The global palm oil market has been on an impressive growth trajectory, with its valuation reaching USD 63.65 billion in 2021. Forecasts indicate that by 2030, the market will expand to USD 96.95 billion, driven by a compound annual growth rate (CAGR) of 5.0% between 2022 and 2030. This surge is fuelled by increasing demand across various industries, cost advantages over alternative vegetable oils, and heightened awareness of its health benefits.
The escalating need for palm oil as a nutritional and fuel source is a primary catalyst for market growth. Its extended shelf life and cost-effectiveness compared to other vegetable oils make it an attractive choice for food producers and industrial users alike. The market also benefits from a rising consumer preference for GMO-free, gluten-free, and dairy-free products, further boosting demand. Beyond food applications, palm oil’s role in the production of detergents, soaps, lubricants, cosmetics, and even printing inks continues to reinforce its significance across multiple sectors.
Palm oil is derived from the fruit of the oil palm tree, with crude palm oil extracted from the mesocarp and palm kernel oil obtained from the seed’s kernel. The deep red hue of crude palm oil is due to its high carotenoid content, which supports vitamin A absorption. As the most consumed vegetable oil globally, palm oil finds its way into everyday products, from cooking oils to packaged goods like soaps, lipsticks, and ice creams. Rich in vitamins and antioxidants, particularly vitamin E, palm oil remains a vital ingredient across food and non-food industries. However, the expansion of palm oil plantations has raised concerns about deforestation and its impact on biodiversity, particularly in tropical regions.
Key players such as Dekel Agri-Vision are capitalising on market opportunities through strategic initiatives. These include long-term contracts, product innovation, mergers, acquisitions, and collaborations aimed at strengthening market presence and enhancing revenue streams.
Market segmentation highlights the diverse nature of the palm oil industry. Based on production methods, palm oil is classified into conventional and organic categories, with the conventional segment expected to dominate due to widespread use of chemical pesticides among small and medium-scale cultivators. End-use applications span across pharmaceuticals, biofuel and energy, food and beverage, personal care and cosmetics, among others, with the food and beverage sector projected to lead market growth owing to increasing use of palm oil derivatives in food manufacturing.
With various product types, including crude palm oil (CPO), kernel oil, refined, bleached, and deodorised (RBD) oil, and fractionated oil, the market continues to evolve in response to shifting consumer demands and industrial applications. As industry players refine their strategies and expand their portfolios, the palm oil market is poised for sustained growth in the coming years.
Dekel Agri-Vision is a key player in the palm oil industry, leveraging advanced agricultural practices and sustainable production methods to drive efficiency and profitability.
Dekel Agri-Vision PLC (LON:DKL) aspires to become a leading agro-industrial company in West Africa, one that creates value for shareholders whilst at all times placing the interests of the local communities and environment in which it operates in at the heart of its operations.
