Is There a Significant Market For Palm Oil?

Sourced from the fruit of the palm tree, palm oil is a widely-used vegetable oil that finds its uses in everything from automobiles to chocolates! The palm kernel variant is also known to be an essential ingredient for making healthcare products. Because of its wide application, the palm oil market has seen significant demand and, therefore, an upward trend.

While there are many vital reasons for this, the essential nature of this oil and the low-maintenance efforts and costs needed to produce it plays a crucial role. It means that palm oil requires ten times less land than other oils like soya and sunflower. And have a more excellent market value per every hectare produced!

It certainly cannot be denied that the palm oil industry is here to stay. Listed below are some essential factors that contribute to its significance.

What Makes Palm Oil So Significant?

Trends in the palm oil industry which is estimated to be somewhere around $81.9 billion, currently predict a surge of 6% by 2025. There are several vital factors responsible for this like:

Edible Oil & Widely Used As An Ingredient:

The versatility of palm oil is what makes it such a hit. Neither is pal oil edible in its refined form but also used as an essential ingredient in many products ranging from soaps, lipsticks, pizzas, chocolates, toothpaste, deodorants, and doughnuts.

Owing to its diverse nature, palm oil certainly fares better than its contemporary counterparts. Besides, it is also known to have a longer shelf-life when compared to other oils in the market, making it a viable option for producers and consumers alike. 

Excellent Health Benefits:

Thanks to the rising awareness regarding health and the emphasis on nutritional food sources, palm oil has found a favorite spot among consumers. Not only do health-conscious patrons actively opt for palm oil, but general awareness has driven manufacturers or producers to use healthy alternatives in food products.

Additionally, palm oil is known to have several benefits like fighting against vitamin A deficiency, malaria, signs of aging, and aiding weight loss by boosting metabolism.

Used As a Biofuel:

Apart from being a vital ingredient in products and a real boon to the body, palm oil is also an important biofuel. Palm oil is predominantly used in the production of biodiesel, which is then used for making automobiles. Recent biodiesel trends suggest that palm oil use has gone up a whopping 48% in the last half a decade alone!

Important Source of Livelihood:

The palm oil market provides livelihood to nearly 4.5 million people in Indonesia, which is its largest producer. Another 25 million people indirectly depend on the palm oil ecosystem to run their homes. As a result, palm oil is known to support the country’s economy, where it is produced significantly.

The economies of Indonesia and Malaysia bear testimony to this fact. Besides, the South American economies of Ecuador, Guatemala, and Colombia are also experiencing a boost due to the production of palm oil.

Palm oil has been known to be a game-changer in the market, and many producing countries and corporations are looking at sustainable production alternatives to minimize the environmental impact of this magic ingredient. Changing consumption patterns, low cost of production, a shift in environment-friendly alternatives are some foreseeable reasons that will ensure palm oil markets keep booming.