The steady year on year growth of the agro commodities and raw materials industry and the use of palm oil in sectors such as food, cosmetics, and personal care as an ingredient have resulted in the higher demand for palm oil.
LONDON: The strategic procurement research report on the palm oil market is an integral part of SpendEdge’s agro commodities and raw materials category and offers an in-depth analysis of the current supply markets, factors influencing purchasing decisions, supplier landscape, pricing models and procurement best practices. It also offers insights into the demand-supply shifts and key market developments to help sourcing and procurement leaders make smart purchasing decisions.
The cost-effectiveness (due to the highest yield per unit area of cultivation) along with nutritional benefits of palm oil (prevents cancer, heart disease, and arthritis) compared with other vegetable oils is driving the growth of the global palm oil market. Furthermore, the use of palm oil as refined oil requires only mild additional processing compared with full refining required in case of other oils, lowering the overall production costs of palm oil in the form of refined oil.
“The purchasing managers must consider certain factors such as perishability, seasonality, price risk, storage availability, and traceability for making commodity-procurement decisions,” says A Kowshik, a procurement specialist for agro commodities and raw materials, at SpendEdge.
Seasonal volatility caused due to sudden weather changes such as hurricanes, tsunamis, floods, or drought are recurring in nature and increases price volatility of agricultural commodities, including palm oil. Furthermore, these changes result in an extension of lead-time between order and fulfillment which further leads to an upsurge in price risks.
Need more insights on this report?
This procurement report on the palm oil category offers insights on:
- Supply markets, growth drivers, and challenges
- Key suppliers and assessment of their capabilities
- Procurement best practices
- Negotiation strategies and cost-saving opportunities
- Pricing models and category innovations
- For a full, comprehensive list, view our report
Get unlimited access to all our reports. Our platform offers real-time alerts on report updates and on-demand analyst support at the click of a button. Request a free demo now