Palm Oil Consumption Continues to Rise Over the Past Five Years

Domestic consumption of palm oil has continued to increase over the last five years. According to the Indonesian Palm Oil Association (Gapki), palm oil consumption reached 18.42 million tons in 2021.

Previously, in 2017, palm oil consumption was recorded at 11.05 million tons. Consumption increased by 22% to 13.49 million tons in 2018. The following year, palm oil consumption rose again by 24% to 16.73 million tons in 2019.

In 2020, palm oil consumption reached 17.35 million tons, an increase of 3.7%. Then, in 2021, palm oil consumption reached 18.42 million tons, an increase of 6%.

Gapki notes that domestic palm oil consumption is heavily influenced by the development of Covid-19. In 2021, with Covid-19 still spreading, total palm oil consumption for food increased by 6% compared to the previous year.

Furthermore, consumption for oleochemicals in 2021 also increased by 25%. Meanwhile, consumption for biodiesel increased by 2% from 2020.

Gapki predicts that domestic consumption for food in 2022 will increase by 9.6 million tons. Oleochemical consumption is predicted to stagnate at 2.16 million tons throughout the year, and biodiesel uptake will heavily depend on the mandatory biodiesel policy, potentially reaching 8.83 million tons in 2022.