In this article, we will discuss the 12 Biggest Palm Oil Companies In The World.
The palm oil industry has become a major global economic force in recent years, with production and consumption increasing rapidly. The industry has been particularly successful in Southeast Asia, where large-scale oil palm plantations have been established in countries such as Indonesia and Malaysia. These two countries are the largest producers of palm oil, accounting for around 84% of global production. Other major producing countries include Nigeria, Thailand, and Colombia.
According to Grand View Research, the global market for palm oil was valued at $67.3 billion in 2022 and is forecasted to grow at a CAGR of 5.1% from 2023 to 2030. As per Index Mundi, in 2022, Indonesia and Malaysia were the leading exporters of palm oil, while India, China, the EU, and Pakistan remained the leading importers. As you will find out, most companies in our list also have either Malaysian or Indonesian origins.
In the first half of 2022, the demand for palm oil witnessed a surge due to the ongoing Russia-Ukraine conflict. The fighting countries are two of the world’s largest producers of sunflower oil, and their conflict led to an abrupt global shortage of sunflower oil while increasing the global demand for its substitute i.e., palm oil. The Indonesian government had to ban the exports of palm oil in 2022 for a brief period to control the surging prices of domestic cooking oils.
Palm Oil Industry Outlook
For 2023, Fitch forecasts that palm oil demand will grow due to Indonesia’s decision to encourage the use of palm oil-based fuel in diesel. In January 2022, Indonesia’s President, Joko Widodo, stated that Indonesia and Malaysia would remain together and “strengthen cooperation through the council of palm oil producing countries”. This statement is widely viewed as a response to the European Union’s plans to phase out palm oil-based fuels by 2030 due to concerns about deforestation.
Environmental Concerns
While palm oil is a popular crop, its negative impact on the environment, particularly deforestation, has become more widely recognized. The establishment of palm oil plantations often leads to the clearing of forests, resulting in the loss of important wildlife habitats and carbon sinks. To address these concerns, the Roundtable on Sustainable Palm Oil (RSPO) was established in 2004. The RSPO is a multi-stakeholder initiative that sets standards for sustainable palm oil production and offers certification for companies that meet those standards. In recent years, the RSPO has seen a growth in the number of certified sustainable palm oil (CSPO) producers. As per RSPO’s 2021 Impact Report, the production and consumption of CSPO increased by 5.7% in 2021, with the total number of certified volumes increasing to 14.7 million metric tonnes. As you will see in the list, most of the companies included are also certified by RSPO.
Our Methodology
To come up with the 12 biggest palm oil companies in the world, we used stock screeners to identify the biggest publicly traded palm oil companies by market cap. For private companies, we browsed through industry research papers and other similar articles on the internet to identify the biggest private names. To estimate the market value of private companies, we have used a revenue multiple of 1x, which we believe is a fair multiple for the industry.
Biggest Palm Oil Companies In The World
12. Golden Agri-Resources Ltd (E5H.SI)
Market Cap as of March 2, 2023: $2.59 billion
Golden Agri-Resources Ltd (E5H.SI) is a Singaporean palm oil company. The company has a diversified portfolio of 30 consumer brands and maintains an operational presence in 12 countries. Its extensive global network is spread over 70 countries worldwide, encompassing regions including the USA, Europe, India, China, and the Middle East. With a landbank of 538,000 hectares of palm oil estate and 49 oil mills, the company is a major player in the palm oil industry.
In addition to Golden Agri-Resources Ltd (E5H.SI), Wilmar International Limited (F34.SI), Bunge Limited (NYSE:BG), and Cargill Incorporated are included in our list of 12 biggest palm oil companies in the world.
11. Posco International Corporation (047050.KS)
Market Cap as of March 2, 2023: $2.96 billion
Posco International Corporation (047050.KS) is a South Korean trading company. Its business portfolio encompasses the energy, steel, and agriculture sectors. The company operates large-scale oil palm plantations in Indonesia, from which it extracts crude palm oil, which is then marketed domestically in Indonesia or exported overseas. The company’s palm oil plantations in Papua, Indonesia, cover a total area of 34,000 hectares, with a maximum annual production capacity of 200,000 tons.
10. PT Indofood Sukses Makmur Tbk (INDF.JK)
Market Cap as of March 2, 2023: $3.61 billion
PT Indofood Sukses Makmur Tbk (INDF.JK) is an Indonesian company involved in the food and agribusiness industry. The company’s plantation division operates 250,615 hectares of oil palm estates across Indonesia, while its Edible Oil and Fats division operates five refineries with a total annual processing capacity of 1.7 million tonnes of crude palm oil. Around 81% of its edible oil is sold in Indonesia, while the rest is exported to countries across Asia, Africa, Middle East, and Australia.
9. Patanjali Foods Limited (PATANJALI.NS)
Market Cap as of March 2, 2023: $4.16 billion
Patanjali Foods Limited (PATANJALI.NS), formerly known as Ruchi Soya Industries Limited, is an Indian company that specializes in the production of edible oils. The company operates 22 manufacturing units, which have a cumulative refining capacity of over 11,000 tonnes per day, a seed crushing capacity of 11,000 tonnes per day, and a packaging capacity of 10,000 tonnes per day. Patanjali Foods Limited (PATANJALI.NS) also has a palm oil processing capacity of 0.90 million metric tons per year and access to land covering more than 2.50 lakh hectares for potential oil palm cultivation in India. In addition, the company has access to palm plantations in several Indian states, including Andhra Pradesh, Karnataka, Mizoram, Gujarat, Odisha, Tamil Nadu, and Chhattisgarh.
8. AAK AB (publ.) (AAK.ST)
Market Cap as of March 2, 2023: $4.44 billion
AAK AB (publ.) (AAK.ST) is a Swedish company that specializes in the production of plant-based oils. With over 20 production facilities, 25 regional sales offices, and 15 dedicated customer innovation centers, the company employs a workforce of 4,000. AAK AB (publ.) (AAK.ST) is committed to responsible sourcing of palm oil, with 39% of its palm oil being certified by RSPO, and 70% verified as deforestation-free.
On February 2nd, 2023, AAK AB (publ.) (AAK.ST) announced its Q4 2022 financial results, reporting a revenue of $1.28 billion for the quarter, missing market expectations by $10.39 million.
7. Kuala Lumpur Kepong Bhd (2445.KL)
Market Cap as of March 2, 2023: $4.99 billion
Kuala Lumpur Kepong Bhd (2445.KL) is a Malaysian company that is primarily engaged in the plantation of palm oil seeds and rubber. The company has a land bank that covers approximately 300,000 hectares, which is spread across Malaysia, Indonesia, and Liberia. Oil palm, being its predominant crop, covers 97% of the cultivated area, while rubber covers 3%.
6. IOI Corp Bhd (1961.KL)
Market Cap as of March 2, 2023: $5.39 billion
IOI Corporation Bhd (1961.KL) is a Malaysian company that specializes in palm oil. The company operates in three primary business segments, namely refining, oleochemical, and specialty oils & fats. IOI Corp Bhd (1961.KL) owns two palm oil refineries located in Malaysia and operates four oleochemical manufacturing plants in both Malaysia and Germany. The company exports its products to more than 70 countries worldwide.
5. Sime Darby Plantation Berhad (OTC:SDPNF)
Market Cap as of March 2, 2023: $6.57 billion
Sime Darby Plantation Berhad (OTC:SDPNF) is a Malaysia-based globally integrated plantation company operating in over 90 countries. The company produces an impressive 2.15 million metric tonnes of certified sustainable palm oil annually. The company employs over 80,000 people worldwide, making it a significant player in the industry.
On February 17th 2023, Sime Darby Plantation Berhad (OTC:SDPNF) announced its Q4 2022 results. The company reported a revenue of RM 5.67 billion for the quarter, with an EPS of RM 8.1.
4. Musim Mas Group
Estimated Market Value: $10 billion
Musim Mas Group is a palm oil corporation based in Indonesia that operates in 13 countries worldwide. In 2012, the company became the first major oil palm group to achieve 100% RSPO certification for all of its plantations in Indonesia. Additionally, it was the first major palm oil company to be verified by the Palm Oil Innovation Group (POIG) in 2019. The company’s operations in Indonesia encompass facilities for cultivating oil palm seedlings and trees, plantations for producing fresh fruit bunches, and mills for processing FFB into crude palm oil and palm kernel.
3. Bunge Limited (NYSE:BG)
Market Cap as of March 2, 2023: $14.5 billion
Bunge Limited (NYSE:BG) is an American agribusiness and food company. The company operates through four segments: Milling, Agribusiness, Refined & Specialty Oils, Sugar & Bioenergy. The company’s subsidiary, Bunge Loders Croklaan specializes in the production of vegetable oils and fats, including RSPO-certified palm oil, for the food industry.
On February 8th, 2023, Bunge Limited (NYSE:BG) announced its financial results for Q4 2022. Its Normalized EPS for the quarter was $3.24, which exceeded expectations by $0.03. The company’s revenue for the quarter was reported at $16.66 billion missing expectations by $1.54 billion.
Here is what Old West Investment Management has to say about Bunge Limited (NYSE:BG) in its Q1 2022 investor letter:
Bunge (pronounced BUN-GEE) Ltd (NYSE:BG) is one of the biggest agribusinesses and food companies in the world. There are four worldwide companies that dominate the sector, the others being Archer-Daniels-Midland Cargill, and Dreyfuss. One of our favorite ways to screen for new ideas is following insider buying. When I saw the Form 4 filed by new Bunge CEO Greg Heckman, his purchase of $9 million of BG stock intrigued me. My initial thought was the company gave him the stock as a signing bonus. I contacted BG Investor Relations and asked whether it was a signing bonus or did Heckman actually write a check for $9 million. IR assured me it was his own hard-earned money that he invested in the company he was about to run.
Heckman was a long time executive at Conagra Foods who obviously sensed opportunity at BG. One of his first moves as CEO was to move the company’s HQ from New York to St. Louis, right in the middle of America’s breadbasket. BG had been plagued for years with poor decisions by underperforming management. Heckman’s decision to move to St. Louis was indicative of a no-nonsense style and he would commence cutting expenses and selling non-core assets… (Click here to see the full text)
2. Wilmar International Limited (F34.SI)
Market Cap as of March 2, 2023: $18.28 billion
Wilmar International Limited (F34.SI) is a Singapore-based agri-business company established in 1991. Wilmar International Limited (F34.SI) has over 500 manufacturing plants and a well-established distribution network spanning China, India, Indonesia, and approximately 50 other countries and regions. The company is one of the world’s largest oil palm plantation owners today, with a total planted area of about 279,000 ha spread across Indonesia, Malaysia, Uganda, Ivory Coast, Ghana, and Nigeria.
1. Cargill Incorporated
Estimated Market Value: $165 billion
Cargill is a privately held American food corporation that operates in the food, agricultural, financial, and industrial sectors. Established in 1865, the company has since expanded its operations to 70 countries, serving as a leading provider of agricultural and food products across the globe. Its palm oil business line operates 17 refineries, 12 mills, and five palm plantations globally and works alongside nearly 22,000 smallholder farmers. With over 1,700 mills, Cargill sources palm oil from more than ten countries.
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