ACOP 2024: RSPO Market Trends Resilient Despite Global Challenges

RSPO's Annual Communication of Progress (ACOP) 2024 results highlight a resilient sustainable palm oil market with steady CSPO growth and stronger global uptake, despite production challenges and inflationary pressures across major consumer regions.

The RSPO Annual Communication of Progress (ACOP) 2024 reporting cycle has officially closed with a notable 95% submission rate among RSPO Members for the third consecutive year. The latest report showed encouraging trends: strong CSPO production growth in Malaysia and Africa; notable CSPO uptake surpassing 90% in Europe and North America; and an increase of Independent Smallholder (ISH) Credit sales. Globally, certified production now makes up a total of 16.2 million MT (20.1%).

These positive developments prevailed despite a number of challenges that faced the palm oil and oil palm product market in 2024, including lower yields from ageing plantations, delayed replanting in Southeast Asia, production challenges stemming from El Niño weather conditions, and certification delays in Latin America. At the same time, high inflation across major consumer regions added further pressure on demand. Despite global challenges, RSPO market trends remained resilient, with positive sentiment even amidst constrained growth.

Upstream trends: Strong CSPO production growth in Malaysia, Africa; ISH Credits sales up

In 2024, RSPO Members accounted for 39% of global palm oil production, or 31.4 million MT, of which 20.1% (16.2 million MT) is certified as Certified Sustainable Palm Oil (CSPO). A further 18.9% is in the process of certification under RSPO rules. Global certified hectarage and CSPO production also continue to grow steadily, with increases of 1.1% and 0.5% respectively.

For the first time, CSPO Production in Malaysia exceeded 20% of the country's total production. In Africa, CSPO production showed strong growth, rising from 12.6% to 18.4%, outpacing the overall growth of total Crude Palm Oil (CPO) production by RSPO Members in the region.

For ACOP 2024, Thailand was separated from the "Rest of World" category to provide deeper insights, reflecting its role as one of the major palm oil-producing regions. CSPO production for Thailand was around 5% in 2024, with a further 30% identified as potential CSPO.

On the sales side, CSPO has shown steady growth, with sales of Independent Smallholder (ISH) Credits up by 6.9%, and Physical sales growing by 2.8%. An overall decline in RSPO Credit sales caused by an 7.2% drop in Mill Credits was offset by higher Physical sales, suggesting a potential shift in selling patterns from Credits to Physical. Certified Sustainable Palm Kernels (CSPK) sold as RSPO are also increasing from 79% to 83% reflecting rising demand for CSPK in the market. Stronger sales of Certified Sustainable Palm Kernel Oil (CSPKO) in both Physical and Credits led to 89% of available volumes being sold in 2024.

Additionally, Independent Smallholder groups reported an 18% increase in certified area, demonstrating that more ISH are committing to certification.

Overall CSPO Consumption and Uptake: Europe and North America surpasses 90%

Despite a challenging macroeconomic situation, global palm oil trade and refining from RSPO Members still increased in 2024. Physical CSPO volumes traded, refined and processed by RSPO Members grew by 1.1%, with significant room to grow in this section of the supply chain as RSPO Members currently processed 76.8% of global palm oil consumption.

These intermediate CSPO volumes are then used to manufacture industrial and consumer goods for downstream consumption. Accounting for Physical CSPO and CSPO Credits, total downstream consumption grew by 3% in 2024.

RSPO Members with Consumer Goods Manufacturers (CGM) operations recorded increases of 3.7% and 1.4% in consumption of Physical CSPO and CSPO Credits respectively, resulting in a 3% overall rise in CSPO consumption, which exceeded 8 million MT.

RSPO Members with Retailer operations reported stronger results, with CSPO consumption surpassing 1.5 million MT and growing by 2.8%. Uptake rose from 82% to 88%, indicating retailers are consuming a higher share of certified RSPO products.

Despite a reduction in global palm oil consumption, CSPO uptake remained stable across regions, bringing global uptake to 13.1% with total consumption reaching 10.1 million MT (+3%). Uptake surpassed 90% in Europe (excluding biofuels) and North America, and China reached around 550,000 MT of consumption at an uptake level of 11.7%.

ACOP Dashboard Update

The ACOP Analysis Dashboard is now updated with ACOP 2024 data. Detailed data and information are now available through the dashboard on the RSPO ACOP page.

The RSPO Secretariat extends its sincere gratitude to all RSPO Members for achieving an impressive record submission rate for the third consecutive year. These robust submissions are crucial for the RSPO to accurately understand and report on market dynamics, identify areas where members require assistance, and promote transparency in the overarching vision of making palm oil sustainable.