3/4th of Global Palm Oil Market Demand Spurred by Processed Oil Segment: Fact.MR Study
Published : 30 Jul 2021 Industry: Food & Beverage
The global palm oil market is poised to generate US$ 33 Bn in revenue by 2022, expanding at nearly 4% CAGR in the short-term forecast period, according to a recent report published by Fact.MR. Long-term prospects appear more lucrative, with an expected valuation of around US$ 50 Bn by 2031.
Historically, the market performed significantly well, reaching nearly US$ 30 Bn by 2020, expanding at under 4% CAGR from 2016 to 2020. Prospects dipped temporarily in the first wave of COVID-19, as the restaurant business took a hit in the initial months. However, prospects were restored as restrictions eased.
Manufacturers are capitalizing on the ever-increasing scope of palm oil across key industries, including foodservice, food processing and pharmaceutical sectors. Furthermore, its use as a biofuel due to the presence of low sulfur and other noxious content is heightening its uptake in recent years.
Key Takeaways from the Market Study
- By product type, processed palm oil to yield 75% of global revenue through 2031
- Virgin palm oil still popular, expected to account for 1 out of 4 sales
- By end user, foodservice to generate worth US$ 13 Bn in revenue until 2022
- Food processing likely to generate US$ 9 Bn opportunity in the short-run
- Sales of palm oil across specialty stores to expand at over 4% CAGR
- U.S palm oil sales to reach US$ 12 Bn by 2021-end, capturing 27% revenue share
- India remains one of the primary consumers, growing at 4% CAGR
- China to record around 8% CAGR until 2022, emphasized by reduced dependence on GM foods
“Rising environmental concerns are prompting consumers to switch over to consumption of vegetable and plant-based oils, with demand especially high in the food & beverage and energy generation sectors,” says a Fact.MR analyst.
Prominent manufacturers in the palm oil market are focusing on strategic acquisitions, collaborations, and new product launches to secure firm footing in the landscape.
- In June 2021, Cargill announced a $200 million investment in a new palm oil refinery in Lampung, Indonesia. The proposals will help the company expedite its efforts to build a sustainable palm supply chain and provide customers with verified deforestation-free products.
- Similarly, Hershey's palm oil is used in a limited number of goods since it is adaptable and has unique properties that other edible oils lack. Palm oil, for example, contains no trans-fat and has a distinct texture and flavor when used in specialized confectionery applications.
More Valuable Insights
Fact.MR, in its new offering, brings to the fore an unbiased analysis of the global palm oil market, presenting historical demand data (2016-2020) and forecast statistics for the period, 2021-2031.
The study divulges compelling insights on the palm oil market on the basis of product type (processed palm oil and virgin palm oil), end user (foodservice, food processing and retailers) and distribution channel (modern trade, franchise outlets, specialty stores and online channels) across seven major regions (North America, Latin America, Europe, East Asia, South Asia, Oceania and Middle East & Africa).
Fact.MR’s Domain Knowledge in Food & Beverages
Our food and beverages consulting team guides organizations at each step of their business strategy by helping you understand how the latest influencers account for operational and strategic transformation in the food and beverages sector. Our expertise in recognizing the challenges and trends impacting the global food and beverages industry provides indispensable insights and support – encasing a strategic perspective that helps you identify critical issues and devise appropriate solutions.
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Sr. Consultant – Food and Beverages