The global Palm Oil Market is predicted to expand at 7.6% CAGR over the forecast period owing to its extensive demand in several applications such as bio-diesel, cooking, lubricants, and more, asserts Market Research Future (MRFR). One of the most nutritious edible oil, palm oil is derived from palm fruit. Palm fruit is originally from the Western African region but can easily flourish where rainfall and heat are in abundance.
Future Drivers and Constraints Impacting the Market
Palm oil is witnessing a high demand in the global market as it can be used as a bio-diesel, cooking oil, cosmetics, lubricants, and others. Palm oil is highly used in vegetable oil for cooking which is a major factor affecting the market positively. Palm oil is also used as feedstock for producing biodiesel in the biofuels market and also as an alternative to mineral oils in power stations which is further stimulating the market growth to a large extent. Additionally, government initiatives concerning the blending of bio-based fuel with conventional fuel along with growing use of products as a bio-based diesel are set to gain traction in the global market over the assessment period. Consumers are also aware of lubricants, bio-based cosmetics, and surfactants which is propelling the market growth.
Government schemes such as POIG and RSPO are also observed to have a positive impact on the market. High foreign investments and technological improvisations for sustainable production are also expected to create opportunities for industry participants worldwide.
On the flip side, strict government mandates governing production is estimated to hamper the market growth over the assessment period. Besides, higher production cost due to the adoption of sustainable production method is also expected to inhibit the market growth.
Global Palm Oil: Segmental Analysis
Globally, the market for palm oil research has been segmented on the basis of application, type, and region.
By mode of type, the global Palm Oil Market has been segmented into palm kernel oil, crude palm oil, and others. The segment for crude palm oil is expected to dominate the market closely followed by palm kernel oil owing to its less saturated fat content compared to palm kernel oil. Crude palm oil comprises a high level of tocotrienols which makes it a powerful antioxidant and source of vitamin E. It is used as a substitute for expensive vegetable oils like sunflower, groundnut, and coconut oil. With the growing population, slow income rate, and declining of arable land has stimulated its plantation to meet the need for regional food.
By mode of application, the global Palm Oil Market has been segmented into cosmetics, cooking oil, lubricant, bio-diesel, and others. The cooking oil is predicted to dominate the market over the assessment period. On the other hand, cosmetic segment is also expected to showcase a high growth rate.
Geographically, the Palm Oil Market spans across regions namely Europe, North America, Asia Pacific, and Rest-of-the-World. Among all the regions, Asia Pacific is predicted to dominate the market and is witnessed to showcase a substantial growth over the assessment period owing to the growing consumption of palm oil in several industries. Malaysia and Indonesia being the major exporters and producers of palm fruit in this region.
Europe and North America are estimated to showcase a moderate growth rate over the forecast period. On the other hand, the Middle East and Africa and Latin America are estimated to be the fastest growing regions during the forecast period.
Some of the prominent players operating the global Palm Oil Market are Golden Agri Resources Limited (Singapore), Godrej Agrovet Limited (India), IOI Corp. (Malaysia), Sime Darby (Malaysia), Cargill Inc. (U.S.), Wilmar International Limited (Singapore), Kulim BHD (Malaysia), London Sumatra (Indonesia), and more.
More than 90 institutional investors representing $6.7 trillion in assets under management have written to the Roundtable on Sustainable Palm Oil (RSPO) calling on it to strengthen its green certification standards for palm oil production. In a letter sent to the RSPO and made publicly available, investors raised concerns over the relevance and effectiveness of the multi-stakeholder certification body, which aims to boost sustainability standards across the palm oil industry.
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