The palm oil market has experiencing a significant growth, and is expected to grow considerably in next few years. Palm oil is derived from a tropical tree, which, once planted, yields palm fruits for more than three decades, ascertaining much needed employment for the rural communities living in emerging nations such as Malaysia and Indonesia. The oil is highly lucrative, particularly due to palm trees yield more oil per hectare than any other major oil seed crop. Low to zero trans-fat content and the pocket-friendly pricing of palm oil has fueled demand for palm oil. Palm oil is one of the most widely used vegetable oils and a common ingredient in biscuits, margarine, breads, instant noodles, cereals, lipsticks, candles, chocolates, shampoos, ice-cream, and detergents. The applications of palm oil are therefore quite diverse, which aid the expansion of the global palm oil market.
COVID-19 Impact Analysis
The consumers have shifted toward being health conscious and are looking for good & healthier foods with nutrients, and palm oil products accounts for one of them. So, the increase in the demand during COVID-19 can be witnessed.
In the short term, the market demand is expected to show superior growth due to the increase in infections and reduced economic activity.
However, the fact cannot be ignored that the spread of COVID-19 led to lockdowns and supply chain disruptions and created problems in supply of the products.
Top Impacting Factors
Palm oil derived from palm fruit is an edible vegetable oil. In the last couple of years, the demand for palm oil has increased in response to the rising consumption of vegetable oils. Apart from its extensive applications in the food and beverage industry and the retail industry, palm oil is also used in biofuels. Thus, promoting the growth of the market.
Palm oil is cost-effective and low in trans-fats, due to which its demand is high in the global market. However, the expansion of palm tree plantations is usually carried out at the expense of tropical forests, particularly in countries such as Malaysia. Rising environmental concerns thus pose a tough challenge in front of enterprises operating in the global palm oil market.
The wider applications of palm oil are the key factor that promotes the growth and flourishment of the palm oil market.
Increased Demand for the Organic Products
- The government across prominent palm oil plantation nations i.e. Indonesia and Malaysia are focused on sustainable and organic production. Growth in consumer awareness regarding the harmful effects of agrochemicals used for the cultivation of conventional crops on the environment and human health has created the demand for an organic product. Organically grown crops negate the application of any kind of chemicals or agrochemicals from the point of cultivation to processing and final product packaging. Therefore, the demand for the organic segment of product origin is expected to grow at a lucrative rate over the coming years.
Insights on End Use
- The biofuel and energy end-use segment accounted for a significant revenue share and is expected to witness a lucrative growth in the coming years. This is anticipated to be a consequence of the rise in demand for biofuels across the geographies. Biodiesel has gained tremendous popularity among consumers as an effective substitute for diesel in the past years. In terms of feedstock, palm oil is emphasized as the traditional feedstock for biodiesel production and is considered to be an economical alternative to soybean. several policies and mandates that have been initiated in different nations are expected to change the end-user trend of the market in a long run. For instance, from Jan 2020, Indonesia increased crude palm oil and diesel blend to 30% (B30). This mandate is likely to increase palm oil consumption in the country. Similarly, France discontinued biofuel tax, a move that would incline its economy toward biofuels or biodiesel.
Key Benefits of the Report
- This study presents the analytical depiction of the palm oil industry along with the current trends and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the palm oil market share.
- The current market is quantitatively analyzed to highlight the palm oil market growth scenario.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
- The report provides a detailed palm oil market analysis based on competitive intensity and how the competition will take shape in coming years
Questions Answered in the Palm Oil Market Research Report
- Which are the leading players active in the palm oil market?
- What are the current trends that will influence the market in the next few years?
- What are the driving factors, restraints, and opportunities of the market?
- What future projections would help in taking further strategic steps?
- What is "palm oil" market prediction in the future?
- Which will be the niches at which players profiling with recent advancements should set a presence?
- What are the driving factors and opportunities in the market?
- What are the current trends and predicted trends?
- What are the challenges faced in the "palm oil" market?
Palm Oil Market Report Highlights
By Product Type
By End use
Key Market Players
London Sumatra, Asiatic Development, IOI Corporation, Wilmar, PT Dharma Satya Nusantara Tbk among others., Boustead, United Plantations Bhd, Asian Agri, Kuala Lumpur Kepong, Sime Darby