Middle East & Africa Palm Oil Market To Reach $9.89Bn By 2030

Middle East & Africa Palm Oil Market Growth & Trends

The Middle East & Africa palm oil market size is expected to reach USD 9.89 billion by 2030, according to a new report by Grand View Research, Inc. Furthermore, it is expected to expand at a CAGR of 2.6% from 2023 to 2030. Increasing product concentration in biofuel production is a major factor driving the regional market demand. The product is used as a feedstock in the production of biodiesel.

Biodiesel is a renewable fuel that can be used as a substitute for diesel fuel that is derived from petroleum. The process of converting a product into biodiesel involves a chemical reaction called transesterification, where the product is reacted with an alcohol, usually methanol, in the presence of a catalyst to produce methyl esters, which are the chemical compounds that constitute biodiesel.

The use of the market as a feedstock for biodiesel production has increased in recent years due to its availability, low cost, and high yield. However, there are concerns about the environmental impact of palm oil production, including deforestation, habitat destruction, and loss of biodiversity. Therefore, there is ongoing research into the discovery and use of alternative feedstocks for biodiesel production that are more sustainable and environment-friendly.

The market has witnessed significant demand in the production of food, personal care, and household products, owing to its versatile properties such as its stability at high temperatures, which makes it an attractive ingredient for manufacturers. However, palm oil production has been connected to deforestation, habitat destruction, and loss of biodiversity, as well as human rights abuses and carbon emissions, which act as a significant restraining factor.

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Middle East & Africa Palm Oil Market Report Highlights

• The RBD palm oil products segment dominated the market with a revenue share of over 30.9% in 2022, as this oil is extensively used in applications such as domestic cooking, especially for frying purposes

• The biofuel and energy segment is expected to register the highest CAGR in terms of revenue over the forecast period, as biofuels are renewable sources of energy made from organic waste such as sugar, corn, waste feedstock, and vegetable oils

• Manufacturers are investing in mergers and acquisitions to gain a higher market share. For instance, in 2021, Kuala Lumpur Kepong Berhad announced an acquisition of a majority stake in IJM Plantations Berhad

• Palm kernel oil is one of the prominent oil types, extracted from the kernel or seed of the oil palms. It has impressive physical properties such as 80% saturated fat content and high content of medium-chain fatty acids, including capric, lauric acids, and caprylic

• Abundant land supply and foreign direct investment, in terms of capital and technology, are expected to potentially encourage the expansion of palm oil production in the Middle East & Africa region

Middle East & Africa Palm Oil Market Segmentation

Grand View Research has segmented the Middle East & Africa palm oil market based on product, end-use, and region:

Middle East & Africa Palm Oil Product Outlook (Volume, Kilotons; Revenue, USD Billion, 2018 - 2030)

• Crude Palm Oil

• RBD Palm Oil

• Palm Kernel Oil

• Fractionated Palm Oil

Middle East & Africa Palm Oil End-use Outlook (Volume, Kilotons; Revenue, USD Billion, 2018 - 2030)

• Food & Beverage

• Personal Care & Cosmetics

• Biofuel & Energy

• Pharmaceuticals

• Others

Middle East & Africa Palm Oil Regional Outlook (Volume, Kilotons; Revenue, USD Billion, 2018 - 2030)

• Middle East & Africa

  • Middle East

    • Turkey

    • Saudi Arabia

    • UAE

    • Oman

    • Yemen

  • Africa

    • South Africa

    • Kenya

    • Nigeria

    • Ghana

    • Egypt

List of Key Players in the Middle East & Africa Palm Oil Market

• ADM

• Wilmar International Ltd

• Sime Darby Plantation Berhad

• IOI Corporation Berhad

• Kuala Lumpur Kepong Berhad

• United Plantations Berhad

• PT Sampoerna Agro Tbk

• Univanich Palm Oil Public Company Ltd.

• PT. Bakrie Sumatera Plantations Tbk

• Asian Agri