Sustainable Palm Oil Market Size to Exceed USD 117.36 Billion by 2034, Boosted by Consumer and Government Support

According to Towards FnB, the global sustainable palm oil market size is calculated USD 78.70 billion in 2025 and is projected to exceed over USD 117.36 billion by 2034, expanding at a CAGR of 4.54% during the forecast period. This growth is driven by rising demand for sustainable products, supportive government initiatives, and broad usage in food, personal care, and energy sectors.

Ottawa, Sept. 10, 2025 (GLOBE NEWSWIRE) -- The global sustainable palm oil market size stood at USD 75.28 billion in 2024 and is anticipated to increase from USD 78.70 billion in 2025 to around USD 117.36 billion by 2034, at a CAGR of 4.54% from 2025 to 2034, according to study published by Towards FnB, a sister firm of Precedence Research.

The market is growing rapidly due to consumer awareness of the importance of sustainability and high demand for sustainable products as well. The production of such products helps to lower the carbon footprint, which is beneficial for achieving an ideal environmental balance.

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Sustainable Palm Oil Market Overview

Sustainable palm oil is a type of vegetable oil used for cooking and by multiple other domains such as the cosmetic industry, personal care and products industry, makeup, and detergent manufacturing companies as well. Hence, the sustainable palm oil market has experienced rapid growth in recent years. The manufacturing of sustainable palm oil helps to lower the carbon footprint and allows the manufacturing companies to do their bit for the environment. It also helps companies to show their contribution towards CSR activities and enhance their goodwill as well.

The increasing consumer awareness of sustainability is also contributing to the market's growth. Its manufacturing helps to nurture the livelihoods of many farmers. Hence, it also presents an opportunity for market growth.

Key Highlights of the Sustainable Palm Oil Market

By region, Asia Pacific led the sustainable palm oil market in 2024, whereas Europe is expected to grow at the fastest CAGR in the forecast period.
By type, the crude palm oil segment dominated the sustainable palm oil market in 2024, whereas the palm kernel oil segment is expected to grow in the foreseeable period.
By end-use industry, the food and beverage segment captured the maximum share in 2024, whereas the personal care and cosmetics segment is expected to grow in the foreseeable period.
By nature, the conventional segment dominated the sustainable palm oil market in 2024, whereas the organic segment is expected to rule in the forecast period.
By distribution channel, the Business-to-Business (B2B) segment led the sustainable palm oil market in 2024, whereas the Business-to-Consumer (B2C) segment is expected to grow in the forecast period.

New Trends of the Sustainable Palm Oil Market

Growing sustainability, resulting in a huge shift of consumers from conventional to sustainable palm oil industry, is helping the growth of the sustainable palm oil market.
The growth of sustainable palm oil is more efficient than that of conventional palm oil in terms of land acquisition. Hence, such factors also help the growth of the market.
Sustainable palm oil is filled with health-benefiting properties, such as being useful for cognitive health, cardiovascular health, and is also enriched with vitamin A.

Top Products in Sustainable Palm Oil & Their Applications:

Product Name	Company	Application
GreenPalm Certificates	RSPO (Roundtable on Sustainable Palm Oil)	Certification trading for sustainable palm oil sourcing
Sime Darby Sustainable Palm Oil	Sime Darby Plantation	Food ingredients, personal care products, biofuels
IOI Sustainable Palm Oil	IOI Corporation Berhad	Edible oils, cosmetics, detergents
Wilmar SD Palm Oil	Wilmar International	Food manufacturing, oleochemicals, bioenergy
Bunge Loders Croklaan Sustainable Palm Oil	Bunge Loders Croklaan	Bakery fats, confectionery, margarine
Musim Mas Certified Sustainable Palm Oil	Musim Mas Group	Food industry, oleochemicals, personal care
Cargill’s Palm Kernel Oil (Certified Sustainable)	Cargill	Food, feed, industrial uses
IOI Oleochemical Sustainable Palm Oil	IOI Corporation Berhad	Cosmetics, detergents, pharmaceuticals
Apical Sustainable Palm Oil	Apical Group	Food products, biofuels, personal care

Impact of AI in the Sustainable Palm Oil Market

Artificial intelligence (AI) is playing a crucial role in accelerating the growth of the sustainable palm oil market by enhancing traceability, efficiency, and environmental responsibility. One of the biggest challenges in palm oil production is monitoring deforestation and ensuring compliance with sustainability standards. AI-powered satellite imagery and machine learning models now enable real-time monitoring of plantations, detecting illegal land clearing, biodiversity loss, or encroachment into protected areas with far greater accuracy. In supply chain management, AI integrated with blockchain enhances traceability from plantation to end product, giving manufacturers and consumers confidence that palm oil is sourced sustainably. Predictive analytics also improve crop yield forecasting and resource allocation by analyzing soil health, weather conditions, and pest risks, reducing waste while ensuring sustainable farming practices.

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Market Dynamics

What Are the Growth Drivers of the Sustainable Palm Oil Market?

Multiple beneficial factors for health and the environment help to enhance the growth of the sustainable palm oil market. Consumer awareness for sustainability and a lower carbon footprint is one of the major growth factors for the market. Hence, ethically sourced products are in high demand globally these days. Government initiatives for promoting sustainability and multiple schemes for financial aid to industries are another major factor for the growth of the market. The health benefits of sustainable palm oil are also a growth factor for the market, as it is free from trans-fat and filled with beta carotene. Use of sustainable palm oil by multiple industries, such as food and beverages, cosmetics, personal care products companies, and biofuels, also helps the market grow rapidly.

Challenge

Costly Procedure Restraints the Growth of the Market

The production of sustainable palm oil requires multiple procedures, such as certification, raw material cost, maintenance costs, and various other miscellaneous costs, leading to issues in the growth of the sustainable palm oil market. Such procedures are cost-requiring and complex, which might not be suitable for small-scale farmers, further obstructing the market’s growth. Hence, their livelihoods and affordability are also affected.

Opportunity

Advanced Technology for the Growth of the Market

Use of advanced technology for the production of sustainable palm oil is one of the major opportunities for the growth of the sustainable palm oil market. AI, GIS, and ML are some of the technologically advanced methods helpful for the growth of the market. Satellite data and blockchain technology also contribute to the market's growth in the foreseeable future. Geolocation data helps identify small-scale farmers, whereas blockchain helps prevent data misinterpretation. Such technologies are essential for bringing stakeholders and farmers closer together, resulting in better and enhanced yields, and encouraging sustainable farming.

Sustainable Palm Oil Market Regional Analysis

Asia Pacific Is Expected to Grow in the Forecast Period

The Asia Pacific dominated the sustainable palm oil market in 2024, thanks to its pleasant and suitable climate for sustainable palm oil manufacturing, which further fueled the market's growth. Indonesia and Malaysia are the world's leading producers of palm oil, while India and China are the largest consumers of palm oil. It helps to maintain the ideal balance of production and consumption, further boosting the market’s growth in the region. The growing population of the region and increasing demand for sustainable options are also helping the growth of the market in the region.

Europe Is Observed to Be the Fastest-Growing Region in the Foreseen Period

Europe is observed to be the fastest-growing region in the foreseen period, aiding the growth of the sustainable palm oil market. Growing consumer awareness, government initiatives, and high demand for sustainable products are some of the helpful factors for the growth of the market in the foreseeable period. The cultivation helps to lower the carbon footprint and is also helpful for companies to balance their CSR activities. Hence, the region is expected to grow in the forecast period.

Sustainable Palm Oil Market Report Scope

Report Attribute	Key Statistics
Base Year	2024
Forecast Period	2025 to 2034
Growth Rate from 2025 to 2034	CAGR of 4.54%
Market Size in 2024	USD 75.28 Billion
Market Size in 2025	USD 78.70 Billion
Market Size by 2034	USD 117.36 Billion
Dominated Region	Asia Pacific
Fastest Growing Region	Europe
Regions Covered	North America, Europe, Asia-Pacific, Latin America and Middle East & Africa

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Sustainable Palm Oil Market Segmental Analysis

Type Analysis

The crude palm oil segment led the sustainable palm oil market in 2024 due to its wide availability globally, which is helpful for the market’s growth. Crude oil is obtained by following the procedures of cooking, stirring, and extracting from the fresh fruit bunches. Palm oil, derived from crude oil palms, can be used for cooking and the manufacturing of multiple food products. It can also be used for the manufacturing of cosmetics and cleaning products. It is high in beta carotene, which is essential for the human body, making it useful for the growth of the market.

The palm kernel oil segment is expected to grow in the foreseeable period, as it is beneficial for skin and hair, and contributes to the growth of the sustainable palm oil market. Hence, the oil is also useful for the manufacturing of multiple cosmetics and personal care products. The oil is extracted from the kernel of the oil palm tree and is yellowish in shade. The oil can also be used for cooking, as it helps enhance the shelf life of food products, making it essential for the market's growth in the foreseeable future.

End Use Analysis

The food and beverage segment led the sustainable palm oil market in 2024 due to growing demand in the food and beverage industry and a growing population globally. Hence, it also fuels the growth of the market. Changing consumer preferences and a conscious attitude also help the market grow. Sustainable palm oil is ideal for the manufacturing of numerous food products such as baked goods, fried goods, bakery and confectionery, and dairy alternatives. Hence, it further aids the market’s growth. Growing demand for ready-to-eat meals and snacks is also one of the major factors for the growth of the market.

The personal care and cosmetics segment is expected to grow in the foreseeable future due to its high demand for the manufacturing of such goods. Palm oil is essential for the manufacturing of cosmetics and personal care products, as the ingredient helps improve the performance of the product. Hence, it aids the market’s growth in the foreseen period. The natural ingredient also helps make the product moisturizing and stable, while enhancing its shelf life as well.

Nature Analysis

The conventional segment led the sustainable palm oil market in 2024, as conventional methods of palm oil extraction are cost-effective and are also produced in large quantities compared to the production of organic palm oil. It is also versatile, neutral, semi-solid, and flavorless in nature, making the market grow. Palm oil has higher temperature stability, making it an ideal oil for cooking and frying. The oil is also essential for various other domains such as biodiesels, biofuels, and cosmetic manufacturing, which is helpful for the growth of the market.

The organic segment is expected to grow in the foreseeable period due to the high demand for natural products in all domains. Reduced deforestation risk and environmental stability are other major factors for the growth of the sustainable palm oil market in the foreseeable period. Organic methods involve the use of natural chemicals and fertilizers, which help maintain soil quality and the quality of yields as well. Government initiatives for organic methods and sustainability are also helping the growth of the market, as such practices are essential for environmental stability, a balanced ecosystem, and a lower carbon footprint.

Distribution Channel Analysis

The Business-to-Business (B2B) segment led the sustainable palm oil market in 2024, as manufacturers widely use palm oil for the large-scale production of various products, including food and beverages, cosmetics, and biodiesel, which supports the market's growth. It helps companies to get cost-effective deals, assurance of the quality of palm oil, and also contribute their bit to maintaining sustainability.

The Business-to-Consumer (B2C) segment is expected to grow in the foreseen period due to high demand for sustainable palm oil and its easy availability on multiple e-commerce platforms. Such factors are expected to contribute to the market's growth in the foreseeable future. It allows consumers to get cost-effective deals without the additional cost of wholesalers.

Recent Developments in the Sustainable Palm Oil Market

In August 2025, the world’s renowned consumer brands, including PepsiCo, Nestle, and Unilever, united to launch the Aceh Sustainable Palm Oil Working Group, to align major palm oil buyers, producers, and refineries, on the island of Sumatra, Indonesia, on 13th August. (Source- https://reccessary.com)
In May 2025, 3F Palm Oil announced its farmer awareness program in 50 villages in Andhra Pradesh, India, to promote sustainable oil palm cultivation. (Source- https://money.rediff.com)

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Top Companies of the Sustainable Palm Oil Market

Wilmar International
Unilever PLC
Cargill, Inc.
SD Guthrie Bhd
Golden Agri-Resources
Nestle Global
Louis Dreyfus Company
Musim Mas
Barry Callebaut AG
Clariant
Bunge Ltd.
M.P. Evans
Farmonaut
Ferrero

Segments Covered in the Report

By Type

Crude Palm Oil (CPO)
Palm Kernel Oil (PKO)
Red Palm Oil

By End Use Industry

Food & Beverage
Personal Care & Cosmetics
Biofuel & Energy
Pharmaceuticals
Animal Feed

By Nature

Conventional
Organic

By Distribution Channel

Business-to-Business (B2B)
Business-to-Consumer (B2C)

By Region

North America

U.S.
Canada

Asia Pacific

China
Japan
India
South Korea
Thailand

Europe

Germany
UK
France
Italy
Spain
Sweden
Denmark
Norway

Latin America

Brazil
Mexico
Argentina

Middle East and Africa (MEA)

South Africa
UAE
Saudi Arabia
Kuwait

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