Palm Oil Market Size, Growth And Forecast To 2031

(MENAFN- Straits Research) Introduction

The global palm oil market was valued at USD 62.94 billion in 2021 and is projected to reach USD 99.41 billion by 2030, registering a CAGR of 5.21% from 2022 to 2030.

The food and beverage industry, as well as the biofuel industry, the energy industry, the personal care and cosmetics industry, and others, are the primary demand drivers for this market.

Market Dynamics Increasing demand from the biofuel industry & reason for the development of a region

Indonesia is the world's top producer and exporter of palm oil. The nation exports the product worldwide. The government also assists palm oil plant growers. It is a significant source of revenue for numerous small and medium-sized farmers in the region. The industry is primarily responsible for the development and advancement of the region's cultivators.

Similarly, the biofuel industry has increased its need for the commodity. It is utilised in the manufacturing of biofuel, which is used as a sustainable alternative to crude oil in a variety of applications, including motor oil. The biofuel industry is in its infancy and has limited applications at now.

Due to the abundance of raw materials in the Asia-Pacific region, the region is home to the majority of the world's largest manufacturers. Due to the presence of a significant number of all-scale players who strive to acquire a competitive advantage with their high production, excellent distribution networks, product quality, and varied competitive strategies, the market is both extremely competitive and extensive.

Numerous industry participants are engaged in its research and development, which bodes well for the sector's future growth. As the sector gains footing, the demand for palm oil and market growth potential is anticipated to increase.

Regional analysis of the global palm oil market

The market is split by region into North America, Europe, Asia-Pacific, and LAMEA.

In 2021, the Asia-Pacific region dominated the market with a revenue share of over 71%. This is a result of the region's growing population and high demand from end-use sectors, such as the food and beverage industries. In India and China, the high consumption of palm oil in the region can be attributed to the rapid population growth, shifting demographic trends, and numerous cuisine applications.

This crop is a significant source of wealth for countries like Indonesia and Malaysia, who are among the world's largest producers. The palm oil-producing nations had benefited from this business' profits in terms of economic development and advancement. The sole source of income for small and medium-sized businesses in many countries is the proceeds from this oil. During the projection period, the product market in the region is anticipated to expand substantially due to the region's expanding population.

The North American region is projected to have exponential expansion in the near future due to the region's unique demography, the shift in eating habits of the populace, and the rise in demand from the food sector for the production of diverse delicacies. The North American market has many undiscovered opportunities, which is another factor in the product's quick expansion in the region.

Key Highlights

• The global palm oil market was valued at USD 62.94 billion in 2021 and is projected to reach USD 99.41 billion by 2030, registering a CAGR of 5.21% from 2022 to 2030.
• The conventional segment dominated the market with a revenue share of more than 99% in 2021
• Asia Pacific region dominated the market in 2021 and is expected to do the same