Palm Oil Market To Reach $88 Billion By 2022
Growing environmental concerns have prompted bio-fuel demand across the globe
Global Palm Oil Market is expected to reach $88 billion by 2022, according to a new study by Grand View Research, Inc. Growing environmental concerns have prompted bio-fuel demand across the globe which is expected to remain a key driving factor for global palm oil market. In addition, consumer shift towards consumption of vegetable oils containing low trans-fat on account of growing health concerns has also contributed to the growth of palm oil industry.
Crude palm oil was the largest palm oil derivative and accounted for over 75% of total market volume in 2014. Crude palm oil is widely used for cooking purposes. Low price of crude palm oil compared to its counterparts make it the most favorable cooking oil particularly in West Africa and South East Asia. Crude palm oil is also expected to witness the highest growth of 7.5% from 2015 to 2022.
Further key findings from the study suggest:
- Global palm oil market demand was 74.01 million tons in 2014 and is expected to reach 128.20 million tons by 2022, growing at a CAGR of 7.3% from 2014 to 2022.
- Palm oil is widely used for cooking application and this application accounted for over 65% of total consumption in 2014. Growing disposable income level coupled with large plantations of palm particularly in South East Asia is expected to drive this segment over the forecast period. Biodiesel is expected to witness the highest growth of 8.8% from 2015 to 2022. Rapid expansion of global bio-fuel industry in order to reduce reliance on conventional fuels is expected to drive this segment over the next six years.
- Asia Pacific was the largest palm oil consumer and accounted for over 65% of total market volume in 2014. Availability of key raw material in abundance coupled with growing disposable income levels in China, India and Indonesia is expected to drive the regional market. India is one of the largest palm oil importers in the world. Central & South American market is estimated to witness the highest growth of 8.0% from 2015 to 2022. Factors such as high demand from the food industry as well regulations encouraging bio-fuel blending can be attributed for the regional growth.
- The global industry is characterized by companies taking strong steps to increase their production capacity and abide by the environmental regulations governing palm oil production. Key industry participants include Cargill Inc., Wilmar International Ltd., Godrej Agrovet Ltd., ADM, IOI Corp., London Sumatra and Sime Darby. Key companies operating the market have been taking critical steps to develop their product line and increase their production capacity to cater to the emerging markets.