Palm Oil & Palm Oil By-Products Market: Global Industry Analysis, Market Size Estimation and Growth Forecast By Types (Palm Oil, Palm Kernel Oil, By-Products Such As Aqueous By-Products, PPF, EFB, PFAD etc), By Application (Food Applications, Oleochemicals etc) & By Regions (North America, Europe, Asia Pacific, Middle East & Africa, South America), 2017 – 2025

Palm Oil Market & Palm Oil Derivatives - Introduction

The global Palm Oil Market and its by-products market is expected to expand at a healthy pace in coming years. Palm oil & palm oil by-products market is segmented on the basis of type, applications, and geography. Palm oil is a type of oil, extracted from fruits of oil palms such as the African oil palm and American oil palm trees among others, which has extensive applications in several industry verticals. Palm oil by-products are produced during the palm oil extraction process. While the crude oil palm extract is utilized for industrial applications, the oil extracted from the kernel of the oil palm is utilized for human consumption. Post extraction, the residues of the oil palm fruit is either used as an animal feed or dried, formed into briquettes and utilized as a combustion material. Rising consumption of palm oil, as well as palm kernel oil, is acting as a push factor for the growth of the palm oil market.

Report Overview
Aspect Details
Base Year of Estimation 2016
Value Estimation Year 2017
Forecast Period 2017 - 2025
Market Segmentations By type, applications, geography
Regional Scope North America, Europe, Asia-Pacific, Middle East & Africa (MEA) and South America
Report Coverage Technology Analysis, Market Dynamics, Market Trends, Segmentation Overview and Competitive Landscape of the market

 

Technology Analysis

Several new technological changes have been occurring in the process of palm oil extraction. While most oil millers currently utilize batch sterilization of the oil palm fruit, modern advancements allow for continuous sterilization. Advent of tilting sterilizer has also reduced the number of machines, generally associated with the conventional sterilization process. Also, usage of a solvent for flow enhancement of the oil, instead of water, processes such as separation of oil, oil skimming and effluent discharge can now be processed under a single solvent extraction plant, instead of multiple processing stations and ponds. Additionally, modern techniques allows for greater amount of oil extraction, by manufacturers who still utilizes water for flow enhancement, from the water being discharged.

 

Market Dynamics

Growth in demand for palm oil, as of 2016, is mainly owing to factors such as increasing usage of crude oil palm extract in industrial applications, growing application of palm oil in the food industry of emerging economies, and increased application of palm oil in various consumer goods. As compared to palm oil, demand for palm kernel oil is limited in food industry owing to health concern over high saturated fat content in later. The crude oil palm extract is utilized by many industry verticals, such as the chemicals industry, the pulp and paper manufacturers and the bio-diesel industry among others. Such diverse applications have been fuelling the growth of this market.

In emerging economies, widespread application of palm oil has also been fueled by the increasing trend of fast food consumption.

Additionally, the food industry has been growing at a very fast pace in emerging economies, such as India, Pakistan, Thailand, and Malaysia among others. It comprises off street food vendors, restaurants, bakeries and packaged foods among other categories. The majority of the food industry, in such emerging countries, have been utilizing palm oil for food production. Such widespread application of palm oil has also been fueled by the growing trend of eating out and higher fast food consumption. Conjoint effect of these factors has been fuelling the growth of the palm oil market in these emerging economies.

Furthermore, palm oil and palm oil extracts is now being increasingly used in several consumer goods, such as lubricants or grease, soaps and detergents, beauty products and as a substitute for mineral oil in several cosmetics, among other applications. Such growing and diversified applications of palm oil have further boosted the global palm oil market. Palm oil and palm kernel oil extracts can be used to produce antioxidant, food ingredients, cosmetic ingredients etc. For example, in 2014, BASF SE introduced cosmetic ingredients based on palm kernel oil.

Product innovation in terms of food and cosmetic ingredients based on palm and palm (kernel) oil is expected to offer growth prospects for this market.

However, rising concern of wildlife habitat destruction, due to extensive oil palm farming, in several countries of South East Asia and Africa has led to several restrictions in oil palm farming. This, in turn, has been restraining the growth of the market. Also, rising health concerns in several developed and emerging economies, with respect to palm oil consumption, has led to decrease in overall consumption growth rate of the palm oil market. Product innovation in terms of food or cosmetic ingredients based on palm and palm (kernel) oil, sustainable farming practices and advent of newer technologies for palm oil extractions are expected to offer unique growth opportunities for the palm oil market.

 

Market Trends

Rising health concerns has led several consumers to shift to palm oil, as an alternative for dairy fats and coconut oil. This is mainly due to the relatively similar or lower price of palm oil. However, health concerns have also led certain consumers, though relatively less, to shift to relatively healthier alternatives such as olive oil. However, growing industrial applications have been negating the ill-effects of such shifts. Additionally, several countries are demarcating the cultivation areas of oil palms, to reduce the ill-effects of extensive farming practices.

 

Segmentation Overview

By type, the palm oil market has been segmented into palm oil, palm kernel oil and by-products. By-products are further segmented into aqueous by-products, palm pressed fibres (PPF), empty fruit bunches (EFB), palm fatty acid distillate (PFAD) and others. Palm oil was the largest segment in 2016, owing to its wide acceptance as edible oil. On the basis of applications, the global palm oil market has been segmented into food applications, oleochemicals and others. Others segment includes applications such as bio-diesel, pulp &paper etc. Food applications have been further segmented into cooking oil, non-dairy creamers, margarine and others. Oleochemicals has been further segmented into soaps & detergents, cosmetics, lubricants and others. Food applications were the largest segment in 2016 globally.

By geography, the market has been segmented into North America, Europe, Asia Pacific, Middle East & Africa (MEA) and South America. In terms of revenue, Asia Pacific held the largest share of the palm oil market in 2016, owing to the presence of a large number of oil palm plantations and palm oil manufacturers in countries such as Indonesia and Malaysia among others.

Market Segmentation Overview
By Term Segments
By Type Palm oil, palm kernel oil and by-products such as aqueous by-products, palm pressed fibres (PPF), empty fruit bunches (EFB), palm fatty acid distillate (PFAD) and others
By Applications Food applications such as cooking oil, non-dairy creamers, margarine and others, oleochemicals such as soaps & detergents, cosmetics, lubricants, and bio-diesel, pulp & paper etc
By Geography North America, Europe, Asia-Pacific, Middle East & Africa (MEA) and South America

 

Competitive Landscape

Leading players operating in the palm oil market are Cargill, Inc. (The U.S.), United Palm Oil Industry Public Company Limited (Thailand), Musim Mas Group (Singapore), Kulim (Malaysia), Berhad (Malaysia) and Alami Vegetable Oil Products Sdn Bhd. (Malaysia) among several others.

 

Conclusion

Considering the growing rising applications of palm oil in the food industry and rise in industrial applications, it has been estimated that the palm oil market is about to grow at a steady pace in coming years.

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KEY QUESTIONS ANSWERED BY THE REPORT
What will be the nature of growth of the market till 2025?
What are the major push factors that will affect the growth of the market?
What are the growth possibilities in different segments of the market?
Who are the leading market players?
What are the key strategies implemented by the market leaders to sustain growth in the market?
What are the major restraining factors for the market?
What are the ways to generate new revenue streams?
In-depth analysis of the competitive landscape and competitor behavior in the market

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