Palm Kernel Oil Prices

Palm Kernel Oil Prices December 2023

The price of palm kernel oil in the United States for Q4 2023 reached 898 USD/MT in December. The market across the region experiences a significant rise in prices on account of the restricted arrival of the product, substantially increasing demand, and trader disruption on account of the Red Sea dispute. A notable factor contributing to the price increases was the significant shortage in inventories, which led market participants to revise their pricing strategies to protect profit margins. Due to the heavy dependence of USA on importing Palm Kernel Oil from Malaysia, fluctuations in Malaysian provinces had a substantial impact on the international market of trading nations.

Palm Kernel Oil Price Trend, Market Analysis, and News

IMARC’s newly published report, titled “Palm Kernel Oil Pricing Report 2024: Price Trend, Chart, Market Analysis, News, Demand, Historical and Forecast Data,” offers an in-depth analysis of palm kernel oil pricing, covering an analysis of global and regional market trends and the critical factors driving these price movements.

It encompasses an in-depth review of spot price of palm kernel oil at major ports, a breakdown of prices including Ex Works, FOB, and CIF, alongside a region-wise dissection of palm kernel oil price trend across North America, Europe, Asia Pacific, Latin America, the Middle East and Africa.

The report examines the elements influencing palm kernel oil price fluctuations, such as changes in raw material costs, supply-demand dynamics, geopolitical factors, and industry-specific developments. Additionally, it integrates the latest market news, providing stakeholders with up-to-date information on market shifts, regulatory changes, and technological advancements, thereby offering a comprehensive overview that aids in strategic decision-making and forecasting.

Palm Kernel Oil Market Analysis

The global palm kernel oil market size reached US$ 15 Billion in 2023. By 2032, IMARC Group expects the market to reach US$ 21.7 Billion, at a projected CAGR of 4.10% during 2023-2032.

• The market for palm kernel oil is being heavily driven by the worldwide trend toward natural and organic products. As consumers are becoming more aware of the possible health dangers associated with synthetic compounds, they are seeking products that are produced from natural sources. The seeds of the oil palm tree, also known as Elaeis guineensis, are the source of palm kernel oil, which is abundant in lauric acid. Lauric acid is well-known for its antibacterial and moisturizing characteristics. It is utilized in the production of soaps, lotions, and creams due to these characteristics, thus making it a popular choice. According to a market research report published by GITNUX, the global natural and organic beauty market reached US$ 36.7 Billion by the year 2021. Other than this, palm kernel oil is a frequent ingredient in the creation of margarine, confectionary, and baked products. It is an excellent option for frying and cooking due to its high oxidative stability, which further increases the demand for it.
• Economic factors play a crucial role in the palm kernel oil market. When compared to other vegetable oils, such as coconut oil and soybean oil, palm kernel oil is a more economical choice. On account of its high yield per hectare and relatively cheap production costs, it is an appealing choice for producers that are aiming to maximize their profit margins. This makes it a staple ingredient in a variety of goods and enhances its economic viability. In addition to providing a steady source of income for farmers, the consistent output and economic efficiency of palm oil production also makes a substantial contribution to the economy of nations that produce palm oil.
• Palm kernel oil finds significant use in the pharmaceutical industry due to its unique properties and health benefits. Lauric acid is a medium-chain fatty acid that is renowned for its antibacterial, antiviral, and antifungal activities. The oil has a high concentration of lauric acid. On account of this, it is an important component in the production of a wide range of therapeutic and pharmaceutical goods. For instance, lauric acid is frequently used in the production of antimicrobial therapies, which contribute to the battle against infections and assist in improving the results for patients. According to the IMARC GROUP, the India pharmaceutical market reached US$ 54.6 Billion in 2023, and is expected to reach US$ 163.1 Billion by 2032, projecting a growth rate of 12.3% during 2024-2032. In addition, the pharmaceutical industry makes use of palm kernel oil in the manufacturing of excipients, which are chemicals that are not active but are utilized as carriers for the active components of a treatment. Due to its durability and compatibility with other components, the oil is an excellent option for the production of medicinal formulations that are reliable and efficient. It is able to give the essential consistency and stability for encapsulating liquid pharmaceuticals and supplements, therefore palm kernel oil is also utilized in the creation of capsule shells, particularly soft gels. This is on account of its capacity to provide the requisite consistency.

Palm Kernel Oil News

The report covers the latest developments, updates, and trends impacting the global palm kernel oil market, providing stakeholders with timely and relevant information. This segment covers a wide array of news items, including the inauguration of new production facilities, advancements in palm kernel oil production technologies, strategic market expansions by key industry players, and significant mergers and acquisitions that impact the palm kernel oil price trend.

Latest developments in the palm kernel oil industry:

• March 2024: Henkel AG & Co. KGaA is focusing on covering 100% of its demand with oils whose responsible sourcing is certified or externally confirmed by 2025. All palm and palm kernel oil used as a basis of the ingredients in their products should be derived from sustainably cultivated sources in line with the RSPO’s Mass Balance model. They are also aiming at sourcing selected palm oil and palm kernel oil-based materials where feasible and available according to the RSPO’s segregation model.

Product Description

Palm kernel oil is a type of vegetable oil derived from the seeds (kernels) of the oil palm tree, Elaeis guineensis. This oil is distinct from palm oil, which is extracted from the fruit's flesh of the same tree. Palm kernel oil is characterized by its high content of lauric acid, making it solid at room temperature and giving it a unique set of properties that make it valuable across various industries.

In terms of usage, palm kernel oil is incredibly versatile. In the food industry, it is commonly used in the production of margarine, confectioneries, and baked goods due to its stability and desirable texture. In the cosmetics and personal care sector, it is a key ingredient in soaps, lotions, and creams, due to its moisturizing and skin-conditioning properties. The pharmaceutical industry also utilizes palm kernel oil in the formulation of medicinal products, excipients, and topical treatments. Additionally, it is used in the production of biofuels, particularly biodiesel, contributing to renewable energy solutions.

Regional Coverage

The report provides a detailed analysis of the palm kernel oil market across different regions, each with unique pricing dynamics influenced by localized market conditions, supply chain intricacies, and geopolitical factors. This includes price trends, price forecast and supply and demand trends for each region, along with spot prices by major ports. The report also provides coverage of ex-works, FOB, and CIF prices, as well as the key factors influencing the palm kernel oil price trend.

Global Palm Kernel Oil Price

The report offers a holistic view of the global palm kernel oil pricing trends in the form of palm kernel oil price charts, reflecting the worldwide interplay of supply-demand balances, international trade policies, and overarching economic factors that shape the market on a macro level. This comprehensive analysis not only highlights current price of palm kernel oil but also provides insights into historical price trends, enabling stakeholders to understand past fluctuations and their underlying causes.

The report also delves into price forecast models, projecting future price movements based on a variety of indicators such as expected changes in supply chain dynamics, anticipated policy shifts, and emerging market trends. By examining these factors, the report equips industry participants with the necessary tools to make informed strategic decisions, manage risks, and capitalize on market opportunities. Furthermore, it includes a detailed palm kernel oil demand analysis, breaking down regional variations and identifying key drivers specific to each geographic market, thus offering a nuanced understanding of the global pricing landscape.

Europe Palm Kernel Oil Price

Palm Kernel Oil prices in the Europe region witnessed a rise during the first quarter of 2024. This rise was caused due to the limited increase in demand in confluence with restricted inventories among suppliers. Furthermore, these limited inventories were made worse by a slowdown in trade that This was due to a decreased supply of palm kernels and fruits, which further restricted the availability of products to the nations that imported goods, including Europe. In addition, the pace of imports was subject to ongoing interruptions, which had an effect on the supply of palm kernel oil throughout the area. Adding to the complexities was the situation in the Red Sea, which had an impact on shipments to nations in Africa, Europe, and the United States.

This analysis can be extended to include detailed palm kernel oil price information for a comprehensive list of countries.

North America Palm Kernel Oil Price

Palm kernel oil prices experienced a rise across the North American region due to a substantial increase in prices, on account of the restricted availability of the product, constant rise in the demand, and trader disruption due to the Red Sea dispute. In addition, the increased rates of container freight emerged as a key trigger contributing to the price spike, which had a particularly severe impact on companies that are dependent on marine transportation.

Specific palm kernel oil historical data within the United States and Canada can also be provided.

Middle East and Africa Palm Kernel Oil Price

The report explores the palm kernel oil pricing trends in the Middle East and Africa, considering factors like regional industrial growth, the availability of natural resources, and geopolitical tensions that uniquely influence market prices.

In addition to region-wise data, information on palm kernel oil prices for countries can also be provided.

Asia Pacific Palm Kernel Oil Price

Palm kernel oil prices in the Asia-Pacific region were impacted by a number of factors during the first quarter of 2024, with China being the main source of these price swings. The price hikes were driven by increased downstream purchases as well as restricted arrivals from major producing regions such as Malaysia during this time period. This tendency was further fueled by the higher levels of local spending as well as the devaluation of the Chinese Yuan in comparison to the United States Dollar. The flow of trade was momentarily disrupted by festive celebrations, which led to an exacerbation of supply-demand imbalances and a short halt in manufacturing operations and trading.

This palm kernel oil price analysis can be expanded to include a comprehensive list of countries within the region.

Latin America Palm Kernel Oil Price

The analysis of palm kernel oil prices in Latin America provides a detailed overview, reflecting the unique market dynamics in the region influenced by economic policies, industrial growth, and trade frameworks.

This comprehensive review can be extended to include specific countries within the region.

Report Coverage

Key Benefits for Stakeholders:

• IMARC’s report presents a detailed analysis of palm kernel oil pricing, covering global and regional trends, spot prices at key ports, and a breakdown of Ex Works, FOB, and CIF prices.
• The study examines factors affecting palm kernel oil price trend, including raw material costs, supply-demand shifts, geopolitical impacts, and industry developments, offering insights for informed decision-making.
• The competitive landscape review equips stakeholders with crucial insights into the latest market news, regulatory changes, and technological advancements, ensuring a well-rounded, strategic overview for forecasting and planning.
• IMARC offers various subscription options, including monthly, quarterly, and biannual updates, allowing clients to stay informed with the latest market trends, ongoing developments, and comprehensive market insights. The palm kernel oil price charts ensure our clients remain at the forefront of the industry.