Philippines Palm Oil Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

Palm oil supply in the Philippines is increasing rapidly due to the growing land use for the production of palm oil fruits, including nurseries and cultivation fields. In 2021, the Philippines announced the production of 522,861 metric tonnes of fresh fruit bunch equivalent to 104,572 metric tonnes of crude palm oil and around 26,143 metric tonnes of palm kernel oil. These came from approximately 63,380.85 hectares of production area, including 7 registered nurseries, identified by the Philippines Statistics Authority. The authority further estimated that the production area will grow by 1.3% from 2022 onwards, leading to a further increase in the supply of palm oil during the coming years.

In the Philippines, palm oil is used both as the end product and raw materials for a variety of industries, including packaged instant food, cosmetics, personal care items, cleaning products, biofuel, and lubricants for industrial applications. The country’s palm oil processing sector makes this possible through its robust network of mills and refineries. According to an industry report, the Philippines had 11 operational mills with a total processing capacity of 275 metric tonnes of fresh fruit bunches per hour in 2023. The development of new mills in the region is expected to raise this capacity further, positively impacting the overall market revenue.

Research and development associated with the palm oil sector is expected to create new market opportunities for both public and private players. For instance, the Philippines Coconut Authority (PCA) in collaboration with the ZRC Training Institute and Assessment Centre is conducting research to produce high-quality yet economical hybrid planting materials from existing palm varieties using DNA markers. Additionally, PCA has been researching to develop Dura groves for the high-yielding variety of Dura palms from parent since 2024. Similar efforts and developments in the coming years are expected to open new market opportunities for industry players.

Favourable policies and initiatives by various government departments and agencies are propelling the overall industry growth. For instance, the Philippines Coconut Authority (PCA), a government agency responsible for developing coconut and palm oil industries in the Philippines is conducting awareness campaigns and training programmes on the recommended production protocols, guidelines, and product standards in collaboration with Technical Education and Skills Development Authority (TESDA) to ensure proper accreditation of farm and mill workers since 2024 onwards. Such initiatives are expected to raise the productivity levels of the industry in the long run.