Europe Palm Oil Market Research Report: By Type (Crude Palm Oil, Palm Kernel Oil, Others) and By Application (Edible Oil, Bio-Diesel, Lubricants, Cosmetics, Others) - Forecast to 2035

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Key Europe Palm Oil Market Trends Highlighted

The palm oil industry in Europe is considerably integrated with sustainability and the environment. The regulatory environment of the European Union has been leaning towards providing certified sustainable palm oil, which has restricted the imports of palm oil into the region. As both consumers and businesses become more concerned with their purchasing practices and the ethical nature of the products, there has been a significant shift in the markets. Companies have begun to trace the sources of their palm oil and thus there is an emerging need for RSPO certification. Furthermore, public policies in different European countries facilitate the adoption of more sustainable farming methods, which increases the adoption of blends and alternatives in food as well as non-food products.

There is an opportunity in the European palm oil market to use technology to enhance sustainability and improve transparency in supply chains. Palm oil, for instance, can benefit from blockchain technology because it allows consumers to trace the origins of the product. In addition, there is a growing need for biofuels from sustainable palm oil because the EU is working towards lowering greenhouse gas emissions. This creates a space for collaboration among stakeholders in the industry to find green ways of sourcing palm oil. There is also an increasing trend towards using sustainable palm oil in cosmetics and household products. Manufacturers and sellers of foods are changing their supply chain strategies to integrate eco-friendliness more deeply than it is now.

Increased American adoption of plant-based diets along with more health-conscious consumers is encouraging a shift in product formulations towards healthier oils, which is a good change. Today’s consumers are more ecologically aware than ever, forcing companies to change proactively or lose revenue. These are hurdles, but also an opening for the European palm oil market.

Europe Palm Oil Market Drivers

Increase in Demand for Sustainable Palm Oil

The Europe Palm Oil Market Industry is significantly driven by the rising demand for sustainable palm oil since there is an increasing awareness regarding environmental sustainability among consumers and industries. The European Union has made commitments to reduce greenhouse gas emissions and conserve biodiversity, which has led to a preference for sustainably produced palm oil. According to the European Commission, around 70% of palm oil imported into the EU is now certified as sustainable under various certification schemes like RSPO (Roundtable on Sustainable Palm Oil).This movement has not only been supported by environmental groups but has also led major retailers to commit to sourcing 100% sustainable palm oil by 2025, further solidifying the growth potential of the Europe Palm Oil Market. This consumer shift is crucial as the EU mirror their greener initiatives not only in policy but also within more than 500 million consumers who express a preference for products that also bear sustainable labels. Furthermore, the EU's recent adoption of stricter regulations on deforestation will only serve to boost this segment even further.

Technological Advancements in Palm Oil Production

Technological advancements in cultivation and processing are playing a pivotal role in enhancing the efficiency and yield of palm oil production in Europe. With the increasing adoption of precision agriculture techniques and genetically modified seeds that offer higher resilience to pests and diseases, plantations can produce more palm oil while using fewer resources. The EU has invested significantly in agricultural technology, with funding from programs such as Horizon Europe, aimed at promoting innovation in the agriculture sector.This is essential as the production efficiency metrics highlight that countries adopting advanced technologies have seen yield increases by up to 30%, creating a ripple effect that could significantly enhance the market prospects for the Europe Palm Oil Market Industry. This improvement can meet the growing consumer demand while also aligning with environmental sustainability regulations set by the EU.

Growing Use of Palm Oil in Biofuels

The rising use of palm oil as a biofuel alternative is a major driver for the Europe Palm Oil Market Industry. The European Union aims to transition to renewable energy sources, targeting a 32% share of renewable energy in its overall consumption by 2030. Palm oil has emerged as a leading feedstock for biodiesel, due to its high oil yield and energy content. Reports indicate that the share of palm oil in total biodiesel production in Europe has been steadily increasing, supported by props and regulations favoring renewable energy sources.As the EU implements its Renewable Energy Directive, which mandates the use of biofuels, the palm oil sector remains well-positioned to profit. This transition to biofuels can significantly impact carbon emissions, as per the estimates from the EU’s Energy Agency, biofuels derived from palm oil can achieve up to 80% reduction in greenhouse gas emissions compared to fossil fuels. Hence, this shift is driving palm oil usage in several sectors, enhancing market outlook considerably for the Europe Palm Oil Market.

Europe Palm Oil Market Segment Insights:

Palm Oil Market Type Insights

The Europe Palm Oil Market is characterized by its varied segmentation, particularly in the Type category, which encompasses Crude Palm Oil, Palm Kernel Oil, and Other forms. As sustainability and health trends continue to influence consumer choices across Europe, the need for palm oil derived from responsible sources has emerged as a significant factor driving market dynamics. Within this segment, Crude Palm Oil remains a cornerstone due to its extensive applications in food production, cosmetics, and biofuels, making it central to both industrial and household usage.The versatility of Crude Palm Oil allows manufacturers to capitalize on its cost-effectiveness while also meeting the rising demand for ethically sourced products. Meanwhile, Palm Kernel Oil, which is extracted from the kernel of the oil palm fruit, is gaining traction owing to its unique fatty acid composition that is ideal for food products and personal care formulations. This specific oil type serves as an alternative fat in many processed foods, enhancing texture and flavor, thereby constituting a vital element in many recipes and formulations.Beyond these two key types, the "Others" category encapsulates a range of palm oil derivatives and blends that cater to niche markets, showcasing innovative uses in both the culinary sector and industrial applications. As the Europe Palm Oil Market continues to evolve, regulatory frameworks and consumer preferences are likely to mold the future trajectory of these types, creating both challenges and opportunities for market players. Strengthening certifications and transparency will be critical for the success of all segments in this industry, as these factors are becoming pivotal in determining brand trust and consumer loyalty in Europe's discerning market landscape.Encouraging sustainable practices in the production of palm oil is vital in responding to environmental concerns, with many stakeholders advocating for solutions that minimize deforestation and promote biodiversity. Consequently, the demand for responsibly sourced palm oil is set to grow, influencing market statistics and segmentation as the region moves toward a more sustainable future. Understanding the intricacies of each type within this segment will enable stakeholders to navigate this competitive landscape effectively and leverage the opportunities present within the Europe Palm Oil Market.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Palm Oil Market Application Insights

The Application segment of the Europe Palm Oil Market plays a pivotal role in defining its dynamics and overall contributions to the region’s economy. This segment encompasses a variety of applications, including Edible Oil, Bio-Diesel, Lubricants, Cosmetics, and Others, each contributing uniquely to market growth. Edible Oil has emerged as a critical segment due to rising consumer demand for cooking oils that offer health benefits and versatility. Bio-Diesel is gaining traction driven by the European Union's commitment to sustainable energy sources and reducing greenhouse gas emissions.Furthermore, Lubricants derived from palm oil are valued for their effectiveness and biodegradability, aligning with increasing environmental awareness among consumers and industries. The Cosmetics sector is leveraging palm oil for its moisturizing properties, leading to significant acceptance across beauty products. Other applications encompass an array of uses, illustrating the versatility and adaptability of palm oil in meeting diverse industry needs. Overall, as sustainability and health trends amplify within Europe, the Application segment of the Europe Palm Oil Market is expected to evolve, further driving innovation and market integration.

Europe Palm Oil Market Key Players and Competitive Insights:

The Europe Palm Oil Market is characterized by a complex, competitive landscape driven by evolving consumer preferences, regulatory frameworks, and sustainability concerns. As the demand for palm oil continues to rise across various sectors, including food, cosmetics, and biofuels, companies are finding innovative ways to enhance their market position. Sustainability remains a significant topic, and many organizations are focusing on responsible sourcing, certification, and transparency in their supply chains in response to consumer scrutiny. Additionally, the competitive dynamics are influenced by regional policies, international trade agreements, and the activities of both small and large players who aim to capture market share. The competition is not only about price but also about offering sustainable and high-quality products that align with the growing demand for environmentally responsible solutions in the European market. BASF has established itself as a formidable player in the European palm Oil Market, leveraging its substantial technological expertise and commitment to sustainability. The company's focus on innovative agricultural solutions allows it to provide a variety of palm oil-derived products, catering to industries ranging from food and nutrition to personal care and industrial applications. BASF's strengths lie in its robust research and development capabilities, enabling it to create sustainable formulations that meet the demanding standards of European consumers. Furthermore, its strategic collaborations and partnerships within the palm oil supply chain enhance its market presence and operational efficiency, allowing it to cater effectively to evolving customer needs while minimizing environmental impact. BASF's strong brand recognition and reputation for quality bolster its competitive positioning within the region.Austrian Palm Oil is another significant entity within the European palm Oil Market, known for its engagement in sourcing and trading palm oil products. The company offers a range of products, including refined palm oil, palm kernel oil, and various derivatives that are widely used in food production, cosmetics, and personal care sectors. Austrian Palm Oil has carved out a niche by focusing on both quality and sustainability, ensuring compliance with stringent European regulations. Its market presence is strengthened through key partnerships and collaborations aimed at responsible sourcing practices. The company prides itself on its transparent supply chains and commitment to sustainability, which resonate well with the conscious consumer base in Europe. Additionally, Austrian Palm Oil has engaged in strategic mergers and acquisitions to bolster its offerings and expand its presence in the regional market. These strengths position Austrian Palm Oil as a reliable provider, catering to the increasing demand for sustainably sourced palm oil among European consumers.

Key Companies in the Europe Palm Oil Market Include:

• BASF


• Austrian Palm Oil


• Olam International


• Unilever


• Sime Darby Plantation


• Kuala Lumpur Kepong Berhad


• Golden AgriResources


• Musim Mas


• GreenPalm


• Wilmar International


• Nestle


• IOI Corporation


• Austrian Farmers' Union


• Palm Oil Invest


• Cargill

Europe Palm Oil Market Industry Developments

The Europe Palm Oil Market has been experiencing notable developments recently. In terms of sustainability, companies like Unilever and BASF are increasingly focusing on sourcing sustainably produced palm oil, responding to growing consumer and regulatory pressure for environmental consciousness. As of September 2023, the European Union's new regulations likely impacting palm oil imports have raised concerns among stakeholders, leading to calls for greater transparency and traceability in supply chains, particularly from firms such as Olam International and Sime Darby Plantation. Furthermore, in August 2023, Cargill announced a significant investment to enhance sustainable farming practices within its European operations. In the past two years, significant events have included the EU's commitment to phasing out deforestation-linked products, reflecting a broader shift in policy that affects companies like Wilmar International and Nestle.

Regarding mergers and acquisitions, there has been heightened interest, particularly in technology partnerships aimed at improving the sustainability of palm oil usage among major players. However, specific publicly known mergers in recent months have not been widely reported. The market in Europe remains dynamic, driven by innovation and regulatory shifts that could reshape the competitive landscape.

Europe Palm Oil Market Segmentation Insights

Palm Oil Market Type Outlook

• Crude Palm Oil


• Palm Kernel Oil


• Others

Palm Oil Market Application Outlook

• Edible Oil


• Bio-Diesel


• Lubricants


• Cosmetics


• Others

 

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Report Attribute/Metric Source:	Details
MARKET SIZE 2018	17.04(USD Billion)
MARKET SIZE 2024	17.33(USD Billion)
MARKET SIZE 2035	32.45(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	5.87% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Billion
KEY COMPANIES PROFILED	BASF, Austrian Palm Oil, Olam International, Unilever, Sime Darby Plantation, Kuala Lumpur Kepong Berhad, Golden AgriResources, Musim Mas, GreenPalm, Wilmar International, Nestle, IOI Corporation, Austrian Farmers' Union, Palm Oil Invest, Cargill
SEGMENTS COVERED	Type, Application
KEY MARKET OPPORTUNITIES	Sustainable palm oil certification demand, Alternative ingredients in food products, Biofuel production and innovation, Health-conscious consumer trends, E-commerce growth for palm oil products
KEY MARKET DYNAMICS	Sustainability regulations impact demand, Consumer preference for ethical products, Competition from alternative oils, Price volatility due to imports, Trade policies affecting supply
COUNTRIES COVERED	Germany, UK, France, Russia, Italy, Spain, Rest of Europe