On June 16, 2015, FDA finalized its determination that partially hydrogenated oils (PHOs), the primary food manufacturing source of trans fats, are not “generally recognized as safe" (GRAS) for foods, giving food and beverages manufacturers three years to remove them entirely from food products. The intensifying glare of regulatory attention on trans fats already has spurred extensive reformulation in the food market, opening the door to more sustainable oil resources such as palm oil.
According to a new report from Grand View Research, the global palm oil market is expected reach $88 billion by 2022 driven mostly by consumer demand for healthier vegetable oils containing low trans fat and growing demand for biofuel alternatives and replacements for PHOs.
Data found palm oil demand was 74.01 million tons in 2014 and is expected to reach 128.2 million tons by 2022, growing at a continual annual growth rate of 7.3 percent from 2014 to 2022. Crude palm oil was the largest palm oil derivative and accounted for more than 75 percent of total market volume in 2014. Crude palm oil is widely used for cooking purposes. Additionally, the Asia Pacific region consumed the largest share of palm oil, accounting for more than 65% of total market volume in 2014. Low price of crude palm oil compared to its counterparts make it the most favorable cooking oil particularly in West Africa and Southeast Asia. Crude palm oil is also expected to witness the highest growth of 7.5 percent from 2015 to 2022.