US Palm Oil Market Size was estimated at 14.31 (USD Billion) in 2023. The US Palm Oil Market Industry is expected to grow from 14.56(USD Billion) in 2024 to 27.26 (USD Billion) by 2035. The US Palm Oil Market CAGR (growth rate) is expected to be around 5.87% during the forecast period (2025 - 2035).
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The US Palm Oil Market is currently influenced by several key market drivers that shape its dynamics. One significant driver is the growing awareness about health and nutrition, as consumers increasingly seek alternative cooking oils. The demand for palm oil, which is versatile and has a high smoke point, is rising among food manufacturers and restaurants. Additionally, sustainability concerns are driving the market, with consumers and companies advocating for responsibly sourced palm oil that minimizes environmental impact. Certification schemes like the Roundtable on Sustainable Palm Oil (RSPO) are gaining traction in the US, as they assure buyers about the ethical sourcing of palm oil.Opportunities in the US Palm Oil Market are expanding, particularly in sectors such as personal care and cosmetics. As manufacturers look for plant-based ingredients, palm oil offers a suitable alternative due to its emollient properties. There is also an increasing interest in biodiesel from palm oil, aligning with the nation's move towards renewable energy sources. The demand from the food sector, especially in processed and packaged foods, provides further avenues for growth, indicating a potential expansion for palm oil-based products. In recent times, trends reflect a shifting consumer preference toward transparency and sustainability in product sourcing.More consumers are favoring brands that disclose their supply chains and practices. Moreover, urban centers in the US are witnessing a surge in palm oil usage in gourmet food applications, where there is a push for culinary innovation. Overall, the US Palm Oil Market is adapting to evolving consumer demands, government regulations, and industry standards, making it a dynamic segment of the broader food and agricultural market.
US Palm Oil Market Drivers
Increasing Demand for Healthy Cooking Oils
The US Palm Oil Market Industry is experiencing a significant surge in demand for healthy cooking oils. This trend is primarily driven by the growing awareness of health and wellness among American consumers. According to the United States Department of Agriculture, there has been a consistent annual growth rate of approximately 5% in the consumption of healthier oils, fueled by campaigns promoting the health benefits of oils with lower saturated fats.Palm oil has emerged as a preferred choice due to its favorable nutritional profile. The Palm Oil Innovation Group emphasizes that palm oil is cholesterol-free and offers a balance of saturated and unsaturated fats, appealing to the health-conscious demographic in the US. As consumers increasingly seek alternatives to traditional cooking fats, the US Palm Oil Market is positioned to capitalize on this shift, leading to enhanced market growth.
Sustainability Initiatives and Certifications
The focus on sustainable palm oil production is a vital driver in the US Palm Oil Market Industry. Organizations like the Roundtable on Sustainable Palm Oil are making strides in promoting responsible cultivation practices. According to the Sustainable Food Trade Association, approximately 50% of US food manufacturers are committed to sourcing certified sustainable palm oil by 2025. This movement is motivated by both consumer demand for environmentally friendly products and regulatory pressures from the government.Recent policies from the US Environmental Protection Agency reflecting a commitment to reducing greenhouse gas emissions further bolster the demand for sustainable palm oil. As producers adopt sustainable practices, this enhances the reputation of palm oil and meets the growing consumer expectations for eco-friendly products, thereby facilitating market expansion.
Expanding Applications in Cosmetics and Personal Care
The versatility of palm oil has led to its increased usage in the cosmetics and personal care segment, driving growth in the US Palm Oil Market Industry. According to the Personal Care Products Council, the market for personal care products using palm oil is projected to grow by 4% annually, attributed to the rise in natural ingredient popularity among consumers. Palm oil is recognized for its moisturizing properties and is found in a variety of products such as lotions, shampoos, and soaps.This growing trend aligns with consumer preferences for sustainable, plant-based ingredients. With an increasing emphasis on clean beauty products, companies in the US are amplifying their incorporation of palm oil, thus expanding its application scope and market presence, positively impacting the overall market trajectory.
US Palm Oil Market Segment Insights
Palm Oil Market Type Insights
The US Palm Oil Market is characterized by its diverse types, which include Crude Palm Oil, Palm Kernel Oil, and others. Crude Palm Oil stands out as a vital segment within the market, primarily due to its high yield compared to other edible oils, making it a cost-effective option for food manufacturers. It serves as a versatile ingredient in various sectors, including food processing, personal care, and biofuels. The increasing demand for natural and sustainable products has further propelled the significance of Crude Palm Oil, as consumers shift towards healthier and eco-friendly alternatives.Meanwhile, Palm Kernel Oil plays a critical role, often used in the production of margarine, baked goods, and confectionery, providing unique properties that enhance texture and flavor profiles. Its rich fatty acid composition has made it an essential ingredient for manufacturers seeking to meet consumer preferences for high-quality and specialty oils. Additionally, the 'Others' category encompasses a range of palm oil derivatives and specialized oils that cater to niche markets, including the growing trend towards organic and sustainable palm oil products.This segment reflects the evolving consumer landscape, where health-conscious choices are becoming more prevalent. Overall, the US Palm Oil Market segmentation highlights the importance of each type in addressing various industry needs, driven by changing consumer demands and environmental considerations. The market growth potential remains substantial, influenced by ongoing trends in both product innovation and sustainability practices.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Palm Oil Market Application Insights
The Application segment of the US Palm Oil Market encompasses various uses, highlighting its versatility and importance in multiple industries. Edible oil stands out as a primary use, with palm oil being a favored choice due to its stability and nutritional benefits, catering to the growing demand for healthy cooking oils. The Bio-Diesel sector is gaining traction as the shift towards renewable energy sources accelerates, offering sustainable alternatives and contributing to reducing carbon emissions. In terms of Lubricants, palm oil is increasingly utilized because of its low environmental impact and biodegradability, which aligns with stringent regulations aimed at reducing pollution.The Cosmetics industry also benefits significantly from palm oil due to its moisturizing properties and natural origins, appealing to the rising consumer preference for eco-friendly and organic products. Additionally, other applications leverage palm oil's unique properties, finding its utility in personal care and industrial products. The US market experiences steady growth driven by these diverse applications as consumer awareness around sustainability and functionality continues to evolve, thus shaping the industry's landscape. Insights from various studies indicate that the shifting preferences and regulatory changes will play a critical role in the future dynamics of the US Palm Oil Market segmentation in application areas.
US Palm Oil Market Key Players and Competitive Insights
The US Palm Oil Market has become increasingly competitive as consumer demand for palm oil and its derivatives has risen in recent years, driven by its versatile applications in food, cosmetics, and biofuels. This market presents significant opportunities and challenges, influenced by factors such as sustainability concerns, regulatory measures, and fluctuating prices. Various players in the palm oil industry are striving to enhance their market share through strategic initiatives while grappling with environmental considerations associated with palm oil production. The competitive landscape is characterized by both established companies and new entrants, all vying for a foothold in an expanding market where sustainability and ethical sourcing are becoming paramount in consumers' purchasing decisions.Kuala Lumpur Kepong Berhad has established a notable presence in the US Palm Oil Market, recognized for its commitment to sustainable practices and quality products. The company is highly regarded for its focus on environmentally responsible sourcing, which strongly resonates with consumers who prioritize sustainability. Its extensive operations span various segments of the palm oil supply chain, including cultivation, processing, and distribution. Kuala Lumpur Kepong Berhad has leveraged its strong production capabilities and deep industry expertise to maintain a competitive edge, ensuring that its products meet stringent quality and sustainability standards tailored for the US market. The company’s ability to adapt to changing consumer preferences, coupled with its investments in research and development, positions it favorably among competitors seeking to penetrate the US palm oil sector.Sime Darby Plantation possesses a strong foothold in the US Palm Oil Market, effectively positioning itself as a prominent player through its comprehensive product range that includes crude palm oil and palm oil derivatives. The company emphasizes sustainable palm oil production, aligning its operational practices with global standards while addressing concerns over deforestation and ethical farming. Sime Darby Plantation's strengths lie in its substantial acreage, robust supply chain management, and sophisticated processing facilities, which ensure a reliable supply of high-quality palm oil. In recent years, the company has engaged in mergers and acquisitions to enhance its market presence, contributing to a diversified portfolio that resonates with the US consumer market. This strategic growth enables Sime Darby Plantation to not only maintain its current market position but also expand its influence within the increasingly competitive landscape of the US palm oil industry.
Key Companies in the US Palm Oil Market Include
US Palm Oil Market Industry Developments
In recent months, the US Palm Oil Market has experienced various developments, particularly regarding regulatory changes and sustainability initiatives. The growing demand for sustainable palm oil has led to companies like Wilmar International and Olam International focusing on strengthening their supply chains in compliance with U.S. regulations. In August 2023, the U.S. Department of Agriculture introduced measures aimed at enhancing sustainability standards for palm oil imports, ensuring that imported products meet specific environmental and social criteria. In terms of company activities, Marathon Oil continues to explore diversification into biofuels, including palm oil derivatives, to align with the renewable energy shifts occurring in the U.S. market. Notably, there have been discussions regarding the potential acquisition of smaller U.S.-based palm oil processing companies by Cargill to expand market presence and operations. Moreover, market valuations of key players like Kuala Lumpur Kepong Berhad and Sime Darby Plantation have seen fluctuations due to the ongoing adaptation to U.S. trade policies and consumer preferences leaning toward sustainable products. Over the last few years, the U.S. market has not only seen growth but also challenges, notably the scrutiny of palm oil sourcing practices, encouraging companies to innovate towards more responsible production methods.
US Palm Oil Market Segmentation Insights
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2018 | 14.31(USD Billion) |
| MARKET SIZE 2024 | 14.56(USD Billion) |
| MARKET SIZE 2035 | 27.26(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 | Kuala Lumpur Kepong Berhad, Sime Darby Plantation, Karma Group, Musim Mas, Marathon Oil, Wilmar International, Olam International, Cargill, Archer Daniels Midland Company, Agro Muko, Buhler, IOI Corporation, Golden AgriResources, Groupe Boucaniers |
| SEGMENTS COVERED | Type, Application |
| KEY MARKET OPPORTUNITIES | Growing demand for sustainable products, Increase in health-conscious consumers, Expanding biofuel applications, Diverse food industry usage, Rising popularity of plant-based alternatives |
| KEY MARKET DYNAMICS | sustainable sourcing demand, health awareness trends, regulatory challenges, price volatility, competition from alternatives |
| COUNTRIES COVERED | US |
Frequently Asked Questions (FAQ) :
The US Palm Oil Market is expected to be valued at 14.56 billion USD in 2024.
In 2035, the US Palm Oil Market is projected to reach a value of 27.26 billion USD.
The expected CAGR for the US Palm Oil Market from 2025 to 2035 is 5.87%.
Crude Palm Oil is valued at 7.76 billion USD in the US Palm Oil Market for the year 2024.
Palm Kernel Oil is valued at 4.35 billion USD in the US Palm Oil Market for 2024.
Major players in the US Palm Oil Market include Kuala Lumpur Kepong Berhad, Sime Darby Plantation, and Wilmar International, among others.
The market value of Palm Kernel Oil is projected to be 7.25 billion USD in 2035.
The Crude Palm Oil segment is expected to experience significant growth, reaching 14.15 billion USD by 2035.
The US Palm Oil Market is expected to see opportunities due to increasing demand and diverse applications in various industries.
Global market trends will likely influence production, pricing, and sustainability practices within the US Palm Oil Market.
Leading companies partner with us for data-driven Insights.
Kindly complete the form below to receive a free sample of this Report
Research Analyst Experienced business professional with a demonstrated history of working in the cfnb industry. skilled in market research, and market estimation. strong professional with a masters focused in marketing management.
Get in Touch
© 2025 Market Research Future ® (Part of WantStats Reasearch And Media Pvt. Ltd.)
