Palm Oil market Market Size, Share, Growth, and Industry Analysis, By Types (Crude Palm Oil, Palm Olein), By Applications Covered (Foods, Bio-Diesel, Surfactants, Cosmetics, Others), Regional Insights and Forecast to 2035

Palm Oil market Market Size

The Global Palm Oil Market Market size was valued at USD 60576.6 million in 2025, is projected to reach USD 63726.6 million in 2026, and is expected to reach nearly USD 67040.4 million by 2027, further surging to approximately USD 100568.6 million by 2035. This growth reflects an impressive CAGR of 5.2% from 2026 to 2035, driven by rising consumption across food processing, personal care, and biofuel applications. Increasing demand for vegetable oils, expanding packaged food consumption, and higher utilization in industrial manufacturing are supporting the overall expansion of the Global Palm Oil Market Market. Moreover, sustainability-certified production and technological improvements in refining processes are elevating the market’s penetration across both emerging and developed economies.

The US Market is expected to show steady growth, driven by increasing applications in processed foods, cosmetics, and biofuels. Approximately 41% of palm oil demand globally comes from the food sector, while industrial usage represents 29%, and biodiesel contributes nearly 18%. Growing awareness of sustainability and certified production is also influencing about 22% of trade flows. Rising demand in developing economies and diversified applications are making the Global Palm Oil market Market a vital contributor to agricultural and industrial sectors worldwide.

Key Findings

• Market Size - Valued at 57,582.31M in 2025, expected to reach 100568.6M by 2035, growing at a CAGR Of 5.2%.
• Growth Drivers - 41% food demand, 18% biodiesel expansion, 27% sustainable sourcing, 22% food company reliance, 19% industrial adoption.
• Trends - 59% Asia-Pacific dominance, 21% certified trade, 12% cosmetics growth, 17% surfactant demand, 14% packaged food reliance.
• Key Players - Felda Global Ventures, IOI, Sime Darby Berhad, Musim Mas, Astra Agro Lestari
• Regional Insights - Asia-Pacific holds 59% driven by production and consumption, Europe 22% led by food and biofuels, North America 11% from processed foods, while Middle East & Africa contributes 8% via edible oil demand.
• Challenges - 37% sustainability concerns, 29% certification costs, 21% deforestation risk, 18% logistic issues, 22% price volatility impact.
• Industry Impact - 41% food reliance, 27% investment in certified oil, 19% biofuel projects, 12% cosmetic innovation, 14% detergent usage.
• Recent Developments - 22% biofuel adoption, 28% sustainable output, 17% surfactant expansion, 19% refinery growth, 13% specialty fats innovation.

The Global Palm Oil market Market plays a critical role in the global edible oil industry and is deeply integrated into the food, energy, and industrial sectors. Palm oil accounts for almost 37% of the total global vegetable oil consumption, showcasing its widespread acceptance. Approximately 41% of palm oil is used directly in food processing, including baked goods, snacks, and confectionery. Around 29% is used for industrial purposes such as detergents, cosmetics, and personal care products, while 18% contributes to biofuel production, making it a versatile commodity across industries.

The US Market is steadily expanding its palm oil imports, accounting for nearly 8% of global consumption, primarily due to growing demand in packaged food and personal care products. Asia-Pacific dominates with over 59% of production and consumption share, driven by Indonesia and Malaysia, which together contribute nearly 85% of global supply. Europe holds about 22% of palm oil demand, particularly for food and biofuel industries, while the Middle East and Africa contribute around 11% of global consumption. Additionally, certified sustainable palm oil now represents approximately 21% of international trade, reflecting rising concerns over environmental and social impacts. The Global Palm Oil market Market continues to evolve with innovation, sustainability initiatives, and rising adoption across industries.

Palm Oil market Market Trends

The Global Palm Oil market Market is witnessing strong growth trends across multiple applications. Food use dominates with nearly 41% share of total consumption, followed by industrial use at 29% and biofuels at 18%. In addition, about 12% of palm oil is utilized in cosmetics and personal care products, driven by rising consumer demand for natural and plant-based ingredients. Sustainable palm oil accounts for 21% of the global supply chain, reflecting growing awareness and certification standards.

Regionally, Asia-Pacific holds around 59% of the market, supported by large-scale production and local consumption. Europe represents nearly 22% of demand, largely for food and energy applications, while the US Market contributes 8% of global consumption, showing steady growth in processed foods and renewable energy. Middle East and Africa together account for 11%, with rising reliance on edible oils in household cooking and industrial sectors. Around 17% of palm oil globally is exported to meet demand in regions with lower production capacities. Emerging trends such as demand for bio-based surfactants, plant-based diets, and expanding packaged food markets are also reshaping consumption. The Global Palm Oil market Market continues to benefit from versatility, affordability, and strong consumer preference across industries.

Palm Oil market Market Dynamics

OPPORTUNITY

Expansion in Biofuel Applications

Palm oil is increasingly used in the biofuel sector, contributing nearly 18% of global palm oil demand. Around 32% of biodiesel in Southeast Asia is palm oil-based, while Europe accounts for 21% of imports for biofuel blending. Nearly 14% of new bioenergy projects worldwide are adopting palm oil as a key input. Additionally, 19% of developing economies are investing in palm oil refineries to strengthen their renewable energy portfolios. This expanding role of palm oil in biofuel highlights its growing potential as a sustainable energy substitute, opening opportunities for producers and exporters worldwide.

DRIVERS

Rising Global Food Industry Demand

The food industry drives over 41% of global palm oil consumption, led by packaged foods, bakery, and confectionery products. Nearly 36% of instant noodles and snacks produced globally contain palm oil as a primary ingredient. Around 28% of frozen food categories use palm oil for texture and preservation. In developing countries, 22% of edible oil demand is fulfilled by palm oil due to its affordability and availability. The versatility of palm oil in frying, margarine, and processed foods continues to be a major driver of its global market expansion.

RESTRAINTS

Environmental and Sustainability Concerns

Environmental and social concerns act as a restraint, with 37% of global consumers demanding certified sustainable palm oil. Nearly 29% of importers in Europe restrict purchases to certified supply chains. Around 21% of palm plantations face criticism for deforestation, while 18% of producers report rising certification costs. Approximately 25% of retailers globally now prioritize sustainable labeling, reducing opportunities for non-certified suppliers. These challenges limit unrestricted growth, as producers must balance profitability with compliance to sustainability standards and shifting consumer expectations worldwide.

CHALLENGE

Price Volatility and Supply Chain Disruptions

Price fluctuations and supply chain constraints remain key challenges for the Palm Oil market Market. Nearly 33% of exporters report volatility due to weather-driven yield variations. Around 26% of producers highlight transportation and logistics bottlenecks impacting timely supply. In addition, 19% of global refiners face disruptions due to labor shortages and geopolitical tensions. Import-dependent countries, accounting for 42% of global demand, are particularly vulnerable to unstable pricing. Nearly 22% of food manufacturers also face cost escalation from palm oil price shifts, creating uncertainty in profit margins and long-term supply planning.

Segmentation Analysis

The Global Palm Oil market Market size was USD 54,736.04 Million in 2024 and is projected to reach USD 57,582.31 Million in 2025, advancing to USD 90,872.14 Million by 2034 at a CAGR of 5.2%. Based on type, Crude Palm Oil and Palm Olein dominate the industry, together covering 100% of the market. By application, foods remain the largest segment, while biodiesel, surfactants, cosmetics, and other uses highlight the diversification of palm oil across industries worldwide.

By Type

Crude Palm Oil

Crude palm oil is the base product extracted from oil palm fruit, widely used for refining into edible oils and industrial inputs. It accounts for about 61% of global palm oil demand. Nearly 45% of crude palm oil is consumed in food-related products, while 27% is diverted into biodiesel. Around 19% of the segment caters to industrial and surfactant applications, highlighting its versatility across end-use sectors.

Crude Palm Oil held the largest share in the Palm Oil market Market, accounting for USD 35,125.21 Million in 2025, representing 61% of the total market. This segment is expected to grow at a CAGR of 5.0% from 2025 to 2034, driven by food processing, refined edible oil demand, and biofuel expansion.

Top 3 Major Dominant Countries in the Crude Palm Oil Segment

• Indonesia led the Crude Palm Oil segment with a market size of USD 14,755.79 Million in 2025, holding a 42% share and expected to grow at a CAGR of 5.1% due to massive production capacity.
• Malaysia accounted for USD 10,185.31 Million in 2025, representing 29% share and projected CAGR of 4.9% driven by export-led supply.
• Nigeria recorded USD 2,809.93 Million in 2025, 8% share and CAGR of 4.7% owing to rising domestic edible oil consumption.

Palm Olein

Palm Olein is the most widely traded fraction of palm oil, commonly used in cooking and frying oils, margarine, and snack foods. It contributes about 39% of total palm oil usage. Around 52% of palm olein goes into household cooking oils, 31% in processed foods, and 17% in industrial applications. Its wide acceptance in retail packaging has made it the preferred choice in emerging economies.

Palm Olein accounted for USD 22,457.10 Million in 2025, representing 39% of the Palm Oil market Market. This segment is projected to grow at a CAGR of 5.5% from 2025 to 2034, supported by urban household demand, rising packaged food consumption, and affordability.

Top 3 Major Dominant Countries in the Palm Olein Segment

• India led the Palm Olein segment with a market size of USD 8,759.27 Million in 2025, holding 39% share and expected to grow at a CAGR of 5.6% due to strong demand in cooking oils.
• China accounted for USD 6,514.56 Million in 2025, 29% share and CAGR of 5.4% with high consumption in processed foods.
• Pakistan recorded USD 2,694.85 Million in 2025, 12% share and CAGR of 5.2% driven by household edible oil demand.

By Application

Foods

Foods represent the largest application of palm oil, accounting for nearly 41% of global consumption. It is widely used in cooking oils, bakery fats, margarine, confectionery, and instant foods. Around 35% of processed food products contain palm oil, while 28% of bakery goods use it for texture and preservation.

Foods held USD 23,607.75 Million in 2025, representing 41% of the Palm Oil market Market. This segment is expected to grow at a CAGR of 5.3% from 2025 to 2034, driven by growing processed food demand and household cooking needs.

Top 3 Major Dominant Countries in the Foods Segment

• India led the Foods segment with USD 6,842.25 Million in 2025, holding a 29% share and expected to grow at a CAGR of 5.4% due to high cooking oil demand.
• China accounted for USD 5,425.78 Million in 2025, representing 23% share and CAGR of 5.3% driven by snacks and processed foods.
• Indonesia recorded USD 3,777.24 Million in 2025, 16% share and CAGR of 5.1% supported by large domestic consumption.

Bio-Diesel

Bio-diesel is the second largest application of palm oil, contributing about 18% of demand. Nearly 32% of biodiesel in Southeast Asia is palm oil-based, while Europe consumes 21% of imports for blending. Rising renewable energy programs worldwide continue to strengthen this segment.

Bio-Diesel was valued at USD 10,364.82 Million in 2025, representing 18% share of the Palm Oil market Market. It is projected to grow at a CAGR of 5.4% from 2025 to 2034, driven by government policies and sustainability targets.

Top 3 Major Dominant Countries in the Bio-Diesel Segment

• Indonesia led the Bio-Diesel segment with USD 3,315.75 Million in 2025, 32% share, expected to grow at a CAGR of 5.6% due to strong blending mandates.
• Malaysia accounted for USD 2,282.26 Million in 2025, 22% share, projected CAGR of 5.5% supported by biodiesel exports.
• Germany recorded USD 1,242.63 Million in 2025, 12% share, CAGR of 5.3% from renewable energy adoption.

Surfactants

Surfactants application accounts for about 12% of global palm oil demand, used in detergents, cleaning agents, and industrial chemicals. Around 41% of soap and detergent products use palm-based surfactants for foaming and cleaning efficiency.

Surfactants were valued at USD 6,909.87 Million in 2025, representing 12% share of the Palm Oil market Market. This segment is expected to grow at a CAGR of 5.1% from 2025 to 2034, driven by household and industrial cleaning demand.

Top 3 Major Dominant Countries in the Surfactants Segment

• China led the Surfactants segment with USD 2,072.96 Million in 2025, 30% share, expected to grow at a CAGR of 5.2% driven by detergent production.
• India accounted for USD 1,727.47 Million in 2025, 25% share, CAGR of 5.1% from rising household cleaning demand.
• United States recorded USD 1,381.97 Million in 2025, 20% share, CAGR of 5.0% supported by industrial chemical usage.

Cosmetics

Cosmetics represent about 8% of palm oil usage, with applications in creams, lotions, shampoos, and soaps. Around 27% of personal care products globally use palm oil as an ingredient.

Cosmetics accounted for USD 4,606.58 Million in 2025, representing 8% of the Palm Oil market Market. This segment is projected to grow at a CAGR of 5.0% from 2025 to 2034, supported by natural ingredient demand in beauty and personal care.

Top 3 Major Dominant Countries in the Cosmetics Segment

• France led the Cosmetics segment with USD 1,104.78 Million in 2025, 24% share, expected CAGR of 5.2% due to luxury skincare production.
• United States accounted for USD 967.38 Million in 2025, 21% share, CAGR of 5.0% from personal care demand.
• Japan recorded USD 782.02 Million in 2025, 17% share, CAGR of 5.1% driven by advanced beauty formulations.

Others

Other applications, including lubricants, animal feed, and oleochemicals, contribute about 21% of demand. Around 13% of oleochemical products globally are palm oil-derived, while 18% of feed products incorporate palm oil byproducts.

Others accounted for USD 12,093.29 Million in 2025, representing 21% of the Palm Oil market Market. This segment is expected to grow at a CAGR of 4.9% from 2025 to 2034, driven by industrial diversification.

Top 3 Major Dominant Countries in the Others Segment

• Indonesia led the Others segment with USD 2,419.00 Million in 2025, 20% share, expected CAGR of 5.0% due to oleochemical exports.
• China accounted for USD 2,057.85 Million in 2025, 17% share, CAGR of 4.9% supported by industrial demand.
• India recorded USD 1,692.99 Million in 2025, 14% share, CAGR of 4.8% from feed and lubricant usage.

Palm Oil market Market Regional Outlook

The Global Palm Oil market Market size was USD 54,736.04 Million in 2024 and is projected to reach USD 57,582.31 Million in 2025, advancing to USD 90,872.14 Million by 2034 with a CAGR of 5.2%. Regional distribution highlights Asia-Pacific with 59%, Europe with 22%, North America with 11%, and Middle East & Africa with 8%, totaling 100% of the market share.

North America

North America accounts for 11% of the Palm Oil market Market, with strong demand from processed foods, snacks, and personal care products. The region also imports for biodiesel blending, contributing 19% of biofuel-related consumption.

North America recorded USD 6,334.05 Million in 2025, representing 11% of the total market. Demand is supported by packaged food growth, household use, and increasing biofuel applications.

North America - Major Dominant Countries in the Palm Oil market Market

• United States led with USD 4,183.47 Million in 2025, 66% share due to processed food and cosmetic industries.
• Canada accounted for USD 1,393.83 Million in 2025, 22% share with emphasis on household and packaged food usage.
• Mexico recorded USD 756.75 Million in 2025, 12% share supported by cooking oil consumption.

Europe

Europe represents 22% of the Palm Oil market Market, primarily driven by food processing, bakery, confectionery, and biodiesel industries. Nearly 31% of palm oil imports are certified sustainable in this region.

Europe accounted for USD 12,668.11 Million in 2025, representing 22% of the market. Rising adoption of certified palm oil and biofuel blending supports steady growth.

Europe - Major Dominant Countries in the Palm Oil market Market

• Germany led with USD 3,420.39 Million in 2025, 27% share through bakery and confectionery sectors.
• Netherlands recorded USD 2,913.67 Million in 2025, 23% share, a key hub for imports and re-exports.
• France accounted for USD 2,277.63 Million in 2025, 18% share driven by food and biodiesel industries.

Asia-Pacific

Asia-Pacific dominates with 59% of the Palm Oil market Market, led by Indonesia and Malaysia, which together contribute nearly 85% of global production. Consumption is driven by food oils, biodiesel, and industrial usage.

Asia-Pacific accounted for USD 33,973.56 Million in 2025, representing 59% of the market. Strong demand for edible oils, industrial inputs, and exports keeps this region the market leader.

Asia-Pacific - Major Dominant Countries in the Palm Oil market Market

• Indonesia led with USD 14,388.62 Million in 2025, 42% share supported by large-scale production and exports.
• Malaysia recorded USD 10,870.84 Million in 2025, 32% share with refined oil exports.
• India accounted for USD 5,095.37 Million in 2025, 15% share as a leading importer for food and household oils.

Middle East & Africa

Middle East & Africa account for 8% of the Palm Oil market Market, driven by edible oil demand, industrial applications, and rising imports for food manufacturing. Growth is supported by urbanization and dietary shifts.

Middle East & Africa recorded USD 4,606.58 Million in 2025, representing 8% of the total market. Increasing adoption in food and biofuel sectors continues to strengthen this region’s demand base.

Middle East & Africa - Major Dominant Countries in the Palm Oil market Market

• Nigeria led with USD 1,656.37 Million in 2025, 36% share, supported by cooking oil consumption and industrial use.
• Egypt recorded USD 1,199.71 Million in 2025, 26% share driven by food and packaged oil demand.
• Saudi Arabia accounted for USD 874.24 Million in 2025, 19% share through food and cosmetics industries.

List of Key Palm Oil market Market Companies Profiled

Investment Analysis and Opportunities

The Palm Oil market Market is witnessing expanding investment opportunities across food, biofuel, industrial, and cosmetic sectors. Foods account for 41% of demand, followed by biodiesel at 18%, surfactants at 12%, and cosmetics at 8%. Nearly 27% of global investors are focusing on certified sustainable palm oil, which now represents 21% of international trade. Around 19% of new agricultural investment funds are directed toward palm oil refining and processing, particularly in Asia-Pacific, which contributes 59% of global consumption. Europe, holding 22% share, attracts 16% of investment for sustainable sourcing and renewable energy applications.

In addition, 24% of biofuel-related investments are linked directly to palm oil-based biodiesel projects. Around 13% of palm oil investment globally is now allocated to oleochemicals for industrial applications, while 11% goes into cosmetics and personal care. Emerging economies, particularly in Africa, attract nearly 9% of investments to expand domestic palm oil cultivation. Furthermore, 22% of food manufacturing companies globally are investing in palm oil as a key ingredient in processed foods, bakery, and snacks. This broad investment scope ensures steady opportunities for producers, refiners, and distributors across the Palm Oil market Market.

New Products Development

New product development is shaping the Palm Oil market Market through innovation in food, energy, and industrial applications. Nearly 26% of new product launches in 2023–2024 were in palm-based foods, particularly bakery fats, margarine, and confectionery oils. Biofuel innovations represent 19% of new developments, including advanced palm oil biodiesel blends. Surfactants and detergents accounted for 14% of product launches, while cosmetics and skincare contributed around 12%. About 9% of new developments were focused on oleochemicals such as lubricants and coatings.

Regionally, Asia-Pacific drives 31% of new palm oil product development, with Indonesia and Malaysia leading in biodiesel and refined edible oils. Europe represents 22% of product launches, especially in cosmetics and sustainable certified palm oil. North America accounts for 11% of developments, mainly in packaged foods and processed snacks. Around 17% of new innovations globally now use certified sustainable palm oil to meet environmental compliance, while 13% are introducing palm-based organic products. These advancements highlight the Palm Oil market Market’s evolution towards diverse, sustainable, and consumer-focused product offerings.

Recent Developments

• Wilmar – 2024: Launched palm-based biofuel in Southeast Asia, with 22% adoption by transport operators in the first year of introduction.
• Sime Darby Berhad – 2023: Expanded certified sustainable palm oil capacity, with 28% of total output meeting environmental compliance standards.
• Musim Mas – 2024: Introduced palm oil-based surfactants, capturing 17% of demand in the Asia-Pacific cleaning products market.
• Golden Agri Resources – 2023: Invested in refinery expansion, raising capacity by 19% to support growing global exports.
• IOI Corporation – 2024: Developed palm oil-based specialty fats, with 13% of confectionery manufacturers in Europe adopting the new line.

Report Coverage

The Palm Oil market Market report provides comprehensive coverage across types, applications, regions, and competitive landscape. It highlights crude palm oil holding 61% share and palm olein 39%. Food applications dominate with 41% share, followed by biodiesel at 18%, surfactants at 12%, cosmetics at 8%, and others at 21%. Regionally, Asia-Pacific leads with 59% of the market, Europe holds 22%, North America 11%, and Middle East & Africa 8%. Sustainability trends are central, with 21% of global palm oil now certified sustainable.

The report covers investment trends, noting that 27% of global funds target certified palm oil projects, and 24% support biodiesel initiatives. It emphasizes that 22% of food companies integrate palm oil into their products, while 19% of industrial players depend on palm oil derivatives. Competitive profiling includes leading companies such as Wilmar, Sime Darby, Musim Mas, IOI, and Golden Agri Resources, which collectively account for over 40% of market share. This analysis ensures stakeholders understand demand distribution, sustainability challenges, and innovation opportunities shaping the Palm Oil market Market.