Global palm oil prices are forecast to rise sharply, reaching \$1,200 per metric ton by the end of 2025—up from \$900—according to a new report by Afrinvest West Africa.
The 33% projected increase is attributed to tightening supplies from Indonesia and Malaysia, the world’s leading producers, and growing global demand driven by biofuel policies and a shift away from sunflower oil amid geopolitical instability.
Afrinvest links the rally to firmer crude oil prices, easing US-China trade tensions, and supply cuts from biofuel mandates in Southeast Asia.
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Palm oil prices had already jumped 36% year-on-year in 2024, following El Niño disruptions and the conflict in Ukraine, which curtailed sunflower oil exports.
In response, Nigeria’s palm oil industry has been urged to scale up local production, with stakeholders warning against continued dependence on Asian imports.
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