The global PALM OIL MARKET is projected to grow at a 7.5% CAGR from 2015 to 2022, according to an insightful report by Grand View Research, Inc. Palm oil is desired by consumers due to its beta-carotene content. It is used as one of the prominent cooking oils in Southeast Asia and has a high valuation as a cash crop for farmers in the region. In addition, its use as a transfat substitute has led to the application of palm oil in margarine and other spreads.
The market for palm oil is expected to accrue high demand from 2012 to 2022 (forecast period) due to steady demand from various industries. The utilization of palm oil as a component in biofuels is projected to bode well for the market over the forecast period. Research and development initiatives undertaken by market leaders to create a viable means of production are anticipated to open up new avenues for growth. Increasing consumer demand for bio-based products is expected to drive the market in the forthcoming years. However, rising environmental concerns and deforestation caused by palm oil production may hamper global market growth.
Palm oil is considered as a viable alternative for vegetable oil by consumers in the U.S. and Europe. Biofuels are being seen as a novel fuel source to reduce greenhouse gas (GHG) emissions. The high adoption rate of biofuels can be seen as an essential step in prevention of global warming by various environmental organizations. Private contractors are offering package deals to countries with an abundance of palm trees to generate good revenue. For instance, Besteel Berhad, a Malaysian company, is offering the Tilting Steriliser System, its brainchild for palm oil production. It can keep production and maintenance costs at an all-time low while giving high throughput.
Browse Research Report on Palm oil market:
The worldwide palm oil market is fragmented by derivative, application, and region. By derivatives, the market is divided into palm kernel cake, palm kernel oil, crude palm oil, and others. Major applications are categorized into construction, consumer goods, automotive and transportation, electrical and electronics, industrial machinery, and others.
Regions covered in the report include North America, Central and South America (CSA), Asia Pacific (APAC), Middle East and Africa (MEA), and Europe. The APAC market dominated in 2014, in terms of demand, due to easy availability of raw materials and increased purchasing power of consumers in the region. The India market within APAC is expected to thrive due to changing lifestyles of the populace and rapid urbanization. Furthermore, derivatives of palm oil are a constant in diet of Indian consumers due to its low price in comparison to other types of oil.
The CSA market is predicted good growth due to increasing influx of companies willing to invest in the region. Readily arable land and favorable weather conditions are the factors which can be credited to this trend. The MEA palm oil market is also predicted to expand immensely over the forecast period. The Iran palm oil market is expected to thrive due to high demand from industrial and food application segments. The upward trend of using natural ingredients to produce cosmetics coupled with Iran being a hub for cosmetics in the Middle East is projected to augur regional market. The United Arab Emirates market is also set to accumulate high demand on account of increasing demand for high-quality food products from locals and tourists.
The North America market is driven by high demand from consumers in Canada and U.S. In order to attain a constant source of palm oil, vendors in the market have formed a coalition, North American Sustainable Palm Oil Network (NASPON). This coalition educates consumers and discusses the challenges faced by the manufacturers of food product and cosmetics. The Europe market for palm oil is expected to witness significant growth over the forecast period owing to the demand from biofuel manufacturers. However, the recent decision of the European Union to limit the use of palm oil by 2021 can impede the regional market growth in near future.
Key players in the palm oil market include Godrej Agrovet Ltd., The Archer Daniels Midland (ADM) Company, IOI Corporation Berhad, London Sumatera Indonesia, and Wilmar International Limited. The market is competitive in nature due to changing processing technologies and demand for improved quality of oil.
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About Grand View Research
Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials, and healthcare.
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