Introduction
In 2025, the global demand for palm oil continues to rise, driven by various industries such as food, cosmetics, and biofuels. Palm oil is a versatile and cost-effective oil used in a wide range of products, making it one of the most widely produced and consumed vegetable oils in the world. This report will focus on the top 10 palm oil producing countries in the world in 2025, highlighting their production volumes, industry insights, and key players in the market.
1. Indonesia
Production Volume
Indonesia maintains its position as the largest producer of palm oil in the world in 2025. The country’s tropical climate and vast land area make it an ideal location for palm oil cultivation. In 2025, Indonesia is expected to produce over 42 million metric tons of palm oil, accounting for a significant portion of the global supply.
Industry Insights
The palm oil industry in Indonesia is dominated by large plantations owned by both local companies and multinational corporations. Some of the key players in the Indonesian palm oil market include Wilmar International, Sime Darby Plantation, and Golden Agri-Resources. These companies have invested heavily in research and development to improve productivity and sustainability in the industry.
2. Malaysia
Production Volume
Malaysia is the second-largest producer of palm oil in the world, with an estimated production volume of over 19 million metric tons in 2025. The country’s well-established infrastructure and efficient supply chain contribute to its strong position in the global palm oil market.
Industry Insights
The palm oil industry in Malaysia is characterized by smallholder farmers as well as large plantation companies. Some of the major players in the Malaysian palm oil market include IOI Corporation, Kuala Lumpur Kepong, and FGV Holdings. These companies have implemented sustainable practices to meet the growing demand for responsibly sourced palm oil.
3. Thailand
Production Volume
Thailand is the third-largest producer of palm oil in the world, with a production volume of approximately 3 million metric tons in 2025. The country’s palm oil industry has experienced steady growth in recent years, driven by increasing domestic and international demand.
Industry Insights
The palm oil industry in Thailand is primarily dominated by smallholder farmers, with some large plantation companies also operating in the market. Companies like Thai Union Group and Charoen Pokphand Foods have invested in sustainable palm oil production practices to meet consumer preferences for environmentally friendly products.
4. Nigeria
Production Volume
Nigeria is the fourth-largest producer of palm oil in the world, with a production volume of around 2.5 million metric tons in 2025. The country’s abundant natural resources and growing agricultural sector have contributed to the expansion of its palm oil industry.
Industry Insights
The palm oil industry in Nigeria is characterized by a mix of smallholder farmers and large plantation companies. Companies like Okomu Oil Palm and Presco have made significant investments in increasing productivity and sustainability in the sector. The Nigerian government has also implemented policies to support the growth of the palm oil industry.
5. Colombia
Production Volume
Colombia is the fifth-largest producer of palm oil in the world, with a production volume of approximately 1.5 million metric tons in 2025. The country’s favorable climate and fertile soil make it an attractive location for palm oil cultivation.
Industry Insights
The palm oil industry in Colombia is dominated by large plantation companies, with companies like Grupo Aval and Daabon Group leading the market. These companies have implemented sustainable practices to minimize the environmental impact of palm oil production and meet the growing demand for responsibly sourced palm oil.
6. Papua New Guinea
Production Volume
Papua New Guinea is the sixth-largest producer of palm oil in the world, with a production volume of around 1 million metric tons in 2025. The country’s rich biodiversity and favorable climate have attracted investments in the palm oil sector.
Industry Insights
The palm oil industry in Papua New Guinea is characterized by a mix of smallholder farmers and large plantation companies. Companies like New Britain Palm Oil and Hargy Oil Palms have invested in sustainable practices to enhance productivity and minimize environmental impact.
7. Ecuador
Production Volume
Ecuador is the seventh-largest producer of palm oil in the world, with a production volume of approximately 800,000 metric tons in 2025. The country’s palm oil industry has seen significant growth in recent years, driven by increasing demand for palm oil products.
Industry Insights
The palm oil industry in Ecuador is dominated by smallholder farmers, with some large plantation companies also operating in the market. Companies like Agropalma and Agroaceite have implemented sustainable practices to meet consumer preferences for environmentally friendly palm oil products.
8. Guatemala
Production Volume
Guatemala is the eighth-largest producer of palm oil in the world, with a production volume of around 700,000 metric tons in 2025. The country’s palm oil industry has experienced steady growth, driven by increasing investments in agricultural infrastructure.
Industry Insights
The palm oil industry in Guatemala is characterized by a mix of smallholder farmers and large plantation companies. Companies like Agroaceite and Palmas del Ixcan have implemented sustainable practices to improve productivity and minimize environmental impact in the sector.
9. Honduras
Production Volume
Honduras is the ninth-largest producer of palm oil in the world, with a production volume of approximately 600,000 metric tons in 2025. The country’s palm oil industry has seen steady growth, driven by increasing demand for palm oil products.
Industry Insights
The palm oil industry in Honduras is dominated by smallholder farmers, with some large plantation companies also operating in the market. Companies like Dinant Corporation and Grupo Jaremar have made investments in sustainable palm oil production practices to meet consumer preferences for responsibly sourced products.
10. Brazil
Production Volume
Brazil is the tenth-largest producer of palm oil in the world, with a production volume of around 500,000 metric tons in 2025. The country’s palm oil industry has seen growth in recent years, driven by increasing investments in agricultural technology.
Industry Insights
The palm oil industry in Brazil is characterized by large plantation companies, with companies like Agropalma and Biopalma leading the market. These companies have implemented sustainable practices to enhance productivity and minimize environmental impact in the sector.
In conclusion, the top 10 palm oil producing countries in the world in 2025 play a significant role in meeting the global demand for palm oil. These countries have made investments in sustainable practices to ensure the responsible production of palm oil products for various industries. The industry continues to evolve, driven by consumer preferences for environmentally friendly products and the need for increased productivity and efficiency in palm oil cultivation.
