A new market study published by Global Industry Analysts Inc., (GIA) released its report titled “Palm Oil – Global Market Trajectory & Analytics”. The report presents fresh perspectives on opportunities and challenges in a significantly transformed post COVID-19 marketplace.
Global Palm Oil Market to Reach US$92.3 Billion by the Year 2026
Global demand for palm oil has more than doubled over the last two decades owing to continuous expansion of the food processing sector and growing population across emerging markets. Palm oil, also called dendê oil in Portuguese, is a vegetable oil extracted from the reddish pulp or mesocarp of fruits of oil palm trees. While food applications contributed immensely to growth and progress of the market, steady increase in palm oil uptake in industrial applications also contributed to market expansion. Palm oil represents a key ingredient in almost 50% of all food and non-food items in a grocery store or supermarket due to its technical superiority as well as economic benefits. Customer interest in palm oil is on the rise due to the lack of GMO, dairy, and gluten in the oil. The market is also gaining from the increasing demand for convenience foods, packaged meals, bakery, and confectionary products which generally use palm oil. Further, the advent of innovative trade channels is improving the footprint of palm oil producers in developing regions. The rising use of palm oil in cooking, particularly in Asia is driving gains in the market. The affordability and the lesser levels of trans-fats in palm oil are fueling its use.
Amid the COVID-19 crisis, the global market for Palm Oil estimated at US$74.9 Billion in the year 2022, is projected to reach a revised size of US$92.3 Billion by 2026, growing at a CAGR of 6% over the analysis period. Crude Palm Oil, one of the segments analyzed in the report, is projected to grow at a 5.3% CAGR to reach US$53.3 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Palm Kernel Oil segment is readjusted to a revised 7.3% CAGR for the next 7-year period. This segment currently accounts for a 24.3% share of the global Palm Oil market.
Read more of the latest industry developments in our new edition: January/February 2022 Single Issue form – International Bakery (in-bakery.com)