InfoSAWIT, WASHINGTON, D.C. — After recording growth for three consecutive years, the palm oil market in the United States experienced a slight contraction in 2024, with consumption levels dropping to 1.6 million tons and market value corrected to US$1.6 billion. However, analysts assess that this decline is temporary, as long-term trends show a direction of continued positive growth.
Based on the latest projections, palm oil demand in the US is expected to increase steadily until 2035, with volume reaching 2.2 million tons and market value penetrating US$2.4 billion. The average annual growth rate (CAGR) is predicted at 2.6% for volume and 4.2% for market value.
Indonesia remains the main supplier, contributing 86% of total US imports or about 1.8 million tons in 2024. Meanwhile, US palm oil exports reached 137 thousand tons, with Canada as the main destination absorbing about 79% of total exports.
Quoted from InfoSAWIT from indexbox, Sunday (26/10/2025), the US palm oil market is dominated by processed products (refined palm oil) reaching 98% of total imports and 94% of exports. Average import prices were recorded at around US$995 per ton, while export prices were in the range of US$1,149 per ton.
Although consumption has weakened, demand from the food and bioenergy industries in the US continues to be the main driver for the palm oil market. The trend of substitution for other more expensive vegetable oils, as well as the increasing need for renewable energy raw materials, also provide optimism for industry players.
Several analysts assess that supply stability from Southeast Asia, especially from Indonesia and Malaysia, will be an important factor for the sustainability of the palm oil supply chain in the US market. On the other hand, increasing attention to sustainability issues and green certification is expected to influence the direction of US import policies in the future.
Thus, although 2024 marked an adjustment phase, the US palm oil market still shows strong fundamentals and has the potential to become one of the main destinations for the global palm oil industry's expansion in the coming decade. (T2)
