Palm oil could meet 60% of global vegetable oil demand by 2050

Palm oil could significantly strengthen its position in the global market over the coming decades. According to the Palm Oil Agribusiness Strategic Policy Institute (PASPI), it could account for around 60% of global vegetable oil demand by 2050.

Global vegetable oil demand is projected to reach around 300 mln tons by 2050, compared with production of 215.6 mln tons in 2025. Growth will be driven by a rising population and incomes, as well as the expanding use of vegetable oils not only in food but also in biomaterials, petrochemical substitutes and energy applications.

Oil palm currently occupies around 29 mln ha but accounts for 41.4% of global production of major vegetable oils. By comparison, soybeans cover 143.8 mln ha and contribute 32.8% of production, rapeseed 43.8 mln ha and 16.5%, and sunflower 29.5 mln ha and 9.3%.

PASPI expects further growth in soybean, rapeseed and sunflower oil production to become increasingly constrained by land availability and yield potential. Oil palm, meanwhile, has significantly higher productivity, which could be increased by another 50–100% through replanting, improved agricultural practices and technological innovation.

Indonesia could play a key role in meeting this future demand. The country is focusing primarily on raising productivity at existing plantations and replanting older trees, which could allow palm oil output to expand without a proportional increase in planted area.

Tags: Indonesia, palm oil, global market