Escalating Demand for Palm Oil Influences Market Growth during 2017-2022
Ongoing efforts to achieve complete transparency and sustainability in the palm oil supply chain is expected to prominently influence the growth of the palm oil market. According to the report published by Fact.MR, the palm oil market is projected to grow at a moderate pace while representing a CAGR of 3.9% during the forecast period 2017-2022. The report focuses on the palm oil market performance in the food and beverage sector which captures the major share among other end users such as biofuel and pharmaceutical. Demand for palm oil in the global food and beverage sector is expected to report over US$ 33 billion revenue generation by 2022 end.
The growth of the palm oil market is dependent on several market sentiments and supply-demand factors. High price volatility is likely to hit the palm oil market as palm oil captures the largest volume of vegetable oil traded across the globe and enforcement of new policies and regulation against the backdrop of growing awareness regarding irresponsible plantation practices. Palm planters are expected to be the most affected stakeholders as their profit margin is influenced by weakening export outlook and increasing minimum wage policies. These factors are pushing farmers to increase the cost of production, thereby impacting the overall palm oil market outlook.
With the establishment of the North American Sustainable Palm Oil Network (NASPON) by RSPO members, the North America palm oil market is expected to surpass US$ 5.5 billion by the end of 2022. This growth can be attributed to stakeholders’ initiatives in delivering sustainable palm oil to the end users.
The competitive landscape section delivers a dashboard view of the key market players in the palm oil market. In addition, users of the report can get an insightful section to read about company profiles and their relative position in the global market landscape. Few of the key market players profiled in the palm oil market report include American Vegetable Oils, Cargill Inc., Grief Inc., Fuji Oil Holdings, Bunge Limited, Associated British Foods and Ruchi Soya Industries.
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Manufacturers in the palm oil market are focusing on achieving sustainability statement by implementing innovative strategies to enhance transparency and traceability in the palm oil supply chain. For instance, Nestle has recently announced the implementation of a satellite-based service to monitor the company’s palm oil supply chain across the globe. BASF and Unilever have also initiated steps to achieve transparency in their palm oil supply chain and product offerings. However, increasing preference for close substitutes of palm oil such as soybean oil and rapeseed oil and their affordable cost can pose challenges to the growth of the palm oil market. In addition, the rising cost of production caused by sustainability factor and broadening supply-demand gap is expected to present challenges of low-profit margins in the palm oil market during the period of assessment.