PALMOILMAGAZINE, WASHINGTON, D.C. — After three consecutive years of growth, the U.S. palm oil market experienced a slight contraction in 2024, with consumption easing to 1.6 million tons and market value declining to US$1.6 billion. However, analysts believe the downturn is temporary, as long-term trends continue to point toward steady growth.
According to the latest projections, U.S. palm oil demand is expected to grow steadily through 2035, reaching 2.2 million tons in volume and a market value of US$2.4 billion. The compound annual growth rate (CAGR) is projected at 2.6% for volume and 4.2% for market value.
Indonesia remains the dominant supplier, accounting for 86% of total U.S. imports—or about 1.8 million tons in 2024. Meanwhile, U.S. palm oil exports reached 137,000 tons, with Canada absorbing roughly 79% of total shipments.
As reported by Palmoilmagazine.com citing IndexBox on Sunday (Oct 26, 2025), refined palm oil products dominate the U.S. trade, comprising 98% of imports and 94% of exports. The average import price stood at around US$995 per ton, while export prices averaged US$1,149 per ton.
Although consumption temporarily softened, demand from the U.S. food and bioenergy industries remains the key driver for palm oil. The substitution trend from more expensive vegetable oils, along with the rising demand for renewable energy feedstocks, continues to bolster optimism within the sector.
Analysts note that supply stability from Southeast Asia—particularly Indonesia and Malaysia—will remain crucial for maintaining palm oil supply chains in the U.S. market. At the same time, growing attention to sustainability and green certification is expected to influence future U.S. import policies.
Thus, while 2024 marked a period of adjustment, the U.S. palm oil market retains solid fundamentals and is poised to remain one of the most promising destinations for global palm oil expansion in the coming decade. (P2)
