Market Overview

The global palm oil market was valued at USD 57.19 Billion in 2024 and is projected to grow to USD 77.54 Billion by 2033, exhibiting a CAGR of 3.42% during 2025-2033. Indonesia dominates with over 59.1% market share in 2024, driven by the increasing application in food, biofuels, and personal care sectors. Rising population, economic development, and expanding middle class in emerging markets further fuel demand.

Study Assumption Years

  • Base Year: 2024
  • Historical Year/Period: 2019-2024
  • Forecast Year/Period: 2025-2033

Palm Oil Market Key Takeaways

  • The global palm oil market size was USD 57.19 Billion in 2024.
  • The market is expected to reach USD 77.54 Billion by 2033.
  • The market is projected to grow at a CAGR of 3.42% during 2025-2033.
  • Indonesia holds the largest market share with over 59.1% in 2024.
  • The rising versatility, rapid population growth, economic development, and cost effectiveness of palm oil production are major growth drivers.
  • Increasing awareness about health benefits and government initiatives support market expansion.

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Market Growth Factors

Palm oil is a major player in the food industry, and its widespread use is a big reason for market growth. It's a go-to ingredient in cooking oils, margarine, baked goods, and processed foods, thanks to its versatility and impressive shelf life. With the global population on the rise and more people moving to cities, the demand for packaged and ready-to-eat meals has surged. This is especially true in fast-growing economies like India, where the food and beverage sector is expected to grow at a remarkable CAGR of 14.94% from 2022 to 2027, leading to increased palm oil consumption. In fact, Indonesia produced a whopping 45.5 million metric tons of palm oil in the 2022-2023 period to keep up with this demand.

On top of that, the growing production of biofuels is also driving up the need for palm oil. Many countries are blending palm oil into biodiesel as part of their renewable energy strategies, particularly in Indonesia and Malaysia. India's National Policy on Biofuels is focused on cutting down petroleum imports by boosting domestic biofuel production. Companies like Eni Kenya B.V. are stepping up, investing in facilities like their agri-hub, which has a capacity of 15,000 tons.

Another factor contributing to this growth is the increasing demand for fortified palm oil, which is enriched with essential vitamins A and D to support global health and nutrition goals. Governments are pushing for fortification to combat malnutrition, as seen in India's FSSAI proposal from 2021 that mandates vitamin fortification in cooking oils. Manufacturers such as KTC Edibles and BASF West Africa are responding by launching certified sustainable and fortified palm oil products, which not only enhance market appeal but also boost sales potential.

Market Segmentation

Analysis by Application:

  • Household Cooking: Largest segment holding around 34.8% of the market in 2024. Palm oil is preferred for its affordability, neutral flavor, versatility, and suitability for frying, sautéing, and baking.
  • Food & Beverages: Widely used due to its neutral flavor, high smoke point, and oxidative stability, expanding alongside the food and beverage industry.
  • Oleo Chemicals: Increasing use in personal and home care formulations is expanding market scope.
  • Personal Care: Palm oil's natural properties make it desirable for cosmetics, soaps, and cleaning products.
  • Animal Feed: Leveraged as a feedstock, contributing to the market.
  • Bio-fuel: Significant feedstock for producing renewable biodiesel, supported by mandates and policies worldwide.

Regional Insights

Indonesia dominates the global palm oil market with over 59.1% market share in 2024, supported by favorable tropical climate and vast suitable land. The country produced 45.5 million metric tons of palm oil in 2022-2023, representing the largest volume globally. Government initiatives, such as the Sustainable Palm Oil Initiative launched in 2012, promote sustainable practices and improved livelihoods among smallholder farmers. Indonesia’s strategic location facilitates exports to major markets like China and India, both with high demand, reinforcing its dominant position.

Recent Developments & News

  • January 2025: Hindustan Unilever Limited (HUL) approved the acquisition of Vishwatej Oil Industries' palm undertaking in Telangana to support India's localization and sustainable farming.
  • July 2024: RSPO and IVPA signed an MoU to promote sustainable palm oil cultivation and imports in India; RSPO membership in India grew 20% to 118 entities.
  • May 2024: Dabeeo launched AI monitoring of palm oil farms in Indonesia, collaborating with Tunas Sawa Erma Group across 765 square kilometers.
  • May 2024: India's first integrated Oil Palm Processing Unit by 3F Oil Palm commenced operations in Arunachal Pradesh under the NMEO-OP program.
  • January 2024: MK Agrotech and M11 Industries launched an oil palm plantation program in Odisha under a government MoU as part of NMEO-OP.

Key Players

  • Asian Agri
  • IOI Corporation Berhad
  • Kuala Lumpur Kepong Berhad
  • Kulim (Malaysia) Berhad (Johor Corporation)
  • PT Bakrie Sumatera Plantations Tbk (Bakrie Group)
  • PT Dharma Satya Nusantara Tbk
  • PT PP London Sumatra Indonesia Tbk
  • PT Sampoerna Agro Tbk
  • SD Guthrie Berhad
  • United Plantations Berhad
  • Univanich Palm Oil Public Co., Ltd.
  • Wilmar International Ltd

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