The Global Market for Palm Oil is Projected to Exceed 85 Million Metric Tons by 2024

Focus on Biofuels Made from Palm Oil Production Waste as an Energy Security Solution Drives the Global Palm Oil Market, According to a New Report by Global Industry Analysts, Inc.

GIA launches comprehensive analysis of industry segments, trends, growth drivers, market share, size, and demand forecasts on the global Palm Oil market. The global market for Palm Oil is projected to exceed 85 million metric tons by 2024, driven by increasing demand in various applications owing to the cost-effective, healthy and Trans-fat-free nature of palm oil, and growing prominence of certified sustainable palm oil.

Extracted from the flesh and inner stone of the palm fruit, palm oil is mainly produced in the tropical forests of South East Asia, Africa, and South America. Myriad benefits of palm oil over other oil varieties such as soybean oil, rapeseed oil, sunflower oil, etc., which are driving its widespread adoption across the world include prevention of vitamin A deficiency, neurological disorders, cancer, aging in addition to controlling hypertension, high cholesterol and cyanide poisoning. Palm oil also represents a key ingredient in almost 50% of all food and non-food items in a grocery store or supermarket due to its technical superiority as well as economic benefits. Few of the innumerable food and non-food items containing palm in varied ingredient forms include chocolate, cookies, detergents, instant noodles, ice creams, lipsticks, packaged bread, pizza dough, shampoo, and soaps, among others. Cost effectiveness of palm oil stems from the fact that palm plant is 10 times more productive than soybean and rapeseed/mustard oil as both the fleshy outer part and inner stone are used to produce palm oil, and palm kernel oil, respectively. Another favorable attribute of palm driving steady growth of the market over the years is the absence of unhealthy Trans-fat in palm, which is the most undesirable trait in rapeseed, soybean and sunflower oils.

Future growth in the market will be driven by growing prominence of certified sustainable palm oil (CSPO) against the backdrop of public concerns over environmental, social, and deforestation issues related to palm oil cultivation. Demand for sustainably produced palm oil is also driven by growing focus of developed nations on clean and green fuel and growing application as a feedstock in biofuel production. The biofuel productivity yield of palm oil is the highest among all oilseed crops and is surpassed only by sugarcane in terms of productivity yield. Other factors driving increasing consumption of palm oil include its attribute of being the cheapest form of vegetable oil; increasing production in Indonesia and Malaysia; growing demand from the food sector for use as margarine, bakery fat, frying fat, and cooking oil; and high yields produced from a hectare of palm oil plantation. Increasing consumer focus on health & wellness along with undesirable effect of partially hydrogenated oils on the cholesterol level is driving food and snack processors to switch towards Trans-fat-free, and GMO-free palm oil.

As stated by the new market research report on Palm Oil, Asia-Pacific represents the largest and the fastest growing market worldwide with a CAGR of 5.6% over the analysis period. Major factors driving market growth in the region include ballooning population and the corresponding growth in demand for food commodities, improved retailing network, changing dietary habits, rapid urbanization, steadily growing economies, improving living standards, increasing crop yields and oil production, changing facets of consumer health concerns, 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 The Agropalma Group, 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, PT Astra Agro Lestari Tbk, PT Darmex Agro, PT Indofood Sukses Makmur Tbk, PT Musim Mas, Nv Siat sa, Sime Darby Plantation Sdn Bhd, United Plantations Berhad, and Wilmar International Limited, among others.

The research report titled "Palm Oil: A Global Strategic Business Report" announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, drivers, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections for palm oil consumption in Thousand Metric Tons for geographic markets such as the United States, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia, and Rest of Europe), Asia-Pacific (China, India, Indonesia, Malaysia, Pakistan, and Rest of Asia-Pacific), Latin America (Brazil, Colombia, Mexico, and Rest of Latin America), and Rest of World. Key end-use applications analyzed in the report include Food Applications and Industrial Applications.

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