The global palm kernel expellers (PKE) market is expected to be valued at USD 6,806.8 million in 2025 and will expand at a noteworthy CAGR 4.2% to end up at USD 10,271.1 million by 2035.This upward momentum reflects the increasing adoption of sustainable and cost-efficient protein sources in global animal feed formulations, along with rising interest in bioenergy applications. For manufacturers and agribusiness leaders, this market presents a strategic growth frontier driven by sustainability, technology, and global food security imperatives.
Expanding Role of PKE in Global Feed Security:
Palm Kernel Expellers, a nutrient-rich by-product of palm oil extraction, have emerged as a cornerstone ingredient in livestock, poultry, and aquaculture feeds. With accelerating global urbanization and a rising appetite for meat and dairy, the demand for high-protein, affordable feed solutions is surging.
“Palm kernel expellers represent the perfect intersection between sustainability and productivity,” says the Fact.MR analyst team. “Their utilization aligns with circular economy principles by transforming palm oil by-products into valuable animal feed and renewable energy inputs.”
Between 2020 and 2024, the PKE market registered a 3.8% CAGR, primarily fueled by consistent palm oil production in Indonesia and Malaysia, and growing feed requirements in emerging economies across Asia and Africa. The period from 2025 to 2035 is anticipated to witness an even higher growth rate of 4.2%, backed by technological advancements and government incentives for sustainable agriculture.
Regional Dynamics – Asia Leads, Western Markets Follow:
Southeast Asia continues to dominate global production, with Indonesia and Malaysia supplying the majority of PKE exports. However, demand from North America and Europe is steadily increasing as both regions intensify their focus on renewable energy sources and sustainable animal nutrition.
China and India are projected to be the fastest-growing consumer markets, expanding at CAGRs of 6.2% and 5.3%, respectively, through 2035.
1.India: Rising livestock and dairy expansion, coupled with cost-effective feed production strategies, make India a major consumer and importer of PKE. The nation’s agricultural modernization and feed mill expansion are driving sustained demand growth.
2.China: As the country diversifies its animal feed inputs, PKE is gaining traction for its affordability, high nutritional profile, and alignment with green policies. Strong trade ties with palm-producing nations ensure reliable supply chains.
In contrast, the United States is fostering adoption through federal incentives promoting sustainable agriculture. Subsidies, tax credits, and sustainability grants encourage the integration of PKE in feed formulations, ensuring stable imports and cost efficiencies.
Market Dynamics and Growth Drivers:
1.Rising Livestock Numbers and Protein Demand: The global rise in livestock populations is creating a surge in demand for protein-dense feed ingredients. PKE’s nutritional value, fiber content, and affordability make it a compelling alternative to traditional feed materials such as soybean meal.
2.Sustainability as a Core Market Catalyst: The palm oil sector, under scrutiny for its environmental impact, is turning to responsible production practices. Certified sustainable PKE, adhering to RSPO standards, offers a clear pathway to reducing waste and carbon emissions while maintaining profitability.
3.Technological Advancements in Extraction and Processing: Modernized oil extraction techn ologies are boosting yield efficiency and improving product consistency. These advancements enhance supply reliability and broaden PKE’s use across biofuel and industrial applications.
4.Bioenergy Potential and Circular Economy Integration: As global efforts toward decarbonization gain pace, PKE’s potential as a bioenergy feedstock is garnering attention. Industry leaders are exploring PKE as a renewable resource for biomass energy, supporting global carbon reduction goals.
Industry Challenges: Sustainability Compliance and Certification Costs:
Despite promising growth, PKE manufacturers face rising costs and operational complexities tied to sustainability certifications such as RSPO. Compliance with traceability, waste reduction, and deforestation-free sourcing standards remains a central challenge.
However, industry leaders recognize that sustainable compliance equals long-term competitiveness. Non-certified producers risk losing access to lucrative Western and eco-conscious markets, making sustainability an essential investment rather than an optional one.
Market Segmentation and Key Insights:
By Application:
– Animal Feed Industry holds the largest share at 43.2%, driven by livestock expansion and feed affordability.
– Biofuel Production and Food Processing represent emerging opportunities as industries shift toward greener alternatives.
By Nature:
– Conventional PKE dominates with a 73.2% market share, owing to cost-effectiveness and wide availability.
– Organic PKE is expected to gain traction in premium livestock segments, supported by organic farming growth trends.
Competitive Landscape – Strategic Moves from Global Leaders:
The competitive environment is intensifying, with global players such as Wilmar International, Cargill Palm Oil, Golden Agri-Resources, Sime Darby Plantation, and IOI Corporation investing heavily in innovation and sustainability.
– In March 2024, Sime Darby Plantation Bhd announced a 5% production increase powered by automation and local workforce integration to boost operational efficiency.
– Wilmar International continues to champion sustainability, with its WILSOL SPF Booster winning the Silver Prize at the 2024 in-cosmetics Asia Awards, reflecting its dedication to eco-friendly innovation.
These players, along with Musim Mas Group, KLK Oleo, and Asian Agri Group, are pioneering next-generation PKE extraction technologies and bioenergy diversification strategies to strengthen global market positioning.
A Sustainable Future Ahead:
The Palm Kernel Expellers market stands at the forefront of sustainable agricultural innovation. As global livestock production and renewable energy initiatives expand, the role of PKE will deepen across feed, energy, and industrial ecosystems.
With sustainability at its core and profitability in its trajectory, the market represents a lucrative opportunity for manufacturers, investors, and feed producers seeking long-term growth aligned with global green goals.
Fact.MR’s latest report underscores that the PKE market is not just growing — it’s transforming. From feed to fuel, palm kernel expellers are redefining what sustainability means for the next decade of global agribusiness.
Browse Full Report-https://www.factmr.com/report/palm-kernel-expellers-market
