Palm Oil Market 2025–2030: Analysis by Application (Food & Beverages, Personal Care & Cosmetics, Biofuel & Energy), Product, and Other Segments

  • Published Date : 9 October 2025
  • Publisher : Market Research Port
  • Category : Chemicals & Materials
  • Tot. Pages : 185

Palm Oil Market Overview

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 Market Trends & Insights

  • In 2024, the Asia Pacific region commanded the palm oil market, holding the highest revenue share at 71.18%.
  • India’s palm oil market contributed the largest revenue share within Asia Pacific in 2024, exceeding 20.2%.
  • The conventional nature category was the market leader, capturing a substantial 99.06% of the revenue share in 2024.
  • The fractionated product segment dominated the market, accounting for 39.23% of the revenue share in 2024.
  • The food & beverages end-use sector led the market, responsible for 65.98% of the total revenue share in 2024.

Market Size & Forecast

  • 2024 Market Size: USD 72,844.8 Million
  • 2030 Projected Market Size: USD 98,906.06 Million
  • CAGR (2025-2030): 5.3%
  • Largest Market in 2024: Asia Pacific

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.

Market Structure and Dynamics

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.

Nature Insights

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.

Product Insights

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.

End-use Analysis

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.

Regional Dynamics

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.

U.S. Palm Oil Market Trends

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.

Asia Pacific Palm Oil Market Trends

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.

Middle East & Africa Palm Oil Market Trends

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.

Key Palm Oil Company Insights

Some of the key players operating in the market include ADM and Wilmar International Ltd., Sime Darby Plantation Berhad, and IOI Corporation Berhad.

  • Archer Daniels Midland (ADM) is a major worldwide corporation specializing in commodities trading and food processing. The company manages the entire agricultural supply chain, encompassing the sourcing, storage, transport, processing, and sale of crops like wheat, corn, and oilseeds. ADM supplies ingredients for industrial products, animal feed, beverages, and food. Based in Chicago, ADM operates in over 170 countries, utilizing a vast infrastructure of transportation assets, grain elevators, and processing plants. Its core business divisions are Nutrition, Carbohydrate Solutions, and Ag Services and Oilseeds.
  • Wilmar International Ltd., an agribusiness group headquartered in Singapore, is involved in specialized trading, sugar milling, edible oils refining, oilseed processing, and palm oil cultivation. The company manages biodiesel plants, refineries, crushing facilities, and oil palm plantations across Europe, Africa, and Asia. Leveraging its integrated supply chain and joint venture network, Wilmar distributes a wide portfolio of products, including grains, sugar, specialty fats, oleochemicals, and edible oils. Operating in more than 50 countries, it caters to industrial, feed, and food sectors. Wilmar’s operational segments include Sugar, Grains, Oilseeds, and Plantation, backed by global trading and logistics platforms.

Key Palm Oil Companies:

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.

  • 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

Recent Developments

  • In January 2025, ADM was honored with the 2025 BIG Innovation Award for its regenerative agriculture initiative. The program was recognized for promoting sustainability by combining advanced farming techniques, technology, and strategic collaborations to enhance soil health and decrease carbon emissions. This accolade underscores ADM’s dedication to developing robust food systems and tackling global challenges related to the environment and supply chain.
  • IOI Corporation was awarded Gold at The Edge Malaysia ESG Awards in October 2024 for exceeding its 2025 goal by reducing greenhouse gas (GHG) emissions by 40%. This success was achieved through waste circularity, reforestation efforts, and utilizing biogas for power generation. Furthermore, IOI introduced a digital ESG platform to improve transparency in data and sustainability reporting across its operations.

Palm Oil Market Report Scope

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.

Global Palm Oil Market Report Segmentation

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.

  • Nature Outlook (Volume, Kilotons; Revenue, USD Million, 2018 – 2030)
    • Organic
    • Conventional
  • Product Outlook (Volume, Kilotons; Revenue, USD Million, 2018 – 2030)
    • Crude Palm Oil
    • RBD Palm Oil
    • Palm Kernel Oil
    • Fractionated Palm Oil
  • End-use Outlook (Volume, Kilotons; Revenue, USD Million, 2018 – 2030)
    • Food & Beverage
    • Personal Care & Cosmetics
    • Biofuel & Energy
    • Pharmaceuticals
    • Others
  • Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2018 – 2030)
    • North America
      • U.S.
      • Canada
      • Mexico
    • Europe
      • Germany
      • UK
      • France
      • Italy
      • Spain
      • Russia
    • Asia Pacific
      • China
      • India
      • Japan
      • South Korea
      • Malaysia
      • Indonesia
    • Latin America
      • Brazil
      • Argentina
      • Colombia
    • Middle East & Africa
      • Saudi Arabia
      • South Africa
      • Turkey
      • UAE
      • Oman
      • Yemen
      • Kenya
      • Nigeria
      • Ghana
      • Egypt

Frequently Asked Questions About This Report

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.

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