7 Key Facts You Must Know About the Palm Oil Market
Published : 31 Jul 2017 Industry: Food & Beverage
Palm oil is one of the most widely used vegetable oils and it has been grown as a subsistence crop for several millennia. Originally from West Africa, they were introduced to Southeast Asia by Europeans and this region dominates the palm oil market today in terms of production. The versatility of palm oil has allowed it to be used in diverse areas such as cosmetics, detergents, pharmaceutical, and food products. More than half the products sold in a typical supermarket store contains products from the palm oil market. Palm oil uses nearly 10 times less land than competing vegetable oils such as sunflower or rapeseed oil and it also produces a greater yield per hectare. In addition, it requires lesser pesticides, fertilizer, and also stores more carbon than the other oil crops.
Fact.MR has analyzed the global palm oil market in depth, estimating it to reach US$ 33.7 Bn value by 2022-end at a moderate CAGR. The report has also made certain projections given below -
- Europe is expected to maintain its dominant position in the palm oil market throughout the course of the forecast period. A CAGR of 4.9% from 2017 to 2022 makes it particularly appealing to key stakeholders in the palm oil market.
- A potential opportunity of almost US$ 5 billion in 2017 alone makes North America extremely important in the palm oil market which major companies would be highly advised to take into account while planning their long-term strategies.
- The virgin segment represents only a third of the revenue share by product type in the palm oil market and it is not anticipated to outpace the processed segment anytime soon. Europe and APEJ are the only regions that are predicted to cross US$ 2 billion by end of 2022 and companies could look at targeting them with products that cater to their requirements.
- The retail segment is on track to comprise more than a third of the palm oil market by end use segment. Studies show that it is present in more than half of all commodities stocked on retailer store shelves. The palm oil market serves the food & beverage, cosmetics, animal foodstuff, and pharmaceutical industry.
- The specialty store segment is only a fifth of the revenue share by distribution channel in the palm oil market but companies could try to raise the profile of these dedicated stores by committing additional resources. Specialty stores may only market products sold in the palm oil market raising the awareness of this multi-purpose natural oil.
It can be safely said that online retail has dramatically transformed our lives for the better. However, the best is still to come as emerging markets come online for the first time with rapidly improving 4G LTE networks and falling prices of smartphones. There is a strong possibility that these customers may only use the online channel and major companies need to devise their plan of action accordingly. A revenue share of 19% may seem small today, but online is almost certainly going to be a distribution channel with maximum potential in the palm oil market.
The report has also profiled leading manufacturers of palm oil in the global market, which include companies such as American Vegetable Oils,Cargill Inc., Grief Inc., Fuji Oil Holdings, Bunge Limited, Associated British Foods and Ruchi Soya Industries.