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Industry Prospects | KENCANA AGRI

With an annual growth rate of 7.88% over the past 40 years, palm oil has seen the most dynamic growth among all edible oils and fats. Moving forward, the worldwide consumption of palm oil in 2020 is expected to be 43 million tonnes.

table 6. world consumption of oils and fats (million tonnes)
  1962 2004 Annual Growth 2015 2020
Million
Tonnes
%
Share
Million
Tonnes
%
Share
%
Per Annum
Million
Tonnes
%
Share
Million
Tonnes
%
Share
World oils and fats
Palm oil
Soyabean oil
Rapeseed oil
Sunflower oil
Animal fats
30.39
1.20
3.37
1.15
2.17
11.99
-
4.0
11.1
3.8
7.1
39.4
130.03
29.12
31.45
14.65
9.58
8.33
-
22.40
24.14
11.27
7.37
6.40
3.52
7.88
5.46
6.24
3.6
-0.86
165.2
37.22
37.07
20.26
14.69
8.56
-
22.53
22.44
12.26
8.89
5.18
184.4
43.2
41.0
22.7
16.9
9.13
-
23.43
22.23
2.31
9.16
4.95

Source: Oil Palm Industry Economic Journal. Vol 5(2)/2005

Together with the expected growth in the global consumption in palm oil fuelled by an increasing demand, prices for palm oil are also expected to rise substantially.

Oil Palm Industry Economic

Source: Oil Palm Industry Economic Journal. Vol 9(2)/2009

Looking further into future, compared to levels in 2000, the worldwide demand for palm oil is expected to double by 2030 and triple by 2050.