PUBLISHER: QYResearch | PRODUCT CODE: 1862154
PUBLISHER: QYResearch | PRODUCT CODE: 1862154
The global market for Palm Fatty Acid Distillate (PFAD) was estimated to be worth US$ 3494 million in 2024 and is forecast to a readjusted size of US$ 4676 million by 2031 with a CAGR of 4.2% during the forecast period 2025-2031.
This report provides a comprehensive assessment of recent tariff adjustments and international strategic countermeasures on Palm Fatty Acid Distillate (PFAD) cross-border industrial footprints, capital allocation patterns, regional economic interdependencies, and supply chain reconfigurations.
Palm Fatty Acid Distillate (PFAD) is a by-product obtained during the physical refining of crude palm oil. It is rich in free fatty acids (mainly palmitic acid), along with minor amounts of glycerides, sterols, and tocopherols. PFAD is a versatile raw material used in multiple industries, including oleochemicals (soap, detergents, and surfactants), biodiesel production, animal feed, and even niche applications in rubber processing and waxes. Its economic attractiveness lies in being a cost-effective feedstock compared to refined oils, making it particularly valuable in industries where price competitiveness and sustainability are crucial.
Global sales of Palm Fatty Acid Distillate (PFAD) reached nearly 4 million metric tons in 2024, with an average ex-factory price of approximately $880 per metric ton.
Regional Market Analysis
Asia-Pacific dominates the PFAD market, primarily due to the strong production base of palm oil in Malaysia and Indonesia, which collectively account for more than 80% of global supply. In this region, PFAD is extensively utilized in the oleochemical sector and as a feedstock for biodiesel, especially in Indonesia, where the government enforces ambitious biodiesel blending mandates (B35 and beyond). China and India are major importers, driven by demand from soap and detergent manufacturing, as well as for industrial fatty acid derivatives. Additionally, the push toward sustainable biofuels in Southeast Asia has expanded the role of PFAD as a cost-efficient biodiesel raw material.
Europe's PFAD demand is mainly tied to biodiesel production, with PFAD classified as a waste/residue feedstock under the EU's Renewable Energy Directive (RED II), which grants favorable greenhouse gas (GHG) reduction credits. Countries such as Germany, the Netherlands, and Spain use PFAD-based biodiesel to meet renewable energy targets, thereby creating steady demand. However, the market is influenced by regulatory debates regarding indirect land use change (ILUC) and sustainability concerns, which may affect PFAD imports from Asia in the longer term.
In North America, PFAD consumption is relatively smaller but growing, mainly in biodiesel and oleochemical applications. The U.S. and Canada are focusing on low-carbon fuel standards and renewable diesel expansion, which may increase the attractiveness of PFAD as a feedstock. However, competition with other waste-based oils (e.g., used cooking oil, tallow) and stricter sustainability certification requirements may limit its growth compared to Europe and Asia.
The Middle East is gradually expanding PFAD imports for both biodiesel blending and soap industries, particularly in Gulf countries where local manufacturing of detergents and oleochemicals is increasing. Africa, on the other hand, has a relatively smaller but emerging market, with PFAD used in animal feed and basic soap production. Market expansion is likely as industrialization and demand for affordable raw materials increase.
Latin America, especially Brazil, is witnessing rising biodiesel demand, and PFAD is becoming an alternative feedstock to soybean oil in biodiesel blending. The region's oleochemical industry is smaller compared to Asia, but PFAD is being increasingly adopted in low-cost soap manufacturing and biofuel supply chains.
This report aims to provide a comprehensive presentation of the global market for Palm Fatty Acid Distillate (PFAD), focusing on the total sales volume, sales revenue, price, key companies market share and ranking, together with an analysis of Palm Fatty Acid Distillate (PFAD) by region & country, by Type, and by Application.
The Palm Fatty Acid Distillate (PFAD) market size, estimations, and forecasts are provided in terms of sales volume (Kiloton) and sales revenue ($ millions), considering 2024 as the base year, with history and forecast data for the period from 2020 to 2031. With both quantitative and qualitative analysis, to help readers develop business/growth strategies, assess the market competitive situation, analyze their position in the current marketplace, and make informed business decisions regarding Palm Fatty Acid Distillate (PFAD).
Market Segmentation
By Company
Segment by Type
Segment by Application
By Region
Chapter Outline
Chapter 1: Introduces the report scope of the report, global total market size (value, volume and price). This chapter also provides the market dynamics, latest developments of the market, the driving factors and restrictive factors of the market, the challenges and risks faced by manufacturers in the industry, and the analysis of relevant policies in the industry.
Chapter 2: Detailed analysis of Palm Fatty Acid Distillate (PFAD) manufacturers competitive landscape, price, sales and revenue market share, latest development plan, merger, and acquisition information, etc.
Chapter 3: Provides the analysis of various market segments by Type, covering the market size and development potential of each market segment, to help readers find the blue ocean market in different market segments.
Chapter 4: Provides the analysis of various market segments by Application, covering the market size and development potential of each market segment, to help readers find the blue ocean market in different downstream markets.
Chapter 5: Sales, revenue of Palm Fatty Acid Distillate (PFAD) in regional level. It provides a quantitative analysis of the market size and development potential of each region and introduces the market development, future development prospects, market space, and market size of each country in the world.
Chapter 6: Sales, revenue of Palm Fatty Acid Distillate (PFAD) in country level. It provides sigmate data by Type, and by Application for each country/region.
Chapter 7: Provides profiles of key players, introducing the basic situation of the main companies in the market in detail, including product sales, revenue, price, gross margin, product introduction, recent development, etc.
Chapter 8: Analysis of industrial chain, including the upstream and downstream of the industry.
Chapter 9: Conclusion.