This is expected to drive the growth of the global palm oil market during the forecast period.
Concerns about deforestation and plant diversity losses are challenging market growth. The scarcity of natural resources and climate change are key issues for global food production. Indonesia and Malaysia are two of the major palm oil plantation countries. Governments of these countries are focusing on sustainable and organic production.
The endangered species of Orangutans and Sumatran Rhinos are threatened by palm oil tree plantations. Therefore, forest departments and government bodies have taken necessary steps to stop the allocation of land for cultivation purposes. Several regulations, such as the Forest Policy of 1988 and Forest Conservation Act of 1980, have been imposed on the cultivation and marketing of palm oil in certain areas. These factors will impede the palm oil market growth during the forecasted period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Palm Oil Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The palm oil market report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The conventional palm oil segment will account for a significant share of market growth during the forecast period. Conventional palm oil is produced using traditional farming methods and industrial processing techniques. It is the most common type of palm oil and is used in various industries, such as food and beverage, personal care, and biofuels. Conventional palm oil is used in a wide range of food products, such as baked goods, margarine, and snack foods. It is also used in the production of personal care products, such as soap, shampoo, and cosmetics, and in the manufacture of biofuels. There is a trend of sustainable and environmentally friendly palm oil production, which promotes responsible and sustainable palm oil production practices. Therefore, conventional segmentation methods help businesses identify and target specific customer groups, tailor their marketing strategies, and develop products and services that meet customers' needs and preferences. Such factors will fuel the growth of this segment during the forecast period.
The market share growth by the edible oil segment will be significant during the forecast period. Palm oil is one of the most popular edible oils in Asia. Palm fruit oil and palm kernel oil are the two main forms of palm oil.
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The edible oil segment was valued at USD 50.25 billion in 2017 and continued to grow until 2021. Cooking is the main application of palm fruit oil. Food products that come in packaging also contain palm oil. Palm oil is considered healthier than other hydrogenated oils. Therefore, the demand for the palm oil market is expected to increase across the world during the forecast period, which will drive the growth of this segment.
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APAC is estimated to contribute 68% 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.
China, Australia, Thailand, South Korea, and India are the key contributors to market growth in APAC. The demand for palm oil is increasing in the manufacturing of halal-certified processed foods and cosmetics. Palm oil is a cost-effective alternative to partially hydrogenated fat-containing trans-fatty acids. Moreover, it has several health benefits, such as improving vision, enhancing the immune system, reducing the risk of cancer and heart attacks, and slowing down the aging process. These factors will drive the growth of the market in APAC during the forecast period.
In 2020, the COVID-19 pandemic negatively impacted the palm oil market due to lockdowns. However, in 2021, owing to the initiation of large-scale vaccination drives, the market revived slowly. Palm oil is a substitute for mineral oil, which has increased its usage. These factors are expected to have a positive impact on the demand for palm oil and, in turn, drive the growth of the market during the forecast period.
The palm oil market report forecasts market growth by revenue at global, regional, & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Palm Oil Market Scope |
|
Report Coverage |
Details |
Page number |
163 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 9.63% |
Market growth 2023-2027 |
USD 50.26 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
7.46 |
Regional analysis |
APAC, Middle East and Africa, Europe, North America, and South America |
Performing market contribution |
APAC at 68% |
Key countries |
Indonesia, India, China, Pakistan, and Malaysia |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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