Palm Oil Market Analysis: Top Exporters, Importers, and Regional Trends

The global palm oil market is undergoing a dynamic transformation as export and import patterns evolve alongside regional consumption shifts. With a projected valuation of US$ 67.1 billion in 2025, the industry is on track to attain a value of US$ 90.1 billion by 2032, expanding at a CAGR of 4.5% during the forecast period. This growth is driven by rising global demand from the food, biofuel, and cosmetics sectors, as well as increasing participation from both producing and importing countries.

𝐄𝐱𝐩𝐥𝐨𝐫𝐞 𝐭𝐡𝐞 𝐅𝐮𝐥𝐥 𝐑𝐞𝐩𝐨𝐫𝐭: https://www.persistencemarketresearch.com/market-research/palm-oil-market.asp

Top Exporting Countries: Indonesia and Malaysia Lead the Pack

Palm oil continues to be a cornerstone commodity in global trade, with Indonesia and Malaysia together accounting for over 85% of the global exports.

Indonesia remains the largest producer and exporter, having produced over 47 million tons of crude palm oil in 2023. The country’s palm oil sector is not only a major contributor to the national economy—accounting for nearly 4.5% of GDP—but also provides direct and indirect employment to more than 16.2 million people. Government mandates, such as increasing the biodiesel blending rate to 40% in 2025 and planning a 50% blend by 2026, are enhancing domestic consumption while maintaining strong international trade flows.

Malaysia, on the other hand, continues to focus on sustainability, regulatory improvements, and diversifying its export markets. In January 2025, Malaysia resumed free trade negotiations with the European Union to expand palm oil trade and strengthen its supply chain. Malaysia’s commitment to RSPO-certified sustainable palm oil has also made it a preferred supplier for environmentally-conscious importers.

Other significant exporters include Thailand, Colombia, Honduras, and Nigeria, where the government has signed strategic partnerships to enhance production capacity and expand plantation areas.

Top Importing Countries: India, China, and the European Union

While Southeast Asia dominates production, global consumption is dispersed, with India, China, and the EU being the top importers of palm oil.

India, the largest consumer of vegetable oils globally, has traditionally been a top importer of palm oil. However, rising prices and supply fluctuations have started to shift its preference toward softer oils like sunflower and soybean. As of 2025, India is projected to import 7.5 million metric tons of palm oil—its lowest in five years. The reduction is attributed to the growing premium of palm oil over other vegetable oils and the rising availability of locally produced alternatives such as mustard and groundnut oil.

China, on the other hand, remains a robust market for palm oil, especially in the processed food, personal care, and industrial sectors. In a major development in November 2024, China received its first shipment of RSPO Identity Preserved Certified Sustainable Palm Oil at the Shanghai port. This initiative, spearheaded by Yili Group and Yihai Kerry, is expected to significantly boost imports of sustainably sourced palm oil in the years ahead.

The European Union continues to be a key importer, albeit with stringent sustainability requirements. Imports into the EU are now closely tied to environmental certifications and deforestation-free supply chain policies. Countries like Germany, the Netherlands, and Italy are leading in importing sustainably sourced palm oil for food, biofuel, and cosmetic industries.

Regional Trends Shaping the Palm Oil Market

Asia Pacific: The Powerhouse of Production and Consumption

The Asia Pacific region dominates the global palm oil market, expected to account for 59.4% of total market value in 2025. Apart from Indonesia and Malaysia’s strong production capacity, consumption within the region is also climbing steadily.

Southeast Asian countries use palm oil extensively in traditional cooking, packaged foods, and biodiesel. Furthermore, large manufacturers in the region are increasing investments in refining capabilities and exploring export opportunities to the Middle East and Africa.

Emerging Southeast Asian markets like Vietnam and the Philippines are also scaling up imports to meet the rising domestic demand, especially in the processed food industry.

South Asia: India’s Shifting Preferences

Although India has been a major importer, the dynamics are changing. High palm oil prices, coupled with health concerns regarding saturated fats, are pushing consumers toward alternative oils. The country’s edible oil import basket is gradually diversifying, and its government is also pushing for self-reliance in oilseed production, reducing dependency on imports in the long term.

At the same time, Bangladesh and Pakistan continue to rely heavily on palm oil imports due to the affordability and availability of the commodity, keeping the region significant in terms of demand.

Middle East and Africa: Expanding Local Production

Countries like Nigeria and Ghana are making strides in boosting local palm oil production. In Nigeria, a strategic Memorandum of Understanding was signed with Indonesia in 2024 to improve production technology and support small-scale farmers. Nigeria’s Raedial Farms Limited has also committed to expanding its plantations across 100,000 hectares, a move expected to significantly increase the country’s output and reduce reliance on imports.

In Ghana, the focus is on upgrading the traditional artisanal palm oil production sector. With support from the UNDP and the Environmental Protection Agency, new energy-efficient and less polluting technologies are being introduced in small communities, aiming to improve both quality and sustainability.

North America: Push for Deforestation-free Palm Oil

In North America, the U.S. palm oil market is growing due to its widespread use in packaged foods, cosmetics, and industrial applications. However, recent concerns over deforestation-linked supply chains have brought scrutiny to manufacturers like Mars and Mondelēz. Studies have revealed that while companies claim to use sustainable palm oil, gaps remain in their supply chains—especially in the use of palm oil-based animal feed.

The Consumer Goods Forum (CGF) has been urged to include palm oil in its deforestation-free policies for all embedded supply chains, similar to its existing policy on soy. Meanwhile, Canada continues to expand imports, especially from Malaysia and the United States, and is promoting awareness around sustainability certifications among consumers and businesses.

Latin America: Rising Role in Exports

Latin American countries are emerging as notable exporters, driven by increased investment in palm oil infrastructure. Countries like Colombia, Ecuador, and Guatemala are leveraging financial support from institutions like the Inter-American Development Bank and Rabobank to scale up plantations and processing capacities.

Colombia, for instance, has been expanding its palm oil output and is eyeing export markets in the U.S., Mexico, and the EU. The region benefits from favorable growing conditions and proximity to major importing nations, making it a strategic export hub in the making.

Conclusion: A Globally Interconnected Market with Regional Nuances

The palm oil market continues to be shaped by a complex interplay of export capabilities, import demands, sustainability mandates, and evolving consumer preferences. While Southeast Asia leads in production, shifts in consumption trends in key regions like India, the EU, and North America are creating ripple effects across the global supply chain.

Efforts to make palm oil production more sustainable, combined with changing dietary habits and biofuel policies, will redefine global trade flows in the coming years. The industry’s future depends on how producers and consumers adapt to these regional dynamics while upholding environmental and ethical standards in a rapidly growing marketplace.