The Global Market for Palm Oil is Forecast to Exceed 72 Million Metric Tons by 2020
Rising
Demand for Sustainable Palm Oil Drives the Global Palm Oil Market, According to
a New Report by Global Industry Analysts, Inc.
GIA announces the release of a comprehensive global report on Palm Oil. The
global market for Palm Oil is forecast to exceed 72 million metric tons by 2020, driven by the increasing demand
for sustainable palm oil in edible and non-edible applications and rising hostility
towards GMO based oils.
Palm oil
continues to be the largest consumed vegetable oil worldwide. Palm oil is
extensively used in various food products such as bakery, biscuits, ice cream,
fast foods, and snacks, among others. Palm oil is also used in manufacturing
cosmetics, cleaning products including detergents and soaps, as well as fuel
and animal feed products. Additionally, palm oil is used to produce grease,
candles and lubricants, and is used as a feedstock to produce biodiesel.
Furthermore, palm oil is a suitable replacement for mineral oils in power
stations. Palm oil's fatty acid derivatives are used to produce cosmetics,
bactericides, pharmaceuticals as well as water-treatment products.
Factors such as improving economic conditions, rising living standards and changing eating habits
in emerging countries, and growing demand for vegetable oil as a feedstock for biodiesel production, are encouraging a
robust outlook for palm oil. Other factors driving market growth include the US
ban on trans-fat foods that is resulting in rapid shift in consumption from
soybean oil to palm oil, and European Union’s strict regulations against genetically
modified (GM) food products. The low price of palm oil compared to other
vegetable oils such as rapeseed and soy oil and shift from soybean to palm in
acreage for bioethanol production also augurs well for the market. Palm oil processing is perceived as
environmentally unsafe with negative implications for public health, rainforest
and wildlife. However, in response to these concerns, major palm oil producing
countries such as Indonesia and Malaysia are introducing certification programs
and standards ensuring sustainable palm oil production. Leading palm oil
producing companies are steadily improving the environmental and social
sustainability of their operations in accordance with various domestic and
global legislative directives.
As stated by the new market research report on Palm Oil, Asia-Pacific represents
the largest producer and consumer worldwide. Growing at a CAGR of 3.2% over the
analysis period, Asia-Pacific also constitutes the fastest growing regional
market led by growing population, changing consumption patterns, growing
disposable income among urban and rural dwellers, increasing palm oil
applications in edible and non-edible sectors and rising demand from
oleochemicals. Production in the region increased significantly in recent years
driven by the increase in cumulative land area of palm oil plantations, rising
oil palm yield, and investments in technology and R&D related activities.
Key players in the market include Agropalma Group, Alami Vegetable Oil
Products Sdn Bhd, Archer Daniels Midland Company, Asian Agri, Boustead Holdings
Berhad, California Oils Corporation, Carotino Sdn Bhd, Fuji Vegetable Oil Inc.,
Genting Plantations Berhad, Golden Agri-Resources Ltd., Intercontinental
Specialty Fats Sdn Bhd, IOI Group Berhad, New Britain Palm Oil Ltd., PT Astra
Agro Lestari Tbk, PT Darmex Agro, PT Indofood Sukses Makmur Tbk, PT Musim Mas,
Siat Group of Companies, Sime Darby Sdn Berhad, United Plantations Berhad, and Wilmar
International Limited, among others.
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