Palm Oil Market Influenced by Government Trade Policies

The global palm oil market was valued at USD 74.5 billion in 2024 and is anticipated to reach USD 113.9 billion by 2035, expanding at a CAGR of 4.2% from 2025 to 2035. Market growth is primarily fueled by increasing consumption across the food and beverage sector, driven by palm oil’s cost efficiency, versatility, and functional properties.

Palm oil remains one of the most widely used edible oils globally due to its long shelf life and stability at high temperatures. Its extensive application in bakery products, confectionery, processed foods, instant noodles, and household cooking oils continues to underpin steady demand. Additionally, rapid population growth and rising consumption of packaged and convenience foods are further strengthening market expansion.

Key Market Trends & Insights

• Asia-Pacific dominated the global palm oil market, accounting for the largest revenue share of 74.5% in 2024
• Indonesia led the Asia-Pacific region, capturing 42.1% of regional revenue in 2024
• Conventional palm oil remained dominant, representing 93.4% of total market revenue in 2024
• Crude palm oil emerged as the leading product type, holding a 76.7% revenue share in 2024
• Food & beverage applications led end-use demand, contributing 72.7% of total revenue in 2024

Market Size & CAGR

• 2024 Market Size: USD 74.5 Billion
• 2035 Projected Market Size: USD 113.9 Billion
• CAGR (2025–2035): 4.2%
• Largest Regional Market (2024): Asia Pacific

Beyond food applications, palm oil is gaining significant traction in biodiesel production, emerging as a critical growth driver for the global market. Governments across Asia, Europe, and Latin America are increasingly implementing biofuel blending mandates to reduce carbon emissions and reliance on fossil fuels. Palm oil’s high yield per hectare and superior energy efficiency make it a preferred feedstock for biodiesel manufacturers, particularly in Indonesia and Malaysia, where biofuel programs are well established.

A major opportunity for industry participants lies in the rising demand for sustainably sourced and certified palm oil. Growing consumer awareness regarding environmental protection, deforestation, and ethical sourcing is encouraging companies to adopt RSPO-certified, traceable, and transparent supply chains. Producers investing in deforestation-free cultivation practices and sustainable production models are expected to gain a competitive edge as multinational brands strengthen sustainability commitments.

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Key Palm Oil Company Insights

Leading companies such as ADM and Wilmar International Ltd. continue to dominate the global palm oil market due to their robust supply chains, large-scale production capabilities, and diversified product offerings. Their extensive global distribution networks enable consistent market leadership and supply reliability.

• ADM operates across agricultural services, corn processing, oilseed processing, and wild flavors & specialty ingredients. The company is actively involved in sourcing, processing, storage, transportation, and merchandising of agricultural commodities.
• Wilmar International Ltd. is a global producer of palm oil and value-added derivatives, with operations spanning food products, plantations, feed and industrial products, and fertilizers. Its portfolio includes consumer goods, specialty fats, and oleochemicals.

Leading Palm Oil Companies

The following companies collectively hold a significant share of the global palm oil market and play a key role in shaping industry trends:

• ADM
• Wilmar International Ltd.
• IOI Corporation Berhad
• Kuala Lumpur Kepong Berhad
• United Plantations Berhad
• Kulim (Malaysia) Berhad
• PT Sampoerna Agro, Tbk
• Univanich Palm Oil Public Company Ltd.
• PT Bakrie Sumatera Plantations Tbk
• Asian Agri
• Oleopalma
• Natural Habitats
• Agropalma
• Cargill, Incorporated
• AEN Palm Oil

Conclusion

The global palm oil market is positioned for steady growth over the forecast period, supported by strong demand from the food and beverage industry, expanding biodiesel production, and sustained consumption in Asia-Pacific. While conventional and crude palm oil continue to dominate the market, increasing emphasis on sustainability and certified sourcing is reshaping industry dynamics. Companies that invest in sustainable practices, supply chain transparency, and diversified applications are expected to capture long-term growth opportunities as regulatory scrutiny and consumer awareness continue to rise globally.

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