LATAM (Latin America) Palm Oil Market to Contribute to the Forecasted Global Market Growth at a CAGR of 5.20% between 2024-2032

The Latin America palm oil market is being driven by the increasing production and domestic demand for palm oil in the major markets in the region. The industry in the region is being aided by various supportive schemes by the governments, especially in major palm oil markets like Colombia, Ecuador, Honduras, and Peru. In Colombia, new drug policies encouraged the replacement of illicit crops like poppy and coca with oil palms in areas like the troubled Catatumbo region of the country. Colombia also requires all diesel being sold in the country to be blended with 10% biodiesel as the country aims to reduce greenhouse gas emissions by 20% by 2030 as a part of their pledge to the Paris climate accord. With palm oil being an essential raw material for biodiesel, the mandate aids the country’s palm industry.

Colombia is the largest palm oil producer in Latin America. The industry accounts for 6% of the country’s total GDP. It is also a leading producer of the oil, globally, falling just behind Indonesia, Malaysia, and Thailand. In 2017, Colombia’s production of palm oil saw a hike of 42%, following the reduced output in 2016 due to El Nino. The country produced almost 1.6 million metric tons of crude palm oil in 2017 with a majority of the output being exported to countries like Spain and Germany. In 2017, exports related to palm oil generated USD 414 million in revenues in Colombia.

However, the palm oil trade in countries like Colombia might be affected by the EU’s decision to phase out biofuel feedstock grown through unsustainable farming practices. This step was taken by the EU to prevent the rapid, and often illegal deforestation occurring due to the expanding oil palm cultivation. While this step might adversely affect the Latin America palm oil market in the coming years, some countries are looking to switch to a more sustainable way of farming oil palms. Ecuador, a significant palm oil market in the Latin America, is incentivising sustainable palm oil production by creating tax cuts for the exporters of the oil on the condition that they invest the tax returns to help smallholders shift to sustainable farming methods.

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Market Analysis by Applications and Regions:

• Palm oil is used in food products, consumer products, and the energy sector.
• Colombia, Ecuador, Brazil, Mexico, and Guatemala, among others, are the major regional markets in Latin America.

Key Findings of the Report:

• Oil palm is five times more productive than rapeseed, another significant oilseed.
• Palm oil finds the majority of its application in the food sector, followed by personal care and biodiesel sectors.
• Globally, the palm oil market is being driven by its growing use as a biodiesel feedstock due to the rising demand for alternate energy sources, which produce lower emissions.
• The growing population, rising incomes, and increasing health consciousness are driving the global market.
• Ecuador follows Colombia, Guatemala, and Honduras as a significant palm oil producer in Latin America.
• Exporting about 60% of its total palm CPO (Crude Palm Oil) output, Ecuador is the largest exporter of CPO in South America.
• The Latin America palm oil market will be driven by the growing food consumption in the area.
• Government policies mandating the use of biodiesel blends in the region will further aid the market.

Key Findings of the Report:

• The EMR report gives an overview of the global as well as Latin America vegetable oil market.
• The report also provides the global palm oil market outlook for the periods (2018-2023) and (2024-2032).
• It gives the regional historical (2018-2023) and forecasted (2024-2032) production and consumption of palm oil in the global and Latin America markets.
• It analyses the global trade data for the year 2020 by looking into the value and volume of the major exporting and importing countries.
• The report by EMR offers an in-depth insight into the regional price trends of palm oil in the Latin America market for the periods, (2018-2023) and (2024-2032).

The key players in the Latin America palm oil market are Wilmar International Ltd., Cargill, Incorporated, Bunge Limited, Archer Daniels Midland Company, and Reforestadora de Palmas del Petén SA (REPSA), among others. The EMR report gives a detailed look into these major players by providing their market share, capacity, and latest developments like plant turnarounds, mergers and acquisitions, and capacity expansions.

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