Indonesia Palm Oil Market Size To Reach $16.93 Billion By 2030

Indonesia Palm Oil Market Growth & Trends

The Indonesia palm oil market size is anticipated to reach USD 16.93 billion by 2030, growing at a CAGR of 4.4% from 2024 to 2030, according to a new report by Grand View Research, Inc. Indonesia is one of the largest palm oil producers globally, accounting for a significant portion of the world's palm oil production. The country's tropical climate and vast land area makes it ideal for cultivating oil palm trees, which are the primary source of palm oil. The palm oil industry is crucial to Indonesia's economy, providing employment opportunities and contributing to export revenues.

In recent years, there has been a growing global demand for sustainable palm oil products driven by consumer awareness and regulatory requirements in key markets. This trend has led companies in the palm oil industry to adopt more sustainable practices and commit to deforestation-free supply chains to meet market demands.

The Indonesian government plays a significant role in regulating the palm oil industry through policies promoting sustainable practices and increasing transparency in the supply chain. For Instance, in October 2023, the Indonesian government launched its crude palm oil future exchange. The crude palm oil industry aims to establish a more independent, transparent, and competitive standard for crude palm oil prices that accurately represents the nation's leading position in the world market for palm oil.

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Indonesia Palm Oil Market Report Highlights

• Fractionated palm oil dominated the product segment with 39.3% share in 2023 owing to its low cost, high yield, versatility, and the rising global demand

• Crude palm oil and RBD palm oil are likely to witness a significant CAGR during the forecast period mainly due to their widespread use in the food and beverage sector

• The food & beverage segment held the largest market share, more than 70%, in 2023 owing to the use of palm in diverse food options and the growing population of Indonesia

• The biofuel & energy segment is expected to grow at the fastest CAGR rate over the forecast period due to the significant global shift favoring renewable energy sources and biofuels

• The conventional segment dominated the market, with a revenue share of around 99% in 2023 due to widespread use and affordability

• The organic segment is expected to grow at the fastest CAGR due to the increasing consumer awareness about environmental issues

• In November 2023, MP Evans acquired two Indonesian companies, PT Agro Bumi Kaltim (ABK) and PT Nusantara Agro Sentosa (NAS). This strategic move is significant for MP Evans as it expands its presence and operations in the palm oil industry in Indonesia.

Indonesia Palm Oil Market Segmentation

Grand View Research has segmented the Indonesia palm oil market based on product, application, and nature.

 Indonesia Palm Oil Product Outlook (Revenue, USD Million, 2018 - 2030)

• Crude Palm Oil

• Palm Kernel Oil

• RBD Palm Oil

• Fractionated Oil

Indonesia Palm Oil Application Outlook (Revenue, USD Million, 2018 - 2030)

• Food & Beverage

• Personal Care & Cosmetics

• Biofuel & Energy

• Pharmaceuticals

• Others

Indonesia Palm Oil Nature Outlook (Revenue, USD Million, 2018 - 2030)

• Organic

• Conventional

List of Key Players in the Indonesia Palm Oil Market

• Asian Agri

• Astra Agro Lestari

• First Resources Limited

• Golden Agri-Resources Ltd.

• M.P. Evans Group PLC.

• Musim Mas

• Provident agro

• PT Salim Ivomas Pratama Tbk

• PT SMART Tbk.

• Wilmar International