Europe: the biggest market for sustainable palm oil 

In September RSPO, IDH and EPOA jointly presented the report ‘Sustainable Palm Oil: Europe’s business – facts, analysis and actions to leverage impact’. The report gives an in-depth analysis of the current trends and developments in the European palm oil market and supply chain.

Targeting primarily consumer goods manufacturers, retailers and traders this report explores the incentives and disincentives for companies to support sustainable palm oil. Furthermore the report identifies five key action areas through which palm oil end-users can improve the sustainability of their palm oil supply chains.

Role of Europe

The report finds that Europe is by far the largest consumer of sustainable palm oil in the world, accounting for 45% of total global use of certified sustainable palm oil. Europe's total palm oil import is actually decreasing. While at the same time, the consumption of palm oil is increasing in other parts of the world where the market for sustainable palm oil products is still in its infancy. In this context, the report highlights the importance of maintaining Europe’s role in helping to shift the global market to sustainable palm oil.

RSPO certified

Europe faces unique challenges with specific oil palm products and their supply chains which reach sectors other than food, such as oleochemical and feed. As outlined in the report, 93% of total palm oil imports for food, feed and oleochemical, are RSPO certified sustainable, followed by CSPKO (Certified Sustainable Palm Kernel Oil) at 62%, and CSPKE (Certified Sustainable Palm Kernel Expeller) at only 5%, meaning that some sectors still need to be further developed. CSPKO and CSPKE are mainly used in the oleochemical and feed sectors. The report helps companies to identify key action areas depending on its maturity level in its sustainable palm oil journey.

Case studies

In a review of current topics, the report also draws upon five case studies exploring market trends, proposed EU regulation for mandatory due diligence for deforestation, NDPE, Sabah’s Jurisdictional Approach, and national sustainable palm oil certification schemes.

Please find the full report here.