Palm oil, one of the least expensive and high yielding crop, is a derivative of the oil palm (Elaesis guineensis) and is an essential component of diet. The oil palm is known for production of two types of oils from its fruit; first; the oil derived from the flesh of the fruit that is mainly serves the purpose of cooking oil, shortening, margarines, as a milk fat replacement, and in cocoa butter substitutes. The other oil is primarily used in manufacturing of soaps, cosmetics, detergents, and toiletries and is derived from the kernel. Oil Palm, the world’s highest yielding crop, is capable of producing an output that is 5 to 10 times greater than the output of other vegetable oils per hectare thereby, making it one of the most widely consumed oil across the globe.
To satisfy the rising demand of palm oil from biofuel, agrifood, and oleochemistry industry, the global palm oil production is anticipated to be on a continuous rise in the foreseeable future. Indonesia and Malaysia are the leading two producers of palm oil while India and China are the major consumers. However, due to stringent regulations in Europe regarding the use of biofuels, it is also emerging as one of the leading importers of palm oil. The demand for sustainable palm oil is anticipated to grow in the near future as it addresses the environmental concerns such as it develops new plantation on existing cleared land, conserves natural resources, etc.
The key factors driving growth of the global palm oil industry include high oil yields and lower cost of palm oil against major vegetable oil, escalating demand for biofuels, rising global population apart from growing per capita consumption. Some of the noteworthy trends and developments of this industry include ongoing merger & acquisition activities, rising acceptance of certified sustainable palm oil, rising biofuels mandates. However, the growth of the industry is being hindered by rising climatic and environment concerns, reduced land availability, and escalating biodiversity risks.
The report analyzes the global palm oil industry on a number of parameters such as production, consumption, imports and exports. Regional analysis has also been incorporated in the report along with extensive coverage of top two palm oil producing and consuming regions. The report also includes the company profiles of four major players of the palm oil industry i.e. Wilmar International, Sime Darby, IOI International, and PT Astra Agro.
By combining SPSS Inc.’s data integration and analysis capabilities with our relevant findings, we have predicted the future growth of the industry. We employed various significant variables that have an impact on this industry and created regression models with SPSS Base to determine the future direction of the industry. Before deploying the regression model, the relationship between several independent or predictor variables and the dependent variable was analyzed using standard SPSS output, including charts, tables and tests.