The United Kingdom’s palm oil industry is entering a phase of steady and structured growth, supported by the rising adoption of sustainably certified oils, expanding applications across food, personal care, and bioenergy, and strong commitments toward ethical sourcing. According to the latest analysis the demand for palm oil in the UK is projected to grow from USD 3.42 billion in 2025 to approximately USD 4.45 billion by 2035, registering a CAGR of 2.6%.

During this period, the market is expected to record an absolute increase of USD 1.03 billion. The Crude Palm Oil (CPO) segment will hold significant importance and is projected to account for 48.7% of total UK palm oil demand in 2025.

Key Market Drivers

Sustainable and Certified Palm Oil Demand Accelerates

Growing consumer and corporate pressure for deforestation-free sourcing is transforming the UK palm oil landscape. Companies are increasingly shifting toward RSPO-certified and traceable supply chains, driven by retailer commitments and national sustainability frameworks. This transition is boosting premium palm oil imports and reinforcing the UK’s position as a leader in responsible sourcing.

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Expanding Use Across Food and FMCG Industries

Palm oil remains one of the most versatile vegetable oils used in the UK. Its stability, long shelf life, and formulation benefits support strong adoption in bakery products, confectionery, processed foods, spreads, and frying applications. FMCG manufacturers continue to rely on palm oil due to its cost efficiency and functional performance compared to alternatives.

Growing Application in Personal Care and Oleochemicals

The UK personal care and cosmetics industries are increasingly utilizing sustainably sourced palm oil derivatives—such as stearic acid and fatty alcohols—in soaps, shampoos, lotions, and detergents. Rising demand for natural and plant-based ingredients further boosts consumption across the oleochemical sector.

Bioenergy Sector Support and Renewable Initiatives

Palm-based biodiesel and bio-lubricants are gaining moderate traction in the UK’s renewable energy landscape. Though highly regulated, the bioenergy sector supports niche demand, especially for industrial applications and specialty fuels.

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Regional and Market Insights

Food Manufacturing: Primary Demand Hub

Food processors remain the leading consumers of palm oil in the UK, driven by the ingredient’s functionality, oxidative stability, and cost-effectiveness. Increased reformulation activities to eliminate trans fats further bolster market reliance on palm fractions and derivatives.

Retail and Consumer Packaged Goods: Rise in Sustainable Labels

The UK retail sector has experienced a surge in sustainably sourced palm oil labeling, with supermarkets promoting certified products across private-label and branded offerings. This supports transparency and strengthens consumer trust.

Industrial and Non-Food Applications

The UK’s chemical and industrial sectors use palm-based oleochemicals for adhesives, lubricants, surfactants, and coatings, contributing to steady baseline demand.

Market Segmentation Insights

By Product Type

• Crude Palm Oil (CPO) – Dominates with 48.7% share in 2025, driven by broad food-sector applications.
• Refined, Bleached, and Deodorized (RBD) Palm Oil – Extensively used in food and industrial processing.
• Palm Kernel Oil & Derivatives – Growing demand across personal care, detergents, and oleochemical industries.

By End Use

• Food Processing – Largest consumer for snacks, bakery goods, confectionery, and packaged foods.
• Personal Care & Cosmetics – Increasing use in soaps, creams, and natural formulations.
• Bioenergy & Industrial – Niche but steady growth in biodiesel and oleochemical applications.
• Retail/Household Consumption – Premium sustainable palm oil adoption gaining traction.

Key Market Challenges

• Sustainability & Deforestation Concerns: Persistent scrutiny demands high transparency and supplier accountability.
• Regulatory Compliance & Import Standards: Strict EU/UK environmental regulations challenge non-certified supply sources.
• Competition from Alternative Oils: Rising popularity of sunflower, rapeseed, and olive oil may create substitution pressures.
• Supply Chain Transparency Issues: Ensuring full traceability across global supply networks remains a priority for companies.

Competitive Landscape

The UK palm oil market is moderately consolidated, with companies focusing on sustainable certification, transparent sourcing, and product innovation. Major players emphasize partnerships with RSPO-certified suppliers and invest in traceability systems to meet evolving consumer expectations.

Prominent Market Participants Include:

• Sime Darby Oils
• Wilmar International
• Olam Agri
• Archer Daniels Midland (ADM)
• Cargill
• AAK UK
• Mewah International

These companies are actively strengthening supply reliability while supporting environmentally responsible production models.

Future Outlook: Toward Ethical, Sustainable, and High-Performance Palm Oil

The next decade will position the UK as a model for responsible palm oil sourcing. With strong regulatory support, growing corporate commitments, and heightened consumer awareness, palm oil will continue to play a critical role across food, personal care, and industrial markets.
Companies that emphasize sustainability, certification, innovative product development, and transparent supply chains will be best positioned to capitalize on the projected market expansion.