Covid-19 impact on UAE Palm Oil Market Size to surge at 9.9% CAGR is expected to reach $467.1 Million in 2025

The UAE palm oil market is expected to reach USD 467.1 million by 2025, according to a new report by Grand View Research, Inc. Growing health concerns regarding trans-fat consumption have driven consumer preference towards saturated fats, such as palm oil, that contain antioxidants and other nutrients.

Increasing demand for high-quality food products from tourists as well as local consumers has driven its demand. Its fractions and derivatives are also widely utilized as alternatives for expensive bakery fats and vegetable oils including groundnut, coconut & sunflower. Additionally, food & beverage processors are increasingly opting for the product owing to its high availability, lower cost & high yield in limited cultivation space.

Crude palm oil (CPO) emerged as the dominant product category in 2015 with over 90% market share. Volatile petroleum prices along with rising awareness regarding sustainable energy & raw material source have boosted the demand for inexpensive & sustainable oils. CPO has garnered high interest mainly in cooking (edible) applications owing to its flavor compatibility, nutritional content, and health benefits.

Cosmetics are expected to witness the highest growth rate of 10.4% CAGR among all applications. Strong consumer confidence & growing fashion & beauty consciousness, boosted by media exposure & Western influences have had a positive impact on the industry. The oil is used as an emollient, surfactant, moisturizer and other cosmetic agent owing to its high dermatological compatibility and low cost.

UAE palm oil market volume by product, 2014–2025 (Tons)

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Further key findings from the report suggest:

  • The UAE palm oil market exceeded 155 kilo tons in 2015 and is expected to grow at about 8.2% CAGR from 2016 to 2025
  • The shift in trend towards the production of high-quality oleochemicals is expected to generate lucrative opportunities for industry participants over the near future
  • The transition towards sustainable and renewable energy sources has significantly driven palm oil demand in biodiesel and bio-fuel applications since the biomass yields a high amount of energy even when processed in small quantities
  • Rapid expansion of the construction sector has also contributed to palm lubricants demand in heavy-equipment and machinery in residential as well as commercial applications
  • The palm stearin segment is anticipated to grow at a CAGR of 8.6% in terms of volume, owing to its enhanced functional characteristics that prove crucial to bakeries & confectionaries across the country
  • Other fractions & derivatives have also witnessed significant growth in recent years owing to the growing popularity of blended oils in the food sector
  • Key players including Abu Dhabi Vegetable Oil Co., FELDA IFFCO, United Foods Company, Amira Nature Foods Ltd., ACCL International, Nuhu General Trading LLC, AA Middle East FZE, HAS Commodities, and AJWA MIGOP among others

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