Global Palm Oil Market Edition 2025: Industry Size to Reach USD 77.54 Billion by 2033, CAGR of 5.65%.

Market Overview

The global palm oil market was valued at USD 57.19 Billion in 2024 and is forecast to reach USD 77.54 Billion by 2033, growing at a CAGR of 3.42% during 2025-2033. Indonesia leads the market with over 59.1% share in 2024, driven by increasing applications in food, personal care, and biofuels. Key growth factors include cost effectiveness, versatility, and expanding demand in emerging markets.

Study Assumption Years

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

Palm Oil Market Key Takeaways

• Current Market Size: USD 57.19 Billion in 2024
• CAGR: 3.42% during 2025-2033
• Forecast Period: 2025-2033
• Indonesia dominates with over 59.1% market share in 2024.
• The rising versatility and wide product application drive market growth.
• The biofuel industry adoption, especially in Indonesia and Malaysia, boosts demand.
• Growing awareness of health benefits and sustainable sourcing affects market dynamics.
• Expanding food and beverage industry and urbanization increases palm oil consumption.

Sample Request Link: https://www.imarcgroup.com/palm-oil-processing-plant/requestsample

Market Growth Factors

The palm oil market benefits significantly from its widespread use in the food industry, where it serves as a key ingredient in cooking oils, margarine, baked goods, and processed foods due to its versatility and long shelf life. The rising global population and increasing urbanization have boosted the demand for packaged and ready-to-eat foods, expanding the need for palm oil. Its affordability and neutral flavor make it a staple commodity in many households worldwide.

Another major growth driver is the increasing production of biofuels using palm oil, particularly biodiesel. Governments are actively promoting biofuels to reduce fossil fuel dependency. For example, India's Ministry of Petroleum and Natural Gas amended its National Policy on Biofuels in June 2022 to boost domestic biofuel production, encouraging manufacturers to invest in production. These policy incentives in various countries, along with investments in facilities such as Eni Kenya B.V.'s Makueni agri-hub, have propelled the demand for palm oil in biofuel applications.

The growing demand for fortified palm oil rich in vitamins A and D also propels the market. Fortification efforts by governments and manufacturers aim to combat micronutrient deficiencies and support nutrition goals. For instance, the Food Safety and Standards Authority of India proposed mandatory fortification of cooking oils in 2021. Companies like KTC Edibles in the UK and BASF West Africa have launched fortified and sustainable palm oil products to meet consumer health preferences and regulatory requirements, expanding palm oil market revenue opportunities.

Market Segmentation

Analysis by Application:

• Household Cooking: Largest segment in 2024 with about 34.8% market share, driven by palm oil's affordability, neutral flavor, and versatility in frying, sautéing, and baking.
• Food & Beverages: Palm oil is used extensively as a cooking ingredient and food additive, boosted by the growing processed food and ready-to-cook meal sectors.
• Oleo Chemicals: Used in producing oleochemicals for personal care and home care products.
• Personal Care: Palm oil serves as a base ingredient in cosmetics, soaps, and cleaning products.
• Animal Feed: Serves as a nutritional component in feed formulations.
• Bio-fuel: Increasingly used in biodiesel blends, propelled by government biofuel mandates.

Regional Insights

Indonesia is the dominant region in the global palm oil market with over 59.1% market share in 2024. It produced 45.5 million metric tons of palm oil in 2022-2023. Favorable tropical climate, vast suitable land, and skilled labor drive Indonesia's production capacity. Government initiatives like the Sustainable Palm Oil Initiative (established 2012) address deforestation and smallholder farmer welfare. Indonesia's strategic location enables efficient exports to major markets including China and India, strengthening its market dominance.

Recent Developments & News

• January 2025: Hindustan Unilever Limited (HUL) acquired Vishwatej Oil Industries' palm undertaking in Telangana, bolstering its palm localization and sustainable farming aligned with India's National Mission on Edible Oils.
• July 2024: RSPO and IVPA signed a Memorandum of Understanding (MoU) to promote sustainable palm oil cultivation and imports in India, with RSPO membership increasing by 20% reaching 118 entities.
• May 2024: Dabeeo, a geospatial AI firm, started an AI monitoring project across 765 sq km of palm oil farms with Tunas Sawa Erma Group in Indonesia.
• May 2024: India’s first integrated Oil Palm Processing Unit by 3F Oil Palm commenced commercial operations in Arunachal Pradesh under NMEO-OP.
• January 2024: MK Agrotech and M11 Industries launched an oil palm plantation program in Odisha via an MoU with the Government of 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

If you require any specific information that is not covered currently within the scope of the report, we will provide the same as a part of the customization.

👉Get Custom Market Research for Your Business👈

About Us

IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

Contact Us

IMARC Group,

134 N 4th St. Brooklyn, NY 11249, USA,

Email: sales@imarcgroup.com,

Tel No: (D) +91 120 433 0800,

United States: +1-201971-6302