Palm Oil Market

Global Market Study on Palm Oil: Demand for Organic Palm Oil Expected to Surge Over Coming Years

About the Report

Palm oil is one of the affordable and versatile edible oils preferred by several food manufacturers across the globe, making it an important asset for producing countries. Palm oil is widely used in several industrial applications, especially in the regions of Southeast Asia and tropical Africa. A high percentage of food products, including ready-to-eat products, food snacks, confectionery, bakery, and many others for sale in supermarkets are formulated using palm oil. Furthermore, with rising emergence of modern trade channels across developing regions, the outreach of palm oil is increasing.

A new report by Persistence Market Research details all these factors, and also talks about other important factors responsible for rapid market growth across the world. The report also analyzes the impact COVID-19 has had on the F&B, cosmetics, and retail industry in general, and the market for palm oil in particular.

Find Out More about the Report Coverage

Companies

  • Olam International
  • Archer Daniels Midland Company
  • Presco PLC
  • Agarwal Industries Pvt. Ltd.
  • Asian Agri
  • Apical Group Ltd.
  • IOI Corp Bhd
  • Oleo-Fats, Incorporated
  • Agropalma Group
  • Golden Agri-Resources Ltd.
  • Sime Darby Oils Liverpool Refinery Ltd.
  • Cargill, Incorporated
  • Liberty Oil Mills Ltd.
  • Adams Group, Inc.

Historical Vs Future Market Outlook

From 2016-2020, demand for palm oil witnessed a value growth of 2.9%. In terms of land use, oil palm trees are one of the most efficient oil crops with the highest yield, producing approximately 3.8 tons of oil per hectare. Indonesia and Malaysia have dominated the market in terms of production, producing approximately 80% of the total palm oil, globally.

A high percentage of palm oil is used in the refined form, making it a valuable ingredient providing improved taste and texture for a variety of food products. Refined palm is also considered an affordable and versatile ingredient by several key players operating in the food processing and food service industry. Increased penetration of palm oil can be justified by its ability to offer semi-solid consistency and long-term stability at high cooking temperatures in different industrial as well as household applications. Rising demand for food ingredients with increased functionality and cost-efficiency is expected to trigger higher demand for palm oil over the forecast period at an expected CAGR of more than 4% through 2031.

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Will Increasing Consumer Preference for Convenience Food Trigger Demand for Palm Oil?

Over the last few decades, consumers have shown a propensity toward alluring confectionery, bakery, and convenience food products. The moist texture, mouth feel, and great flavors of cakes, pastries, and snacks are attracting more consumers all over the world. Palm oil can be very versatile in the production of these delicious and artisan packaged food products.

Owing to unstable and modern lifestyle, consumption of packaged food and convenience food has increased exponentially. A wide range of edible oil is used by industries to generate distinctive aroma and give an explicit taste to the food products with increased shelf life.

  • The Philippine-based Oleo-fats Incorporated offers an extensive range of edible oil for industrial applications. The company focuses on product development and innovation to provide customers with a variety of options.

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A key factor for our unrivaled market research accuracy is our expert- and data-driven research methodologies. We combine an eclectic mix of experience, analytics, machine learning, and data science to develop research methodologies that result in a multi-dimensional, yet realistic analysis of a market.

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Will Increasing Demand for Fortified Food Products Support Market Growth for Palm Oil?

Palm oil has proven its worth in industries as well in retail markets, owing to its functional features such as enhancing the health benefits of daily meals and baby food products along with providing the perfect texture and flavor. Now, producers have been thriving to improve and offer nutritionally enhanced edible oil. Companies are offering fortified palm oil as a unique proposal to customers, as it contributes to the additional functionality of oils.

Edible oil manufacturers are offering specialized palm oil to reduce the chances of heart diseases by curbing cholesterols levels in the blood. Consumers are being cautious about their health and opting for a healthy lifestyle, thus increasing inclination toward nutrient-rich palm oil.

  • BASF SE offers fortified palm oil with micronutrients such as vitamins and minerals for attracting health-conscious consumers.

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Will Innovative Packaging Strategies Influence Demand for Palm Oil?

Packaging plays a vital role in the palm oil industry, and manufacturers are offering smart and attractive packaging to influence consumers. Increasing competition in the palm oil business makes it necessary for manufacturers to sustain their position in the market. Innovation and creative packaging designs of packaging differentiate a product and a brand, offering companies a competitive advantage.

Furthermore, sustainable and environment-friendly packaging are gaining popularity in the food & beverage industry. Reducing wastage, ensuring freshness, and protecting product quality are factors promoting the use of sustainable packaging for palm oil. Use of innovative packaging is impacting the sales of high-quality palm oil. Thus, effort by manufacturers to offer palm oil in innovative packaging is expected to drive sales over the coming years.

How Will Safety & Quality Assurance through International Certifications Shape Market Expansion?

Today’s consumers need assurance of safety and quality measures taken by any company. International food quality and safety organizations are playing a vital role in standardizing procedures and processes to maintain the finest quality of products all over the globe. Quality certifications and standard operating activities give an edge over others in this cut-throat competitive market.

These certifications ensure product quality through certain laboratory tests. Certifications also ensure that the quantity and grade of food are maintained. Consumers can blindly trust products that are approved by regulatory bodies such as ISO 9001, HALAL, KOSHER, ISO 14001, OHSAS 18001, GMP + B2, IFS Food, NON-GMO Projects, USDA, FDA, and ISCC.

  • Manufacturers of edible oil such as Victoria Group, Sunflower Vegetable Oil, Inc., Fuji Oil Holdings, Inc., Adams Group Inc., and many more are certified by various regulatory bodies. These regulations are leading to a rise in the trust level that customers have in the products of these manufacturers.

Country-wise Analysis

Why is Indonesia a Prominent Market for Palm Oil?

According to the Food and Agriculture Organization, Indonesia is responsible for more than 50% of global palm oil products, making it one of the major exporters of palm oil to some of the most developed as well as developing economies across the globe. Indonesia exports approximately 70% of its palm oil production to different countries throughout the world, which represents approximately 6-7% of its GDP.

Booming demand for palm oil from food manufacturers and key players operating in the foodservice industry has significantly contributed to the growth of the palm oil market in this country. Easy availability of raw material makes it a large potential market for palm oil manufacturers. Palm oil manufacturers in Indonesia are also emphasizing on sustainable production methods. Manufacturers are adhering to strict industry standards to ensure the international acceptance of their products. Indonesia is expected to dominate the global palm oil industry owing to the well-developed production cluster in the country.

What are the Potential Growth Opportunities for Palm Oil Manufacturers in India?

India is the largest consumer and importer of palm oil globally. India consumes approximately 15% of the total palm oil produced globally. However, the country is completely import-dependent for palm oil, as there is no significant production in the country. Demand for palm oil is expected to be approximately 1.5X in 2031 as compared to 2021.

The Government of India is taking efforts to expand palm oil cultivation in the country to meet ever-increasing consumer demand, as it is difficult to sustain this demand by just increasing imports. One of the major reasons for the ever-increasing demand for palm oil in India is growing penetration of the foodservice industry. Demand for palm oil is rising across the HoReCa sector and institutional catering. Retail sales of palm oil in the country are also surging as the home cooking pattern of consumers is rising. Consumers are keen to prepare innovative food products at home, which is subsequently increasing the sales of food ingredients such as palm oil.

What are the Key Factors Affecting Demand for Palm Oil in China?

China is the second-largest importer of palm oil after India. A majority of food manufacturers and commercial sectors in China are turning toward palm oil, as it is considered to be cost-effective and versatile. In China, utilization of palm oil in food manufacturing, in particular, has seen a boost in the recent past. Palm oil is used in the manufacturing of instant noodles, snacks, and frozen food products. These food products are highly consumed as staple food products in China. The country is also witnessing increased consumer interest in purchasing palm oil in retail packs at supermarkets.

Category-wise Insights

Is Demand for Organic Palm Oil Rising?

The market for organic food is expected to witness a high growth rate. Establishment of different industrial standards such as USDA Organic has enhanced consumer acceptance for organic food products. Burgeoning consumer interest in food products manufactured using organic ingredients has opened new market opportunities for palm oil manufacturers. Key palm oil producers are taking efforts to offer organic-certified palm oil products to fulfill this ever-increasing consumer demand for organic products. As such, the organic palm oil segment is expected to witness a high volume growth rate of approximately 5.5% through 2031.

Competition Landscape

Persistence Market Research has profiled the following prominent palm oil manufacturers in its report:

  • Olam International
  • Archer Daniels Midland Company
  • Presco PLC
  • Agarwal Industries Pvt. Ltd.
  • Asian Agri
  • Apical Group Ltd.
  • IOI Corp Bhd
  • Oleo-Fats, Incorporated
  • Agropalma Group
  • Golden Agri-Resources Ltd.
  • Sime Darby Oils Liverpool Refinery Ltd.
  • Cargill, Incorporated
  • Liberty Oil Mills Ltd.
  • Adams Group, Inc.

Majority of key palm oil manufacturers are emphasizing on product expansion to update their product offerings and offer products that are free from artificial ingredients, by eliminating ingredients that have an undesirable effect or health adversities on consumers. Key players are also taking efforts to offer organic and natural alternatives to their existing products.

  • For instance, in 2018, Alcopalma set up a new segregated mill for the production of organic palm oil, certified by the Roundtable on Sustainable Palm Oil (RSPO). This mill is located Ecuador’s south coast. This expansion was done to diversify the company’s portfolio by offering organic and sustainable palm oil.

Report Scope

Attribute

Details

Forecast Period

2021-2031

Historical Data Available for

2016-2020

Market Analysis

US$ Mn for Value & KT Units for Volume

Key Regions Covered

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

Key Countries Covered

  • US
  • Canada
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Poland
  • Russia
  • China
  • Japan
  • South Korea
  • India
  • Thailand
  • Malaysia
  • Vietnam
  • Indonesia
  • Australia
  • New Zealand
  • GCC Countries
  • South Africa

Key Segments Covered

  • Nature
  • End Use
  • Distribution Channel
  • Region

Key Companies Profiled

  • Olam International
  • Archer Daniels Midland Company
  • Presco PLC
  • Agarwal Industries Pvt. Ltd.
  • Asian Agri
  • Apical Group Ltd.
  • IOI Corp Bhd
  • Oleo-Fats, Incorporated
  • Agropalma Group
  • Golden Agri-Resources Ltd.
  • Sime Darby Oils Liverpool Refinery Ltd.
  • Cargill, Incorporated
  • Liberty Oil Mills Ltd.
  • Adams Group, Inc.

Customization & Pricing

Available upon Request

Key Questions Answered in Report

  • Which type of palm oil is expected to show significant demand growth?

As per Persistence Market Research’s projections, organic palm oil is expected to exhibit significant value CAGR of around 6% through 2031, owing to increased consumer demand for organic food products.

  • Currently, which is the largest market for palm oil?

As per Persistence Market Research’s projections, sales of palm oil are highest in South Asia, attributable to the evolving landscape of the foodservice and food manufacturing industry in this region.

  • Who are the leading palm oil manufacturers?

Prominent players manufacturing palm oil include Olam International, Cargill, Incorporated, Oleo-Fats, Incorporated, IOI Corp Bhd, and Archer Daniels Midland Company.

Enquiry before Buying

  • Is the research conducted by Persistence Market Research?

Yes, the palm oil market report has been compiled by expert analysts of Persistence Market Research, 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 Persistence Market Research?

Persistence Market Research follows a methodology that encompasses a 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.

  • Who are the respondents for primary research?

Persistence Market Research 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.

  • What are the sources of secondary research?

Persistence Market Research 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.

  • Is a sample of this report available for evaluation?

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

  • How can I buy this report?

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Key Segments of Palm Oil Market

Nature

  • Organic Palm Oil
  • Conventional Palm Oil

Application

  • Palm Oil for Food and Beverage Industry
  • Palm Oil for Foodservice Industry
  • Palm Oil for Cosmetics and Personal Care Industry
  • Palm Oil for Retail/Household

Type

  • Business to Business Sales of Palm Oil
  • Business to Consumer Sales of Palm Oil
    • Hypermarkets/Supermarkets
    • Specialty Stores
    • Convenience Stores
    • Online Retail

Region

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

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