Rising Demand for Cost-Effective and Low in Trans-fat Vegetable Oils to Boost Global Palm Oil Market

Published Date : Jan 22, 2016

Palm oil production provides livelihood to the rural communities living in Malaysia and Indonesia, thus emerging as an important segment contributing to the GDP growth in Asia Pacific. Owing to its diverse applications, palm oil witnesses high demand from enterprises such as food and beverages industry, healthcare, beauty and personal care, and energy. It is a widely used beverage and a common ingredient in products such as breads, biscuits, margarine, lipsticks, instant noodles, candles, shampoos, ice-creams, and chocolates. Such wide-ranging application of palm oil substantially aids the expansion of the global palm oil market. 

Palm oil is derived from a tropical plant that produces palm fruit. These plants once planted yield for more than 30 years. Furthermore, a palm tree yields much more per hectare than any other source of vegetable oil, assuring steady employment for rural communities living across the tropical regions. 

Palm Oil is Low in Trans-fat – A Key Factor Boosting its Demand Worldwide

In the past few years the demand for palm oil has significantly risen in response to the rising the demand for vegetable oils. Palm oil is low in trans-fat and also cost effective – a primary factor boosting demand from the global palm oil market. Apart from witnessing increasing demand from food and beverage and retail sectors, the palm oil market also witnesses lucrative opportunities from its rising use in biofuels. 

Environmental Concerns Related to Palm Oil Production Create Bottlenecks for Market 

Despite exhibiting impressive growth over the last few years, the global palm oil industry faces tough challenge due to the rising environmental concerns. Expansion of palm tree plantation is usually done at the expense of tropical forest. This leads to deforestation, which not only aggravates the persisting issue of climate change but has also led to the extinction of rare animal species. This definitely fuels environmental concerns, which are likely to hamper the palm oil market’s growth in the forthcoming years.  

Nevertheless, investment in the research and development of sustainable palm oil production techniques will create opportunities for the palm oil enterprises to capitalize on in the near future.