The vegetable oil industry has witnessed significant growth over the past few years on account of a growing population as well as the rising demand for alternative energy sources. Among the various types of vegetable oil, palm oil (including palm kernel) accounted for the largest share of the global production in 2007, followed by soybean and rapeseed oil. Of the available vegetable oils, palm oil is the most productive and has the lowest cost of production, thus accounting for the major share of the global vegetable oil output. In recent years, the rising health concerns have also accelerated the demand for palm oil, particularly in the developed markets.
Palm oil use is broadly separated into food and non-food categories. The product is mainly used as cooking oil but is also increasingly being used in the preparation of other food articles. As a non-food ingredient, the product finds application in the production of cosmetics, toiletries, soaps and detergents. Although, FMCG is the largest market, the utilization of palm oil for the production of biodiesel has been growing steadily. Apart form this, the switch of consumers from loose oil to packed oil, particularly in emerging markets, is also expected to boost the palm oil industry’s growth in the future.
Geographically, Indonesia and Malaysia are the largest producers of palm oil, while China and the EU are the largest consumers. In Europe, Germany is the largest producer of palm oil, followed by France and Italy. The emerging markets, like China, India and Indonesia consume more than 80% of palm oil. Due to rising population and increasing income, the emerging markets including China and India are anticipated to record an increase in demand for palm oil.
On the whole, the report analyzes the growth drivers and challenges of the palm oil industry and assesses opportunities available for the players. The report focuses on the production capacity, government initiatives, challenges and future potential of the three large producers of palm oil – Indonesia, Malaysia and Colombia. Further, the report analyzes the top palm oil companies – PT Astra Agro Lestari, IOI Corporation and Wilmar International.
By combining SPSS Inc.’s data integration and analysis capabilities with our relevant findings, we have predicted the future growth of the industry. We employed various significant variables that have an impact on this industry and created regression models with SPSS Base to determine the future direction of the industry. Before deploying the regression model, the relationship between several independent or predictor variables and the dependent variable was analyzed using standard SPSS output, including charts, tables and tests.