Palm Oil Market Size
| Study Period | 2020 - 2030 |
| Market Volume (2025) | 88.82 Million tonnes |
| Market Volume (2030) | 99.94 Million tonnes |
| CAGR (2025 - 2030) | 2.39% |
| Fastest Growing Market | North America |
| Largest Market | Asia Pacific |
| Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
Palm Oil Market Analysis
The Palm Oil Market size is estimated at 88.82 Million tonnes in 2025, and is expected to reach 99.94 Million tonnes by 2030, at a CAGR of 2.39% during the forecast period (2025-2030).
Several key factors drive the growth of the palm oil market. At the forefront is its versatility, especially in the food sector, which fuels robust market demand. Palm oil's adaptability allows it to serve as a cooking oil, an ingredient in processed foods, and a component in cosmetics and personal care products. Additionally, a growing global population and evolving dietary preferences, leaning towards processed and convenience foods, further amplify the demand for palm oil. As developing markets experience economic growth and urbanization, rising disposable incomes lead to increased consumption of packaged and processed foods, propelling the market's expansion.
Government initiatives also play a pivotal role in bolstering the palm oil market. A case in point is India's National Mission for Edible Oils - Oil Palm (NMEO-OP), launched to enhance oil palm cultivation. The mission sets an ambitious target of 11.20 lakh tonnes of Crude Palm Oil production by 2025-26. Of the national budget of INR 11,040 Cr allocated for promoting oil palm, NMEO-OP has dedicated INR 5,870 Cr to the North-Eastern Region (NER), with the Central government footing 90% of the bill. Aimed at benefiting palm oil farmers, the scheme seeks to amplify capital investments and create job opportunities, setting the stage for significant growth in the coming years.
Another emerging trend in the palm oil market is its role as a biofuel. Thanks to its high energy content and versatility, palm oil is becoming a preferred feedstock for biodiesel production. This palm oil biodiesel stands out as a more sustainable and environmentally friendly alternative to traditional fossil fuels. With the global shift towards cleaner energy, the demand for palm oil-based biodiesel is poised to surge.
Palm Oil Market Trends
Palm Kernel oils are Anticipated to Grow at a Faster Rate
Palm kernel oil, extracted from the seeds of the oil palm Elaeis guineensis, is a versatile edible oil. Packed with fatty acids and essential vitamins A, E, and K, it's a boon for health. Its diverse applications range from cooking and confectionery to cosmetics, lubricants, and detergents. With its composition of unsaturated fats, tocotrienols, and antioxidants, palm kernel oil boasts notable anti-aging properties. Unlike palm oil, palm kernel oil's higher saturated content makes it a preferred choice in soap, cream, lotion, and milk processing. Beyond its industrial uses, it promotes heart, bone, and eye health, aids in wound healing, softens skin, and helps in aging prevention.
Driven by a growing consumer preference for sustainability, the palm kernel oil market is witnessing robust growth. In line with this trend, numerous industry players are rolling out sustainable palm kernel oil products. A notable example is KTC Edibles, which, in March 2023, unveiled its Certified Sustainable Hard Palm Kernel Oil (HPKO). Tailored for ice cream and confectionery uses, this HPKO is sourced entirely from 100% vegetable origins, namely palm and palm kernel. A low trans-fat content complements its vegan-friendly nature.
Additionally, a surge in palm kernel oil imports is further propelling market growth. These imports not only guarantee a steady supply of raw materials but also empower industries to ramp up production. This boost is particularly evident in the domestic and export markets, benefiting sectors like food & beverages and personal care & cosmetics. Reinforcing this trend, data from the US Department of Agriculture reveals that global palm kernel oil imports hit around 2.94 million metric tons in 2023/24.
Asia-Pacific Dominates the Palm Oil Market
The Asia Pacific region, already the world's largest consumer of palm oil, is set to maintain this status in the foreseeable future. The region's burgeoning population, particularly in countries like China and India, drives a heightened demand for food products, especially those featuring palm oil. Additionally, as dietary preferences shift towards processed and convenience foods, the consumption of palm oil-based products in the region sees a corresponding surge. Indonesia and Malaysia emerge as the dominant producers of palm oil in the Asia Pacific, with numerous small and medium enterprises depending entirely on palm oil for their economic sustenance.
For instance, data from Indonesia's Ministry of Agriculture reveals that in 2023, palm oil production in Indonesia hit approximately 46.99 million metric tons, a slight increase from 46.82 million metric tons in the previous year. With favorable growing conditions and a proficient labor force, Indonesia solidifies its position as a leading palm oil producer.
Moreover, an increasing number of nations are embracing sustainable palm oil practices, further propelling the region's market growth. Sustainability certifications, notably the Roundtable on Sustainable Palm Oil (RSPO), have gained paramount importance for exporting palm oil to major global markets. This is especially true in Europe and North America, where there's a surging consumer demand for eco-friendly products. Underlining this momentum, data from RSPO indicates that as of December 31, 2023, China had 359 RSPO members, which included 269 supply chain associates, 86 ordinary members, and four affiliate members.
Palm Oil Industry Overview
Global and regional players make the Palm Oil Market both fragmented and fiercely competitive. Leading the charge are manufacturers like Wilmar International Limited, Archer-Daniels-Midland Company, SD Guthrie Berhad, Asian Agri, and IOI Corporation Berhad. These industry giants are channeling substantial resources into R&D, aiming to diversify their product offerings and drive market growth. As the industry witnesses shifts — from new product launches and contractual agreements to mergers, acquisitions, and collaborations — market players are strategically maneuvering to strengthen their foothold.
Palm Oil Market Leaders
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Wilmar International Limited
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Archer-Daniels-Midland Company
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SD Guthrie Berhad
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Asian Agri
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IOI Corporation Berhad
- *Disclaimer: Major Players sorted in no particular order
Palm Oil Market News
- October 2024: Daabon Group has introduced a carbon-neutral organic palm oil range. With a life cycle assessment (LCA) indicating a CO2eq of -977kg per tonne from cradle to gate, Daabon's carbon-neutral organic palm oil stands out as a prime choice for palm oil users committed to sustainability and reducing their Scope 3 carbon emissions.
- May 2024: Wilmar inaugurated the first phase of its USD 68 million edible oils refining plant in Richards Bay, KwaZulu. This initial phase boasts four tanks, each with a 40,000-ton capacity for crude palm oil, and features a 2.6 km pipeline connecting the port to the tank farm.
- March 2024: 3F Oil Palm, a prominent player in Oil Palm development, has launched its inaugural integrated Oil Palm Processing Unit in Arunachal Pradesh, India. This venture, exceeding INR 55,000 crore, signifies a pivotal step towards economic advancement and empowerment for the region.
Palm Oil Industry Segmentation
Palm oil is an edible vegetable oil derived from the mesocarp (reddish pulp) of the fruit of oil palms. The global palm oil market is segmented by product type, nature, application, and geography. By product type, the market is segmented into palm kernel oil, crude palm oil, and others. By nature, the market is segmented into conventional and organic. By application, the market is segmented into food & beverages, pharmaceuticals, personal care & cosmetics, biofuels, and others. By geography, the market is segmented into North America, Europe, Asia-Pacific, South America, and the Middle East & Africa. The market sizing has been done in value terms in USD million and volume terms in million tonnes for all the abovementioned segments.
| Product Type | Palm Kernel Oil | ||
| Crude Palm Oil | |||
| Others | |||
| Nature | Conventional | ||
| Organic | |||
| Application | Food & Beverages | ||
| Pharmaceuticals | |||
| Personal Care & Cosmetics | |||
| Biofuels | |||
| Others | |||
| Geography | North America | United States | |
| Canada | |||
| Mexico | |||
| Rest of North America | |||
| Europe | United Kingdom | ||
| Germany | |||
| France | |||
| Russia | |||
| Italy | |||
| Spain | |||
| Rest of Europe | |||
| Asia-Pacific | India | ||
| China | |||
| Japan | |||
| Australia | |||
| Rest of Asia-Pacific | |||
| South America | Brazil | ||
| Argentina | |||
| Rest of South America | |||
| Middle East & Africa | South Africa | ||
| United Arab Emirates | |||
| Rest of Middle East & Africa | |||
| Palm Kernel Oil |
| Crude Palm Oil |
| Others |
| Conventional |
| Organic |
| Food & Beverages |
| Pharmaceuticals |
| Personal Care & Cosmetics |
| Biofuels |
| Others |
| North America | United States |
| Canada | |
| Mexico | |
| Rest of North America | |
| Europe | United Kingdom |
| Germany | |
| France | |
| Russia | |
| Italy | |
| Spain | |
| Rest of Europe | |
| Asia-Pacific | India |
| China | |
| Japan | |
| Australia | |
| Rest of Asia-Pacific | |
| South America | Brazil |
| Argentina | |
| Rest of South America | |
| Middle East & Africa | South Africa |
| United Arab Emirates | |
| Rest of Middle East & Africa |
Palm Oil Market Research FAQs
How big is the Palm Oil Market?
The Palm Oil Market size is expected to reach 88.82 million tonnes in 2025 and grow at a CAGR of 2.39% to reach 99.94 million tonnes by 2030.
What is the current Palm Oil Market size?
In 2025, the Palm Oil Market size is expected to reach 88.82 million tonnes.
Who are the key players in Palm Oil Market?
Wilmar International Limited, Archer-Daniels-Midland Company, SD Guthrie Berhad, Asian Agri and IOI Corporation Berhad are the major companies operating in the Palm Oil Market.
Which is the fastest growing region in Palm Oil Market?
North America is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Palm Oil Market?
In 2025, the Asia Pacific accounts for the largest market share in Palm Oil Market.
What years does this Palm Oil Market cover, and what was the market size in 2024?
In 2024, the Palm Oil Market size was estimated at 86.70 million tonnes. The report covers the Palm Oil Market historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Palm Oil Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
Palm Oil Industry Report
Statistics for the 2025 Palm Oil market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Palm Oil analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
