Market Overview

The global palm oil market size was valued at USD 59.2 Billion in 2025 and is projected to reach USD 80.7 Billion by 2034, exhibiting a CAGR of 3.30% during 2026-2034. The market growth is driven by its widespread use in food, biofuels, and personal care industries, especially in Asia. Indonesia dominates with over 59.1% market share in 2024 due to favorable climate and government policies. Increasing awareness of palm oil's health benefits and cost-effectiveness also support growth.

Study Assumption Years

• Base Year: 2025
• Historical Years: 2020-2025
• Forecast Period: 2026-2034

Palm Oil Market Key Takeaways

• The global palm oil market size was USD 59.2 Billion in 2025.
• The market is projected to grow at a CAGR of 3.30% during 2026-2034.
• Indonesia holds the largest market share of over 59.1% in 2024.
• The market growth is propelled by rising demand in food and non-food applications such as biofuels and personal care.
• Government initiatives like India's National Mission on Edible Oils support market expansion.
• Environmental regulations are leading to shifts towards certified sustainable palm oil.
• Technological advancements are improving yields and quality.

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Market Growth Factors

Palm oil is a staple in the food industry, and it’s easy to see why. Its versatility, neutral taste, high smoke point, and stability make it a go-to ingredient in everything from cooking oils and margarine to baked goods and processed foods, driving market growth. As the global population continues to rise and urban areas expand, the demand for packaged and ready-to-eat meals is on the upswing, which in turn boosts the use of palm oil. For instance, the Indian food and beverage sector is expected to hit a whopping US$ 30.75 million by 2027, growing at a rate of 14.94%, which means more palm oil will be needed for those processed meals.

The biofuel industry is also a major player in the demand for palm oil. Many countries, particularly Indonesia and Malaysia, are blending palm oil into biodiesel as part of their renewable energy strategies. Governments are pushing for biofuels to lessen reliance on fossil fuels, as seen in India’s National Policy on Biofuels, which aims to promote local biofuel production. Investments like Eni Kenya B.V.'s agri-hub, which has a capacity of 15,000 tons, are paving the way for biofuel production and hinting at a bright future for the market.

On top of that, there’s a growing interest in fortified palm oil as consumers look for healthier food choices. This enriched oil offers vitamins A and D, which are great for overall health. Initiatives from the government, like India’s FSSAI proposal for mandatory fortification in cooking oils, underscore this trend. Companies such as KTC Edibles and BASF West Africa are stepping up by launching certified sustainable and fortified palm oil products. These moves are set to significantly boost palm oil sales in the years ahead.

Market Segmentation

By Application:

• Household Cooking: Largest application in 2024 with around 34.8% market share. Palm oil is preferred for its affordability, neutral flavor, and versatility, making it ideal for frying, sautéing, and baking globally.
• Food & Beverages: Palm oil's versatile properties support its use in various processed foods, enhancing flavor and shelf life.
• Oleo Chemicals: Used in personal and home care formulations, expanding market reach in non-food sectors.
• Personal Care: Palm oil is a base ingredient in cosmetics, soaps, and cleaning products due to its natural properties.
• Animal Feed: Palm derivatives are used as feed ingredients in animal nutrition.
• Bio-fuel: Palm oil is an important feedstock for biodiesel production, with mandated blending policies in key producing countries.

Regional Insights

Indonesia dominates the global palm oil market with over 59.1% share in 2024, supported by its tropical climate and vast suitable cultivation land. The country produced 45.5 million metric tons of palm oil in 2022-2023. Government initiatives like the Sustainable Palm Oil Initiative and export incentives bolster production and global competitiveness. Indonesia’s strategic location ensures efficient exports to major markets such as China and India.

Recent Developments & News

• January 2025: Hindustan Unilever Limited (HUL) approved the acquisition of Vishwatej Oil Industries' palm undertaking in Telangana to reduce import dependence and support India's National Mission on Edible Oils.
• July 2024: RSPO and IVPA signed an MoU to promote sustainable palm oil cultivation and imports in India, with RSPO India membership growing 20% to 118 entities.
• May 2024: Dabeeo commenced an AI monitoring project of palm oil farms in Indonesia with Tunas Sawa Erma Group covering 765 square kilometers.
• May 2024: India's first integrated Oil Palm Processing Unit by 3F Oil Palm began commercial operations in Arunachal Pradesh under NMEO-OP.
• January 2024: MK Agrotech and M11 Industries launched an oil palm plantation program in Odisha under 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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