Brazil's palm oil market was valued at USD 738.2 millions in 2018. It is expected to grow at a CAGR 13.6 percent between 2019 and 2025. The market is expected to grow due to the rising awareness about its health benefits and its lower prices.
CPO is in high demand due to its increasing use in food applications, primarily for consumer diets. It also serves as a source of greases and lubricants. PKO was the second-largest segment due to its increasing use in cosmetics and confectionery fats as well as detergents.
Brazil's production will be hampered by the declining deforestation rate and reserve palm tree plantation. Higher yields will be a positive factor in the future market growth, provided that there are improving conditions.
To combat deforestation, the Sustainable Palm Oil Production Program (SPOPP), was established in Brazil in 2010. This program was also designed to stop primary and secondary forest clearing in legal Amazonia. The Brazilian Association of Palm Oil Producers states that manufacturers must comply with regulatory norm NR-31, which addresses health and safety.
Brazil's adoption of advanced satellite technology to monitor deforestation will open up new possibilities for development and increase sustainable cultivation. For sustainable development, manufacturers are now focusing their efforts on water recycling technology.
CPO accounted for 56.4%, followed by PKO at 56.4%. The market is expected to grow due to an increase in oleochemicals production and cleaning products.
PKO accounted for 26.2% revenue share in 2018. It is the second-largest segment. This segment is expected to grow rapidly due to its product properties, such as high medium chain fat acids like capric, lauric acid, and caprylic. It is used exclusively as a feedstock for livestock feed and biomass.
Oilseed is one of the most important agricultural commodities in the country. The main products from crushing oilseeds are edible oil and meal. Oilseeds residue is used to feed animals, while the oil extract is used in a variety of food products for humans.
The largest revenue share, 64.4%, was attributed to the edible oil segment in 2018. It is expected that it will continue to dominate the forecast period. It is an economically viable alternative to other edible oils like those derived from soybean or sunflower. The segment's growth is expected to be boosted by its high acceptance by food processors.
In recent years, biodiesel has been gaining popularity as a viable alternative to diesel. Palm oil is the most popular feedstock for biodiesel production. It is an economically viable alternative to soybean. The country's production is not sufficient to meet the demands of biodiesel producers, which will hamper market growth.
Brazil's government is committed to sustainable production. This can be used for biodiesel manufacturing. The Ministry of Mines and Energy (MME), for instance, launched the RenovaBio Program to regulate the biofuel production units in order to encourage sustainable production of palm oil and diesel over the planned period.
Surfactant occupied the largest market share in 2018 in terms of revenue. Manufacturers will continue to use palm oil for surfactant production due to the high penetration of petroleum-based surfactants as well as growing environmental concerns. Surfactants will be restricted by high domestic consumption for food applications.
AgroPalma and BIOPALMA are some of the most prominent producers in this value chain. For easy access to raw materials, most companies have their own land for harvesting oil kernels. Few companies outsource this product. Archer Daniels Midland, for example, sources 70% of its product from Willmar art refiners while 30% comes from Sabha in Malaysia.
To grow palm groves, manufacturers have formed partnerships with farmers. They also provide support and training to ensure high quality products. By making large investments in R&D, manufacturers are working hard to create an advanced product portfolio.
Many corporations invest in research to expand their product range and provide a wider end-use application base. This helps them sustain their competitive edge. The market will have enough opportunities if there is technological innovation and sufficient foreign capital.
This report predicts revenue growth at the global, regional and country level and offers analysis of industry trends for each sub-segment from 2014 through 2025. Up Market Research segmented Brazil's palm oil market report based on product and application.
Product Outlook (Volume of Kilotons, Revenues, USD Millions, 2014-2025)
Crude Palm Oil
Palm Kernel Oil
Palm Kernel Cake
Palm Kernel Oilseed
Application Outlook (Volume of Kilotons, Revenues, USD Millions, 2014-2025)
Edible oil
Cosmetics
Biodiesel
Lubricants
Surfactants
Other
b. Brazil's palm oil market was valued at USD 798.2 Million in 2019, and is projected to grow to USD 951.6 Million in 2020.
What is Brazil's palm oil market growth rate?b. Brazil's palm oil market is expected grow at a compound annual rate of 13.6% between 2019 and 2025, to reach USD2.2 billion by 2025.
Which segment had the largest share of brazil palm oils market?b. CPO held a 56.5% share in the Brazilian palm oil market in 2019, compared to a mere 5.6% for b. CPO dominated Brazil's palm oil market with a 56.5% share in 2019. This is due to rising demand for food & drink, personal care, cosmetics, detergent and biodiesel. Domestic cooking is also heavily dependent on refined, bleached and deodorized (RBD), palm oil.
What are the main players in Brazil's palm oil market?b. Among the key players in Brazil's palm oil market are Archer Daniels Midland Company and BELEM BIOENERGIA BRASIL S.A, AgroPalma. BIOPALMA, Denpasa and Marborges Agroindustria SA.
What are the main factors that drive the brazil palm oil industry?b. Market growth is driven by a substantial rise in consumption due to lower prices and rising awareness about its health benefits.
Up Market Research published a new report titled “Brazil Palm Oil Market research report which is segmented by Application (Surfactants, Cosmetics, Bio-diesel, Edible Oil), by Product (Palm Kernel Oil, Crude Palm Oil), By Players/Companies Marborges Agroindºstria SA, Denpasa, BIOPALMA, BELEM BIOENERGIA BRASIL SA, AgroPalma, Archer Daniels Midland Company”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.
Report Attributes | Report Details |
Report Title | Brazil Palm Oil Market Research Report |
By Application | Surfactants, Cosmetics, Bio-diesel, Edible Oil |
By Product | Palm Kernel Oil, Crude Palm Oil |
By Companies | Marborges Agroindºstria SA, Denpasa, BIOPALMA, BELEM BIOENERGIA BRASIL SA, AgroPalma, Archer Daniels Midland Company |
Regions Covered | North America, Europe, APAC, Latin America, MEA |
Base Year | 2020 |
Historical Year | 2018 to 2019 (Data from 2010 can be provided as per availability) |
Forecast Year | 2028 |
Number of Pages | 245 |
Number of Tables & Figures | 172 |
Customization Available | Yes, the report can be customized as per your need. |
The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.
The market is segmented by Application (Surfactants, Cosmetics, Bio-diesel, Edible Oil), by Product (Palm Kernel Oil, Crude Palm Oil).
Brazil Palm Oil Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.
Key Benefits for Industry Participants & Stakeholders:
Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.
We have studied the Brazil Palm Oil Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.
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