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Why Is Palm Oil Important?

Why Is Palm Oil Important?

Palm oil accounts for approximately 35% of the world's vegetable oil market. Here are some of the reasons why:


  • Palm oil trees are harvested all year round.

  • Oil palm tress produce on average 10MT of fruit/hectare - far more efficient as compared to soya, rapeseed and sunflower crops.

  • Hence, oil palm requires on average 10 times less land as compared to other types of vegetable oil crops

  • In addition to palm oil, palm kernel oil and palm kernel expeller/cake are also produced from the fresh fruit bunches.

  • Palm kernel expeller is used in the energy and animal feed sector while palm kernel oil is widely used in the personal care market.

  • Here are 2 infographics from Green Palm:

Average vegetable oil yields per ha per year
2015 global edible oils and fat production


  • Palm oil is a very versatile vegetable oil.

  • Palm oil, palm kernel oil has different melting points and characteristics. Hence, they can be processed to produce a wide variety of products in various industries.

Help To Feed A Global Population

  • It is expected that the global population will reach around 9 billion by 2050.

  • Due to palm oil being the most efficient vegetable oil crop available, it is crucial in helping to feeding a growing number of people

Providing Livelihoods

  • Many people depend on palm oil for their livelihoods.

  • Oil palm smallholders are some of the poorest farmers and they earn money from growing oil palm trees.

Supporting Economies

  • The palm oil industry forms the backbone of countries such as Malaysia and Indonesia.

  • Palm oil accounts for 11% of Indonesia's export earnings - one third of this production is attributed to smallholder farmers.

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