The worldwide palm oil market was valued at an estimated USD 72,844.8 million in 2024 and is forecast to grow to USD 98,906.06 million by 2030, demonstrating a Compound Annual Growth Rate (CAGR) of 5.3% from 2025 to 2030. The substantial growth in demand across several sectors, including food, beverages, personal care, cosmetics, biofuel, and energy, is the primary market driver.
Key manufacturers are concentrated in the Asia Pacific due to the ready access to raw materials. The market is highly competitive and fragmented, featuring numerous players of all sizes who strive for a competitive advantage through high output volume, extensive distribution channels, superior product quality, and varied strategic approaches.
Indonesia stands as the world’s leading exporter and producer of palm oil, shipping the product worldwide. The government actively supports palm cultivation, which provides a major source of income for many small and mid-sized regional producers, playing a key role in their economic development and advancement.
Furthermore, palm oil demand is rising from the biofuel sector, where it is used to create a sustainable substitute for crude oil, such as engine oil. Though currently nascent with limited applications, the biofuel industry is expected to mature as market participants invest in research and development. As the sector gains ground, its need for palm oil is anticipated to grow, further stimulating the overall market.
The market is highly competitive, characterized by a moderate degree of consolidation. Industry participants frequently pursue new product introductions, mergers & acquisitions, and capacity expansions. These strategies are adopted to broaden product availability and market penetration across various geographies. Noteworthy companies utilizing inorganic growth tactics include Patanjali Foods, Godrej Agrovet Ltd., ADM, 3F Industries, and IOI Corporation Bhd.
The Brazilian government is supporting the sustainable cultivation of palm oil, specifically for biodiesel production. The Ministry of Mines and Energy (MME) launched the RenovaBio Program in December 2016, which provides legal recognition to biofuel manufacturing facilities. Similarly, in January 2023, Godrej Agrovet Ltd. was granted the Indian Oil Palm Certification through the Indian Palm Oil Sustainability (IPOS) framework, acknowledging its adherence to ethical production standards. Such governmental and industry initiatives are expected to foster a healthy growth environment for the palm oil sector in the foreseeable future.
The conventional category dominated the market in 2024, securing a 99.06% revenue share. This dominance stems from the segment’s high availability and lower cost. Conventional oil palm cultivation is vital for the livelihood of small and mid-sized growers, as they can boost output using synthetic fertilizers and chemicals. This nature segment is particularly favored in high-population, low-income nations.
Despite holding a minor market share due to complex production processes that limit availability, the organic segment is projected to grow at the fastest CAGR. Manufacturers find large-scale organic production challenging and financially restrictive because of strict regulatory compliance and the high cost of essential inputs, such as specialized soil maintenance products. Nevertheless, rising consumer awareness regarding the advantages of organic products is expected to drive this segment’s rapid expansion.
Accounting for the largest revenue share of 39.23% in 2024, the fractionated product segment was the market leader. Its popularity is linked to its readily available supply and affordable price points. Being both accessible and economical for large populations, it is especially common in low-income regions. The inherent composition of the product makes it cost-effective for high-volume manufacturing.
The Crude Palm Oil (CPO) segment is expected to register the fastest CAGR over the forecast period, driven primarily by its extensive use in the food & beverage sector. CPO’s natural Vitamin A content provides a competitive advantage over other segments, enhancing its desirability for edible applications. This widespread utilization in the food sector is forecast to boost market demand. Additionally, CPO is highly sought after as a fundamental component in the cosmetics and pharmaceutical industries.
The food & beverages segment secured the largest revenue share in 2024 at 65.98%. This significant share is due to the rising incorporation of palm oil in the industry’s end-use applications and the expansion of product lines that require it as a raw material. Global population growth has further amplified product demand internationally. Following closely behind the food and beverage sector in revenue share are the personal care & cosmetics and biofuel & energy segments. These emerging sectors are anticipated to achieve rapid growth in the near future as technological progress takes place.
The personal care & cosmetics segment is projected to demonstrate the fastest CAGR during the forecast period. This growth is anticipated due to the expanding variety of product offerings and the escalating consumer preference for plant-based, sustainable, and organic ingredients.
While personal care & cosmetics is an established industry, the biofuel sector is an emerging market poised to realize its full potential with ongoing technological advancements. Given the depletion of non-renewable energy reserves, biofuel offers an environmentally friendly alternative to traditional fuels, promising a significant role in the future energy landscape.
North America’s palm oil market is forecast to achieve an exponential CAGR during the forecast period. This rapid growth is attributed to the region’s distinct demographic profile, shifting consumer dietary habits, and increased demand from the food industry for preparing diverse culinary products. The substantial untapped potential currently present in the North American market is a key driver for the product’s accelerated growth in this area.
Demand for palm oil in the U.S. has increased, spurred by its multi-faceted uses in cosmetics, food production, and biofuels. Despite this growth, the market faces persistent environmental concerns, particularly habitat destruction and deforestation resulting from palm oil farming. As sustainability gains importance, the market is trending toward certified, responsibly sourced palm oil. Simultaneously, governmental bodies and various organizations in the U.S. are advocating for alternative oils to reduce dependency on palm oil.
The Asia Pacific region was the largest market for palm oil in 2024, commanding a 71.18% revenue share. This dominance is linked to the region’s expanding population and corresponding rise in consumption, alongside robust demand from application sectors like the food & beverage industry. High regional consumption is largely attributable to rapid population growth, evolving demographic patterns, and the varied food applications in countries like China and India.
For major global producers like Malaysia and Indonesia, palm oil serves as a critical revenue stream, fueling national development and progress. Many small and medium-sized local businesses rely entirely on this commodity for their livelihood.
The Indian palm oil market alone contributed the largest revenue share within Asia Pacific in 2024, exceeding 20.2%. Globally, India, Malaysia, and Indonesia together generate approximately 85% of all palm oil. Over 75% of this production is exported, with India being a top international importer, ahead of Europe and China. Increased imports into the Indian market, driven by high demand for edible oils in the food and beverage industry, are expected to support continued market expansion.
The Middle East & Africa palm oil market is expanding, fueled by increasing demand for food products and cooking oils. Major importing nations, such as Egypt, Saudi Arabia, and the UAE, depend on palm oil for both industrial and culinary purposes. Urbanization and the region’s growing population are contributing to this demand, even as concerns about sustainability lead to a preference for certified sustainable palm oil.
The Nigerian palm oil market is projected to grow at a substantial CAGR. In the Middle East, consumption is rising robustly, supported by strong economic conditions and greater demand for food items from both local consumers and tourists. Additionally, the construction surge in Lagos, involving the development of megacity projects, hotels, malls, and restaurants, has boosted the Nigerian market, particularly for food & beverage applications.
Some of the key players operating in the market include ADM and Wilmar International Ltd., Sime Darby Plantation Berhad, and IOI Corporation Berhad.
The following companies are the primary competitors in the palm oil market. These organizations collectively hold the largest portion of the market share and dictate industry direction.
| Report Attribute | Details |
| Market size value in 2025 | USD 76,403.4 million |
| Revenue forecast in 2030 | USD 98,906.06 million |
| Growth rate | CAGR of 5.3% from 2025 to 2030 |
| Base year for estimation | 2024 |
| Historical data | 2018 – 2023 |
| Forecast period | 2025 – 2030 |
| Quantitative units | Volume in kilotons, revenue in USD million/billion and CAGR from 2025 to 2030 |
| Report coverage | Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
| Segments covered | Nature, product, end-use, region |
| Regional scope | North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
| Country scope | U.S.; Mexico; Canada; Germany; UK; France; Spain; Italy; Russia; China; India; Japan; South Korea; Malaysia; Indonesia; Brazil; Argentina; Colombia; South Africa; Saudi Arabia; Turkey; UAE; Oman; Yemen; Kenya; Nigeria; Ghana; Egypt. |
| Key companies profiled | ADM; Wilmar International Ltd.; Sime Darby Plantation Berhad; IOI Corporation Berhad; Kuala Lumpur Kepong Berhad; United Plantations Berhad; Kulim (Malaysia) Berhad; IJM Corporation Berhad; PT Sampoerna Agro, Tbk; Univanich Palm Oil Public Company Ltd.; PT. Bakrie Sumatera Plantations Tbk; Asian Agri. |
This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, the global palm oil market report is segmented based on the nature, product, end-use, and region.
What is the valuation of the global palm oil industry?
The global palm oil market was estimated to be USD 72,844.76 million in 2024 and is projected to reach USD 76,403.4 million in 2025.
What is the projected Compound Annual Growth Rate (CAGR) for the palm oil market?
The global palm oil market is forecast to grow at a Compound Annual Growth Rate (CAGR) of 5.3% from 2023 to 2030, reaching USD 98,906.0 million by the end of the period.
Which product segment held the greatest market share for palm oil?
Crude Palm Oil (CPO) was the leading segment in the palm oil market, accounting for more than 28.5% of the share in 2024, largely due to its rising use in oleochemical production, such as cleaning products and agrochemicals.
Who are the major corporations competing in the palm oil market?
Key corporations in the palm oil market include Wilmar, IOI Corporation, Sime Darby, United Plantations Berhad, and Kuala Lumpur Kepong.
What are the core factors fueling the growth of the palm oil market?
The market’s growth is primarily fueled by the escalating demand for oleochemicals and palm oil derivatives from various end-use sectors.
