The global Sustainable Palm Oil market size is estimated to be valued over 90 million in 2018
Posted: May 01, 2018
The global Sustainable Palm Oil market size is estimated to be valued over 90 million in 2018 and will register a CAGR of above 3.1% during the forecast period (2018-2028).
Sustainable palm oil are marketed and produced as per the directive guidelines notified by Roundtable on sustainable palm oil (RSPO). Over 51 million tonnes of palm oil is produced every year, with Indonesia and Malaysia accounting for 85 per cent of total output out of which just over 11.71 million tonnes of palm oil produced is certified under RSPO. The industry is getting competitive with emergence of new players. Also, the industry is basically labor intensive with over 6 million people worldwide engaged in total value chain of sustainable palm oil market.
Global Sustainable Palm Oil Market Drivers and Challenges
The sustainable palm oil market size is driven by the various macro and micro factors. Some key macroeconomic factors expected to boost the growth of the product is its cost effectiveness. It is cheaper and resource efficient compared to other vegetable oils Moral values is also playing a key role in overall development of sustainable palm oil market. The product is gaining high traction in the region wherein animal fats are not accepted for the religion issues.
It has great cooking properties, can be used at higher temperature. Due to its physical characteristics, it finds wide usage in baking industry. It has a natural perspective effect which helps the longevity of the food by resisting the oxidation that spoils them. It is also used in the cosmetic industry to formulate skin care and make up products. It has the component of high beta carotene which makes it good for health.
Traditional palm oil cultivation has negatively impacted food and agriculture industry owing to ecological concerns and societal issues. As such, industry stakeholders are emphasizing on policy – ‘reduce, recycle and reuse’. This would act as a positive market driver to boost market share.
Though the industry is expected to register solid growth during the forecast period, lack of awareness related to its added benefits along with high cost of custom taxes in developing regions has led to flattening growth in 2015 and 2016. Companies need to aware suppliers and distributors about production channels of sustainable pal oil. This in turn could help producers to strengthen their market presence especially in developing regions.
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Global Sustainable Palm Oil Market Analysis, By Application
On the basis of application, sustainable palm oil market size is segmented into food, cosmetics, household cleaners, and pet foods. Its application in food is further analyzed across bakery, confectionery products, margarine and desserts. As per the estimates, food application will dominate the industry and is expected to be over 63% by 2028.
Global Sustainable Palm Oil Market Analysis, By Type
On the basis of type, sustainable palm oil market value is segmented into red palm oil, palm kernel oil, white palm oil, and fractional palm oil.
Global Sustainable Palm Oil Market Size and Forecast: Regional Analysis
Globally, Asia Pacific will dominate the industry sales. However, percent market size ratio to total addressable market is very low compared to North America and Western Europe. Lack of product awareness is a major setback to overall industry growth at its full potential. Indonesia and Malaysia exports most of its sustainable palm oil to North America and Western Europe countries, owing to higher product profitability margins.
Global Sustainable Palm Oil Market Size and Forecast: Competition Landscape
The key players across the value chain of global sustainable palm oil market include New Britain palm oil limited, Golden agri resources limited, IOI corporation Berhad, Wilmer international limited, Cargill, SIPEF group Belgium, Kulim berhad, Sime Darby plantation sendirian Berhad, Hap seng Plantation Holdings Berhad, Kuala lampur kepong Berhad. and United Plantation Berhad. The need for going sustainable is so eminent in this industry that in 2015, Ferrero Rocher chocolate and Nutella spread company, publically committed to buy all its palm oil from RSPO-certified sources only. And the most notable of all Global food and beverage company PepsiCo has pledged to use 100% sustainable oil by target year of 2020.
Palm oil is used in several industries to make the final product. As those industries are also growing, so the demand of the palm oil is estimated to increase. The industry will expand very fast in the stipulated period of time.
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