Palm Oil Market to Witness Lower Profit amid Rising Cost of Production
The growth of the palm oil market is dependent on several market sentiments and supply-demand factors. High price volatility is likely to hit the palm oil market as palm oil captures the largest volume of vegetable oil traded across the globe and enforcement of new policies and regulation against the backdrop of growing awareness regarding irresponsible plantation practices. Palm planters are expected to be the most affected stakeholders as their profit margin is influenced by weakening export outlook and increasing minimum wage policies. These factors are pushing farmers to increase the cost of production, thereby impacting the overall palm oil market outlook.
Development of Sustainable Palm Supply Chain Becomes a Linchpin for Palm Oil Market Stakeholders
As the palm oil is the most widely used vegetable oil used, irresponsible practices of cultivation and processing have hampered environmental integrity in the past. To offset the damage caused and maintain future sustainability in production, palm oil stakeholders are engaged in establishing transparent and sustainable supply chain in the palm oil industry.
In addition, innovative ways are being adopted by stakeholders in the palm oil market to ensure sustainable palm oil production. For instance, Nestle has recently announced the implementation of Starling, a satellite-based service to monitor the company’s global supply chain with 100% efficiency, thereby ensuring 2020 No Deforestation commitment and sustainable palm oil supply chain. BASF, the largest manufacturer of palm kernel oil has recently revealed its plans to make available its palm oil based product portfolio and personal care specialities as certified sustainable. Unilever recently disclosed its complete palm oil supply chain including source to suppliers and has become the first consumer goods company to reveal complete transparency of the palm oil supply chain.
Amidst Sustainability Challenges, Palm Oil is Here to Stay in the Food Service Industry
Palm oil with its largest share in the global vegetable oils market has become a vital ingredient in the foodservice sector. Although the total amount of palm oil used remains untraceable till date owing to the labelling of palm oil under vegetable oil category, demand for palm oil in the food industry owing to its high saturated fatty acid content remains indispensable. Despite the presence of palm oil alternatives, easy accessibility and affordable cost of palm oil make it the most preferable choice in the foodservice industry. However, growing demand for transparency in food labelling and ongoing efforts to establish a traceable and sustainable palm supply chain is anticipated to add complexity for foodservice manufacturers operating in the palm oil marketplace.
Growing Preference for Substitute Products to Influence Crude Palm Oil Prices
While palm oil dominates the vegetable oils market due to its intrinsic property of higher saturated fatty acid content, soybean, rapeseed, sunflower and other oils can be used as substitutes for palm oil. Although these liquid oil substitutes lack the solid fats similar to palm oil, hydrogenation of liquid oil can deliver consistency like solid fats of palm oil. Soybean oil and rapeseed oils that are partially or completely hydrogenated can provide consistency similar to palm oil and are considered close palm oil substitutes. In particular, affordable prices of soybean oil is becoming the close competitor of the palm oil market which is currently affected by sustainability factor.
Demand from Biofuel Sector to Prominently Impact Palm Oil Prices
As an affordable feedstock, palm oil dominates the biofuel sector, however, questions continue to arise regarding the greenness of biofuels over fossil fuels. Particularly in the case of palm oil, irresponsible farming practices have created sustainability issues. Across the global palm oil supply chain, stringent policies have significantly impacted the palm production. Recently, EU has revealed phase-out of palm oil from the transport fuel from 2021 with the intention to control irresponsible palm production practices. These factors combined with the volatility in the Brent crude prices are expected to influence the palm oil prices in the near future.
The competitive landscape section delivers a dashboard view of the key market players in the palm oil market. In addition, users of the report can get an insightful section to read about company profiles and their relative position in the global market landscape. Few of the key market players profiled in the palm oil market report include American Vegetable Oils, Cargill Inc., Grief Inc., Fuji Oil Holdings, Bunge Limited, Associated British Foods and Ruchi Soya Industries.
The palm oil market is marked by key players engaged in adopting novel ways to increase sustainability of supply chain and expansion of palm oil production. For instance, Fuji Oil Holdings Group from Japan has partnered with a Malaysian palm oil producer United Plantation to deliver palm oil products that are complied with international standards. Bunge International, a leader in the palm oil market has recently acquired 70% of stake in IOI Loader Croklaan that provides palm oil products. Croklaan has joined Bunge’s Food & Ingredients division as Bunge Loader Croklaan. Godrej Agrovet is planning to acquire Ruchi Soya Industries and is keen to receive benefits from the Ruchi Soya’s oil palm plantation business.
Derived from the fruit of oil palms, palm oil is an edible vegetable oil which is extensively used in the food industry as cooking oil. Rich in saturated fats, vitamins and antioxidants, palm oil is discovered in different industries ranging from food to pharmaceutical to biofuel.
About the Report
Fact.MR has compiled a new report on the palm oil market and published a report titled, “Palm Oil Market Forecast, Trend Analysis & Competition Tracking: Global Market insights 2017 to 2022”. The palm oil market report delivers a thorough analysis of the historical data, current market scenario and impacts of the regulatory framework that holds significant influence in transforming the palm oil market landscape.
Additional Questions Answered
Along with the aforementioned market insights, the palm oil market report provides information on the other vital facets of the palm oil market.
- In the race to stand out, what will be the key market strategies adopted by stakeholders in the palm oil market?
- Amid EU ban on palm oil in transportation, how will Europe palm oil market continue its dominance?
- What will be the impact of clean label trend on the palm oil market and demand for palm oil in the food industry?
Fact.MR has collated a market research analysis of the palm oil market and published a report titled, “Palm Oil Market Forecast, Trend Analysis & Competition Tracking: Global Market insights 2017 to 2022”. The report delivers a thorough analysis on the historical data, current market scenario and evolving regulatory framework in the palm oil market. An in-depth discussion on the market dynamics which includes drivers, restraints, trends and opportunity prevailing in the palm oil market is covered in the palm oil market report. The report foresees the global market performance of palm oil market which is backed by an exhaustive regional analysis.
To deliver a comprehensive outlook of the palm oil market, the report is divided into a total 15 sophisticated chapters. A snapshot of individual chapter is discussed below.
Chapter 1 – Executive Summary
The palm oil market report commences with the chapter of the executive summary which delivers the brief yet affluent insights of the palm oil market. Highlighted CAGR values and market sizes of individual segments deliver the overall outlook of the palm oil market.
Chapter 2 – Market Overview
This chapter of the market overview provides the users with the information in terms of market introduction, market dynamics, supply chain, cost structure, pricing analysis and raw material sourcing strategies in the palm oil market.
Chapter 3 - Global Palm Oil Market Analysis and Forecast By Product Type
The chapter of the palm oil market provides the readers with the market analysis of the product types of the palm oil including processed palm oil and virgin palm oil.
Chapter 4 - Global Palm Oil Market Analysis and Forecast By End User
The chapter delivers the market assessment of the palm oil market segmentation based on end users that includes foodservice, food processor and retailer segments.
Chapter 5 - Global Palm Oil Market Analysis and Forecast By Distribution Channel
This chapter of the palm oil market report provides the readers with the in-detailed analysis of the distribution channels in the palm oil market. Market assessment for modern trade, franchise outlet, specialty stores and online channels are covered in this chapter.
Chapter 6 - Global Palm Oil Market Analysis and Forecast By Region
Based on geographical point of view, the palm oil market is analyzed for a total of six regions – North America, Latin America, Europe, Japan, APEJ and MEA.
Chapter 7 - North America Palm Oil Market Analysis and Forecast, By Country, 2012-2022
Market analysis for the North America palm oil market has been discussed where the country-wise market study of the U.S. and Canada forms the basis of the regional market forecast.
Chapter 8 - Latin America Palm Oil Market Analysis and Forecast, By Country, 2012-2022
In this chapter, Latin America palm oil market analysis is elaborated. Country-wise analysis of the market is carried out for Brazil, Mexico and Argentina to derive market performance for Latin America palm oil market.
Chapter 9 - Europe Palm Oil Market Analysis and Forecast, By Country, 2012-2022
The Europe palm oil market performance is discussed elaborately in this chapter where the country-wise market performance of Germany, the UK, France, Spain, Italy and Nordic is covered.
Chapter 10 - Japan Palm Oil Market Analysis and Forecast, By Country, 2012-2022
The Japan palm oil market performance is discussed in this chapter. Japan’s palm oil market performance is backed by historical data and prominent market trends prevailing in the country.
Chapter 11 - APEJ Palm Oil Market Analysis and Forecast, By Country, 2012-2022
This chapter discusses the APEJ palm oil market analysis. Country-wise analysis of China, India, Malaysia, Thailand, Singapore and Australia has been elaborated in this chapter to deliver the palm oil market outlook for the APEJ region.
Chapter 12 - MEA Palm Oil Market Analysis and Forecast, By Country, 2012-2022
The market analysis of the Middle East and Africa region is discussed in this chapter. Country-wise analysis of GCC countries, South Africa, Nigeria and Israel has been carried out to derive market forecast values of the MEA bergamot oil market.
Chapter 13 - Global Palm Oil Market Company/Manufactures/Distributors/Suppliers Profile and Revenue Projections
A comprehensive list of key market players in the palm oil market is provided in this chapter. The key companies have been categorized among manufacturers, distributors and suppliers to completely understand the scenario of key companies and their relative market positions in the global market.
Chapter 14 - Research Methodology
The chapter elaborates on the research methodology followed during the course of the study of the palm oil market.
Chapter 15 - Secondary and Primary Sources
The chapter provides information regarding the research sources used to carry out primary and secondary research analysis in the research methodology.
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