Strong Growth Momentum Across Applications

The global palm oil derivatives market (excluding RBD palm oil, RBD palm olein, stearic acid, and refined glycerine) was valued at USD 26 billion in 2024 and is expected to expand to nearly USD 40 billion by 2032, reflecting a steady CAGR of 5.3%. This momentum is powered by growing demand in food and beverages, cosmetics, pharmaceuticals, and biofuels, where palm-based ingredients are recognized for their versatility and cost efficiency.

In line with this upward trajectory, fatty acids stood out as the largest segment in 2024, holding 45.9% market share, followed by palm kernel oil and palm fatty acid distillate (PFAD). These derivatives are widely used in soaps, detergents, lubricants, and personal care products, making them indispensable across industries. As one executive aptly notes, “Palm derivatives remain at the heart of global supply chains, linking everyday consumer goods to industrial applications.”

For businesses navigating this fast-moving market, reliable supply and consistent quality are critical. This is where global trading companies such as Tradeasia International play a pivotal role. With deep expertise in palm and oleochemical markets, Tradeasia bridges producers and end-users, ensuring that downstream industries receive the right materials at the right time. In an environment where efficiency and trust define competitiveness, this integrated approach provides stability and scalability.

Regional Leadership and Long-Term Outlook

The Asia Pacific region accounts for more than 60% of the global market, supported by its advanced processing infrastructure and massive consumption base in countries like Indonesia, Malaysia, China, India, Japan, and South Korea. Indonesia alone contributed 58% of global palm oil production in 2024, with Malaysia adding another 25%, cementing the region’s dominance in the supply chain. Europe and North America, while holding smaller market shares, remain relevant for food and personal care applications despite heightened regulatory pressure and environmental concerns.

Looking ahead, the market is projected to sustain growth through 2040, though at a slower pace as alternative oils and stricter sustainability measures emerge. The focus is shifting toward eco-certified production and innovative applications in renewable fuels and advanced cosmetics, areas expected to attract new investments. For trading and manufacturing companies, the opportunity lies in doubling down on fatty acids and palm kernel derivatives, expanding regional presence in Asia, and aligning with global sustainability benchmarks. The projected rise from USD 26 billion in 2024 to USD 40 billion by 2032 is more than a figure—it reflects the resilience of palm derivatives in a rapidly evolving global economy.

 

Sources:

  1. Fortune Business Insights - Palm Oil Derivatives Market Size, Share & Forecast - https://www.fortunebusinessinsights.com/industry-reports/palm-oil-derivatives-market-101440

  2. Market.us - Global Palm Oil Derivatives Market Size, Share, CAGR of 5.2% - https://market.us/report/global-palm-oil-derivatives-market/

  3. Oleochemicals Asia (for palm oil derivatives market insights) - https://www.oleochemicalsasia.com/market-insights/palm-oil-derivatives-lauric-caprylic-acid-market-2025