Sustainable Palm Oil - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026 - 2031)

According to Mordor Intelligence, the sustainable palm oil market size was valued at USD 18.21 billion in 2025 and estimated to grow from USD 19.24 billion in 2026 to reach USD 23.42 billion by 2031, at a CAGR of 6.32% during the forecast period from 2026 to 2031.

This report is Segmented by Nature (Conventional and Organic), Product Type (Palm Kernel Oil and Crude Palm Oil), End Use (Food and Beverages, Cosmetics and Personal Care, Biofuel and Energy, Pharmaceuticals, and More), and Geography (North America, Europe, Asia-Pacific, South America, and Middle East and Africa). The Market Forecasts are Provided in Terms of Value (USD) and Volume.

Global Sustainable Palm Oil Market Trends and Insights

Strengthening Corporate Commitments to Deforestation-Free Supply Chains

Procurement requirements are becoming a central source of demand for the Sustainable Palm Oil Market. Unilever reported that 97.00% of its palm oil, paper and board, tea, and soy purchase volumes were deforestation-free by the end of 2025 under its verification requirements. Procter & Gamble achieved 100.00% RSPO-certified palm oil in fiscal year 2024-25, with 88.00% supplied through the segregated model. These commitments make certification a standard purchasing condition for more suppliers rather than a specialist product feature. Walmart reported that suppliers identified 1.80 million acres as more sustainably managed through Project Gigaton in fiscal year 2025, which shows how retailer scorecards influence supplier practices. AAK published its first sustainability statement aligned with the Corporate Sustainability Reporting Directive in 2025, linking palm sourcing to formal company reporting.

Rising Demand for RSPO-Certified Palm Oil Across Food and Consumer Goods

Demand for RSPO-certified material continues to support the Sustainable Palm Oil Market in consumer products. RSPO reported certified sustainable palm oil production of 16.20 million metric tons in 2024, equal to 20.10% of total palm oil output, while uptake exceeded 90.00% in Europe and North America. Its 2026 Shared Responsibility update extended implementation to downstream businesses owned by non-grower members, increasing the number of entities expected to apply the requirements. This broadens certification from a brand-level decision to an operating requirement across related businesses. McDonald's reported 81.63% of its RSPO palm oil was physically certified in 2024 and continued to set out a plan for further improvement. China consumed 550,000 metric tons of certified sustainable palm oil in 2024, representing 11.70% of its total palm oil consumption, which indicates that demand is expanding beyond Western buyers

Higher Production and Certification Costs Compared to Conventional Palm Oil

Higher costs can limit the supply response of the Sustainable Palm Oil Market. BASF reported that certified palm and palm kernel oil represented 79.20% of its Care Chemicals volumes in 2025, down from 98.10% in 2024, and moved its 100.00% RSPO sourcing target from 2025 to 2030 because certified palm kernel oil was not sufficiently available. This shows that shortages can be specific to product grade and origin, not only total certified volume. Certification, audit, and traceability costs are harder to absorb in food and personal care categories where buyers face strong price pressure. Palm kernel oil is especially constrained because it is used in higher-value oleochemical, personal care, and specialty fat applications. Smallholders produce 35.00% to 40.00% of global palm oil, yet the cost of certification can exceed the income earned from a hectare in some cases IDH.ORG. This financing gap can slow the increase in certified supply even when downstream demand remains firm.

Other drivers and restraints analyzed in the detailed report include:

1. Growing Regulatory Support for Sustainable Agricultural Commodities
2. Higher Adoption of Traceability and Supply Chain Transparency Technologies
3. Low Adoption of Sustainability Certification Among Independent Smallholders

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

Conventional certified palm oil held 85.23% of the Sustainable Palm Oil Market share in 2025. It supplies the high volumes required by food producers, personal care companies, and oleochemical processors using mass balance and segregated sourcing models. The segment benefits from established RSPO procedures that can be applied across large supplier networks. RSPO's revised 2025 Certification Systems for Principles and Criteria became effective in May 2026 and updated audit requirements for certified conventional supply. Conventional material remains the practical route for buyers that need large, regular volumes with documented chain-of-custody controls.

Organic palm oil is projected to grow at a 7.89% CAGR from 2026 to 2031. Specialty food retailers, natural personal care brands, and health-focused food service operators use organic certification alongside RSPO certification to address concerns over agrochemical use. IOI Corporation reported 1,128 hectares of organic palm oil cultivation in its fiscal year 2025 presentation. Organic yields per hectare are typically 20.00% to 30.00% lower than conventional intensive cultivation. Growth therefore depends on yield improvements that remain compatible with organic practices, since expanding land area conflicts with deforestation commitments.

Complete Report Scope:

• Nature
  • Conventional
  • Organic
• Product Type
  • Palm Kernal Oil
  • Crude Palm Oil
• End Use
  • Food and Beverages
    • Bakery and Confectionery
    • Margarine and Spreads
    • Ice Creams and Frozen Desserts
    • Snacks and Packaged Food
    • Others
  • Cosmetics and Personal Care
  • Biofuel and Energy
  • Pharmaceuticals
  • Animal Feed
  • Other Applications
• By Geography
  • North America
    • United States
    • Canada
    • Mexico
    • Rest of North America
  • Europe
    • Germany
    • United Kingdom
    • France
    • Italy
    • Spain
    • Netherlands
    • Sweden
    • Poland
    • Belgium
    • Rest of Europe
  • Asia-Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • Vietnam
    • Indonesia
    • Thailand
    • Singapore
    • Rest of Asia-Pacific
  • South America
    • Brazil
    • Argentina
    • Chile
    • Peru
    • Colombia
    • Rest of South America
  • Middle East and Africa
    • United Arab Emirates
    • Saudi Arabia
    • South Africa
    • Nigeria
    • Egypt
    • Morocco
    • Turkey
    • Rest of Middle East and Africa

Geography Analysis

North America held 42.18% of the Sustainable Palm Oil Market share in 2025. Its position reflects early adoption of RSPO sourcing, concentrated purchasing by multinational food and personal care companies, and reliance on producers to provide origin-level records. RSPO reported certified sustainable palm oil uptake above 90.00% in North America and noted that Canada had 120 RSPO members in 2026. Walmart's commodities program and company plans from consumer goods manufacturers create voluntary standards that smaller brands often follow. United States food companies are shifting from mass balance supply toward segregated and identity-preserved material, which raises verification requirements for suppliers.

Asia-Pacific is forecast to grow at a 7.82% CAGR from 2026 to 2031. China consumed 550,000 metric tons of certified sustainable palm oil in 2024, equivalent to 11.70% of its total palm oil consumption. Malaysia reported that 90.00% of estates and 85.00% of private smallholders had MSPO certification by February 2026. The Sustainable Palm Oil Market size in the region benefits from producer investment in certification and traceability systems. In June 2026, 2,266 independent smallholders in Jambi achieved dual RSPO and ISPO certification across 4,171.62 hectares.

Europe faces a major change as EUDR requirements apply from December 30, 2026, for large operators. Germany, the Netherlands, France, and the United Kingdom retain major trading and processing activity, making documentation requirements important across their supply networks. The European Commission's 2026 simplification package reduced estimated annual administrative costs by 75.00% but did not remove the deforestation-free requirement. South America is an emerging certified supplier region with 1.84 million metric tons of certified production in 2024, while the Middle East and Africa have limited penetration but growing certified area in Cote d'Ivoire, Ghana, Nigeria, and Cameroon for European demand.

1. Wilmar International Limited
2. Sime Darby Plantation Berhad
3. Musim Mas Holdings
4. Golden Agri-Resources Ltd
5. IOI Corporation Berhad
6. Kuala Lumpur Kepong Berhad
7. Archer Daniels Midland Company
8. Cargill, Incorporated
9. United Plantations Berhad
10. Kulim (Malaysia) Berhad
11. PT Sampoerna Agro Tbk
12. Asian Agri
13. Agropalma S.A.
14. New Britain Palm Oil Limited
15. Univanich Palm Oil Public Company Limited
16. PT Bakrie Sumatera Plantations Tbk
17. AAK AB
18. BASF SE
19. Fuji Oil Holdings Inc.
20. Clariant AG

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support