Demand Shift Weighs on CPKO Prices
Global consumption is projected to rise supported by ample inventories and a shift in demand away from crude palm kernel oil. This change in preference is likely to soften CPKO prices in the near term.
Crude Palm Kernel Oil Price Trend Analysis 2026: Price Drivers, Historical Prices, Market Insights, Latest News & Supply Demand Analysis
Written ByNeha Gawande
Crude Palm Kernel Oil Latest Development
Price Hikes for Soaps Amid Inflation
Indian FMCG companies reported price increases for soaps and other products during the April-June quarter due to rising raw material costs and geopolitical disruptions. Analysts expect margin pressure to intensify in Q2 but note that recent crude oil price declines may ease future cost increases.
Crude Palm Kernel Oil Price Trend Q2 2026
- Crude palm kernel oil markets weakened through Q2 2026 as improving Southeast Asian supply reduced the tightness seen at the start of the quarter.
- Higher palm kernel availability and stronger processing output eased feedstock pressure, although weather risks and elevated fertilizer costs limited the downside.
- Oleochemical, personal-care and food-sector demand remained steady, but buyers became cautious as improving availability reduced the need for aggressive restocking.
Asia
Asian crude palm kernel oil markets moved lower during Q2 2026 as supply conditions improved across Indonesia and Malaysia. USDA estimated Indonesia’s PKO production at 5.2 million MT in 2025/26, with exports at 1.5 million MT, indicating substantial availability for regional and international buyers. Domestic industrial consumption remained strong, driven mainly by oleochemicals, soaps, detergents and personal-care applications, but increased production reduced the urgency to secure additional cargoes. Malaysia also contributed to improved availability, with USDA estimating production at 2.22 million MT and exports near 1.15 million MT. Stronger Southeast Asian supply outweighed steady industrial consumption, keeping the market under pressure through the latter part of the quarter.
Europe
European crude palm kernel oil conditions softened as improved Southeast Asian availability reduced replacement-cost pressure for importers. The region remained heavily dependent on imported material, particularly for oleochemical, detergent, cosmetics and specialty chemical production. EU remained an important destination for Malaysian PKO, and the product remained competitive against other lauric oils. Purchasing stayed cautious as buyers anticipated greater supply availability, while weaker import activity into the Netherlands earlier in the marketing year pointed to restrained demand. Feedstock competition remained important, with users adjusting procurement between palm kernel and coconut-derived oils according to availability and processing requirements.
North America
North American crude palm kernel oil markets also benefited from softer Southeast Asian supply conditions, although freight and downstream processing costs limited the extent of the decline in landed values. The United States remained one of Indonesia’s major PKO export destinations. Demand from surfactants, personal care, food ingredients and industrial oleochemicals remained steady, but buyers avoided aggressive inventory building as overseas availability improved.
Analyst Insight
According to Procurement Resource, CPKO markets are expected to remain soft to stable as higher Southeast Asian availability weighs on the market, although weather disruptions and firm oleochemical demand could limit further weakness.
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- Crude palm kernel oil prices followed a firm trend in Q1’26, supported by tight availability and steady import demand across major consuming regions.
- Feedstock support remained strong as palm kernel oil stocks tightened despite improved production, while higher freight and insurance costs added landed-cost pressure.
- Downstream demand stayed firm from oleochemicals, soaps, detergents, cosmetics, confectionery fats, and specialty food applications.
Asia
During Q1’26, crude palm kernel oil prices in Asia followed a firm trend, supported by tighter regional availability and steady downstream demand from China and India. Malaysia’s crude palm kernel oil production rose to 162,127 tonnes in March, but stocks declined to 339,687 tonnes, showing that downstream offtake and export movement absorbed higher output. China and India continued sourcing material for oleochemicals, surfactants, soaps, detergents, personal care products, and confectionery fats. Stronger palm-kernel-linked supply pressure and higher shipping costs after the Strait of Hormuz disruption supported market firmness.
Europe
During Q1’26, crude palm kernel oil prices in Europe remained firm as the region relied on imported lauric oils for oleochemical and personal care manufacturing. Demand from detergents, cosmetics, fatty acids, fatty alcohols, and specialty fats remained steady. Higher freight and insurance costs after the Iran war increased delivered costs, while limited supplier flexibility from Southeast Asia supported firm conditions.
North America
During Q1’26, crude palm kernel oil prices in North America showed a stable to firm trend, supported by import reliance and steady downstream consumption. Demand from surfactants, soaps, detergents, cosmetics, confectionery coatings, and specialty food fats remained consistent. Supply was exposed to Asian export flows, and higher shipping risk increased landed cost pressure for buyers.
About Crude Palm Kernel Oil
Crude Palm Kernel Oil is known as an edible plant oil that is extracted from the kernel of the oil palm Elaeis guineensis. It should not be confused with the other two edible oils derived from palm fruits: palm oil, that is derived from the pulp of the oil palm fruit, and the coconut oil, that is derived from the kernel of the coconut.
Crude Palm Kernel Oil Product Detail
Industrial Uses
Ghee, Butter, Ice-Cream, Chocolate, Dairy Products, Soap, Cream, Body Lotions, Detergents
Supplier Database
Cargill, Incorporated, United Palm Oil Industry Public Company Limited, Wilmar International Ltd, Sime Darby Plantation Berhad, IOI Corporation Berhad, Musim Mas Holdings Pt. Ltd
Regional Coverage
Asia Pacific
China, India, Indonesia, Pakistan, Bangladesh, Japan, Philippines, Vietnam, Iran, Thailand, South Korea, Iraq, Saudi Arabia, Malaysia, Nepal, Taiwan, Sri Lanka, UAE, Israel, Hongkong, Singapore, Oman, Kuwait, Qatar, Australia, and New Zealand
Europe
Germany, France, United Kingdom, Italy,Spain, Russia, Turkey, Netherlands, Poland, Sweden, Belgium, Austria, Ireland Switzerland, Norway, Denmark, Romania, Finland, Czech Republic, Portugal and Greece
North America
United States and Canada
Latin America
Brazil, Mexico, Argentina, Columbia, Chile, Ecuador, and Peru
Africa
South Africa, Nigeria, Egypt, Algeria, Morocco
CurrencyUS$ (Data can also be provided in local currency)
Supplier Database AvailabilityYes
Customization ScopeThe report can be customized as per the requirements of the customer
Post-Sale Analyst Support360-degree analyst support after report delivery
Note: Our supplier search experts can assist your procurement teams in compiling and validating a list of suppliers indicating they have products, services, and capabilities that meet your company's needs.
Crude Palm Kernel Oil Production Processes
- Production of Crude Palm Kernel Oil via Mechanical Extraction Process.
In the mechanical extraction process, production of Crude Palm Kernel Oil involves three basic steps, which starts with kernel pre-treatment, then screw-pressing, and finally oil clarification. This method can be used and is suitable for both small- and large- capacity operations.
Our Price Analysis Methodology
About the Author
Neha Gawande
Senior Lead Analyst
Delivering procurement intelligence and commodity research across automotive, oil & gas, chemicals, aerospace, and energy, helping sourcing teams decode complex supply chain data to sharpen purchasing strategies and achieve sustainable cost outcomes.
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