Press Release

Amid Ukraine-Russia crisis, our analysts and industry experts are closely monitoring the markets and working hard to identify, gather and timely deliver analysis of the impact of the situation and the impact that it has on various markets. All our reports are updated with the latest impact on the market before being sent out to our customers.

LATAM (Latin America) Palm Oil Market to Contribute to the Forecasted Global Market Growth at a CAGR of 1.9% between 2022-2027

According to a new report by EMR titled, ‘Latin America Palm Oil Market Report and Forecast 2022-2027’, the Latin America palm oil market reached nearly 4 million metric tons in 2020. The market is expected to grow further in the forecast period of 2022-2027 and will aid the projected growth of the global market in the period, which is forecasted to grow at a CAGR of 1.9%.

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.

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 (2017-2021) and (2022-2027).
  • It gives the regional historical (2017-2021) and forecasted (2022-2027) 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, (2016-2020) and (2022-2027).

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.

About Us:

Expert Market Research (EMR) is a leading market research and business intelligence company, ensuring its clients remain at the vanguard of their industries by providing them with exhaustive and actionable market data through its syndicated and custom market reports, covering over 15 major industry domains. The company's expansive and ever-growing database of reports, which are constantly updated, includes reports from industry verticals like chemicals and materials, food and beverages, energy and mining, technology and media, consumer goods, pharmaceuticals, agriculture, and packaging.

EMR leverages its state-of-the-art technological and analytical tools, along with the expertise of its highly skilled team of over a 100 analysts and more than 3000 consultants, to help its clients, ranging from Fortune 1000 companies to small and medium sized enterprises, easily grasp the expansive industry data and help them in formulating market and business strategies, which ensure that they remain ahead of the curve.

Contact Us:

Expert Market Research
US & Canada Phone no: +1-415-325-5166
UK Phone no: +44-702-402-5790

*We at Expert Market Research always strive to give you the latest information. The numbers in the article are only indicative and may be different from the actual report.

Why Expert Market Research?

Right People

We are technically excellent, strategic, practical, experienced and efficient; our analysts are hand-picked based on having the right attributes to work successfully and execute projects based on your expectations.

Right Methodology

We leverage our cutting-edge technology, our access to trusted databases, and our knowledge of the current models used in the market to deliver you research solutions that are tailored to your needs and put you ahead of the curve.

Right Price

We deliver in-depth and superior quality research in prices that are reasonable, unmatchable, and shows our understanding of your resource structure. We, additionally, offer attractive discounts on our upcoming reports.

Right Support

Our team of expert analysts are at your beck and call to deliver you optimum results that are customised to meet your precise needs within the specified timeframe and help you form a better understanding of the industry.