The demand for palm oil in Malaysia in 2023 stood at 7.09 million metric tons, showing a year-on-year increase of 2.1% and a CAGR of 1.56% over the last five years. Reviewing the longer timeline, there was notable volatility such as a substantial increase in 2015 by 51.74% and a marked decline in 2016 by 49.2%. However, from 2018 onwards, the demand has stabilized with modest year-on-year variations and an overall upward trend.
Looking at the forecast data, the demand for palm oil is expected to continue rising, reaching approximately 7.85 million metric tons by 2028, growing at a forecasted 5-year CAGR of 1.61% and an overall growth rate of 8.33% from 2023. This indicates steady growth in the demand.
Trends to watch for:
- Environmental and sustainability regulations and their impact on palm oil production and demand.
- Technological advancements and innovations in palm oil production methodologies.
- Emerging markets and their influence on global palm oil demand.
