Palm Fatty Acid Distillate (PFAD) Price Trend Analysis 2026: Market Insights, Latest News, Historical Prices, Price Drivers & Supply Demand Analysis

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Written ByShriya Singh

Procurement Resource Database

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  • PFAD prices followed a firm trend in Q1’26, mainly supported by tighter palm-based feedstock availability, steady oleochemical demand, and higher shipping costs after Middle East route disruptions.
  • Feedstock pressure came from crude palm kernel oil, where Malaysia’s production rose to 162,127 tonnes in March, but stocks declined to 339,687 tonnes, showing strong downstream absorption.
  • Demand remained steady from oleochemicals, soaps, detergents, surfactants, personal care products, and biodiesel-related applications, especially across China and India.

PFAD prices in Asia remained firm during Q1’26, tracking strength in crude palm kernel oil and wider palm-based feedstock markets. Higher crude palm kernel oil production in Malaysia did not ease the market, as declining stocks showed that downstream offtake and export movement absorbed available supply. China and India continued sourcing palm-based derivatives for oleochemicals, detergents, soaps, personal care ingredients, surfactants, and confectionery fats, keeping procurement active. PFAD supply also remained linked to palm oil refining rates, while firm palm-kernel-linked inputs supported seller offers. The Strait of Hormuz disruption added pressure through higher freight, insurance, and fuel costs, raising landed costs for buyers dependent on imported material.

About PFAD

PFAD or better known as palm fatty acid distillate is a by-product formed in the refining of palm oil for the food industry. PFAD appears as a light brown semi-solid substance at room temperature, which further melts into a brown liquid upon heating. PFAD primarily contains free fatty acids (FFA) (>80%) which include oleic, stearic, and palmitic components.

Production of food-grade oil from palm oil utilises distilling of palm oil as it improves the oil's taste, colour, odour, and shelf life. Thus, PFAD consists of degraded fats that are undesired and need to be removed to meet the food industry’s quality standards.

Palm Fatty Acid Distillate (PFAD) Product Detail

Molecular Weight
124.11g/mol 
Industrial Uses

Soaps, Fatty Acids and Fatty Alcohols, Animal Feed, Hardened Oils, Candles, Fragrance Ingredients, Intermediates

Synonyms

Palm Fatty Acid Distillate

Supplier Database

Wilmar International, PT TUNAS BARU LAMPUNG Tbk., Sarawak Oil Palms Berhad Group, Nuansa Kimia Sejati, PT, Future Prelude Sdn Bhd

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.

PFAD Production Processes

  • Production of PFAD via Refining and Distilling of Palm Oil

In this process, PFAD is produced as the by-product in the refining of palm oil. Palm oil is refined into food-grade oil by the removal of degraded fats and free fatty acids. The distillation of palm oil to refine the oil and separate these unwanted and degraded fats produces food-grade palm oil, which gives PFAD as the residue.

Our Price Analysis Methodology

About the Author

Shriya Singh profile photo

Shriya Singh

Business Insights Analyst

Helping procurement and sourcing teams navigate complex markets through data-driven research, category intelligence, and actionable insights - with a focus on identifying market trends, analyzing supply-side developments, and delivering clear intelligence that supports informed business decisions.

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