Palm Oil Market to Reach USD 105.15 Billion by 2032, Driven by Biofuel Demand and Sustainable Practices

The global Palm Oil Market is poised for significant growth, projected to expand from USD 74.11 billion in 2024 to USD 105.15 billion by 2032, at a CAGR of 4.47% . This growth is fueled by the rising demand for biofuels, increased consumption in the food industry, and a global shift towards sustainable sourcing practices.

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Market Overview

Palm oil, derived from the fruit of oil palm trees, is a versatile product used in various industries, including food and beverage, personal care, cosmetics, and biofuels. The food and beverage sector dominated the market in 2024 and is expected to continue its dominance over the forecast period . The increasing use of palm oil in biofuels, especially in countries aiming to reduce carbon emissions, further propels market growth.

Competitive Landscape

The palm oil market is characterized by the presence of several key players who are actively engaging in strategic initiatives to strengthen their market positions:

Wilmar International Limited: A leading agribusiness group, Wilmar focuses on sustainable palm oil production and has a significant presence in Asia.
Sime Darby Plantation Berhad: One of the world's largest producers of certified sustainable palm oil, Sime Darby emphasizes responsible sourcing and environmental stewardship.
IOI Corporation Berhad: A Malaysian conglomerate with diversified interests, IOI is involved in plantation, resource-based manufacturing, and property development.
Golden Agri-Resources Ltd: Headquartered in Singapore, Golden Agri-Resources is one of the largest palm oil plantation companies globally, focusing on sustainable practices.
PT Astra Agro Lestari Tbk: An Indonesian company engaged in palm oil plantation and processing, Astra Agro Lestari is committed to environmental and social responsibility.

Regional Demand Highlights

The Asia-Pacific region dominated the palm oil market in 2024 and is expected to hold the largest market share over the forecast period. Indonesia, in particular, is anticipated to see a 5% rise in palm oil consumption, reaching 19.9 million metric tons, driven by increasing industrial and food use . In the food sector, palm oil consumption is projected to rise by 100,000 metric tons to 6.9 million metric tons due to continued growing demand from households and the food industry.

Growth Opportunities in Vietnam

Vietnam's palm oil market is witnessing steady growth, driven by increasing demand in the food processing and cosmetics industries. The country's strategic location and trade agreements facilitate palm oil imports, supporting market expansion.

Market Trends in Thailand

Thailand is focusing on enhancing its palm oil production efficiency and sustainability. Government initiatives aim to support smallholder farmers and promote the use of palm oil in biodiesel, aligning with environmental goals.

Innovation Growth in Japan

Japan's palm oil market is characterized by a strong emphasis on sustainability and innovation. Companies are investing in research and development to create eco-friendly palm oil products, catering to environmentally conscious consumers.

Consolidation in South Korea

South Korea is experiencing consolidation in its palm oil industry, with companies merging to enhance competitiveness and streamline operations. The focus is on sustainable sourcing and meeting the rising demand for palm oil in various sectors.

Trends in Singapore

Singapore serves as a strategic hub for palm oil trading and innovation. The country is investing in sustainable palm oil initiatives and technologies, positioning itself as a leader in responsible sourcing and processing.

Market Growth in the United States

The U.S. palm oil market is growing, driven by increasing demand in the food and personal care industries. Companies are focusing on sustainable sourcing to meet consumer preferences and regulatory requirements.

Opportunities in China

China's palm oil market is expanding due to rising consumption in the food industry and growing awareness of sustainable products. Efforts are being made to enhance supply chain transparency and promote certified sustainable palm oil.

Sustainability Trends in Europe

Europe is leading in sustainable palm oil consumption, with stringent regulations and consumer demand driving the market. Companies are investing in certified sustainable palm oil to meet the region's environmental standards.

Recent Developments

Indonesia's Biodiesel Mandate: In 2025, Indonesia increased its mandatory palm oil content in biodiesel to 40%, impacting global palm oil supply and prices .
India's Palm Oil Production: India aims to triple its palm oil output in six years by expanding plantation areas, reducing dependency on imports .
EU's Sustainability Regulations: The European Union implemented new regulations in January 2025, enforcing sustainable sourcing of palm oil, affecting global trade dynamics .

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Palm Oil Market Segmentation:

by Nature

Organic Palm Oil
Conventional Palm Oil

by Product Type

Crude Palm Oil
Refined Palm Oil
Palm Kernel Oil

The market is divided into three segments based on product type: crude palm oil, refined palm oil, and palm kernel oil. With 58.3% of sales, the crude palm oil category held the biggest market share and is anticipated to continue to dominate the market for the foreseeable future. Cooking, the production of prepackaged foods, cosmetics, and personal care products-all of which are often in high demand among consumers-all need crude palm oil. Crude palm oil production must be steady to meet the high demand so that other dependent goods can be produced within the allotted time. With 23% of the market, kernel palm oil is typically utilised as feedstock and biofuel, which is expected to increase sales of the oil worldwide.

by Application

Food and Beverage
Personal Care and Cosmetics
Biofuels

The market is divided into three segments based on application: biofuels, personal care and cosmetics, and food and beverage. The market was led by the food and beverage segment in 2024, and this trend is anticipated to continue during the forecast period. Global demand is significant for such a wide range of products, the basic material of which is palm oil. Compared to food application-based demand, oleochemical products such as lubricants, surfactants, agrochemicals, cosmetics, and personal care items have comparatively lower demand. The usage of palm oil as biofuel and biodiesel in recent years has increased demand in nations that care about the environment, which is anticipated to propel the growth of the palm oil market.

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Palm Oil Market Major Players:

1. IOI Group
2. Sime Darby Plantation Berhad
3. WWF-Australia
4. Musim Mas Group
5. Golden Agri-Resources Ltd
6. Bunge Loders Croklaan
7. Cargill, Incorporated.
8. Archer Daniels Midland (ADM)
9. Olam Group
10. Hap Seng Plantations Holdings
11. United Plantations Berhad
12. Kuala Lumpur Kepong Berhad
13. IOI Corporation Berhad
14. Sinar Mas Group
15. Astra Agro Lestari
16. Genting Plantations Berhad
17. First Resources Limited
18. Sipef Group
19. Godrej Agrovet
20. Agropalma Group
21. Procter & Gamble (P&G)
22. Nestlé
23. Mars, Incorporated
24. Hershey Company

Key questions answered in the Palm Oil Market are:

What is Palm Oil?
What was the Palm Oil market size in 2024?
What is the growth rate of the Palm Oil Market?
Which are the factors expected to drive the Palm Oil market growth?
What are the different segments of the Palm Oil Market?
What growth strategies are the players considering to increase their presence in Palm Oil?
What are the upcoming industry applications and trends for the Palm Oil Market?
What are the recent industry trends that can be implemented to generate additional revenue streams for the Palm Oil Market?
Who are the leading companies and what are their portfolios in Palm Oil Market?
What segments are covered in the Palm Oil Market?
Who are the key players in the Palm Oil market?

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