According to Fortune Business Insights, the global palm oil market was valued at approximately USD 78.81 billion in 2025. The market is forecast to climb to USD 82.17 billion in 2026 and reach USD 114.72 billion by 2034, reflecting a compound annual growth rate (CAGR) of 4.26% across the 2026–2034 forecast window. The report's study period spans 2021 to 2034, uses 2025 as the base year, and draws on historical data from 2021–2024. The full report runs 128 pages and carries the report ID FBI107783, last updated July 20, 2026.
Market Overview
Palm oil ranks among the most widely consumed vegetable oils worldwide. It is used across a broad range of processed foods — including chocolate, biscuits, margarine, frozen desserts, and frying fats — thanks to its blend of saturated and unsaturated fats and its antioxidant properties. Its relatively low cost and versatility across the food and beverage, cosmetics, and pharmaceutical sectors are cited as key demand drivers, alongside growing consumer awareness of the oil's purported health benefits.
The industry also plays a notable socioeconomic role, particularly in rural production regions, where smallholders and households depend on palm cultivation for income and employment. At the same time, the report flags significant environmental concerns tied to palm oil production, including deforestation, habitat loss for endangered species, and soil erosion. In response, NGOs and environmental groups have pushed for more sustainable cultivation practices — one example cited is a 2023 partnership between the World Wildlife Fund and German conglomerate Beiersdorf AG aimed at curbing forest conversion in West Kalimantan, Indonesia.
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COVID-19 Impact
The pandemic reshaped vegetable oil demand patterns, shifting consumption toward home use as restaurants and cafes closed. Malaysia, a leading palm oil producer, saw output disrupted by labor shortages linked to travel and trade restrictions. Citing the Malaysian Palm Oil Council, the report notes national production fell 3.8% to 19.14 million metric tons in 2020, down from 19.85 million MT in 2019, while exports also declined, from 18.47 million MT in 2019 to 17.37 million MT in 2020.
Segment Analysis
By Nature: The conventional segment is expected to retain a significant share of the market, supported by its affordability and wide availability. Conventional palm oil, produced with the aid of synthetic chemicals, is a meaningful income source for small and mid-sized growers. Government initiatives — such as India's National Mission on Edible Oils–Oil Palm (NMEO-OP), launched in August 2021 — aim to expand domestic production and cut import dependence.
By Product Type: Fractionated palm oil is expected to command a leading share, valued for its cost-effectiveness and use in margarine, shortening, and bakery products such as bread and pastries. Crude palm oil, meanwhile, is projected to post the fastest growth, driven by strong demand in cooking as well as pharmaceutical, personal care, and cosmetics applications.
By Application: Food and beverage is expected to remain the dominant application segment, underpinned by palm oil's high-temperature stability for frying and its widening use in functional food formulations.
Regional Analysis
Asia Pacific is projected to hold the largest regional market share, propelled by population growth and strong end-use demand from the food and beverage sector. Malaysia and Indonesia remain the region's dominant producers; Fortune Business Insights cites Malaysian Palm Oil Board figures showing crude palm oil output rose 1.9% to 18.45 million tonnes in 2022, up from 18.12 million tonnes in 2021. North America, meanwhile, is expected to post the fastest regional growth rate, driven by shifting eating habits and rising demand for palm oil in ice cream, non-dairy creamers, margarine, and salad products.
Competitive Landscape
Key companies identified in the report include Archer Daniels Midland, Wilmar International Ltd., Sime Darby Plantation Berhad, PT Sampoerna Agro Tbk, Univanich Palm Oil Public Company Ltd., United Plantations Berhad, Kuala Lumpur Kepong Berhad, London Sumatra, and Asian Agri.
Recent industry developments highlighted in the report include an April 2022 memorandum of understanding between the Malaysian Palm Oil Board and the China Chamber of Commerce for Import and Export of Foodstuffs to strengthen trade cooperation, and Cargill Inc.'s November 2021 acquisition of an edible oil refinery in Andhra Pradesh, India, for roughly USD 35 million — a move intended to expand its capacity to supply refined palm oil and related products.
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