A recent study by the International Market Analysis Research and Consulting Group (IMARC Group) titled, “Palm Oil Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2023-2028”, has predicted that the African palm oil business may experience a fall in prices. The study revealed that global palm oil market size reached US$53.1bn in 2022 and between 2022-2028, the market is expected to reach US$67.6bn by 2028, exhibiting a compound annual growth of 4.11%. This simply means that there would be more supply for the increasing global demand for oil.
Palm oil, despite being an edible oil obtained from fruits and kernels of Elaeis guineensis trees, is now being considered as an alternative fuel, ingredient for skin care, hair care and even lipstick production in some countries. According to research, Indonesia is the largest producer of palm oil, followed by Malaysia and Thailand, with several other African and South American countries also, producing significant amounts to take certain crucial places globally. Meanwhile, the production of palm oil has recently been facing challenges, especially from climate change, as devastating environmental damage and human rights abuses persist in Africa.
Nigeria; Africa’s top producer and the fifth largest in the world, has been said to witness a marginal rise in production in 2023, just as global demand is forecast to rise, with China relaxing its Coronavirus disease (COVID-19) restrictions and India’s increasing imports. Both countries are the largest importers of palm oil globally, according to Chain Reaction Research (2021). Global supplies are expected to tighten, as palm oil remains at a large discount when compared with competing soft oils, but stocks are likely to recover towards the end of 2023, the study revealed. IMARC group is a leading market research company that provides market and business research intelligence across the globe, especially on food, beverages and technology.