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Palm oil
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Intelligence covers market and price outlook, SWOT analysis, demand & supply drivers, engagement models and Procurement best practices

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Abi will answer all Palm oil related
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Get up-to-date market and supplier info on Palm oil to help you build

Intelligence covers market and price outlook, SWOT analysis, demand & supply drivers, engagement models and Procurement best practices

1

Intelligence on category covers the following aspects market outlook, supply market, SWOT analysis, Cost components & Price outlook, Demand and supply drivers, Engagement Models and Procurement Best Practices

manage-risk

Assess Supplier Risk based on key risk and compliance parameters

1

Supplier assessment covers the following parameters Financial Risk, Ethical, Labor, Environmental Compliance, IT Security.

2

Supplier assessment is powered by world’s leading data partners including D&B, CreditSafe, Dow Jones, Refinitiv, Orpheus

discover-supplier

Identify right fit suppliers based on your selection criteria including revenue, capabilities, certification, geography

1

Select suppliers based on industry, country, classification from a database of 4.2 mn suppliers. Get detailed supplier profiles with supplier capabilities, revenue, certifications, risk ratings

assess-category-perforamnce

Benchmark your category performance against peers and the market

1

Measure category performance on 15 key parameters across cost, risk and strategy KPIs

source-market-indices

Get information on key factors affecting your supply

1

Source Macro Data and Market Indices information from leading data sources across these key areas - Labor Rates, Currency, Energy, Country Risk, Trade Flow/Transportation, Port Data, Tariff, Weather and Epidemics

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Report Coverage

The report provides insights on the following:

  • Global Palm Oil Supply–Demand Analysis
  • Trade Dynamics-Indonesia
  • Palm Oil & Derivatives Price Trend
  • Key Global Supplier Profiles
  • Information relating to market, supply, cost, and pricing analysis
  • Hard to find data on cost and TCO models, supplier details, and performance benchmarks
  • Macroeconomic and regional trends impacting cost, supply, and other market dynamics
  • Category-specific negotiation and sourcing advice

The palm oil market is set to flourish in the coming years. The palm oil production was anticipated to increase from 64.5 metric million tons (MMT) to 68.4 MMT in 2019 owing to the rising demand from countries such as Indonesia, Malaysia, Thailand, China, and India. The average monthly consumption was expected to be at 5.7–5.8 MMT in 2019. The demand for palm oil boosted by approximately 16.9% in 2019 owing to a higher production of oil and higher stock accumulations. 

Palm Oil - Global Market Analysis, Forecast & Prices

  • Global palm oil supply has been witnessing a steady growth of 4.3% CAGR during 2012–2013 until 2018–2019

  • Palm oil stock levels decreased by around 3.3% during 2018–2019 due to increased consumption of palm oil from the biodiesel industry. The palm oil stock levels are expected to improve with the production and yield levels during 2019–2020

  • Crude palm oil prices increased in April 2019, given an uptrend in the global demand, which was confirmed by exports of palm oil from Malaysia and Indonesia of 24.5 MMT in September 2018

  • Globally, the estimated use of palm oil in the biodiesel industry in 2019 was expected to increase by 9–10% to 9.53 MMT from 8.77 MMT the previous year due to the increase in demand in the biodiesel industry.

  • Palm oil prices and contract structures are fixed by Malaysian suppliers using MPOB crude palm oil futures and adding the basis and freight costs. The basis is the difference between cash and futures prices. The profit margin set by the buyers depends on the time of buying and selling

  • The global supply in 2017 of palm oil derivatives production for RBD Olein was 49.3 while the production of RBD Stearin was 12.65. There is a chance of the production slowdown in these 3 years and might also slow down in the near future according to experts.

palm-oil-market-size

Palm Oil Pricing

  • The price of palm oil in Indonesia was $622 per MT while the price in Malaysia was $632 per MT.
  • The processing cost of palm oil determines the final cost.
  • Palm oil prices forecast suggests that there will be an increase in palm oil prices because of a decrease in production.
  • As an edible oil, palm oil’s price depends on various factors.
  • The benchmark price indices include N.W Euro and MPOB.

Palm Oil Market Share

  • When it comes to palm oil market size, it is expected to increase in both production and consumption.

  • The major production region is Indonesia as it produces 55% of the global palm oil production while Malaysia comes next with 30% of production.

  • Thailand produces 3% of palm oil while Colombia and Nigeria produce 2% each.

  • The top exporting country is Indonesia as it exports 56% of palm and palm kernel oil.

  • The next exporting countries are Malaysia and Benin as they export 35% and 1% respectively.

  • The top-consuming countries of palm kernel oil and palm oil are India, Indonesia, the EU, China, and Pakistan.

  • India exports 20% of palm oil and vegetable oils. The EU, China, and Pakistan export 15%, 11% and 7% respectively.

Palm Oil Market - Drivers and Constraints 

Drivers 

Increasing Demand for Biodiesel

  • The rising demand for biofuels across the geographies will have a positive impact on the global palm oil market over the forecast period. 

  • Biodiesel has gained huge prevalence among customers as an efficient alternative to diesel over the past couple of years. 

  • With regards to feedstock, palm oil is the conventional feedstock for biodiesel manufacturing and is considered a low-cost substitute to soybean. 

  • Since the beginning of 2020, numerous policies that have been imposed in various countries are likely to change the end-user trends of the palm oil market in the long run. 

  • Case in point, Indonesia has boosted crude palm oil and diesel fusion to 30% (B30), which will push palm oil usage in the country. 

  • Similarly, France has suspended biofuel tax, a move that would shift its economic structure toward biodiesel or biofuels.

Tech-based Sustainability

  • Several governments across the globe have introduced the Sustainable Palm Oil Production Program (SPOPP) to keep a check on deforestation and subsequent plant diversity harms. 

  • The adoption of innovative technologies, including leading-edge satellite-driven technology, which helps oversee deforestation has helped cater to the existing market challenges and is expected to create new growth potential for the market players. 

  • This trend is receiving further impetus by the increasing producers’ focus toward organic and sustainable cultivation.

Constraints 

Rising Deforestation 

  • Heightening concerns about at-scale deforestation due to extensive plantations have led to the rise of stringent norms controlling the plantation across the globe. 

This factor is anticipated to negatively impact the palm oil market by scaling down the farming area and yield.

Palm Oil - Manufacturers

The major palm oil manufacturers are:

  • Wilmar International Ltd
  • Cargill
  • Bunge Limited
  • LKL Berhad
  • IOI Corporation Bhd

Palm Oil Consumption by Country

The supply of palm oil was estimated to decline in 2019–2020 due to poor and average rainfall, leading to lower yields. The yield of FFB was estimated to decline by >1.5% in April/June 2020, leading to tight supplies.

The report also covers various procurement parameters while sourcing palm oil. India, Indonesia, and the EU are the biggest consumers of palm oil, while India is the largest importing country of palm oil wherein 93% of the oil is used in cooking.

Why should you buy this report

  • With this palm oil report, gather a truly global perspective of the market covering several geographies.

  • Know how the COVID-19 pandemic is impacting the palm oil prices forecast and how the market is expected to emerge and flourish as the virus impact subsides.

  • Identify growth segments for investment.

  • Develop regional and country business tactics based on local data and assessment.

  • Outwit peers leveraging the projected data as well as the drivers and trends defining the palm oil price future.

  • Measure the performance against prominent competitors.

  • Leverage the relationships between vital datasets for better decision-making.

Furthermore, the palm oil market analysis is suitable for bolstering the external and internal presentations with relevant, high-quality data and assessment.

Methodology for writing this Report

Beroe gathers intelligence through primary sources that include industry experts, researchers, and consultants, as well as current suppliers, producers and distributors. Secondary sources can include business journals, newsletters, magazines, market research data, company sources, and industry associations. Following data collation, analysis, and strategic review, the Final Research Report is published on Beroe LiVE.

Table of contents

  1. Palm oil Executive Summary
  2. Supply–Demand and Prices
  3. Global Soybean Oil Market
  4. Contract Structures by Industry and Price Benchmarking
  5. Cost Savings Based on Contract Structures
  6. COVID-19 Impact
  7. Sourcing Location Watch Supplier Watch
  1. Palm oil Market Analysis
  2. Value Chain Analysis
  3. Global Market Outlook
  4. Current Market Size
  5. Demand–Supply Trends and Forecast
  6. Key End-use Industries
  7. Trade Dynamics
  8. Regional Market Outlook (Indonesia, Malaysia)
  9. Current Market Size
  10. Demand–Supply Trends and Forecast
  11. Key End-use Industries –Trade Dynamics
  12. Palm Oil Derivatives (Global, Indonesia, and Malaysia)
  1. Palm oil Industry Analysis
  2. Industry Outlook
  3. Drivers and Constraints for the Industry
  4. Innovations
  5. Porter's Five Forces Analysis
  6. RFP
  1. Palm oil Cost and Price Analysis
  2. Price Analysis (Indonesia and Malaysia)
  3. – Price Forecast for Palm Oil
  4. – Procurement Parameters

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Supply of palm oil is estimated to decline in 2019–2020, due to poor and average rainfall, leading to lower yields

Yield of FFB is estimated to decline by >1.5 percent in April/June 2020, leading to tight supplies

Palm Oil Global Demand & Size by Application

  • The global palm oil demand witnessed a steady increase in the recent decade, due to increasing demand from the food industry
  • The main demand for palm oil is for food application, followed by industrial use, which is for biodiesel manufacturing
  • Globally, the estimated use of palm oil in the bio-diesel industry in 2017 increased by 9–10 percent to 9.53 MMT from 8.77 MMT the previous yea
  • According to experts, the palm oil demand forecast indicates that there is likely to be an increase in demand due to continuous use of palm oil in various industries.

Palm Oil Market Frequently Asked Questions

  1. What is the palm oil market size in the major market regions across the globe?
  2. As per the global palm oil market analysis report by Beroe, Indonesia leads the pack with 55% of the global production, followed by Malaysia with 30%. Further, Thailand produces 3% of palm oil while Nigeria and Colombia produce 2% each.
  1. What’s the growth rate of global palm oil production?
  2. The global palm oil production was expected to climb from 64.5 MMT (Metric million tons) to 68.4 MMT in 2019 at 4.3% CAGR owing to rising demand from countries such as Indonesia, Malaysia, Thailand, India, and China. The average monthly consumption of palm oil was anticipated to remain at 5.7–5.8 MMT in 2019. Furthermore, the palm oil report reveals that palm oil stock levels, as well as overall palm oil market share, are expected to increase in the near future.
  1. What are the key takeaways from Beroe’s palm oil price forecast report?
  2. As per Beroe’s industry analysis and research, prices of the palm oil and contract structures are decided by distributors using MPOB and N.W Euro crude palm oil futures and adding the basis and freight expenses. The basis is the difference between cash and futures costs. The profit margin fixed by the purchasers is based on the time of purchasing and selling. The palm oil price in Indonesia was $622 per MT while the price in Malaysia was $632 per MT. The palm oil report further suggests that the price of palm oil will increase due to a decrease in production.
  1. How do the global palm oil market trends affect the end-use industries?
  2. The global palm oil market is majorly driven by increasing demand from food applications, followed by industrial use cases such as biodiesel manufacturing. The projected global consumption of palm oil in the biodiesel industry in 2017 climbed from 8.77 MMT to 9.53 MMT, up by 9–10% compared to the previous year. Experts reckon that the palm oil demand is likely to escalate in various industries.

 

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