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Palm Oil Market

Palm Oil Market

Demand for Processed Palm Oil to Dominate Over Virgin Palm Oil in the Palm Oil Market during 2021-2031

Palm Oil Market
FACT109MR
  • Jul-2021
  • List of Tables : 216
  • List of Figures : 66
  • 170 Pages
  • Food & Beverage

Market Snapshot

Newly released data from Fact.MR’s palm oil industry analysis shows that overall demand in 2022 is expected to top nearly US$ 33 Bn. As per the report, revenues are anticipated to grow 1.5x to reach nearly US$ 50 Bn by 2031, experiencing a compounded annual growth rate (CAGR) of nearly 5%.

Key Points Covered in Palm Oil Industry Analysis

  • Market estimates and forecast 2016-2031
  • Key drivers and restraints impacting market growth
  • Segment-wise, Country-wise, and Region-wise Analysis
  • Competition Mapping and Benchmarking
  • Brand share and Market Share Analysis
  • Key Product Innovations and Regulatory Conditions
  • COVID-19 Impact on Palm Oil Market and How to Navigate
  • Recommendation on Key Winning Strategies

Palm Oil Consumption Analysis 2016-2020 vs Future Outlook 2021-2031

From 2016 to 2020, consumption of palm oil expanded at a CAGR of 4% with the market closing in at almost US$ 30 Bn. Significant growth in demand from key end use industries coupled with rising consumer awareness regarding positive health benefits has sustained sales.

Sales are especially high across Indonesia, India, and China. According to government data, India's total palm oil potential in 2019 is estimated to be around 350,000 hectares spread across 16 states.

In the long run, global palm oil demand is expected to rise, registering a CAGR of nearly 5% until 2031. India and China will continue to consume maximum palm oil.

How is Multiple Functionality Spurring Palm Oil Uptake across Major Industries?

Attributed to its multifarious benefits, palm oil is utilized in a variety of applications, including food, personal care, and transportation fuel, especially biodiesel. According to World Wildlife Fund (WWF), palm oil is utilized in close to 50% of packaged products, ranging from pizzas, doughnuts and chocolate, to deodorant, shampoo, toothpaste and lipstick.

Palm oil is highly versatile, possessing several properties and functions which makes it so useful and so widely used. In Asian and African countries, palm oil is used widely as a cooking oil, just like sunflower oil or olive oil. Greater stability at high temperatures makes it an ideal choice for fried products.

How is Uptake in Biofuels and Energy Sectors Yielding Growth Opportunities?

In recent years, palm-derived biodiesel has acquired significant traction. Compared to petroleum-based diesel, palm oil based biodiesel has a significantly lower sulfur content. Hence, the risk of noxious emissions upon its combustion is mitigated.

A recently developed palm biodiesel variant offers low pour content. This makes it easier to use, particularly during winters. It also produces far less carbon residues, meaning it leaves lesser carbon build-up in a diesel engine. In terms of feedstock, palm oil is considered an economical alternative to soybean.

Availability of Substitute Products to Hamper Expansion Prospects?

While palm oil is the most popular vegetable oil due to its greater saturated fatty acid content, manufacturers are investigating other alternatives, including soybean oil, rapeseed oil, and sunflower respectively.

Concerns regarding deforestation to plant more palm trees is discouraging end users from using palm oil. Although the aforementioned alternatives lack the same solid fats as palm oil, hydrogenation of liquid oil can mimic the consistency of palm oil solid fats. This is expected to hamper adoption in the forthcoming decade.

Country-wise Insights

What Supports Increasing Palm oil Sales in Europe?

Europe is likely to dominate the global palm oil industry. Countries such as the Netherlands, Germany, Spain, and Italy import sustainable palm oil and distribute it in the European market. Fact.MR expects the region to expand at a CAGR of around 4% until 2031.

According to sources, 7.3 million tons were imported by the European Union for usage in the food and energy industries. These factors are expected to contribute to the worldwide sustainable palm oil market's expansion.

How Lucrative is the Opportunity for Palm Oil in India?

According to market sources, the Indian government stated recently that it will reduce tariffs on imports of tropical oil to combat food price inflation.

The Indian Ministry of Finance declared that import levies on crude palm oil (CPO) have been reduced from 38% to 28%, citing that it was “in the public interest” to do so.

Based on these trends, it is expected that sales and production of palm oil is anticipated to incline significantly in forthcoming years. Fact.MR anticipates a CAGR of around 4% for the Indian palm oil market.

Why are Sales of Palm Oil Rising in the U.S?

In 2021, palm oil demand in the U.S is expected to be worth $12 Bn, holding a 27% stake. Rising preference for consuming vegetable oils is spurring uptake since the past few years.

According to the U.S Department of Agriculture, 1470 metric tons of palm oil is expected to be consumed through 2021 domestically. This represents an increase of 5.3% compared to 2020. Extensive uptake across the food & beverage and pharmaceutical industries is expected to steer future growth.

How are the Growth Prospects Unfolding across China?

China, the world's second-largest economy, is expected to reach an impressive market size, representing a CAGR of over 8% across the short-term forecast period.

Palm oil demand and consumption in the Chinese food sector is expected to witness significant growth as government efforts to clamp down on the use of genetically modified (GM) products acquires pace. Between January and August 2020, imports totaled to 1.85 million metric tons, especially from Malaysia.

Category-wise Insights

Why is Processed Palm Oil Likely to Remain Preferred?

As per Fact.MR’s palm oil industry analysis, processed palm oil is expected to outperform its virgin counterpart, accounting for 3/4th of the global demand through 2031.

Growth is majorly attributed to the presence of a higher concentration of saturated fatty acids compared to virgin palm oil. The latter is largely confined to cooking applications, yielding 1/4th of the global revenue until 2031.

How is the Foodservice Segment Favoring Palm Oil Sales Expansion?

Extensive palm oil applications owing to its high nutritional value across major food preparations is likely to impel sales in the foodservice domain.

As per Fact.MR, the foodservice segment is expected to generate revenue worth US$ 13 Bn by 2022. Simultaneously, the food processing industry is expected to generate an opportunity worth US$ 9 Bn by the same period.

Competitive Landscape

In the following decade, manufacturers in the palm oil market will focus on strategic acquisitions, collaborations, and new launches.

  1. 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.
  1. 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.

Report Scope

Attribute

Details

Forecast Period

2021-2031

Historical Data Available for

2016-2020

Market Analysis

US$ Mn for Value & ‘000 Units for Volume

Key Regions Covered

 

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia
  • Oceania
  • Middle East & Africa

Key Countries Covered

  • U.S
  • Canada
  • U.K
  • France
  • Spain
  • Germany
  • Italy
  • China
  • India
  • South Korea
  • Japan
  • Australia
  • Brazil
  • Mexico
  • GCC
  • South Africa

Key Market Segments Covered

  • Product Type
  • End User
  • Distribution Channel
  • Region

Key Companies Profiled

 

  • American Vegetable Oils
  • Cargill Foods Inc.
  • Grief Inc.
  • Fuji Oil Holdings
  • Bunge Limited.
  • Associated British Foods
  • Ruchi Soya Industries

Pricing

Available upon Request

Key Segments Covered

  • Product Type

    • Processed Palm Oil
    • Virgin Palm Oil
  • End User

    • Palm Oil Demand from Foodservices
    • Palm Oil Demand from Food Processing Industries
    • Palm Oil Demand from Retailers
  • Distribution Channel

    • Palm Oil Sales through Modern Trade Channels
    • Palm Oil Sales through Franchise Outlets
    • Palm Oil Sales through Specialty Stores
    • Palm Oil Sales through Online Channels

Palm Oil Market- Scope of Report

A recent study by Fact.MR on the palm oil market offers a 10-year forecast for 2021 to 2031. The study analyzes crucial trends that are currently determining the growth of the market. This report explicates on vital dynamics, such as the drivers, restraints, and opportunities for key market players along with key stakeholders as well as emerging players associated with offering palm oil.

The study also provides the dynamics responsible for influencing the future status of the palm oil market over the forecast period. A detailed assessment of value chain analysis, business execution, and supply chain analysis across regional markets has been covered in the report.

A list of prominent companies operating in the palm oil market, along with their product portfolios, enhances the reliability of this comprehensive research study.

Report Summary

The research covers a wide range of topics, including production capacity, demand, product development, revenue creation, and palm oil sales around the world.

An optimistic, as well as a conservative scenario, has been used to produce a thorough estimate of the market, taking into accounts sales of palm oil over the forecast period. Price point comparison by region with global average price is also considered in the study.

Key Questions Answered in Report

  • Which are the most lucrative palm oil markets?
  • Which factors will impact the growth of palm oil?
  • How will changing trends impact the strategies of market players?
  • How can market players capture the low-hanging opportunities across regions?
  • Which companies are leading the palm oil industry?
  • What are the winning strategies of stakeholders in the market?

Analysis on Market Size Evaluation

The market has been analyzed for each segment in terms of volume (‘000 Units) and value (US$ Mn).

Estimates at global and regional levels for palm oil are available in terms of “US$ Mn” for value and in “‘000 Units” for volume. A Y-o-Y growth contrast on prominent market segments, along with market attractiveness evaluation, has been incorporated in the report. Furthermore, absolute dollar opportunity analysis of all the segments adds prominence to the report. Absolute dollar opportunity plays a crucial role in assessing the level of opportunity that a manufacturer/distributor can look to achieve, along with identifying potential resources, considering the sales and distribution perspective in the global palm oil market.

Inspected Assessment on Regional Segments

Key sections have been elaborated in the report, which have helped deliver projections on regional markets. These chapters include regional macros (political, economic, and business environment outlook), which are expected to have a momentous influence on the growth of the palm oil market during the forecast period.

Country-specific valuation on demand for palm oil has been offered for each region, along with market scope estimates and forecasts, price index, and impact analysis of the dynamics of prominence in regions and countries. For all regional markets, Y-o-Y growth estimates have also been incorporated in the report.

Detailed breakup in terms of value & volume for emerging countries has also been included in the report.

In-depth Analysis on Competition Analysis

The report sheds light on leading manufacturers of palm oil, along with their detailed profiles. Essential and up-to-date data related to market performers who are principally engaged in offering palm oil has been brought with the help of a detailed dashboard view. Market share analysis and comparison of prominent players provided in the report permits report readers to take preemptive steps in advancing their businesses.

Company profiles have been included in the report, which include essentials such as product portfolios and key strategies, along with all-inclusive SWOT analysis on each player. Company presence is mapped and presented through a matrix for all the prominent players, thus providing readers with actionable insights, which helps in thoughtfully presenting the market status, and predicting the competition level in the palm oil domain.

Research Methodology

In Fact.MR’s study, a unique research methodology is utilized to conduct extensive research on the growth of the palm oil industry, and reach conclusions on the future growth parameters. This research methodology is a combination of primary and secondary research, which helps analysts ensure the accuracy and reliability of the drawn conclusions.

Secondary resources referred to by analysts during the preparation of the market study include statistics from governmental organizations, trade journals, white papers, and internal and external proprietary databases. Analysts have interviewed senior managers, product portfolio managers, CEOs, VPs, marketing/product managers, and market intelligence managers, all of whom have contributed to the development of the research report as a primary resource.

- FAQs -

According to Fact.MR, global palm oil sales are poised to reach US$ 33 Bn by 2022

From 2016 to 2020, palm oil sales expanded at around 4% CAGR

As per Fact.MR’s projections, palm oil market value is poised to reach US$ 50 Bn by 2031, expanding at nearly 5% CAGR

Extensive applications in the food & beverages processing sector and pharmaceutical industry amid perceived health benefits is majorly driving market growth

Increased applications as biofuels, particularly biodiesel, is expected to accelerate sales of palm oil across several countries

A CAGR of 4% has been projected for the European palm oil industry until 2031

The U.S is expected to account for 27% of palm oil demand across North America

Palm oil market in India will likely expand at a CAGR of around 4% in the forecast period

China is forecast to register a CAGR of 8% in the short-term forecast period

Processed palm oil is expected to account for 75% of global palm oil demand until 2031

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Is the market research conducted by Fact.MR?

Yes, the report has been compiled by expert analysts of Fact.MR, through a combination of primary and secondary research. To know more about how the research was conducted, you can speak to a research analyst.

What research methodology is followed by Fact.MR?

Fact.MR follows a methodology that encompasses the demand-side assessment of the market, and triangulates the same through a supply-side analysis. This methodology is based on the use of standard market structure, methods, and definitions.

What are the sources of secondary research?

Fact.MR conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request.

Who are the respondents for primary research?

Fact.MR speaks to stakeholders across the spectrum, including C-level executives, distributors, product manufacturers, and industry experts. For a full list of primary respondents, please reach out to us.

Is a sample of this report available for evaluation?

Yes, you can request a sample, and it will be sent to you through an email.