Palm oil, which is extracted from the fruits of palm trees, has been one of the major edible oils consumed worldwide. It is the dominant oil category in the worldwide vegetable oil market in terms of both production and consumption. Largest production of the palm oil, among all types of vegetable oils can be attributed to the fact that palm oil offers the highest yield among all other vegetable oils, and thereby provides high profitability. It has been found that palm oil provides maximum land efficiency, and thereby despite having the minimal amount of land under oil palm plantation worldwide, its production is largest among the other competing oils. Its dominance in the consumption patterns is a result of its cheap prices, which makes it highly affordable.

The land under palm oil plantations had been on a rise for the past years, which resulted in an increase in the palm oil production. Also, a continuous increase in the oil palm yield due to the increased investments in the research and developmental activities have contributed to the increase in production.

The overall palm oil market relies on two countries, Indonesia and Malaysia, for the worldwide production, as the two regions account for more than 85% of the worldwide production. On the other hand, India, Indonesia and China are among the major consumers of palm oil worldwide. Since the palm oil consuming regions do not have much shares in the palm oil production, therefore much of their requirements are met through imports from the major palm oil producing regions.

It has been estimated that the growth prospects of palm oil in Malaysia are likely to decline in the coming years from a combination of scarce land availability and an aging national tree population and thereby a declining yield growth. On the other hand, since Indonesia has excellent future growth prospects with a predominantly young tree population, increasing yields, and expanding acreage, the production of palm oil in the region is expected to further increase in the coming years.

Presently, around 80% of the global palm oil output is used by the food sector. However, its consumption in non-food areas is increasingly becoming important, that is contributing to the demand as well as higher prices for palm oil worldwide. Usage in soaps, detergents and surfactants, cosmetics, pharmaceuticals, nutraceuticals and some household and industrial products has been growing because of the move away from petroleum-based products. Biofuels remain one of the important drivers for the increasing consumption of the palm oil in the coming years. The increasing demand of palm oil from the emerging countries is also expected to contribute to the palm oil industry in future.

The report analyzes the global palm oil industry, its production, consumption, imports, exports as well as the prices. It extensively covers the palm oil market in the two major producing regions, Malaysia and Indonesia; as well as the two major consuming regions, India and China. The report discusses the major drivers and key issues related to the palm oil industry. The four major players in the palm oil industry include Wilmar International, Sime Darby, IOI International, and PT Astra Agro. All these players have been profiled in the report, along with their financials and strategies for growth.

By combining SPSS Inc.’s data integration and analysis capabilities with our relevant findings, we have predicted the future growth of the industry. We employed various significant variables that have an impact on this industry and created regression models with SPSS Base to determine the future direction of the industry. Before deploying the regression model, the relationship between several independent or predictor variables and the dependent variable was analyzed using standard SPSS output, including charts, tables and tests.

1. Palm Oil

1.1 An Introduction
1.2 Palm Oil – Supply Chain Analysis

2. Palm Oil Market

2.1 Global Vegetable Oil Market

Production Growth
Consumption Growth
Product Segments

2.2 Oil Palm Fruit Production

Production Growth
Fruit Yield

2.3 Global Palm Oil Market

2.3.1 Production

Production Growth
Geographic Breakdown

2.3.2 Consumption

Consumption Growth
Geographic Breakdown

2.3.3 Imports and Exports

Imports by Country
Exports by Country

2.3.4 Price Trend

3. Major Palm Oil Producing Regions

3.1 Indonesia Palm Oil Market

Production Growth
Consumption Growth
Exports
Area Harvested

3.2 Malaysia Palm Oil Market

Production Growth
Production by State
Price Trend
Exports
Imports

4. Major Palm Oil Consuming Regions

4.1 India Palm Oil Market

Consumption
Imports

4.2 China Palm Oil Market

Consumption
Imports

5. Market Drivers

5.1 Increasing Biofuel Production
5.2 Emerging Nations–Offering Huge Potential for Growth
5.3 High Yields Compared to Other Vegetable Oils
5.4 Most Affordable among other Vegetable Oils
5.5 Population Growth

6. Industry Related Issues

6.1 Yield Gaps
6.2 Biodiversity concerns
6.3 Climate change

7. Competitive Landscape

Competitive Overview
Comparison of Market Leaders

8. Company Profiles

8.1 Wilmar International

Business Description
Key Financials
Business Strategies
Expansion through Acquisitions
Strategy for Palm Oil Business

8.2 PT Astra Agro Lestari Tbk

Business Description
Key Financials
Business Strategies

8.3 IOI Corporation Berhad

Business Description
Key Financials
Business Strategies
Increasing Plantation Productivity
Commitment to Quality

8.4 Sime Darby

Business Description
Key Financials
Business Strategies
Focus on Research & Development
Providing Full Spectrum of Palm Oil Value Chain

9. Market Outlook

9.1 Market Forecast
9.2 Forecast Methodology
9.2.1 Dependent and Independent Variables
9.2.2 Correlation Analysis
9.2.3 Regression Analysis

List of Charts

Palm Oil Mill Process: Residue Utilization
Production Process of Fresh Fruit Bunches (FFB)
Crude Palm Oil Production Process
Vegetable Oil Production Worldwide (MY08-MY11)
Global Vegetable Oil Production – Volume Share by Type of Oil (2010/2011)
Vegetable Oil Consumption Worldwide (MY08-MY11)
Global Vegetable Oil Consumption – Volume Share by Type of Oil (2010/2011)
Area Harvested for Oil Palm Fruit Worldwide (2002-2009)
Oil Palm Fruit Production Volume Worldwide (2002-2009)
Oil Palm Fruit Yield (2002-2009)
Global Palm Oil Production (MY08-MY11)
Global Palm Oil Production – Volume Share by Country (2010/2011)
Global Palm Oil Consumption (MY08-MY11)
Global Palm Oil Consumption – Volume Share by Country (2010/2011)
Malaysian Palm Oil Futures - Price Index
Indonesian Agricultural Production – Share by Commodity (2009)
Indonesian Oil Palm Area (MY06/MY11)
Area for Oil Palm Cultivation in Indonesia – by Type (2010/2011)
Indonesian Oil Palm Age Profile (2010)
Indonesian Oil Palm Plantation – by Ownership (2012E)
Indonesian Palm Oil Production (MY08-MY11)
Palm Oil Yield in Indonesia (MY08-MY11E)
Palm Oil Consumption in Indonesia (MY08-MY11)
Palm Oil Exports from Indonesia to Rest of the World (MY08-MY11)
Area under Oil Palm Cultivation in Malaysia (2000-2020)
Malaysian Palm Oil Production (2002-2010)
Malaysian Palm Oil Exports – by Volume and Value (2008-2010)
Malaysian Palm Oil Imports – by Volume (2006-2010)
Malaysian Local Delivered Palm Oil Prices (2009-2010)
Oil Consumption in India – Volume Share by Type of Oil (2007-2011E)
Palm Oil Consumption in India (MY08-MY11)
Palm Oil Imports in India (MY08-MY11)
Oil consumption in China – by Type of Oil (MY07-MY10)
Palm Oil Consumption in China (MY08-MY11)
Palm Oil Imports in China (MY08-MY11)
Biofuel Production Worldwide (2005-2012E)
Share of Inputs in Global Bio-diesel Production (2010E)
Per Capita Edible Oil Consumption – by Country (2010)
Palm Oil Consumption in Emerging Countries – Share by Countries (2010/2011)
Global Planted Area for Vegetable Oils – Share by Type of Oil (2010)
Global Vegetable Oil Production – Share by Type of Oil (2010)
Oil Yield (in tonnes) Oils per Hectare (2010)
Oil Content in Fruit and Seeds
Comparison of Major Vegetable Oil Prices (Nov’10-Oct’11)
Global Population Growth (1960-2050)
Worldwide Population (2001-2010)
Major Players in Global Palm Oil Industry – by Market Capitalization
Oil Palm Planted Area – by Major Companies
Wilmar International Revenue (FY06-FY10)
Wilmar International Revenue – Share by Segments (FY10)
PT Astra Agro Revenue (2006-2010)
PT Astra Agro Revenue – Share by Segments (2010)
IOI Corporation Revenue (FY07-FY11)
IOI Corporation Revenue – Share by Segments (FY11)
Sime Darby Revenue (FY07-FY11)
Sime Darby Revenue – Share by Segments (FY11)
Global Palm Oil Consumption Forecast - by Volume (MY11-MY15E)

List of Tables

Palm Oil Imports-by Country (MY08-MY11)
Palm Oil Exports-by Country (MY08-MY11)
Oil Palm Area in Malaysia – by Type and State (2010)
FFB (fresh fruit bunches) Yield in Malaysia-by States (2009-2010)
Crude Palm Oil Yield in Malaysia-by States (2007-2010)
Dependent & Independent Variables (2003– 2009)
Correlation Matrix
Model Summary – Coefficient of Determination
Regression Coefficients Output