Palm Oil Market Expected to Reach USD 98.7 Billion by 2034
Global Palm Oil Market Poised for Steady Growth
The Global Palm Oil Market is set to experience a steady growth trajectory from 2025 to 2034, with a projected Compound Annual Growth Rate (CAGR) of approximately 2.05%, expanding from around USD 71.94 billion in 2024 to about USD 90 billion by 2035.
Key growth drivers for this market include increasing demand in food processing for cooking oil, margarine, baked goods, and instant noodles, especially in fast-growing regions like Asia-Pacific and Africa. Additionally, the rising use of palm oil as a biodiesel feedstock, in line with global efforts towards renewable energy and lower carbon emissions, is also contributing to its growth. The broad applications spanning cosmetics, pharmaceuticals, household products, and biofuels further fuel the demand for palm oil.
The market is segmented into key areas based on its applications. The Edible oils segment, which is widely used in processed and packaged foods due to cost efficiency, long shelf life, and neutral flavor, is a significant market segment. The Biofuel segment, which is growing as a renewable energy source, is another important segment. Cosmetics and personal care products, as well as Pharmaceuticals and household products, are niche markets contributing to demand growth.
Regionally, the Asia-Pacific region is a leading market due to its large population and expanding food processing and biofuel sectors. The market also witnesses substantial activity in Africa and emerging economies where palm oil is a preferred cooking oil cost-wise and culturally.
Notable companies in the palm oil market are taking steps to prioritize sustainability. For instance, Wilmar International Ltd. has launched a blockchain-based traceability system to track palm oil from plantations to consumers. Companies like ADM, IOI Corporation, Sime Darby Plantation Berhad, and Kuala Lumpur Kepong Berhad are focusing on sustainable palm oil sourcing and expanding their certified sustainable palm oil volumes.
The fats and oils market, which includes palm oil, is forecasted to grow at a CAGR of about 4.6%, reaching USD 421.58 billion by 2034. However, palm oil itself has a more moderate growth rate (~2.05% CAGR) reflecting market maturation and sustainability concerns that temper overly rapid expansion.
In summary, the global palm oil market is projected to grow steadily, with the Asia-Pacific region leading the charge. Companies focusing on sustainability and adopting RSPO-certified practices are expected to thrive in this market, securing its role as a vital global commodity.
Key Highlights:
- Market size (2024): USD 71.94 billion
- Projected market size (2035): USD 90 billion
- CAGR (2025–2034): ~2.05%
- Leading region: Asia-Pacific
- Growth drivers: Processed food demand, renewable energy, cosmetics
[1] Market Reports World [2] Grand View Research Inc.
The steady growth trajectory of the palm oil market has attracted interest from the finance industry, as it is anticipated to expand from USD 71.94 billion in 2024 to around USD 90 billion by 2035, with a projected Compound Annual Growth Rate (CAGR) of approximately 2.05%. As key players invest in sustainable practices to align with the market's demand and global concerns, the energy sector may also benefit from the rising use of palm oil as a biodiesel feedstock.
