TEHRAN: Iran’s palm oil market is expected to reach $648.4 million by 2025, according to a new report by US-based market research and consulting company Grand View Research, Inc. Its increasing usage in cosmetics and biodiesel industries has contributed to a significant portion of market revenue in recent years. The termination of western sanctions followed by the agreement regarding nuclear issues has had a beneficial impact on Iran’s economy, attracting higher foreign investments in the country. Malaysia is negotiating a reduction of tariffs under a free trade agreement, which is expected to boost trade relations with Iran once again. The removal of import quota has had an immense impact on the Iranian industry as well, further stimulating growth in recent years, PR Newswire reported.
Lower palm product prices, compared to other vegetable products such as soybean, sunflower and groundnut, have also led to higher substitution in the food, beverage, cosmetics and biodiesel industries. Crude palm oil is expected to remain the dominant segment occupying over 88% volume share in 2015. Despite a decline in consumption levels in 2014, the product has witnessed steady recovery, gaining an edge over kernel products in the following years. CPO is widely used to derive other products such as RBD, which are then utilized in bakery, cooking and other non-food applications.
