Global Palm Fatty Acid Distillate (PFAD) Supply, Demand and Key Producers, 2026-2032
Description
The global Palm Fatty Acid Distillate (PFAD) market size is expected to reach $ 4966 million by 2032, rising at a market growth of 4.1% CAGR during the forecast period (2026-2032).
Palm Fatty Acid Distillate (PFAD) is a by-product obtained during the physical refining of crude palm oil. It is rich in free fatty acids (mainly palmitic acid), along with minor amounts of glycerides, sterols, and tocopherols. PFAD is a versatile raw material used in multiple industries, including oleochemicals (soap, detergents, and surfactants), biodiesel production, animal feed, and even niche applications in rubber processing and waxes. Its economic attractiveness lies in being a cost-effective feedstock compared to refined oils, making it particularly valuable in industries where price competitiveness and sustainability are crucial.
Global sales of Palm Fatty Acid Distillate (PFAD) reached nearly 4 million metric tons in 2024, with an average ex-factory price of approximately $880 per metric ton.
Regional Market Analysis
Asia-Pacific dominates the PFAD market, primarily due to the strong production base of palm oil in Malaysia and Indonesia, which collectively account for more than 80% of global supply. In this region, PFAD is extensively utilized in the oleochemical sector and as a feedstock for biodiesel, especially in Indonesia, where the government enforces ambitious biodiesel blending mandates (B35 and beyond). China and India are major importers, driven by demand from soap and detergent manufacturing, as well as for industrial fatty acid derivatives. Additionally, the push toward sustainable biofuels in Southeast Asia has expanded the role of PFAD as a cost-efficient biodiesel raw material.
Europe’s PFAD demand is mainly tied to biodiesel production, with PFAD classified as a waste/residue feedstock under the EU’s Renewable Energy Directive (RED II), which grants favorable greenhouse gas (GHG) reduction credits. Countries such as Germany, the Netherlands, and Spain use PFAD-based biodiesel to meet renewable energy targets, thereby creating steady demand. However, the market is influenced by regulatory debates regarding indirect land use change (ILUC) and sustainability concerns, which may affect PFAD imports from Asia in the longer term.
In North America, PFAD consumption is relatively smaller but growing, mainly in biodiesel and oleochemical applications. The U.S. and Canada are focusing on low-carbon fuel standards and renewable diesel expansion, which may increase the attractiveness of PFAD as a feedstock. However, competition with other waste-based oils (e.g., used cooking oil, tallow) and stricter sustainability certification requirements may limit its growth compared to Europe and Asia.
The Middle East is gradually expanding PFAD imports for both biodiesel blending and soap industries, particularly in Gulf countries where local manufacturing of detergents and oleochemicals is increasing. Africa, on the other hand, has a relatively smaller but emerging market, with PFAD used in animal feed and basic soap production. Market expansion is likely as industrialization and demand for affordable raw materials increase.
Latin America, especially Brazil, is witnessing rising biodiesel demand, and PFAD is becoming an alternative feedstock to soybean oil in biodiesel blending. The region’s oleochemical industry is smaller compared to Asia, but PFAD is being increasingly adopted in low-cost soap manufacturing and biofuel supply chains.
This report studies the global Palm Fatty Acid Distillate (PFAD) production, demand, key manufacturers, and key regions.
This report is a detailed and comprehensive analysis of the world market for Palm Fatty Acid Distillate (PFAD) and provides market size (US$ million) and Year-over-Year (YoY) Growth, considering 2025 as the base year. This report explores demand trends and competition, as well as details the characteristics of Palm Fatty Acid Distillate (PFAD) that contribute to its increasing demand across many markets.
Highlights and key features of the study
Global Palm Fatty Acid Distillate (PFAD) total production and demand, 2021-2032, (Kiloton)
Global Palm Fatty Acid Distillate (PFAD) total production value, 2021-2032, (USD Million)
Global Palm Fatty Acid Distillate (PFAD) production by region & country, production, value, CAGR, 2021-2032, (USD Million) & (Kiloton), (based on production site)
Global Palm Fatty Acid Distillate (PFAD) consumption by region & country, CAGR, 2021-2032 & (Kiloton)
U.S. VS China: Palm Fatty Acid Distillate (PFAD) domestic production, consumption, key domestic manufacturers and share
Global Palm Fatty Acid Distillate (PFAD) production by manufacturer, production, price, value and market share 2021-2026, (USD Million) & (Kiloton)
Global Palm Fatty Acid Distillate (PFAD) production by Type, production, value, CAGR, 2021-2032, (USD Million) & (Kiloton)
Global Palm Fatty Acid Distillate (PFAD) production by Application, production, value, CAGR, 2021-2032, (USD Million) & (Kiloton)
This report profiles key players in the global Palm Fatty Acid Distillate (PFAD) market based on the following parameters - company overview, production, value, price, gross margin, product portfolio, geographical presence, and key developments. Key companies covered as a part of this study include FGV Holdings, Wilmar International, Sime Darby Plantation, IOI Group, RGE Group, Golden Agri Resources, Musim Mas, Astra Agro Lestari, Genting Plantations, First Resources, etc.
This report also provides key insights about market drivers, restraints, opportunities, new product launches or approvals.
Stakeholders would have ease in decision-making through various strategy matrices used in analyzing the World Palm Fatty Acid Distillate (PFAD) market
Detailed Segmentation:
Each section contains quantitative market data including market by value (US$ Millions), volume (production, consumption) & (Kiloton) and average price (US$/Ton) by manufacturer, by Type, and by Application. Data is given for the years 2021-2032 by year with 2025 as the base year, 2026 as the estimate year, and 2027-2032 as the forecast year.
Global Palm Fatty Acid Distillate (PFAD) Market, By Region:
United States
China
Europe
Japan
South Korea
ASEAN
India
Rest of World
Global Palm Fatty Acid Distillate (PFAD) Market, Segmentation by Type:
FFA Content 70%-73%
FFA Content 73%-77%
FFA Content 77% and Above
Global Palm Fatty Acid Distillate (PFAD) Market, Segmentation by Application:
Oleochemicals
Feed
Biofuel
Others
Companies Profiled:
FGV Holdings
Wilmar International
Sime Darby Plantation
IOI Group
RGE Group
Golden Agri Resources
Musim Mas
Astra Agro Lestari
Genting Plantations
First Resources
Indofood Agri Resources
Sarawak Oil Palms Berhad
Future Prelude
Permata Hijau Group
Key Questions Answered:
1. How big is the global Palm Fatty Acid Distillate (PFAD) market?
2. What is the demand of the global Palm Fatty Acid Distillate (PFAD) market?
3. What is the year over year growth of the global Palm Fatty Acid Distillate (PFAD) market?
4. What is the production and production value of the global Palm Fatty Acid Distillate (PFAD) market?
5. Who are the key producers in the global Palm Fatty Acid Distillate (PFAD) market?
6. What are the growth factors driving the market demand?
Palm Fatty Acid Distillate (PFAD) is a by-product obtained during the physical refining of crude palm oil. It is rich in free fatty acids (mainly palmitic acid), along with minor amounts of glycerides, sterols, and tocopherols. PFAD is a versatile raw material used in multiple industries, including oleochemicals (soap, detergents, and surfactants), biodiesel production, animal feed, and even niche applications in rubber processing and waxes. Its economic attractiveness lies in being a cost-effective feedstock compared to refined oils, making it particularly valuable in industries where price competitiveness and sustainability are crucial.
Global sales of Palm Fatty Acid Distillate (PFAD) reached nearly 4 million metric tons in 2024, with an average ex-factory price of approximately $880 per metric ton.
Regional Market Analysis
Asia-Pacific dominates the PFAD market, primarily due to the strong production base of palm oil in Malaysia and Indonesia, which collectively account for more than 80% of global supply. In this region, PFAD is extensively utilized in the oleochemical sector and as a feedstock for biodiesel, especially in Indonesia, where the government enforces ambitious biodiesel blending mandates (B35 and beyond). China and India are major importers, driven by demand from soap and detergent manufacturing, as well as for industrial fatty acid derivatives. Additionally, the push toward sustainable biofuels in Southeast Asia has expanded the role of PFAD as a cost-efficient biodiesel raw material.
Europe’s PFAD demand is mainly tied to biodiesel production, with PFAD classified as a waste/residue feedstock under the EU’s Renewable Energy Directive (RED II), which grants favorable greenhouse gas (GHG) reduction credits. Countries such as Germany, the Netherlands, and Spain use PFAD-based biodiesel to meet renewable energy targets, thereby creating steady demand. However, the market is influenced by regulatory debates regarding indirect land use change (ILUC) and sustainability concerns, which may affect PFAD imports from Asia in the longer term.
In North America, PFAD consumption is relatively smaller but growing, mainly in biodiesel and oleochemical applications. The U.S. and Canada are focusing on low-carbon fuel standards and renewable diesel expansion, which may increase the attractiveness of PFAD as a feedstock. However, competition with other waste-based oils (e.g., used cooking oil, tallow) and stricter sustainability certification requirements may limit its growth compared to Europe and Asia.
The Middle East is gradually expanding PFAD imports for both biodiesel blending and soap industries, particularly in Gulf countries where local manufacturing of detergents and oleochemicals is increasing. Africa, on the other hand, has a relatively smaller but emerging market, with PFAD used in animal feed and basic soap production. Market expansion is likely as industrialization and demand for affordable raw materials increase.
Latin America, especially Brazil, is witnessing rising biodiesel demand, and PFAD is becoming an alternative feedstock to soybean oil in biodiesel blending. The region’s oleochemical industry is smaller compared to Asia, but PFAD is being increasingly adopted in low-cost soap manufacturing and biofuel supply chains.
This report studies the global Palm Fatty Acid Distillate (PFAD) production, demand, key manufacturers, and key regions.
This report is a detailed and comprehensive analysis of the world market for Palm Fatty Acid Distillate (PFAD) and provides market size (US$ million) and Year-over-Year (YoY) Growth, considering 2025 as the base year. This report explores demand trends and competition, as well as details the characteristics of Palm Fatty Acid Distillate (PFAD) that contribute to its increasing demand across many markets.
Highlights and key features of the study
Global Palm Fatty Acid Distillate (PFAD) total production and demand, 2021-2032, (Kiloton)
Global Palm Fatty Acid Distillate (PFAD) total production value, 2021-2032, (USD Million)
Global Palm Fatty Acid Distillate (PFAD) production by region & country, production, value, CAGR, 2021-2032, (USD Million) & (Kiloton), (based on production site)
Global Palm Fatty Acid Distillate (PFAD) consumption by region & country, CAGR, 2021-2032 & (Kiloton)
U.S. VS China: Palm Fatty Acid Distillate (PFAD) domestic production, consumption, key domestic manufacturers and share
Global Palm Fatty Acid Distillate (PFAD) production by manufacturer, production, price, value and market share 2021-2026, (USD Million) & (Kiloton)
Global Palm Fatty Acid Distillate (PFAD) production by Type, production, value, CAGR, 2021-2032, (USD Million) & (Kiloton)
Global Palm Fatty Acid Distillate (PFAD) production by Application, production, value, CAGR, 2021-2032, (USD Million) & (Kiloton)
This report profiles key players in the global Palm Fatty Acid Distillate (PFAD) market based on the following parameters - company overview, production, value, price, gross margin, product portfolio, geographical presence, and key developments. Key companies covered as a part of this study include FGV Holdings, Wilmar International, Sime Darby Plantation, IOI Group, RGE Group, Golden Agri Resources, Musim Mas, Astra Agro Lestari, Genting Plantations, First Resources, etc.
This report also provides key insights about market drivers, restraints, opportunities, new product launches or approvals.
Stakeholders would have ease in decision-making through various strategy matrices used in analyzing the World Palm Fatty Acid Distillate (PFAD) market
Detailed Segmentation:
Each section contains quantitative market data including market by value (US$ Millions), volume (production, consumption) & (Kiloton) and average price (US$/Ton) by manufacturer, by Type, and by Application. Data is given for the years 2021-2032 by year with 2025 as the base year, 2026 as the estimate year, and 2027-2032 as the forecast year.
Global Palm Fatty Acid Distillate (PFAD) Market, By Region:
United States
China
Europe
Japan
South Korea
ASEAN
India
Rest of World
Global Palm Fatty Acid Distillate (PFAD) Market, Segmentation by Type:
FFA Content 70%-73%
FFA Content 73%-77%
FFA Content 77% and Above
Global Palm Fatty Acid Distillate (PFAD) Market, Segmentation by Application:
Oleochemicals
Feed
Biofuel
Others
Companies Profiled:
FGV Holdings
Wilmar International
Sime Darby Plantation
IOI Group
RGE Group
Golden Agri Resources
Musim Mas
Astra Agro Lestari
Genting Plantations
First Resources
Indofood Agri Resources
Sarawak Oil Palms Berhad
Future Prelude
Permata Hijau Group
Key Questions Answered:
1. How big is the global Palm Fatty Acid Distillate (PFAD) market?
2. What is the demand of the global Palm Fatty Acid Distillate (PFAD) market?
3. What is the year over year growth of the global Palm Fatty Acid Distillate (PFAD) market?
4. What is the production and production value of the global Palm Fatty Acid Distillate (PFAD) market?
5. Who are the key producers in the global Palm Fatty Acid Distillate (PFAD) market?
6. What are the growth factors driving the market demand?
Table of Contents
123 Pages
- 1 Supply Summary
- 2 Demand Summary
- 3 World Manufacturers Competitive Analysis
- 4 United States VS China VS Rest of the World
- 5 Market Analysis by Type
- 6 Market Analysis by Application
- 7 Company Profiles
- 8 Industry Chain Analysis
- 9 Research Findings and Conclusion
- 10 Appendix
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