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Palm Acid Oil Market Driving Factor Is Increasing Demand In Cosmetics And Personal Care Products


Palm Acid Oil (PAO) is distilled fatty acid used for bio-diesel feedstock, animal feeds, and soap making and is derived from Palm Oil Mill Effluent (POME). PAO is a by-product of palm oil derived from chemical refining and consists of FFA (over 50%) and neutral oil, with 2-3% moisture. It has similar properties to palm fatty acid distillate (PFAD), but its FFA is generally lower.

Europe manufactures palm acid oil on a large scale. In contrast, in APAC countries like Malaysia and Indonesia, palm oil manufacturers get the PFAD instead of the PAO since it is physically processed in the region. Palm Oil Mill Effluent (POME) is the most abundant waste by-product during CPO production. For each ton of CPO made, 2.9 tons of POME is created. POME is produced from large quantities of steam and hot water recycled to clean the fruit. The POME residue is collected on the mill floor from water that is directed from waste ponds. The produced POME consists of 95% to 97% water and 3% to 5% of palm acid oil. The PAO is processed and extracted from the POME, and the palm acid oil residue is brought into the market and sold as a feedstock to produce second-generation biofuels.

Global Palm Acid Oil Market Revenue Outlook:

The global palm acid oil market is valued at US$ 1.4 Bn in 2020 and is projected to register а САGR of close to 6% by 2031.

Palm acid oil is a by-product obtained from the alkaline refining of palm oil, which is widely used for making laundry soaps. Rising consumer demand for laundry detergent and soaps is a factor driving the growth of the target market. Furthermore, increasing demand for palm acid oil in cosmetics and personal care products drives the development of the target market over the forecast period. Growing population, rapid urbanization, rising awareness of personal grooming and hygiene, and high spending capacity of consumers are some of the factors expected to augment the growth of the target market. Increasing research and development for producing new and innovative products is among some significant factors anticipated to drive the growth of the target market.

Biodiesel production is increasing and replacing traditional fossil fuels, which is expected to augment the demand for palm acid oil across the globe. Palm acid oil is a potential and valuable ingredient required for biodiesel production as it is a low-cost feedstock. In addition, palm acid oil is used for making calcium soaps for animal feeds formulation, which increases the energy intake of animals. Palm acid oil produces many positive effects of an energy supplement of animal feed. Animal husbandry is proliferating, and many regions depend on animal husbandry for their livelihood as it plays an essential role in the rural economy. This is another factor expected to drive the growth of the global palm acid oil market.

Regional Analysis:

Asia-Pacific is anticipated to hold a significant share of the global palm acid oil market. The region is also expected to register the highest growth rates over the forecast period. Growing animal feed and biofuel production activities in developed and developing economies in the region such as Japan, South Korea, China, India, etc., are expected to increase demand for palm acid oil. Robust growth of the cosmetics industry in China, Japan, and India is also likely to provide lucrative opportunities for the development of the market.

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Competitive Landscape:

The palm acid oil market landscape appears highly fragmented, with a significant chunk of it being dominated by players in South-Asian countries.

Verasuwan Company Limited
Future Prelude Sdn Bhd
T. Energy Feeds Indonesia
Raasi Foods
PT Anugrah Multi Sawita
Tanimas Group
Union Group
Hade Energia Globale
Kurnia Sari Utama
Other Key Players

Report Scope

Forecast Period: 2022-2031
Actual Year: 2021
Historical Data Available for: 2015-2020

Key Regions Covered

North America
Asia Pacific
Latin America
Middle East & Africa

Key Segments Covered

Palm Acid Oil Market, By Type

PAO Yellowish
PAO Brownish

Palm Acid Oil Market, By Application

Animal Feed
Other Applications