Palm Oil & Palm Oil Derivatives Market
Palm Oil & Palm Oil Derivatives Market Size, Share & Industry Analysis, By Type (Crude Palm Oil, Palm Kernel Oil, Palm Kernel Cake, Others), By Derivative (Food and Beverages, Oleochemicals, Biodiesel, Others), By Application (Edible Oil, Cosmetics, Bio-diesel, Lubricants, Surfactants), By Region (North America, Europe, Asia-Pacific, Latin America, Middle East & Africa) - Share, Size, Outlook, and Opportunity Analysis, 2024-2031.
Market Overview:
The Palm Oil & Palm Oil Derivatives Market is projected to grow at a CAGR of 6.8% from 2024 to 2031. The market value is expected to increase from USD XX billion in 2024 to USD YY billion by 2031. Asia-Pacific is anticipated to be the dominant region in this market. Key metrics include increasing demand for vegetable oils in food applications, growing use of palm oil derivatives in various industries, and rising focus on sustainable palm oil production. The market is experiencing robust growth driven by the versatility of palm oil products and their cost-effectiveness compared to other vegetable oils.
Palm Oil & Palm Oil Derivatives Market Dynamics:
Market Trend: Increasing demand for sustainable and certified palm oil products
The palm oil business is experiencing a tremendous shift towards sustainable and certified palm oil products. This trend is being driven by increased consumer knowledge of environmental issues, particularly the deforestation and biodiversity loss connected with palm oil extraction. Major food producers, retailers, and consumer products corporations are rapidly committed to procuring 100% certified sustainable palm oil (CSPO) in order to meet customer demand and comply with tightening requirements.
According to the Roundtable on Sustainable Palm Oil (RSPO), global CSPO production will reach 17.6 million tonnes by 2022, accounting for around 19% of total palm oil production. This movement is altering supply chains, as businesses invest in traceability systems and sustainable farming techniques. For example, major palm oil producers in Indonesia and Malaysia are using cutting-edge technologies such as satellite surveillance and blockchain to assure supply chain transparency. The transition to sustainability is not only addressing environmental problems, but it is also creating new commercial opportunities for certified palm oil products, which might drive long-term market growth and innovation in sustainable production methods.
Market Driver: Versatility of palm oil and its derivatives in various industries boosts demand
Palm oil and its derivatives have a wide range of uses across numerous sectors, which is a key driver of market growth. Palm oil's distinguishing characteristics, such as its semi-solid condition at room temperature, high oxidative stability, and long shelf life, make it ideal for usage in food, cosmetics, and industrial applications. Palm oil is widely used in cooking oils, margarine, and as a replacement for trans fats in the food industry, which accounts for around 70% of total consumption. The global food emulsifiers market, where palm oil derivatives play an important role, is estimated to reach USD YYbillion by 2026, rising at a CAGR of 5.8%. Palm oil derivatives are used to make soaps, detergents, lubricants, and polymers. The global oleochemicals market is expected to reach USD XX billion by 2027, with palm oil-based products playing a significant role. Furthermore, the biodiesel business is expanding, particularly in Asia and Europe, which is increasing demand for palm oil. The EU biodiesel market, for example, will consume nearly 7 million tonnes of palm oil in 2022, demonstrating the fuel industry's major influence on palm oil demand.
Market Restraint: Environmental concerns and negative publicity impact market growth
The palm oil business confronts considerable hurdles as a result of environmental concerns and unfavourable publicity around unsustainable production techniques. Deforestation, habitat damage, and greenhouse gas emissions associated with palm oil agriculture have prompted increased scrutiny from environmental groups and consumers. This has resulted in campaigns against palm oil use, which may influence consumer preferences and regulatory actions. For example, the European Union's plan to phase out palm oil-based biofuels by 2030 due to worries about deforestation might have a huge influence on palm oil farmers' markets. In response to customer demand, certain food manufacturers and merchants have agreed to reduce or eliminate palm oil from their goods.
Segment Overview:
The Crude Palm Oil segment is expected to dominate the Palm Oil & Palm Oil Derivatives Market throughout the forecast period.
Crude Palm Oil (CPO) is expected to maintain its market dominance due to its widespread use as a raw material in a variety of sectors and low cost when compared to other vegetable oils. CPO is the primary product produced from oil palm fruits, and it serves as the foundation for many derivatives and processed products.
Recent industry developments have highlighted the growing importance of CPO in the global oils and fats market. In 2023, a major Southeast Asian palm oil producer announced plans to raise CPO production capacity by 20% over the next five years, citing rising worldwide demand, particularly from emerging markets in Asia and Africa. This growth demonstrates the sustained high demand for CPO as a flexible and cost-effective oil.
The CPO industry also benefits from technological developments in extraction and refining procedures. A recent study published in the Journal of Oil Palm Research found a unique extraction method that boosts CPO production by up to 10% while using less energy. This idea has aroused interest among palm oil factories trying to increase efficiency and profitability.
Regional Outlook:
Asia-Pacific is expected to dominate the Palm Oil & Palm Oil Derivatives Market during the forecast period.
Asia-Pacific's dominance in the palm oil industry is due to the presence of major producing countries such as Indonesia and Malaysia, which account for more than 80% of worldwide palm oil production. The region's strong food processing industry, burgeoning population, and rising disposable incomes are all driving demand for palm oil and its derivatives.
Recent news highlighted the region's expanding role in the palm oil industry. In 2023, the Indonesian government announced plans to increase palm oil production to 60 million tonnes by 2025, from 51.3 million tonnes in 2022. This action is expected to boost Indonesia's position as the world's leading palm oil producer and exporter.
Key data highlight the region's dominance:
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In 2022, Asia-Pacific consumed more than 70% of the world's palm oil.
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India, the world's top importer of palm oil, is expected to raise its imports to 10 million tonnes by 2025, up from 8.5 million tonnes in 2022.
In terms of national advances, Malaysia has emerged as a pioneer in sustainable palm oil production. By 2025, the nation hopes that 100% of its palm oil will be MSPO (Malaysian Sustainable Palm Oil) certified. In 2023, a large Malaysian palm oil company implemented a blockchain-based traceability system to assure the sustainability of the whole supply chain, from planter to end user.
Competitive Intelligence:
The palm oil and palm oil derivatives market is made up of both major integrated producers and smaller specialised enterprises that compete in different sectors of the value chain. Key businesses are focussing on increasing production capacity, strengthening sustainability practices, and exploring new uses for palm oil derivatives.
Financial study suggests that the top five market participants account for roughly 30% of the global market share. Over the last three years, these companies' revenues have grown steadily, with an average annual increase of 5-6%. Investment in sustainable production processes, R&D for novel uses, and development into downstream products have all been priority areas.
Recent market trends include vertical integration tactics, with big producers expanding into refining and speciality chemicals to extract greater value from the supply chain. Several firms have initiated projects to boost smallholder farmer productivity and sustainability, recognising their critical role in the supply chain.
In the coming years, the market for speciality palm oil derivatives and sustainable palm oil products is likely to become more competitive. Established firms are likely to concentrate on producing higher-value palm oil fractions and oleochemicals, as well as investing in technologies that improve traceability and sustainability.
Analyst Opinion:
The Palm Oil & Palm Oil Derivatives Market is at a crossroads, balancing strong demand growth with mounting pressure for sustainability. The industry's future success will be heavily reliant on its ability to solve environmental concerns while satisfying increasing worldwide demand for vegetable oils. Innovations in sustainable production methods, such as yield improvement technology and alternative cultivation practices, will be critical in shaping the market's long-term growth path.
Palm oil replacements derived from other vegetable sources or lab-grown oils are an emerging trend to keep an eye on. While they are not yet cost-competitive with palm oil, continued research and shifting customer preferences may upset the business in the long run. Furthermore, the growing emphasis on the circular economy creates chances to valorise palm oil production waste and byproducts, possibly opening up new revenue streams for producers.
Major Players:
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Wilmar International Limited
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Sime Darby Plantation Berhad
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IOI Corporation Berhad
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Kuala Lumpur Kepong Berhad
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Golden Agri-Resources Ltd
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Cargill, Incorporated
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Archer Daniels Midland Company
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Bunge Limited
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Fuji Oil Holdings Inc.
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Musim Mas Group
Key Developments:
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Wilmar International Limited announced a cooperation with a top technology company in June 2023 to apply AI-driven precision agriculture techniques across its plantations, with the goal of increasing yields while decreasing environmental impact.
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Sime Darby Plantation Berhad released a new line of palm-based personal care products in August 2023, aiming to meet the growing demand for natural and sustainable cosmetic components.
1. INTRODUCTION
1.1. Market Definitions & Study Assumptions
1.2. Market Research Scope & Segment
1.3. Research Methodology
2. EXECUTIVE SUMMARY
2.1. Market Overview & Insights
2.2. Segment Outlook
2.3. Region Outlook
3. COMPETITIVE INTELLIGENCE
3.1. Companies Financial Position
3.2. Company Benchmarking -- Key Players
3.3. Market Share Analysis -- Key Companies
3.4. Recent Companies Key Activities
3.5. Pricing Analysis
3.6. SWOT Analysis
4. COMPANY PROFILES (Key Companies list by Country) (Premium)
5. COMPANY PROFILES
5.1. Wilmar International Limited
5.2. Sime Darby Plantation Berhad
5.3. IOI Corporation Berhad
5.4. Kuala Lumpur Kepong Berhad
5.5. Golden Agri-Resources Ltd
5.6. Cargill, Incorporated
5.7. Archer Daniels Midland Company
5.8. Bunge Limited
5.9. Fuji Oil Holdings Inc.
5.10. Musim Mas Group (*LIST NOT EXHAUSTIVE)
6. MARKET DYNAMICS
6.1. Market Trends
6.1.1. Increasing demand for sustainable and certified palm oil products
6.1.2. Rising adoption of palm oil in biofuel production
6.1.3. Growing use of palm oil derivatives in personal care products
6.2. Market Drivers
6.2.1. Versatility of palm oil and its derivatives in various industries
6.2.2. Cost-effectiveness compared to other vegetable oils
6.2.3. Increasing demand from emerging markets
6.3. Market Restraints
6.3.1. Environmental concerns and negative publicity
6.3.2. Stringent regulations in some regions
6.4. Market Opportunities
6.5. Porter's Five Forces Analysis
6.5.1. Threat of New Entrants
6.5.2. Bargaining Power of Buyers/Consumers
6.5.3. Bargaining Power of Suppliers
6.5.4. Threat of Substitute Products
6.5.5. Intensity of Competitive Rivalry
6.6. Supply Chain Analysis
6.7. Value Chain Analysis
6.8. Trade Analysis
6.9. Pricing Analysis
6.10. Regulatory Analysis
6.11. Patent Analysis
6.12. SWOT Analysis
6.13. PESTLE Analysis
7. BY TYPE (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
7.1. Crude Palm Oil
7.2. Palm Kernel Oil
7.3. Palm Kernel Cake
7.4. Others
7.4.1. Palm Stearin
7.4.2. Palm Olein
8. BY DERIVATIVE (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
8.1. Food and Beverages
8.1.1. Cooking Oil
8.1.2. Confectionery Fats
8.1.3. Ice Cream
8.1.4. Others
8.2. Oleochemicals
8.2.1. Fatty Acids
8.2.2. Fatty Alcohols
8.2.3. Glycerin
8.2.4. Others
8.3. Biodiesel
8.4. Others
8.4.1. Animal Feed
8.4.2. Energy Generation
9. BY APPLICATION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
9.1. Edible Oil
9.2. Cosmetics
9.3. Bio-diesel
9.4. Lubricants
9.5. Surfactants
10. REGION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
10.1. North America
10.1.1. United States
10.1.2. Canada
10.1.3. Mexico
10.2. South America
10.2.1. Brazil
10.2.2. Argentina
10.2.3. Rest of South America
10.3. Europe
10.3.1. Germany
10.3.2. United Kingdom
10.3.3. France
10.3.4. Italy
10.3.5. Spain
10.3.6. Russia
10.3.7. Rest of Europe
10.4. Asia-Pacific
10.4.1. China
10.4.2. Japan
10.4.3. India
10.4.4. Australia
10.4.5. South Korea
10.4.6. Rest of Asia-Pacific
10.5. Middle-East
10.5.1. UAE
10.5.2. Saudi Arabia
10.5.3. Turkey
10.5.4. Rest of Middle East
10.6. Africa
10.6.1. South Africa
10.6.2. Egypt
10.6.3. Rest of Africa
*NOTE: All the regions mentioned in the scope will be provided with (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
By Type:
- Crude Palm Oil
- Palm Kernel Oil
- Palm Kernel Cake
- Others
By Derivative:
- Food and Beverages
- Oleochemicals
- Biodiesel
- Others
By Application:
- Edible Oil
- Cosmetics
- Bio-diesel
- Lubricants
- Surfactants
By Region:
- North America
- Europe
- Asia-Pacific
- Latin America
- Middle East & Africa
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