North America Palm Kernel Oil Market, By Country, Competition, Forecast and Opportunities, 2020-2032F

The North America Palm Kernel Oil Market was valued at USD 2.54 Billion in 2024, and is expected to reach USD 4.94 Billion by 2032, rising at a CAGR of 8.75%. This market has grown steadily over the past decade, supported by changing consumer trends, updated regulatory frameworks, and increased demand for plant-derived ingredients. Extracted from the seed of the oil palm fruit, palm kernel oil differs from palm oil in its fatty acid composition and is widely used in food, personal care, cosmetics, and industrial sectors.

Its semi-solid texture at room temperature, high oxidative stability, and neutral taste make it a preferred ingredient in bakery fats, frying oils, and confectionery coatings. Moreover, with increased focus on reducing trans fat intake, palm kernel oil serves as a favorable alternative to partially hydrogenated oils. As consumer awareness rises and industries prioritize natural, clean-label, and functional ingredients, the market continues to witness heightened adoption across North America.

Key Market Drivers

Rising Demand in the Food Processing Industry

The expanding food processing sector is a primary driver of the North America palm kernel oil market. With growing consumer interest in convenient, ready-to-eat, and processed foods, food manufacturers are adopting palm kernel oil for its favorable functionality, cost-efficiency, and shelf life.

Its stable structure and semi-solid consistency are particularly advantageous in baked goods, snacks, margarine, and confectionery applications, offering textural integrity and extended freshness. Additionally, the move away from animal fats and trans fats has strengthened palm kernel oil’s position as a viable plant-based substitute in modern formulations.

In 2023, the agriculture, food, and related industries contributed approximately USD 1.537 trillion to the U.S. GDP - equating to 5.5% of the total - emphasizing the sector’s vital role and underlining the growing demand for versatile ingredients like palm kernel oil.

Key Market Challenges

Sustainability and Environmental Concerns

Environmental sustainability remains a significant challenge for the palm kernel oil market in North America. Consumers are increasingly skeptical of palm-based products due to concerns about deforestation, biodiversity loss, and unethical production practices in producing regions.

This sentiment has prompted companies to explore alternative ingredients such as coconut oil or locally sourced fats. In parallel, geopolitical instability, transport delays, and dependence on Southeast Asian suppliers continue to disrupt the supply chain.

Additionally, price fluctuations tied to seasonal production cycles, currency rates, and global commodity trends pose challenges in procurement planning. These factors increase operational risks and may constrain smaller producers who lack the flexibility to absorb volatility or switch suppliers readily.

Key Market Trends

Technological Advancements in Processing and Fractionation

Ongoing technological innovation is playing a critical role in shaping the future of the palm kernel oil market. Improved machinery and automation have streamlined processing operations, enhancing yield efficiency and reducing production time.

Fractionation technologies, in particular, have enabled the extraction of specific functional components - such as palm kernel olein and stearin - tailored to various applications. This precision supports the development of high-performance ingredients for both food and non-food industries, including specialty bakery fats, bio-lubricants, and oleochemicals.

Companies adopting these innovations are gaining a competitive advantage by meeting consumer demand for sustainable, performance-driven ingredients while improving cost control and product consistency. These advancements are expected to continue driving diversification and market expansion throughout North America.

Key Market Players

• Bunge North America, Inc.
• Wilmar Oleo North America LLC
• AAK USA Inc.
• Nisshin OilliO America Inc.
• Cargill, Incorporated

Report Scope

In this report, the North America Palm Kernel Oil Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below.

North America Palm Kernel Oil Market, By Sales Channel:

• Direct Sales
• Indirect Sales

North America Palm Kernel Oil Market, By End Use:

• Food
• Cosmetics & Personal Care
• Pharmaceuticals
• Others

North America Palm Kernel Oil Market, By Product Type:

• Palm Kernel Stearin
• Palm Kernel Olein

North America Palm Kernel Oil Market, By Country:

• United States
• Canada
• Mexico

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the North America Palm Kernel Oil Market.

Available Customizations

With the given market data, the publisher offers customizations according to a company's specific needs. The following customization options are available for the report.

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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