Palm oil industry worldwide - statistics & facts
Indonesia and Malaysia are the largest palm oil suppliers, collectively accounting for over 85 percent of the global production. Indonesia had, by far, the largest palm oil land usage in the world. It is the only country that has significantly increased the size of its palm oil forestry, which grew by almost 650 percent between 2000 to 2023.
Indonesia has increased efforts to have certified sustainable hectares of palm oil plantations, where plantations follow specific social and environmental standards. However, certified palm oil production is still only a small portion of the palm oil produced worldwide . As of January 2025, only 2.2 million hectares of the total palm oil production area in Indonesia was planted with oil palm trees that have a sustainability certification. In other regions such as Latin America, however, the certified sustainable palm oil (CSPO) share grew and represented a third of regional palm oil supply that year.
Leading palm oil suppliers
In recent years, worldwide production of palm oil has increased in volume to meet rising demand. Indonesia is the leading producer of palm oil, recording 46.5 million metric tons of palm oil manufactured in 2024/2025. Malaysia, which produces the second-largest amount of palm oil, is headquarters to the majority of the leading palm oil companies. The European Union was Malaysia's most valuable export market for palm oil and palm-based products, followed by India and China.Rising palm oil demand and deforestation
Since 2016, the consumption of palm oil in Indonesia has increased gradually. Palm oil consumption in Indonesia is almost 20 million metric tons, which is significantly more than in any other country. Indonesia’s palm oil consumption has nearly tripled during the last decade. From 2005 to 2012, a correlation between deforestation and the expansion of palm oil plantations could be assumed due to the vast expansion of both private and commercial palm oil plantations.Indonesia has increased efforts to have certified sustainable hectares of palm oil plantations, where plantations follow specific social and environmental standards. However, certified palm oil production is still only a small portion of the palm oil produced worldwide . As of January 2025, only 2.2 million hectares of the total palm oil production area in Indonesia was planted with oil palm trees that have a sustainability certification. In other regions such as Latin America, however, the certified sustainable palm oil (CSPO) share grew and represented a third of regional palm oil supply that year.
