Palm Oil Market Growth Outlook: CAGR of 5.7% and Value Reaching USD 105.22 Billion by 2032

Burlingame, CA, Sept. 17, 2025 (GLOBE NEWSWIRE) -- The Global Palm Oil Market is estimated to be valued at USD 71.38 Bn in 2025 and is expected to reach USD 105.22 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 5.7% from 2025 to 2032. The market is witnessing a notable shift toward sustainable and ethically sourced palm oil, driven by rising environmental concerns and stricter regulatory mandates. To address these challenges, companies are increasingly investing in certified sustainable palm oil (CSPO) initiatives aimed at minimizing deforestation and lowering carbon emissions.

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Global Palm Oil Market Key Takeaways

Crude palm oil is anticipated to remain a top-selling product in the market, accounting for a market revenue share of 47.7% in 2025.

Conventional palm oil is expected to dominate the industry, accounting for 95.5% of the global palm oil market share by 2025.

Food & beverage sector is projected to remain the leading end-use industry for palm oil, capturing 55.6% of the market share by 2025.

Asia Pacific, with an estimated market share of 74.8% in 2025, is expected to dominate the global palm oil industry.

Africa palm oil market is poised to exhibit the fastest CAGR of 12.7% during the forecast period.

Rising Adoption in Food & Beverage Sector Driving Palm Oil Market Growth

Coherent Market Insights’ latest palm oil market analysis highlights key factors fueling industry growth. Increasing adoption of palm oil in the food & beverage industry is one such primary growth driver.

There is a growing demand for edible oils in the food and beverage sector globally. This is expected to boost sales of palm oil during the assessment period.

Palm oil is being widely used for cooking and frying a wide range of food products due to its low cost and high yield compared to other vegetable oils. Thus, expansion of packaged and processed food industries is set to uplift demand for palm oil in the coming years.

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Environmental Concerns and Alternative Edible Oil Usage Limiting Market Growth

The global palm oil market outlook looks promising due to rising usage in food & beverage applications. However, growing environmental concerns and strong competition from alternative edible oils might limit market growth to some extent during the forthcoming period.

Palm oil cultivation is associated with deforestation and loss of biodiversity. Rising awareness of these sustainability issues has led to consumer and regulatory pressure against unsustainable palm oil production.

Alternative edible oils like soybean, rapeseed, and sunflower are being increasing used as substitutes in food and cosmetic products. This may dampen overall palm oil market demand during the forecast period.

Expanding Palm Oil Usage in Biofuels Sector Unlocking Growth Prospects

Palm oil is widely used as a feedstock for producing biofuels like biodiesel, especially across nations like Malaysia and Indonesia. This growing usage in biodiesel production is expected to create lucrative growth opportunities for palm oil manufacturers in the coming years.

Moreover, governments in various nations are launching new incentives and renewable energy policies to encourage adoption of renewable sources like biofuels. This will likely create a conducive environment for the growth of palm oil market.

Emerging Palm Oil Market Trends

Rising preference for sustainable palm oil is a key market trend. Consumers in the contemporary world are increasingly seeking transparency and sustainability in their purchasing decisions. This is putting sustainable palm oil into the spotlight as it addresses many environmental issues linked to conventional palm oil.

Growing consumer preference for personal care and cosmetic products with natural and plant-based ingredients is expected to boost palm oil sales during the forthcoming period. Palm oil derivatives like fatty acids and glycerin are widely used in lotions, soaps, shampoos, and cosmetic products.

Expanding industrial applications will likely boost the palm oil market value in the coming years. Palm oil is being gradually used in lubricants, detergents, and candles.

Increasing adoption of advanced technologies in palm oil production is supporting market expansion. There is a rising trend of using new technologies like precision agriculture, drone monitoring, and AI-driven analytics in palm oil industry. These technologies help companies to increase their yield and reduce waste.

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Analyst’s View

“The global palm oil industry is set to grow steadily, owing to expanding applications in food & beverage, personal care, and biofuel sectors, said a senior analyst at CMI. “Rising popularity of sustainable palm oil will also contribute to market expansion in the coming years.

Current Events and Their Impact on the Palm Oil Market

Event	Description and Impact
Shift Towards Sustainable Palm Oil	Description: Companies and producers are increasingly adopting certified sustainable practices such as RSPO certification. Impact: This improves market access in environmentally conscious regions as well as strengthens brand reputation.
Expansion of Refinery Capacities	Description: New refineries and upgrades are being implemented in key producing countries like Indonesia and Malaysia. Impact: This enhances production efficiency as well as increases export potential, supporting global supply growth.
Adoption in Food & Beverage Industry	Description: Palm oil continues to see rising use in processed foods, snacks, and packaged products. Impact: This growing demand will continue to boost palm oil market growth, especially in emerging economies.

Competitor Insights

Key companies in the palm oil market report:

ADM
Sime Darby Plantation Berhad
Wilmar International Ltd.
IOI Corporation Berhad
United Plantations Berhad
Kuala Lumpur Kepong Berhad
Kulim (Malaysia) Berhad
Bakrie Sumatera Plantations tbk
Asian Agri
Univanich Palm Oil Public Company Ltd.
PT Sampoerna Agro, Tbk
Palm India Ltd.
IJM Corporation Berhad
Gujarat Ambuja Exports Limited

Key Developments

In August 2025, NaturAceites and Alfa Laval announced plans to build a new palm oil refinery in Guatemala. The facility will increase production and efficiency, helping NaturAceites expand into the U.S., Mexico, and Caribbean markets. This partnership highlights the growing focus on technology as well as sustainability in palm oil processing.

In August 2025, Innospec Inc. expanded its partnership with IJM for a second year to protect palm oil workers in Indonesia. This partnership aims to strengthen protections for vulnerable workers within the palm oil industry.

Market Segmentation

Nature Insights (Revenue, USD Bn, 2020 - 2032)

Conventional
Organic

Product Insights (Revenue, USD Bn, 2020 - 2032)

Crude Palm Oil
RBD Palm Oil
Palm Kernel Oil
Fractionated Palm Oil

End-use Industry Insights (Revenue, USD Bn, 2020 - 2032)

Food & Beverage
Personal Care & Cosmetics
Biofuel & Energy
Pharmaceuticals
Others

Regional Insights (Revenue, USD Bn, 2020 - 2032)

North America
- U.S.
- Canada
Latin America
- Brazil
- Argentina
- Mexico
- Rest of Latin America
Europe
- Germany
- U.K.
- Spain
- France
- Italy
- Russia
- Rest of Europe
Asia Pacific
- China
- India
- Japan
- Australia
- South Korea
- ASEAN
- Rest of Asia Pacific
Middle East
- GCC Countries
- Israel
- Rest of Middle East
Africa
- South Africa
- North Africa
- Central Africa

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