Highest Palm Oil-Producing Countries 2024: List of Top 10

Top 10 Palm Oil-Producing Nations: The top palm oil-producing countries are Indonesia (produced 56% of the total production of the World in 2023), Malaysia, Thailand, Colombia, Nigeria, Papua New Guinea, Honduras, Guatemala, Côte d’Ivoire (Ivory Coast), and Brazil. Palm oil is one of the most versatile and widely used vegetable oils in the world. It is estimated that over 50% of the products found in supermarkets contain palm oil, from food items such as cooking oil, margarine, and chocolate to non-food items like cosmetics, soaps, and even biofuels. With its increasing demand and diverse uses, it is no surprise that palm oil production has become a significant industry for many countries.

In this article, we will take a closer look at the top 10 palm oil-producing nations in the world, their contribution to global palm oil production, and the growing concerns surrounding this industry.

List of Top 10 Highest Palm Oil-Producing Nations

Palm oil is one of the most widely used vegetable oils globally, serving as a crucial ingredient in various products ranging from food items to cosmetics and biofuels. The following table outlines the top 10 palm oil-producing countries based on their annual production:

Rank	Country	Annual Palm Oil Production (in metric tons)
1	Indonesia	Over 43 million
2	Malaysia	Around 19 million
3	Thailand	Approximately 3 million
4	Colombia	About 1.6 million
5	Nigeria	Around 1.3 million
6	Papua New Guinea	Approximately 1.2 million
7	Ecuador	Around 1 million
8	Honduras	Approximately 0.8 million
9	Côte d’Ivoire (Ivory Coast)	Around 0.7 million
10	Brazil	Approximately 0.6 million

Largest Palm Oil-Producing Nations – Indonesia

Indonesia is number one in making palm oil. They make more than half of all palm oil in the world. Indonesia has lots of hot, rainy areas which are perfect for growing palm trees. The government there has put a lot of money into palm oil, so they’ve been making more and more of it every year.

• Indonesia makes the most palm oil in the world 2023, about 56% of it.
• They have a lot of land, around 14 million hectares, just for growing palm trees.
• Palm oil is super important for Indonesia’s economy. In 2020, they sold about $23 billion worth of it to other countries.
• More than 16 million people have jobs because of palm oil. It’s a big deal, especially for folks in rural areas.
• Every year, Indonesia makes more and more palm oil. In 2020, it went up by 4.5%.
• Besides palm oil, Indonesia also makes other stuff like rubber, cocoa, and coffee. They’re a big deal in farming.

Second Largest Palm Oil-Producing Nations – Malaysia

Malaysia, a country in Southeast Asia, is also really good at making palm oil. It’s the second biggest palm oil producer after Indonesia. Malaysia got good at this because it put a lot of effort and money into the palm oil business.

• Malaysia started getting serious about palm oil in the 1960s. The government started a program to improve farming, and that included growing a lot more oil palm trees. They made big farms all over the country.
• It worked! Malaysia went from making just a little bit of palm oil in 1960 to making over 19 million tonnes in 2020.
• Palm oil is a big source of jobs in Malaysia. More than half a million people work in the palm oil industry there, from small farmers to workers on big plantations. This has helped a lot of Malaysians find work and boosted the country’s economy.
• Malaysia cares about the environment too. In 2006, it became the first country to make sustainable palm oil certified by the RSPO. This means they follow strict rules to protect the environment and help communities.

Third Largest Palm Oil-Producing Nations – Thailand

Thailand, known for its beautiful beaches and yummy food, is now a big deal in palm oil. They’ve grown a lot of palm oil in recent years and are one of the top countries making it.

• Thailand is the biggest palm oil maker in Southeast Asia.
• They started making palm oil in the 1960s with help from the government to make farming better.
• In the late 1990s, Thailand’s palm oil production grew a lot because the government supported it and put money into it.
• Thailand is good at palm oil because of the nice weather, government rules, new technology, and lots of people wanting it.
• Making palm oil brings in a lot of money for Thailand and gives people jobs, but it also makes some problems like cutting down trees and taking land from people.

Fourth Largest Palm Oil-Producing Nations – Colombia

Colombia is the fourth-largest producer of palm oil globally, with a production output of around 1.5 million tonnes per year. The country’s favorable soil and weather conditions have contributed to its success in the palm oil industry.

• Palm oil has been super important for Nigeria for a long time.
• When Nigeria was ruled by the British, they saw how much palm oil Nigeria could make and made big farms.
• In the 1950s, Nigeria made more palm oil than any other country and sold it all over the world.
• Palm oil is a big part of Nigeria’s money. About 5% of all the money Nigeria makes comes from palm oil.
• Nigeria is good at making palm oil because the weather and soil are just right, the trees make a lot of oil, the government helps, lots of people want it, and Nigerians are good at starting businesses.

Fifth Largest Palm Oil-Producing Nations – Nigeria

Nigeria is the largest palm oil-producing nation in Africa and the fifth-largest in the world, with an annual production output of approximately 1 million tonnes. The country’s tropical climate and vast land area make it an ideal location for growing oil palm trees.

• Palm oil has been super important for Nigeria for a long time.
• When Nigeria was ruled by the British, they saw how much palm oil Nigeria could make and made big farms.
• In the 1950s, Nigeria made more palm oil than any other country and sold it all over the world.
• Palm oil is a big part of Nigeria’s money. About 5% of all the money Nigeria makes comes from palm oil.
• Nigeria is good at making palm oil because the weather and soil are just right, the trees make a lot of oil, the government helps, lots of people want it, and Nigerians are good at starting businesses.

Sixth Largest Palm Oil-Producing Nations – Papua New Guinea

Papua New Guinea (PNG) is one of the top producers of palm oil in Oceania, with an annual production output of around 700,000 tonnes. The country’s tropical climate and favorable soil conditions have made it an ideal location for palm oil production.

• Palm oil came to Papua New Guinea (PNG) in the late 1800s when German rulers brought it.
• Most of the palm oil in PNG comes from places like the West New Britain Province and the Oro Province.
• Palm oil is a big part of PNG’s money, making up about 2% of all the money the country makes.
• Almost all of the palm oil in PNG is made by small farmers, not big companies. This gives money to lots of people in the countryside.
• PNG has more than 50,000 hectares of land just for growing palm trees, and they’re planning to grow even more in the future.

Seventh Largest Palm Oil-Producing Nations – Ecuador

Ecuador is the second-largest producer of palm oil in South America, with an annual production output of around 500,000 tonnes. The country’s warm climate and fertile land have contributed to its success in the industry.

• In the 1980s and 1990s, Ecuador started making a lot of palm oil and selling it to other countries in Latin America. But this caused some problems for nature and local people.
• Even though there are arguments about making palm oil in Ecuador, it still brings in a lot of money for the country. In 2020, Ecuador made about 680,000 tons of palm oil and was the 7th largest maker in the world.
• The government has tried to control the palm oil industry and deal with the issues it causes. In 2008, they made a rule to stop cutting down forests for palm oil. But this rule has been changed a few times and might end in 2021.

Eighth Largest Palm Oil-Producing Nations – Honduras

Honduras is another Central American country that is a significant producer of palm oil, with an annual production output of around 400,000 tonnes. The country’s tropical climate and suitable land conditions have led to a steady growth in the industry.

• Honduras is a big country in Central America and has been farming for a long time.
• They started making palm oil in the 1950s, but it really took off in the 1990s.
• Now, Honduras is one of the top 10 countries in the world making palm oil. They made over 800,000 tons of it in 2020.
• Honduras is good at making palm oil because the weather and soil are just right, the government helps, and lots of people want palm oil.

Ninth Largest Palm Oil-Producing Nations – Côte d’Ivoire (Ivory Coast)

Cote d’Ivoire, also called Ivory Coast, is a country in West Africa famous for its culture and food. But it’s also a big deal in making palm oil. It’s the biggest palm oil maker in Africa and the fifth biggest in the world, making about 15% of all palm oil.

• Palm oil makes a lot of money for Ivory Coast. It gives jobs to over 300,000 people and brings in about $6 billion every year.
• Making palm oil in Ivory Coast started a long time ago when the French came and started growing palm trees.
• Ivory Coast cares about making palm oil in a good way. They’re part of programs like the RSPO that make sure palm oil is made responsibly.
• Ivory Coast doesn’t just make palm oil, they also sell a lot of it to other countries like India, Netherlands, and Spain.

Tenth Largest Palm Oil-Producing Nations – Brazil

Brazil is not traditionally known as a major producer of palm oil, but it has recently entered the top 10 list with an annual production output of around 350,000 tonnes. The country’s tropical climate and large land area make it a potential contender in the palm oil industry.

• Most of the palm oil made in Brazil is used inside the country, with only a small part being sold to other countries.
• Lately, more people want palm oil that’s made in a way that’s good for the environment. There are certifications, like the RSPO, to show that.
• Making palm oil has helped Brazil’s economy grow. It gives jobs and money to people in the area.
• Since Brazil’s population is getting bigger and more people want oils from plants, making palm oil is really important to have enough for everyone in Brazil.

Summary – Highest Palm Oil-Producing Nations

These top 10 palm oil-producing nations play a crucial role in meeting the global demand for this versatile vegetable oil. However, the industry has also faced significant criticism for its environmental and social impact. It is essential for these countries to prioritize sustainable practices and responsible production to mitigate these concerns and ensure the long-term viability of the palm oil industry

FAQs on Highest Palm Oil-Producing Nations

Which countries are the top producers of palm oil?

Papua New Guinea, Honduras, Guatemala, Côte d’Ivoire (Ivory Coast), Indonesia, Malaysia, Thailand, Colombia, Nigeria, and Brazil are usually the main producers of palm oil.

How much palm oil do these countries produce annually?

Millions of tonnes of palm oil are produced annually by these countries combined, with Indonesia and Malaysia producing the most, followed by the other countries on the list.

What are the main uses of palm oil from these countries?

Palm oil finds its application in a multitude of industries, such as biofuels, cosmetics, medicines, baked goods, cooking oil, margarine, and industrial applications including detergents and lubricants. It’s a commodity with many uses and great versatility.

What are the challenges faced by palm oil producers?

The obstacles faced by palm oil farmers include volatile market pricing, legal constraints pertaining to social and environmental standards, consumer consciousness and the desire for sustainable products, limited land availability, and competition from other oilseed crops.

What factors contribute to a country’s high palm oil production?

A number of factors, such as favorable climate (high rainfall in tropical locations), land availability for oil palm agriculture, government regulations, investments in agricultural infrastructure, and improvements in farming methods, all contribute to the high production of palm oil.