Palm Oil Market Size, Share and Growth Analysis Report - Forecast Trends and Outlook (2025-2034)

The global palm oil market reached a volume of nearly 80.97 MMT in 2024. The market is assessed to grow at a CAGR of 2.80% during the forecast period of 2025-2034 to attain a volume of around 106.72 MMT by 2034. The market is being driven by the growing use of palm oil in the cosmetics and personal care industry, the rising adoption of efficient technologies for processing palm oil, the robust growth of the food and beverage sector, the surging emphasis on sustainability, and the growing demand for biofuels.

Global Palm Oil Market Growth

There is an increase in the use of palm oil to improve the texture and moisturising properties of perfumes as well as a variety of skincare and beauty products, including body lotions, concealers, mascara, foundation, lipstick, and foundation. Palm oil is also used in the production of detergents, shampoos, and conditioners to enhance their foaming capabilities. Moreover, favourable government initiatives aimed at expanding the production of palm oil are aiding the market. For instance, the National Mission on Edible Oils - Oil Palm (NMEO-OP), launched by the Indian government in 2021, aims to bring 6.5 lakh hectares under oil palm plantations by 2025-26 and reduce reliance on imports.

The palm oil market development is expected to be fuelled by the growing adoption of efficient technologies such as screw pressing for processing palm oil. Such methods ensure higher oil recovery while minimising damage to the oil's molecular structure, hence maintaining its nutritional value. Furthermore, the development of innovative refining methods, including membrane technology and supercritical fluid extraction, that offer superior separation capabilities to produce higher-quality refined palm oil is anticipated to aid the market in the coming years.

Key Trends and Recent Developments

Robust growth of the food and beverage sector; surging emphasis on sustainability; increasing demand for biofuels; and growing deployment of advanced technologies are favouring the palm oil market expansion.

October 2024

Daabon UK announced the launch of the world’s first carbon-neutral organic palm oil, offering manufacturers the opportunity to align with the rising demand for eco-friendly ingredients.

October 2024

IDH launched the India Sustainable Palm Oil Manifesto aimed at uniting stakeholders from the government, private sector, and civil society to promote sustainable palm oil sourcing and strengthen sustainable practices across the palm oil value chain.

August 2024

Malaysian agribusiness FGV Holding produced its first batch of European Union Deforestation Regulation (EUDR)-compliant crude palm kernel oil (CPKO). This marks a major advancement in its operations while underscoring its dedication to meeting stringent global social and environmental standards.

March 2023

KTC Edible announced that its Hard Palm Kernel Oil (HPKO) was officially certified as RSPO sustainable segregated. The sustainable accreditation offers ice cream and confectionery manufacturers a more environmentally friendly and sustainable alternative.

Extensive Demand for Palm Oil in Food and Beverage Applications

Palm oil, extracted from the fruit of oil palm trees, is widely used in food and beverages due to its cost-effectiveness, neutral taste, ease of availability, flexibility in texture, and ability to enhance the shelf stability of products.

Growing Focus on Sustainability

Traditionally, palm oil production has resulted in habitat loss and deforestation, greenhouse gas emissions, soil and water pollution, and social issues like child labour and poor working conditions. Hence, key players are increasingly adopting sustainable practices such as improved land management and eco-friendly farming techniques to preserve biodiversity, improve transparency in the supply chain, and gain a competitive advantage.

Increasing Demand for Biofuels

Due to its high efficiency in oil production, high energy content, and chemical chain similar to that of fossil fuels in the C16 and C18 carbon chain, palm oil is one of the most important raw materials used in the production of biofuels and sustainable aviation fuels.

Deployment of Advanced Technologies

Advancements in oil production technology aimed at developing high-yielding palm oil varieties and improving palm oil extraction processes are driving the palm oil market development. Key players are also increasingly deploying digital technologies like the Internet of things (IoT) and drones to manage palm oil plantations and optimise irrigation application decisions through the analysis of real-time field data.

Global Palm Oil Market Trends

Palm oil producers are leveraging technologies such as remote sensing via satellite and drone imagery to identify and georeferenced the planted palms, monitor the health of palm trees, and enable precise optimisation of fertiliser usage and other agricultural practices. The growing adoption of technologies such as artificial intelligence and machine learning to reduce costs and enhance the efficiency of palm oil production is further boosting the palm oil market value. In December 2024, Malaysia’s Minsawi Industries Kuala Kangsar invested around MYR 4-5 million to install the Artificial Intelligence Robotics Engineering Industries (Airei) technology at its mill in order to reduce its workload and improve its oil extraction efficiency.

With the growing focus on sustainability, there is a rising focus on enhancing the traceability of the palm oil value chain. In November 2023, the Roundtable on Sustainable Palm Oil (RSPO) announced that it was developing a new system to trace the origin and environmental credentials of palm oil.

Global Palm Oil Industry Segmentation

The report titled “Palm Oil Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Application

• Food Products
• Consumer Products
• Energy

Market Breakup by Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

Global Palm Oil Market Share

As per the palm oil market analysis, the energy segment is assessed to grow at a CAGR of 3.4% during the forecast period of 2025-2034. Palm oil has established its position as one of the key feedstocks for biodiesel, a cleaner alternative for transportation and industrial energy use. Increasing research and development activities aimed at exploring the use of palm oil in green energy projects, such as biogas production and power generation, are expected to aid the market in the coming years.

Meanwhile, the growing global population and the expansion of the middle class in developing countries have increased the demand for processed and packaged foods, which often contain palm oil. Palm oil is an incredibly versatile ingredient used in a wide range of food products. Its ability to maintain stability at high temperatures and its semi-solid state at room temperature make it a preferred choice for many food manufacturers.

Due to its extended shelf stability, versatility, and cost-effectiveness, palm oil is used in various consumer goods such as household items (cleaning products) and cosmetics (shampoo, soap, and lotions).

Competitive Landscape

Key palm oil market players are adopting No Deforestation, No Peat, No Exploitation (NDPE) policies to ensure the sustainable production of palm oil. They are also investing in technologies such as satellite imagery, blockchain, and GPS tracking to improve the transparency and traceability of palm oil supply chains.

Wilmar International Ltd.

Wilmar International Ltd., headquartered in Singapore and established in 1991, is one of the largest agribusinesses in Asia. The company’s integrated agribusiness model encompasses the entire value chain of the agricultural commodity business. It boasts more than 1,000 manufacturing plants and an extensive network covering India, China, Indonesia, and 50 other countries and regions.

Bunge Limited

Bunge Limited, headquartered in Missouri, United States, and established in 1818, is a company that connects farmers to consumers to deliver sustainable and essential food, feed, and fuel. It has also established its position as a leader in oilseed processing and a prominent producer and supplier of speciality plant-based oils, protein, and fats.

Archer Daniels Midland Company

Archer Daniels Midland Company, based in Illinois, United States, is one of the largest nutrition companies. Founded in 1902, the company is also an agricultural supply chain manager and processor that provides food security by connecting local needs with global capabilities. It is also a leader in sustainability, scaling across entire value chains to decarbonise multiple sectors.

FGV Holdings Berhad

FGV Holdings Berhad, headquartered in Kuala Lumpur, Malaysia, is an agriculture business. Initially incorporated as a commercial arm of the Federal Land Development Authority (FELDA) in 2007, the company operates in seven countries across Asia, Europe and North America. It aims to produce and develop high-quality products sustainably that are good for the people and the environment.

Other key players in the palm oil market include Cargill Incorporated, PT Astra Agro Lestari Tbk, Sime Darby Plantation Berhad., Kuala Lumpur Kepong Berhad, RGE Pte Ltd, Musim Mas Group, IOI Corporation Berhad, and Golden Agri-Resources Ltd, among others.