According to Grand View Research, the global palm oil market is anticipated to reach USD 98.9 billion by 2030 and is expected to expand at a CAGR of 5.1% from 2022 to 2030. The market growth is driven by the surging demand for organic, eco-friendly, and sustainable products. Furthermore, the market has found widespread application in cosmetic and personal care product industries. Palm oil derived from mesocarp is edible. Malaysia and Indonesia are the largest producers and exporters of crude palm oil. The Asia Pacific has the largest consumer base of palm oil due to its primary application in food preparation.
Based on nature, the conventional segment remerged as the leading segment in 2021 as it is a crucial income source for medium and small-size cultivators
The food & beverages end-use segment accounted for a revenue share of 65% in 2021 due to the high demand for palm oil as a primary ingredient
Based on geography, Asia Pacific accounted for a market share of 71% in 2021 owing to the rapid rise in population, diverse food applications and changing demographic trends in India and China
Oil prices are presently hitting all-time highs globally, creating panic buying in regions of high demand, particularly sunflower oil, food oil, and palm oil. The scanty crop harvests due to droughts in Argentina and Canada in 2021 have decimated the supply chain demand. Moreover, the recent inflation has spilled over the global palm oil industry. Meanwhile, a rise in investment in China and other parts of Southeast Asia is fuelling the overall industry growth. In addition, increasing awareness about the health benefits of consuming palm oil including the adoption of a nutritional diet is bolstering demand for palm oil in recent years.
The global product market is highly competitive in nature and has a developed value chain. This is attributed to the presence of an established network of traders, distributors, and manufacturers. The product market has an expansive range of end-use applications such as food & beverages, biodiesel, and personal care & cosmetics. The fractionated palm oil product segment captured the largest revenue share in 2021. This segment is anticipated to expand by 2030 due to its extensive utilization by consumers.
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