Thailand Palm Oil Derivatives Market- Trend Analysis & Forecasts

Thailand palm oil derivatives market valued at US$ ** billion in 2024 and is projected to grow at a CAGR of **% from 2025 to 2030. Thailand stands as one of Asia’s largest producers and exporters of palm oil derivatives, contributing significantly to the global oleochemicals and processed fats market. Driven by rising food, cosmetic, and industrial demands, the sector is evolving with higher downstream value-addition. As Thailand diversifies from crude palm oil (CPO) into refined and specialty derivatives like stearic acid, glycerin, and methyl esters, domestic consumption and global trade have surged. The market is forecast to witness steady growth through 2030, propelled by green product demand and Southeast Asian integration.

Primary Areas/ Elements of Research & Analysis The report provides comprehensive and valuable insights into the supply and demand dynamics of the Thailand palm oil derivatives market. Below are the variables considered and analyzed in the report: ■  Analysis of the Thailand palm oil derivatives market with respect to supply-demand, growth trends, and trade (export & import) patterns ■  A review of structure, conduct, and performance of the market ■  Historical, estimated, and forecasts of Thailand palm oil derivatives market size in terms of volume (tonnes) and value (US$) ■  Analysis of country palm oil derivatives trade patterns covering exports, imports, quantities, values, key partners, and trade price trends ■  Detailed mapping of the supply chain, pricing analysis, and regulatory details ■  Competitive landscape analysis, including Thailand palm oil derivatives market mapping and profiling of key companies (Overview, products/services, & core competencies) ■  Assessment of other relevant factors impacting Thailand palm oil derivatives market performance The report sections furnish numerous data points contributing to the better understanding of the Thailand palm oil derivatives market dynamics and future outlook.

Market/ Product Overview

The Thailand palm oil derivatives market plays a vital role in Southeast Asia’s oleochemical supply chain. As the world’s third-largest producer of palm oil after Indonesia and Malaysia, Thailand produces over ** million tonnes of crude palm oil annually. A significant share is processed into derivatives including palm stearin, palm olein, palm kernel oil, fatty alcohols, and refined glycerin. These derivatives find applications across food processing, personal care, detergents, lubricants, pharmaceuticals, and biofuels.

In 2024, Thailand’s palm oil derivatives market was valued at USD ** billion and is projected to grow at a CAGR of **% through 2030. Rising domestic demand for processed palm-based goods and increasing exports to regional markets such as China, India, and Japan are key growth drivers. The government’s policies to expand downstream industries and promote bio-based materials under the BCG (Bio-Circular-Green) Economy model are also catalyzing the shift.

Thailand’s strategic location, well-developed infrastructure, and access to ASEAN and global markets support its role as a major derivative processor and trader. However, the market also faces volatility in raw material prices, regulatory changes in importing nations, and sustainability certification pressures.

Despite these challenges, Thailand is poised to gain in the global palm derivatives space through technological upgrades, supply chain modernization, and integration into sustainable and traceable palm oil initiatives. Continued collaboration between private refiners, exporters, and policymakers will shape its long-term competitiveness.

Thailand Significance in the Global Palm Oil Derivatives Supply Chain

Thailand holds a crucial position in the global palm oil derivatives supply chain, not merely as a producer but increasingly as a processor and exporter of value-added derivatives. Unlike Indonesia and Malaysia, where large-scale plantations dominate, Thailand's palm oil cultivation is based on more than 300,000 smallholders covering over 1 million hectares, primarily in southern provinces like Krabi, Surat Thani, and Chumphon.

The country produces nearly 12% of ASEAN’s total refined palm oil and about 8% of its downstream derivatives. Thailand's refining capacity exceeds ** million MT/year, enabling it to support large-scale production of palm-based chemicals. It is a leading supplier of stearic acid, oleic acid, and industrial-grade glycerin to East Asian and Middle Eastern markets. In 2023, it exported ** thousand MT of palm oil derivatives, accounting for US$ ** million in value.

Thailand’s strategic significance is bolstered by its free trade agreements, efficient port connectivity, and alignment with global sustainability benchmarks, including RSPO and Thai-GAP certifications. As sustainability becomes a market prerequisite, Thailand’s growing emphasis on traceable and certified derivative production adds to its weight in global supply chains.

Thailand Palm Oil Derivatives Supply & Demand Trend

Supply Trend

Palm oil derivatives production in Thailand has consistently grown over the last decade, with a clear shift from crude palm oil exports toward refined and specialty derivative outputs. Between 2015 and 2023, the production of derivatives such as RBD palm olein, RBD palm stearin, and palm-based fatty acids rose by an average of 4.5% annually. In 2023, Thailand produced over ** million MT of palm oil derivatives, up from ** million MT in 2015.

Government-supported investment in refinery modernization and downstream oleochemical plants in regions such as Rayong and Songkhla has been instrumental. Notable producers such as Patum Vegetable Oil, Thai Oleochemicals, and Intercontinental Specialty Fats have expanded capacities. Fatty acid and methyl ester production grew sharply in 2022–2024, driven by demand from the biodiesel and green chemical industries.

The ratio of crude oil to derivative processing has also improved. In 2024, nearly 68% of Thailand’s CPO output was processed into derivatives, compared to just 50% in 2016. Production of industrial-grade glycerin exceeded ** thousand MT in 2023, a **% year-on-year increase.

With Thailand aiming to reduce its reliance on imports of high-value oleochemicals, domestic production of niche derivatives is expected to reach over ** million MT by 2030. This trend underscores Thailand’s pivot toward higher-margin segments and self-sufficiency in derivative-based industries.

Demand Trend

Domestic consumption of palm oil derivatives in Thailand has seen an upward trajectory, especially in food, biofuel, personal care, and industrial segments. As of 2024, Thailand’s internal demand for palm derivatives stands at around** million MT, reflecting a **% CAGR from 2017. Key derivative products used locally include RBD palm olein for cooking oil, stearin in baked goods and margarine, and fatty acids in cosmetics and detergents.

The food sector is the largest domestic consumer, accounting for over **% of derivative consumption. Rising health consciousness and processed food demand have fueled consumption of trans-fat-free palm-based alternatives. Thailand’s edible oil industry uses over ** million MT of RBD palm olein and stearin annually.

Another significant demand driver is Thailand’s biodiesel policy, under which palm methyl ester (PME) is blended into B7 and B10 diesel fuels. In 2023, nearly ** thousand MT of methyl esters were consumed domestically. Additionally, the expansion of Thailand’s personal care industry, valued at over US$ ** billion, is further driving demand for fatty alcohols and glycerin.

Government mandates and green chemistry trends are expected to enhance local demand for sustainable derivatives. By 2030, Thailand’s domestic derivative consumption is projected to surpass ** million MT, supported by a growing middle class, renewable energy policies, and the shift toward natural and biodegradable products in household and cosmetic applications.

Market Growth Factors

Thailand’s palm oil derivatives market is expanding due to structural policy support, surging regional demand, and rapid growth in downstream industries. The government’s BCG (Bio-Circular-Green) Economy model encourages value-added processing and sustainable use of agricultural resources, directly benefiting oleochemical and food-grade derivative manufacturers. With increasing global demand for biodegradable and non-petroleum-based materials, Thailand is capitalizing on palm oil’s versatility across applications.

The country’s expanding refining infrastructure and proximity to major importers like China and Japan reduce logistics costs, enhancing Thailand’s competitiveness. Free trade agreements within ASEAN and with China (ACFTA) have also boosted exports of palm-based derivatives. Additionally, rising demand from local biofuel blending programs and eco-friendly personal care segments underpins internal consumption.

As industries shift toward clean-label products, derivatives like RBD stearin, oleic acid, and vegetable glycerin are witnessing higher demand. Technological investments and traceability certification also improve Thailand’s acceptance in high-barrier markets such as the EU. These multifaceted drivers position Thailand as a rising hub for palm oil derivative production and trade in Asia.

Market Restraints & Challenges

Despite growth potential, Thailand’s palm oil derivatives market faces challenges from fluctuating CPO prices, limited scalability of smallholder-based farming, and inconsistent yields due to weather variations. The absence of large monoculture plantations, unlike Malaysia or Indonesia, often limits economies of scale and increases production variability.

Furthermore, competition from low-cost producers like Indonesia reduces Thailand’s export pricing power in bulk derivative categories. Import restrictions and tariff fluctuations in major buyer countries such as India or the EU add volatility to export projections. Compliance with increasingly strict sustainability standards like RSPO, ISCC, and national biofuel certifications requires continuous investment and transparency.

Moreover, high electricity and feedstock prices impact processing margins for refiners and derivative manufacturers. Limited R&D funding and lagging digital integration across supply chains also slow down process optimization and value chain traceability. These factors collectively temper the market’s ability to fully exploit global demand.

Supply Chain Constraints & Challenges

Thailand’s palm oil derivative value chain is marked by fragmented upstream farming and uneven infrastructure integration. Over 85% of palm fruit is grown by smallholders, often lacking access to modern agronomic inputs, mechanization, or digital tracking systems. This fragmentation limits predictability in fruit bunch availability and quality.

The midstream processing sector faces bottlenecks due to fluctuating supply and inadequate cold-chain or bulk transport logistics, particularly in southern Thailand. Seasonal supply gluts and shortages result in erratic refining throughput and underutilization of installed capacity.

In the downstream space, the lack of vertical integration between oil mills, refineries, and derivative plants contributes to inefficiencies. Traceability systems are not uniformly adopted across the supply chain, making certification and export compliance challenging for many players.

These bottlenecks limit Thailand’s ability to scale high-purity or specialized derivatives. Streamlining upstream data, digitalizing farm-to-factory traceability, and incentivizing integrated supply chain models are necessary to address these systemic inefficiencies.

Thailand Influence on Global Palm Oil Derivatives Prices

Thailand has moderate price-setting power in palm oil derivatives, largely influenced by regional market dynamics and domestic feedstock supply. Unlike Indonesia and Malaysia, which dominate price benchmarks through Bursa Malaysia Derivatives and Jakarta Futures Exchange, Thailand’s pricing typically trails regional averages by 2–5%.

However, Thailand holds influence in niche derivatives such as refined stearic acid, industrial glycerin, and value-added oleochemicals. In export markets like Japan and the Middle East, Thai-origin palm derivatives are valued for quality and RSPO compliance, allowing for small premium pricing.

Overall, price power is constrained in bulk segments but improving in certified, specialty product niches where quality and sustainability offer competitive differentiation.

Between 2018 and 2024, the export price of Thailand's palm oil derivatives, particularly RBD palm olein and stearin, has fluctuated significantly in line with global CPO trends. Average export prices peaked at US$ **/MT in 2022 amid global supply shocks and fell to around USD **/MT by early 2024.

Wholesale prices for food-grade RBD palm olein averaged US$ **/kg in 2021, rising to US$ **/kg in 2022 due to biodiesel demand and then stabilizing at US$ **–**/kg in 2023. Glycerin export prices moved from US$ **/MT in 2019 to US$ **/MT in 2023, reflecting increased pharmaceutical and personal care demand.

Price volatility is also influenced by currency movements, domestic feedstock availability, and government subsidy policies. The shift to long-term supply contracts and traceable sourcing has helped stabilize prices for value-added derivatives in recent years.

Market Segmentation Analysis

Thailand’s palm oil derivatives market is segmented by product type, end-use industry, and distribution channel. By product type, major derivatives include RBD palm olein, RBD palm stearin, palm kernel oil, fatty acids, methyl esters, fatty alcohols, and glycerin. Food-grade olein and stearin dominate volume-wise, accounting for over 55% of total derivative production. Industrial-grade fatty acids and methyl esters are gaining ground due to biodiesel policies and personal care product formulation.

By end-use, the food and beverage sector leads, consuming about **% of all palm derivatives. Processed food manufacturers and HORECA (Hotel/Restaurant/Café) sectors drive this demand. The biofuel sector uses about **% of total output, primarily in blending programs like B7 and B10. Cosmetics, personal care, and pharmaceuticals collectively consume nearly 15%, with demand rising from clean-label product growth.

Distribution channels include direct B2B sales (to food processors, biodiesel blenders, cosmetic companies), exports, and bulk distributor intermediaries. Export-focused refiners often supply Japanese, Chinese, and Middle Eastern buyers through long-term contracts.

Demand for refined, bleached, deodorized (RBD) palm derivatives is increasing, while specialty derivatives like isopropyl palmitate and oleyl alcohol are growing in niche cosmetics and lubricants markets. Market segmentation is expected to shift toward high-margin oleochemical derivatives by 2030 as Thailand enhances processing sophistication.

Thailand Palm Oil Derivatives Trade (Export & Import) Trend

Thailand’s trade in palm oil derivatives has expanded steadily, with exports growing by **% CAGR between 2017 and 2023. In 2023, the country exported over ** thousand MT of palm-based derivatives worth approximately US$ ** million. Major export destinations include China, India, Japan, South Korea, and the UAE. Products such as RBD olein, palm-based fatty acids, and refined glycerin dominate export shipments.

On the import side, Thailand sources niche derivatives like palm kernel stearin and specialized surfactant intermediates from Malaysia and Indonesia, valued at over US$ ** million in 2023. These imports supplement local production for high-value manufacturing, especially in cosmetics and specialty chemicals.

Trade volumes are supported by Thailand’s port connectivity (Laem Chabang, Songkhla) and ASEAN+3 trade agreements. However, export volumes can fluctuate based on CPO availability, government subsidy schemes, and environmental certification status. Traceability and RSPO compliance have become prerequisites in high-value export markets.

Thailand is expected to become a net exporter of high-purity derivatives by 2030, driven by domestic processing capacity growth and expanding bilateral trade with East Asia.

Market Competitive Analysis

Thailand’s palm oil derivatives market is moderately consolidated, with key players controlling large refining and processing capacities. Leading companies include Patum Vegetable Oil Co., Thai Oleochemicals Co. (part of PTT Global), Univanich Palm Oil, Intercontinental Specialty Fats, and Southern Palm Oil Co. These firms specialize in refining, fractional distillation, and oleochemical synthesis.

Most operate integrated models from CPO procurement to finished derivatives. Their competitive edge lies in supply chain control, RSPO certification, consistent feedstock access, and export logistics capabilities. The top five players control over **% of the domestic derivative processing volume.

Small and medium-sized manufacturers also operate in niche segments such as surfactants, lubricants, or emulsifiers, targeting Japan and Korea. The rise of private-label and contract manufacturing for personal care and F&B segments has allowed Thai refiners to diversify revenue streams.

Competitive pressure from Malaysia and Indonesia remains, particularly in bulk export pricing. However, Thailand's advantage lies in high product purity, stable geopolitical position, and adherence to sustainability protocols.

As green chemistry and functional food ingredients gain ground, competition is shifting to innovation, traceability, and customer-specific formulation, rather than just volume and price. R&D and branding investments will define future leadership.

List of Key Companies (Suppliers/ Processor/ Exporters),

■ Patum Vegetable Oil Co., Ltd.
■ Thai Oleochemicals Co., Ltd.
■ Univanich Palm Oil Public Co., Ltd.
■ Intercontinental Specialty Fats Co., Ltd.
■ Southern Palm Oil Co., Ltd.
■ Palm Pro Co., Ltd.
■ Siam Palm Oil and Products Co., Ltd.
■ Krabi Palm Oil Refinery Co., Ltd.
■ Chumporn Palm Oil Industry Public Co., Ltd.
■ Panjawattana Plastic Public Co., Ltd.
■ PTT Global Chemical Public Co., Ltd.
■ Bangchak Biofuel Co., Ltd.
■ Thai Glycerine Co., Ltd.
■ Vichitbhan Palmoil Co., Ltd.
■ Bangpoo Oleochemicals Co., Ltd.

Future Outlook

Thailand’s palm oil derivatives market is poised for stable, value-driven growth through 2030. Rising demand for sustainable and traceable derivatives in global markets will favor Thailand’s RSPO-aligned exporters. Domestic consumption will grow via food processing, cosmetics, and green biofuels, while trade integration with East Asia will support export expansion. Government policies encouraging downstream development, digital traceability, and clean-label innovation will further enhance competitiveness. Thailand’s focus on specialty derivatives and oleochemicals ensures a strategic pivot from commodity to high-margin exports, sustaining long-term market relevance.