Hydrogenated Palm Oil Market Analysis, Forecast, and Assessment 2017 - 2027
Palm oil is obtained from the soft pulp of the fruit of the palm tree (Elaeis guineensis). Palm oil is subjected to a hydrogenation process to obtain hydrogenated palm oil. To obtain properties similar to those offered by palm oil, the food industry introduced the hydrogenation process. Hydrogenation is the process of bonding a hydrogen atom with the double bonds of fatty acid chains. Hydrogenation turns oil from a liquid into a solid or semi-solid substance and makes the oil more stable. Hydrogenated palm oil is solid at room temperature and whitish in appearance. Hydrogenated palm oil finds applications in food, personal care and cosmetics, chemical and livestock industries. Hydrogenated fats prevent rancidity, which gives the product longer shelf life. Hydrogenated palm oils are fully hydrogenated and partially hydrogenated. Fully hydrogenated palm oil has lesser artificial trans-fats than partially hydrogenated oils. Both fully and partially hydrogenated palm oils are extremely customizable for a variety of manufacturing applications.
Global Hydrogenated Palm Oil Market: Dynamics
The key driver for the hydrogenated palm oil market is the food industry. Fat hydrogenation increases the shelf life of foods since hydrogenated fats are more stable than unsaturated fats. As the shelf life of food items has become of prime importance these days in the food and packaging sector owing to the stringent regulations directed at safeguarding health risks and product quality. This will promote the use of hydrogenated fats, such as hydrogenated palm oils, which in turn, will drive the global hydrogenated palm oil market throughout the forecast period. In addition to this, expanding applications of palm oils in edible and non-edible sectors is projected to create opportunity paths for the hydrogenated palm oil market globally. Rising demand for palm oil from oleochemicals is another factor expected to drive the hydrogenated palm oil market.
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The hydrogenated palm oil market will see more opportunities with the growing use of palm oil ingredients in cosmetics and personal care products. However, the ban on trans-fat foods will directly affect the consumption of hydrogenated palm oil in this industry. This might act as a restraining factor for the hydrogenated palm oil market. Palm oil has been facing tough competition from other oils, which might be a major threat to the hydrogenated palm oil market. Soybean oils have been showing reliable growth, which in turn, might create sluggish demand for hydrogenated palm oil, in turn, decreasing its market growth. Environmental concerns related to palm oil plantation and land availability are other factors hampering the growth of hydrogenated palm oil.
Research and development is a key part of the hydrogenated palm oil market. Manufacturing companies, end product manufacturers and associations have been infusing high investments to facilitate technology modifications and future advancement of hydrogenated palm oil, which in turn, will lead to palm oil finding more applications areas in cosmetics and food industry, thereby, creating opportunities for the hydrogenated palm oil market throughout the forecast period.
The most recent trend followed in the hydrogenated palm oil market is that manufacturers are coming up with improved production technology. Regulatory and structural restrictions along with increasing market penetration are projected to act as a barrier for the growth of the hydrogenated palm oil market, through improved production technology and increase in application areas are anticipated to fade the effect of these restrictions.
Global Hydrogenated Palm Oil Market: Segmentation
On the basis of type, the global hydrogenated palm oil market can be segmented into:
Fully hydrogenated palm oil
Partially hydrogenated palm oil
On the basis of end-users, the global hydrogenated palm oil market can be segmented into:
Cosmetics and detergent industry
Global Hydrogenated Palm Oil Market: Region-wise Outlook
Growing demand for vegetable oil as a feedstock for biodiesel production is fueling the demand for hydrogenated palm oil globally. With respect to region, strict regulations against genetically modified (GM) food products in the European Union will drive the demand for hydrogenated palm oil. In North America, the U.S. ban on trans-fat foods is anticipated to drive the rapid shift in consumption from soybean oil to palm oil, thereby creating opportunities for the hydrogenated palm oil market. Given the strong government focus on the increasing shelf life of prepared foods, Asia-Pacific is anticipated to dominate the hydrogenated palm oil market. The growth in palm oil plantation activity in Indonesia, Malaysia and Philippines to manufacture various cosmetic and personal care products from hydrogenated palm oil is projected to further fuel demand into the hydrogenated palm oil market in the region.
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Global Hydrogenated Palm Oil Market: Key Players
Some of the key players identified across the value chain of the global hydrogenated palm oil market are Wilmar International Ltd, Golden Agri-Resources Ltd, Mewah Group, IOI Loders Croklaan, Sarawak Oil Palms Berhad Group Of Companies, Mectech Process Engineers Pvt. Ltd, Konti, Kavya International and Sime Darby Hudson & Knight, among others.
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