Palm Oil Market size to record USD 50.26 billion growth from 2023-2027, New growth avenue for palm oil in biodiesel is one of the key market trends, Technavio

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Apr 18, 2024, 10:02 ET

NEW YORK , April 18, 2024 /PRNewswire/ -- The global palm oil market size is estimated to grow by USD 50.26 bn from 2023 to 2027, according to Technavio. The market is estimated to grow at a CAGR of 9.63% during the forecast period. Palm oil is a versatile vegetable oil derived from the fruit of the palm tree. It is widely used in various industries, including food, cosmetics, and biofuels. Employment in palm oil production is significant, particularly in tropical regions. First-generation feedstocks, like crude palm oil and palm kernel oil, are edible oils used in food products, such as instant noodles and cooking oil. Sustainable and organic production methods are crucial to mitigate environmental concerns, including deforestation and the use of agrochemicals. The third-generation feedstock, microalgae, is an emerging alternative. Palm oil is also used in the production of biodiesel, a cleaner and more sustainable fuel option.

Technavio has announced its latest market research report titled Global Palm Oil Market 2023-2027

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Innovation Sparks Market Growth:

Palm oil, derived from the fruits of the palm tree, is a versatile vegetable oil with significant market value. Its production provides employment opportunities in tropical regions. Widely used in food industries for instant noodles, cereals, candles, shampoos, and detergents, palm oil is also a key ingredient in biodiesel and other biofuels. Crude palm oil and refined, bleached, and deodorized (RBD) palm oil are the primary forms, with palm kernel oil as a byproduct. Sustainable and organic production methods are increasingly adopted to reduce the use of agrochemicals, pesticides, and insecticides. Palm oil, rich in saturated fat, has been linked to heart disease and high cholesterol levels. Imports dominate the market, with surfactants, lubricants, and conventional and organic segments driving demand. Fractionated palm oil, biofuels, and edible oil are major applications, while deforestation of tropical forests remains a concern. Unrefined palm oil, palm seed oil, and mineral oil are alternative options, with transfats and mesocarp oil also under exploration. Rapeseed oil is a notable competitor, and the industry continues to grapple with issues of sustainability and health concerns.

Addressing Challenges:

The palm oil market faces significant challenges, including deforestation and biodiversity loss. In response, Indonesia and Malaysia, major producers accounting for 85% of global supply, have prioritized organic production to mitigate the use of agrochemicals, pesticides, and insecticides. Sustainability is crucial as palm oil is a primary source of saturated fat and can contribute to elevated cholesterol levels. Additionally, palm oil is used in biodiesel production, replacing diesel and serving as a cooking oil. However, the conventional segment still relies on mineral oil and transfats, contributing to heart disease risks. Unrefined palm oil, palm seed oil, and fractionated palm oil are essential feedstocks for consumer goods, biofuels, and lubricants. Deforestation threatens tropical forests, endangering species like the Orangutan and Sumatran Rhino. Organic farming practices, such as those used in the production of univanich palm oil, are essential to preserving natural resources and reducing the environmental impact. Other alternatives, like rapeseed oil, are also being explored.

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Analyst Review

The Palm Oil Market encompasses the production, processing, and trade of various palm oil products derived from the palm fruit. Key commodities include Crude Palm Oil (CPO), Refined, Bleached, and Deodorized (RBD) Palm Oil, Palm Kernel Oil, and Palm Seed Oil. Palm oil is extensively used in various industries such as Food and Beverages (Instant Noodles, Cereals, Candles, Shampoos, Detergents), Biofuel, and Agrochemicals. Sustainable and Organic production methods are increasingly adopted to mitigate concerns over deforestation of Tropical Forests and the health implications of Trans Fats, Unrefined Palm Oil, and Mineral Oil. Edible Oils like RBD Palm Oil and Rapeseed Oil are used in cooking, while Palm Oil is also used as a Feedstock in the production of other industrial products.

Market Overview

The Palm Oil Market is a significant global industry, with key players including Palm, Oil, Industries, Palm, Oil, Indonesia, Palm, Oil, Malaysia, and Palm, Oil, Frutas. The market consists of various segments such as Crude Palm Oil, Palm Kernel Oil, Palm Olein, and Palm Stearic Acid. The market is driven by factors such as increasing demand for edible oils, biofuels, and cosmetics. The market is also influenced by factors such as government regulations, sustainability concerns, and supply chain issues. The market is segmented geographically into regions such as Europe, North America, Asia Pacific, and others. Organic and sustainable palm oil production is a growing trend in the market. The market is projected to grow at a steady rate due to increasing demand and innovation in the industry. The market is also subject to price volatility due to various factors such as weather conditions and production costs. The market is closely monitored by organizations such as the Roundtable on Sustainable Palm Oil and the International Palm Oil Producers Association.

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Key Companies:

Palm Oil Market is fragmented ; the companies are competing with competitors and are trying to get greater market share. The market is growing, and the chances of new entrants cannot be overlooked. The major companies have well-established economies of scale and market presence and generally rely on positioning technological advances, and the price of the products. Palm Oil Market report includes information on the product launches, sustainability, and prospects of leading vendors including 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, Univanich Palm Oil Public Co. Ltd.

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SOURCE Technavio