Latin America Palm Oil Market Report and Forecast 2024-2032

 Read more about this report - REQUEST FREE SAMPLE COPY IN PDF

Although its share is comparatively smaller than the 85% to 90% share of Indonesia and Malaysia, Latin America's projected robust growth of its palm oil production will contribute to the growth of the global market in the forecast period. The global market is expected to grow at a CAGR of almost 1.9% in the forecast period of 2024-2032.

Colombia is the fourth largest producer of palm oil in the world, just behind Indonesia, Malaysia, and Thailand and is the leading producer in the Latin America region. The market in Colombia accounts for 6% of the country’s total GDP.  Its production in the country suffered in 2016 due to the climatic conditions caused by the El Nino phenomenon. However, the production recovered in 2017, witnessing a 42% increase from 2016. In 2017, 1.6 million metric tons of crude palm oil was produced in the country. A significant proportion of the palm oil produced in the country is exported. More than half the exports by Colombia is bound towards Europe, especially to countries like Spain and Germany In 2017, palm oil-related exports reportedly generated USD 414 million in export revenues.

Ecuador is also a significant producer in the Latin America market, falling just behind Colombia, Guatemala, and Honduras. The average annual output of CPO (Crude Palm Oil) in Ecuador is 0.7 million metric tons, which is grown in around 2,80,000 hectares of land. It is the largest exporter of CPO in South America, exporting 60% of its production of CPO.

Latin America Palm Oil Market Segmentation

 Read more about this report - REQUEST FREE SAMPLE COPY IN PDF

Market Analysis

While oil palm and rapeseed are both major oil crops with significant productivity levels, oil palm is five times more productive in its oil yield than rapeseed. Globally, palm oil finds widespread application in food products such as cooking oil, shortenings, and margarine as well as a feedstock for biodiesel. Nearly 70% of the global palm oil production is used in food applications, with personal care applications accounting for 25% and biodiesel accounting for 5%. Palm oil’s application as a biodiesel feedstock is expected to witness a significant growth in the coming decade with the rising demand for alternative energy sources.

Globally, the market is expected to be aided by the rising population and growing income levels. In food applications, palm oil is commonly found in cooking and fry oils, vegetable ghee, and non-dairy creamers. With increasing health consciousness among the people, its use for food applications is expected to see growth.

In Latin America, the expansion of palm oil crops supported by various government schemes is driving the Latin America market, especially in countries like Ecuador, Colombia, Honduras, and Peru.  Government subsidies programs encouraging the substitution of illicit crops like cocaine and poppy is providing a further impetus for the increase in the palm oil crops. The projected increase in food consumption in the region will also aid the market growth. Green policies by governments in the Latin America region promoting the use of biodiesel will further propel the market forward. In Colombia, palm oil forms an essential component in the country’s biodiesel industry which is required by law to account for 10% of the total automobile fuel sold in the country. Industrial infrastructure for the processing of palm oil is being consolidated in the region to increase production for exports and domestic demands.

 Read more about this report - REQUEST FREE SAMPLE COPY IN PDF

Competitive Landscape

The report analyses the following key players in the Latin America palm oil market looking into their market share, capacity, and latest developments like mergers and acquisitions, expansions of capacity, and plant turnarounds:

• Wilmar International Ltd.
• Cargill, Incorporated
• Bunge Limited
• Archer Daniels Midland Company
• Reforestadora de Palmas del Petén SA (REPSA)
• Others

The EMR report gives an in-depth analysis of the market by providing a SWOT as well as Porter’s five forces analysis.