Switching of Preferences from Fossil Fuels to Bio Fuels to Drive Malaysia Palm Oil Industry: Ken Research

Malaysia is one of the largest players in the production and exports of palm oil worldwide. The multi-utility of palm oil and the favorable climate of Malaysia supporting the cultivation of palm oil have worked as a stimulator for palm oil production in Malaysia. Malaysia palm oil industry witnessed a decline of 4.70% over the period 2008-2013 in terms of domestic consumption of palm oil. The leading factors which have been driving this industry are the demand for oils and fats, economic advantages of palm oil and the non food uses of palm oil like in oleo chemicals and bio fuels.

Palm oil planted area of Malaysia can be segmented into mature and immature. Mature oil palms are those which give the maximum palm oil yield. The immature palm oil planted area has witnessed a higher growth of 4.23% during the period 2008-2013 than mature palm oil planted area, which experienced a growth rate of 2.94%. The total palm oil planted area of Malaysia at increased at a CAGR of 3.11 during 2008-2013.

The rising awareness of environment preservation has led to countries switching from using fossil fuels to bio fuels which is a cleaner and renewable source of energy. The European Union also recently released a mandate stating its goals of reducing green house gas emissions by 20% by 2020 also increasing the use of renewable energy by 20% by 2020, thereby giving a boost to bio fuel production in Malaysia. The bio fuel production in Malaysia had increased at a CAGR of 12.35% during the period 2008-2013.

The Malaysia Pam Oil Industry is highly fragmented comprising of a large number of market players. But recently large numbers of palm oil companies are undertaking mergers and acquisitions on a large scale due to rising palm oil production costs. This in turn is leading to the consolidation of this industry.

Malaysia’s palm oil industry is the fourth largest contributor to the national economy and accounted for USD 16.7 billion to the Gross National Income in 2013. The industry covers the value chain from upstream plantations to downstream processing. The development is mainly private sector driven and remains heavily tilted towards upstream activities.

According to the research report “Malaysia Palm Oil Industry Outlook to 2018 – Demand for Biofuel to Drive Production” by Ken Research, the Malaysia palm oil industry would grow at a considerable CAGR thus reaching USD 2.1 billion in 2018 due to a major push from technological advancements, bio fuel production and mergers.

The report provides detailed overview on the palm oil industry of Malaysia and helps readers to identify the ongoing trends in the industry and anticipated growth in future depending upon changing industry dynamics in coming years. The report will help industry consultants, palm oil companies and other stakeholders to align their market centric strategies according to ongoing and expected trends in future.

Browse report with TOC- http://www.kenresearch.com/agriculture-food-beverages/food-industry-research-reports/malaysia-palm-oil-market-research-report/525-104.html

Download sample report here- http://goo.gl/CRbuX0

Contact Person-  Ankur Gupta

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