Palm Oil Market Size, Share and Growth Forecast 2026-2034

Market Overview:

According to IMARC Group's latest research publication, "Palm Oil Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2026-2034", The global palm oil market size was valued at USD 59.2 Billion in 2025. Looking forward, IMARC Group estimates the market to reach USD 80.7 Billion by 2034, exhibiting a CAGR of 3.30% during 2026-2034.

This detailed analysis primarily encompasses industry size, business trends, market share, key growth factors, and regional forecasts. The report offers a comprehensive overview and integrates research findings, market assessments, and data from different sources. It also includes pivotal market dynamics like drivers and challenges, while also highlighting growth opportunities, financial insights, technological improvements, emerging trends, and innovations. Besides this, the report provides regional market evaluation, along with a competitive landscape analysis.

How the Palm Oil Market Is Reshaping the Global Food and Energy Landscape

• Indonesia, the world's largest palm oil producer, recorded 45.5 million metric tons of palm oil produced in one crop year, reinforcing its dominant global supply position with a market share exceeding 59.1% in 2025.
• Household cooking accounts for approximately 34.8% of all palm oil applications in 2025, driven by affordability, neutral flavor, and suitability for high-temperature cooking across millions of households worldwide.
• In March 2025, the Indian government launched the National Mission on Edible Oils-Oilseeds (NMEO-OS) with an investment of Rs 10,103.38 crore to scale domestic oilseed production from 39 million tonnes to 70 million tonnes by 2030-31, including an oil palm push targeting an additional 6.5 lakh hectares under cultivation.
• In June 2026, POSCO International launched PT.PAR, a new integrated palm oil entity in Indonesia, following a 1.3 trillion won investment to secure management control of Sampoerna Agro and add 128,000 hectares of plantation across Sumatra and Kalimantan.
• Europe accounts for 45% of global certified sustainable palm oil consumption, reflecting stringent regulatory requirements and the influence of the EU Renewable Energy Directive on procurement practices.

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Key Trends in the Palm Oil Market

• Expanding Food and Beverage Industry Driving Consumption: Palm oil is a preferred ingredient across bakeries, confectionery, instant noodles, frozen snacks, and ready-to-cook meals due to its high smoke point and oxidative stability. The global instant noodles market reached USD 55.4 Billion, and India's food and beverage industry is projected to reach a market volume of USD 30.75 Million by 2027, both sectors relying heavily on palm oil in formulation and production processes.
  
  
  
• Rising Biofuel Mandates Anchoring Demand: Government biofuel policies are shaping palm oil consumption patterns at scale. Indonesia's biodiesel blending mandate has progressed to B45 for 2026, with a B50 road test already underway and implementation expected in late 2026. In September 2025, 153 million liters of biofuel used in UK road transport were produced from domestically grown crops, signaling broader adoption of plant-based fuel policies across multiple markets.
  
  
  
• Growing Demand for Fortified Palm Oil: National food safety bodies are increasingly mandating the fortification of edible oils with Vitamins A and D. Fortifying cooking oils can support individuals in consuming 25% to 30% more Vitamin A and D than typical dietary intake provides. The Food Safety and Standards Authority of India published a proposal calling for mandatory fortification of cooking and edible oils, driving reformulation across domestic palm oil producers.
  
  
  
• Sustainable and Certified Palm Oil Gaining Priority: Europe, as the world's largest consumer of certified sustainable palm oil at 45% of global consumption, is pushing global supply chains toward traceable and responsibly sourced palm oil. Regulations such as the EU's Renewable Energy Directive and evolving deforestation laws are making Roundtable on Sustainable Palm Oil certification an operational necessity for companies accessing European markets.
  
  
  
• Strategic Investments Strengthening Upstream Integration: Major conglomerates are pursuing large-scale vertical integration to secure supply chains from plantation to refinery. POSCO International's acquisition of Sampoerna Agro, involving a 1.3 trillion won investment and the addition of 128,000 hectares of plantation, reflects the industry's shift toward comprehensive ownership of upstream assets to improve competitiveness and seed development capabilities.
  
  
  

Our report provides a deep dive into the palm oil market analysis, outlining the current trends, underlying market demand, and growth trajectories. 

Growth Factors in the Palm Oil Market

• Rapid Population Growth and Urbanization Fueling Edible Oil Demand: Global population expansion, particularly in emerging economies across Asia and Africa, is increasing the base demand for affordable cooking oils. Indonesia's palm oil sector alone generates 4.5% of its GDP and provides employment to 3 million people, underscoring the centrality of palm oil production to economic development in the region.
  
  
  
• Government Schemes Supporting Domestic Production Capacity: Multiple governments are channeling public investment into palm oil self-sufficiency. India's NMEO-OS scheme involves an investment of Rs 10,103.38 crore with a goal to raise oilseed production from 39 million tonnes to 70 million tonnes by 2030-31. The oil palm component targets an additional 6.5 lakh hectares of cultivation with a special focus on the northeastern states, directly strengthening the upstream supply base.
  
  
  
• Cost Competitiveness Versus Other Vegetable Oils: Palm oil consistently produces higher yields per hectare than soybean, sunflower, or rapeseed oil, making it the most cost-efficient vegetable oil globally. In Q2 2026, palm oil prices in Malaysia were recorded at USD 1,210 per metric ton, significantly below competing vegetable oils, sustaining its preference among food manufacturers, biodiesel producers, and oleochemical companies seeking raw material cost efficiency.
  
  
  
• Expansion of Oleochemical and Personal Care Applications: Beyond food and fuel, palm oil derivatives are increasingly used in the production of soaps, detergents, cosmetics, and industrial lubricants. The palm oil derivatives market was valued at USD 27.69 Billion in 2025 and is projected to expand substantially by 2034, driven by rising demand for bio-based ingredients in personal care formulations across North America and Europe.
  
  
  
• Rising Middle-Class Consumption in Emerging Economies: Growing disposable incomes in India, China, and across Southeast Asia are increasing household spending on packaged and processed foods, which depend on palm oil as a core ingredient. In China, e-commerce platforms recorded a 120% increase in ready-to-eat meal sales between 2021 and 2023, directly elevating palm oil consumption in food manufacturing serving digital retail channels.
  
  
  

Leading Companies Operating in the Global Palm Oil Industry:

• Asian Agri
• IOI Corporation Berhad
• Kuala Lumpur Kepong Berhad
• Kulim (Malaysia) Berhad (Johor Corporation)
• PT Bakrie Sumatera Plantations Tbk (Bakrie Group)
• PT Dharma Satya Nusantara Tbk
• PT PP London Sumatra Indonesia Tbk
• PT Sampoerna Agro Tbk
• SD Guthrie Berhad
• United Plantations Berhad
• Univanich Palm Oil Public Co. Ltd.
• Wilmar International Ltd

Palm Oil Market Report Segmentation:

Breakup By Application:

• Household Cooking
• Food and Beverages
• Oleo Chemicals
• Personal Care
• Animal Feed
• Bio-fuel

Household cooking represents the largest application segment in 2025, accounting for approximately 34.8% of the market, driven by palm oil's affordability, versatility, and widespread acceptance across diverse cuisines in Asia, Africa, and Latin America.

Breakup By Region:

• India
• Indonesia
• China
• European Union
• Malaysia
• Others

Indonesia accounts for the largest regional share at over 59.1% in 2025, supported by vast plantation infrastructure, favorable tropical climate, government export incentives, and the country's ambitious biodiesel blending program that anchors domestic consumption.

Recent News and Developments in the Palm Oil Market

• January 2025: Hindustan Unilever Limited approved the acquisition of Vishwatej Oil Industries' palm undertaking in Telangana. This strategic move supports HUL's palm localisation initiative aimed at reducing import dependence, improving supply chain resilience, and contributing to India's National Mission on Edible Oils through sustainable domestic farming practices.
  
  
  
• March 2025: The Indian government launched the National Mission on Edible Oils-Oilseeds with an investment of Rs 10,103.38 crore to scale domestic oilseed production from 39 million tonnes to 70 million tonnes by 2030-31. The mission also includes the NMEO-Oil Palm initiative targeting an additional 6.5 lakh hectares of oil palm cultivation, with a strong focus on the northeastern states to build national self-sufficiency in edible oils.
  
  
  
• June 2026: POSCO International launched PT.PAR as its integrated palm oil production entity in Indonesia following a 1.3 trillion won investment to secure management control of Sampoerna Agro. The deal added 128,000 hectares of plantation across Sumatra and Kalimantan and incorporated Indonesia's second-ranked palm seed business and its research and development capabilities, positioning PT.PAR as the company's core production and seed development hub.
  
  
  

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