Market Overview
The global palm oil market was valued at USD 57.19 Billion in 2024 and is projected to reach USD 77.54 Billion by 2033, exhibiting a CAGR of 3.42% during 2025-2033. Indonesia dominates the market with over 59.1% share in 2024. Market growth is driven by increasing demand across food, biofuels, and personal care industries, supported by rising populations, economic development, and sustainable practices.
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 valued at USD 57.19 Billion in 2024.
- The market is forecasted to grow at a CAGR of 3.42% during the period 2025-2033.
- The market is expected to reach USD 77.54 Billion by 2033.
- Indonesia holds over 59.1% market share in 2024, being the largest producer with 45.5 million metric tons produced in 2022-2023.
- Growing applications in the food industry, biofuels, personal care products, and increasing government support in countries like India and Indonesia drive market expansion.
- Environmental and sustainability regulations are promoting certified sustainable palm oil, influencing market dynamics.
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Market Growth Factors
Palm oil sees its biggest consumption in the food industry. It functions in many foods like cooking oils, margarine, and baked goods for its versatility and fairly long shelf life. Global population grows and cities develop with the increased demand for packaged and ready-to-eat foods, therefore a demand rises for palm oil products. The food and beverage industry expands throughout the world, even in India where experts think it will grow at a CAGR of 14.94% from 2022 to 2027, and the instant noodles market rises across the world, with projections of reaching US$ 82.6 Billion by 2032. Both situations continue to push the demand for palm oil.
Palm oil's role within biofuels, particularly biodiesel, continues to support the industry. Indonesia and Malaysia have renewable energy policies. These policies encourage palm oil blending into fuel. India's National Policy on Biofuels and National Mission on Edible Oils-Oilseeds (NMEO-OS) (budget Rs 10,103.38 crore) target to produce more oilseed and meet palm oil demand by 2030-31. Governments make policies and actors globally try to rely less on fossil fuels, so people use palm oil in biofuels and find it a more attractive option.
Fortified palm oil, containing vitamins An and D, is a product under increased demand as part of more healthy diets. India proposes to mandate the fortification of palm oil. KTC Edibles, BASF West Africa, ADM, and IOI Loders Croklaan certify and supply sustainable and traceable palm oil. These represent fortification programs with palm oil on a large scale. It is expected that these initiatives will spur further growth within the palm oil market.
Market Segmentation
Analysis by Application:
- Household Cooking: Holding around 34.8% of the market in 2024, household cooking is the largest application of palm oil due to its affordability, neutral flavor, versatility, and semi-solid state at room temperature which makes it ideal for frying and baking.
- Food & Beverages: Palm oil’s versatile properties, including its neutral flavor and stability, make it widely used in food and beverage products like processed foods and snacks.
- Oleo Chemicals: Increasing adoption of palm-based oleochemicals in personal care and household formulations expands this segment.
- Personal Care: Palm oil serves as a base ingredient in cosmetics, soaps, and cleaning products due to its natural properties.
- Animal Feed: Palm oil finds use in animal feed formulations.
- Bio-fuel: Palm oil is a significant feedstock for biodiesel production, driven by renewable energy policies and blending mandates.
Regional Insights
Indonesia dominates the palm oil market with over 59.1% market share in 2024, producing 45.5 million metric tons of palm oil in 2022-2023. The country's tropical climate, vast suitable land, skilled labor, and supportive government policies like the Sustainable Palm Oil (SPO) Initiative foster its market leadership. Indonesia’s strategic location ensures efficient exports to major markets such as China and India, further reinforcing its dominance.
Recent Developments & News
In January 2025, Hindustan Unilever Limited (HUL) approved acquiring Vishwatej Oil Industries' palm undertaking in Telangana, supporting palm localization and sustainable farming aligned with India’s National Mission on Edible Oils. In July 2024, RSPO and IVPA signed an MoU to promote sustainable palm oil cultivation and imports in India, where RSPO membership grew 20%, reaching 118 entities. In May 2024, Dabeeo launched an AI monitoring project for palm oil farms in Indonesia with Tunas Sawa Erma Group. May 2024 also saw India’s first integrated Oil Palm Processing Unit by 3F Oil Palm start commercial operations in Arunachal Pradesh. In January 2024, MK Agrotech and M11 Industries initiated 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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