Palm Oil vs Other Vegetable Oils: Why Africa Holds the Advantage

In the global marketplace for vegetable oils, palm oil has long been both dominant and controversial. It is a staple in food manufacturing, cosmetics, biofuels, and various industrial uses. Yet its advantages – high yield, cost-efficiency, versatility – are often countered by environmental, health, and policy criticisms. Meanwhile, oils like soybean, sunflower, and rapeseed fight for market share, investment, and consumer preference.

For Africa, palm oil is more than a commodity; it’s a strategic asset. With large areas of suitable land, favorable climate, under-utilized smallholder networks, and rising global and regional demand, the continent stands to gain enormously if it plays its palm cards right.

In this article, we compare palm oil with other major vegetable oils on yield, economics, nutrition, environmental cost, and then lay out why Africa holds meaningful advantages.

Global Vegetable Oil Landscape: Market Size & Share

To understand the comparison, it’s essential to see the scale:

• According to Market.US, palm oil held about 33.6% of the global vegetable oil market by type in 2024. (Market.us)
• A 2023 report from Grand View Research estimated palm oil’s revenue-share at ≈34.27% of the global vegetable oil market. (Grand View Research)
• Together, palm oil, soybean, rapeseed, and sunflower oils account for ≈89% of total global vegetable oil production. Among these, palm oil is the single largest. (Businessday NG)

These numbers signal that palm oil isn’t just one among many; it is the benchmark by which other oils are measured.

Yield & Land Use Efficiency

Perhaps palm oil’s strongest advantage is its productivity per hectare. Yield directly translates into how much land is needed to produce a certain volume of oil, which ties into cost, environmental footprint, and profitability.

• Oil palm produces around 3.5 metric tons of oil per hectare per year on average in well-managed plantations. In some high performing zones it can reach 4.5-6.5 MT/ha/year. (prestasisawit.mpob.gov.my)
• By contrast:
  • Soybean yields are around 0.47 MT/ha/year (palmoilina.asia)
  • Rapeseed yields are about 0.65-0.75 MT/ha (cpopc.net)
  • Sunflower yields are similarly low in many locations (<1 MT/ha) in terms of oil output. (prestasisawit.mpob.gov.my)

What this means:

• To produce the same volume of oil, oils like soybean or sunflower require 4-7 times more land than palm oil.
• Greater land requirement translates into higher costs (land, labor, transport), more exposure to climatic variation, greater environmental risk (deforestation, carbon emissions).

Thus, at a land-scarce or land-costly scenario, palm oil is far more efficient.

Nutritional & Functional Aspects

Beyond sheer volume, the properties of palm oil make it attractive for many uses. These include both food/fat/oil use and industrial applications.

• Palm oil is semi-solid at room temperature, which gives it stability, longer shelf life, and usefulness in baked goods, confectionaries, etc. Alternative oils often require hydrogenation or additives to achieve similar stability, which can introduce cost and health concerns.
• Nutrition comparison vs soybean oil:
  • Palm oil is richer in vitamin E. According to FoodStruct, palm oil contains approximately 15.94 mg vitamin E per 100 g, compared to soybean oil’s 8.10 mg. (Food Struct)
  • Soybean oil is richer in polyunsaturated and monounsaturated fats. Palm oil has a higher proportion of saturated fats. Depending on dietary context, saturated fat is viewed with caution, but its presence gives palm oil certain functional benefits (stability, resistance to oxidation, flavor profile). (Food Struct)
• These functional traits give palm oil advantages in industrial food processing (margarines, shortening), snacks, frying, etc.

Economic & Price Comparisons

Cost is another arena where palm oil often outperforms alternatives, particularly when considering the full value chain.

• Lower land, labor, and input costs per unit of oil when farms are efficient. Because oil palms yield more, fewer hectares are needed, so less expenditure on land, less travel or transport per unit, less harvesting cost per unit of oil.
• In many import-dependent markets in Africa, palm oil is cheaper to bring in (crude or refined) than many bulkier, lower-yield oils, especially when parity tariffs/import duties or transport costs are considered.
• Global projections show that demand for edible oils in Africa is rising and that the domestic and intra-African market offers huge potential. According to an IndexBox report, Africa’s palm oil market is forecast to exceed 9.9 million tons by 2035, with substantial growth in demand and value. (IndexBox)
• In exports terms: Africa exported approximately 1.2 million tons of palm oil in 2024, up ~48% from the previous year. Value was around US$1.3-1.4 billion. (IndexBox)

Thus, there is both strong current trade and strong future demand that favor palm oil production, especially for African producers.

Environmental Footprint & Sustainability

It would be misleading to talk about advantages without acknowledging environmental costs. But in many respects, palm oil done well (i.e. sustainably) presents lower environmental cost per unit of oil than many other vegetable oils.

• Because palm oil yields more oil per hectare, the land needed is much less; this reduces deforestation and habitat loss risks per unit of oil. For example, palm oil produces roughly half of global edible oil output while occupying around one-twentieth of the land required if replaced by other oils. (cpopc.net)
• Input usage: Fertilizer and other inputs per unit of oil are lower. According to data summarized by the Council of Palm Oil Producing Countries (CPOPC), oil palm requires about 55 kg of fertilizer per ton of oil, while rapeseed might need ~508, sunflower ~468, soybean ~272 per ton. (cpopc.net)
• Because oil palms are perennial, once established, they continue producing for many years, which spreads establishment and maintenance costs. In contrast, many seed oils are annuals, requiring planting, harvesting, etc., every season.

Of course, unsustainable practices (clear-cutting of forests, peatland drainage, lack of smallholder inclusion, monocultures) can negate many advantages. But in many parts of Africa, there is both opportunity and pressure (from global buyers, regulation, environmental NGOs) to adopt better practices.

Challenges for Palm Oil

Even with its advantages, palm oil faces significant challenges that Africa must navigate:

1. Old Estates & Low Productivity: Many oil palms in Africa are ageing, with yield decline. In Malaysia/Indonesia, replanting is a big issue; Africa might face similar unless proactive replanting programs are supported.
2. Infrastructure & Processing Gaps: Many African producers are smallholder-based, with limited access to efficient mills, reliable roads, logistics, storage. Transporting fresh fruit bunches in poor condition reduces oil yield.
3. Regulatory & Trade Barriers: Import/export regulations, tariffs, non-tariff barriers, phytosanitary requirements, and quality/sustainability certification can raise costs or block market access.
4. Health & Perception Issues: Saturated fat content in palm oil is often criticized. Some consumers and regulators prefer oils perceived as “healthier”, like oils high in unsaturated fats. Africa must address this through communication, reformulation, certifications, and possibly focusing on red palm oil which has carotenoids, etc.
5. Competition from Alternatives: In regions where seed oils are produced locally (soy, sunflower, rapeseed), or imported cheaply, they may undercut palm oil in certain uses or in certain consumer niches (e.g. salad oils, premium oils, olive oil).

Why Africa Holds the Edge

Having compared palm oil with other oils, here are reasons why Africa is especially well-positioned to leverage palm oil’s comparative strengths.

1. Abundant Suitable Land & Climate

• Much of West and Central Africa lies in tropical rainforest belts or savanna where oil palm thrives. There are large tracts of land not yet fully utilised for oil palm, or planted with low-yield trees.
• Compared to Asia, where much of the prime land for oil palm is already utilized or constrained by regulation or land competition, Africa has expansion potential.

2. Smallholder Base

• Many West African countries have a large base of smallholder farmers already growing oil palm (often intercropped), which means the social and labor networks are in place; what is needed is investment in yield, quality, and linkages to markets.
• Smallholders can respond quickly, and with appropriate support (seedling quality, extension services, finance, cooperatives), yield improvements can be significant—closing the gap with estate yields.

3. Rising Intra-African Demand & Trade Integration

• Demand inside Africa for edible oils is increasing, driven by population growth, urbanization, changing diets. Relying on imports is expensive and risky.
• Trade agreements like AfCFTA can reduce tariffs, harmonize standards, and make regional trade more efficient. That means Africa producers can serve regional markets more competitively.

4. Lower Cost When Full Value Chain is Local

• If processing (refining, fractionation) is done locally, local producers capture more value. Instead of exporting crude palm oil and importing refined oils, local or regional processing can raise margins, create jobs, and boost foreign exchange earnings.

5. Potential for Sustainable Branding Premiums

• Global consumers and regulatory regimes increasingly demand sustainably produced palm oil (no deforestation, fair labor, biodiversity protection). Producers in Africa who adopt certified practices (RSPO, ISCC, etc.) might access premium markets.
• Also, Africa has opportunities to leapfrog some mistakes made elsewhere (e.g., peatland destruction, clearing of primary forest) by adopting best practices from the outset.

Case Studies & Data Points from Africa

While data is uneven, recent numbers show strong momentum:

• In 2024, Africa’s palm oil exports reached about 1.2 million tons (physical) and approx US$1.3-1.4 billion in value. Exports have grown by ~48% year-on-year. (IndexBox)
• Key exporting countries in that year included Djibouti and Côte d’Ivoire, accounting together for nearly 47-52% of total African palm oil exports. (IndexBox)
• Africa’s market is projected to exceed 9.9 million metric tons by 2035 in demand terms, with market value approaching US$11.8 billion. (IndexBox)

These numbers suggest that Africa is not only producing, but is poised to expand trade, capturing both domestic and regional demand.

Palm Oil vs Other Oils: Side-by-Side Comparison

Here’s a summary table to highlight differences:

Strategic Implications & Recommendations for Africa

Given the comparative analysis, here’s what African governments, companies, investors, and farmers should focus on to maximize the palm oil advantage.

• Invest in Yield Improvement & Replanting
  • Replace old, low-yield palms with high-yielding, disease-resistant varieties.
  • Provide smallholders with access to improved seedlings, fertilizer, extension services.
• Build Processing Infrastructure
  • Local refining, fractionation: so producers capture value beyond raw crude exports.
  • Improve cold chains, storage, transport to reduce losses from poor handling of fresh fruit bunches.
• Adopt Sustainable Practices Early
  • Encourage zero deforestation, no peatland clearance, biodiversity conservation, fair labor.
  • Pursue certification schemes (RSPO etc.) to access premium markets and avoid trade barriers.
• Strengthen Policy & Trade Frameworks
  • Leverage trade agreements (AfCFTA etc.) to reduce tariffs, streamline customs, harmonize quality standards.
  • Use government policy to incentivize investment, protect smallholder rights, clarify land tenure.
• Promote Nutritional and Functional Uses
  • Market red palm oil’s health benefits (vitamin E, carotenoids), especially for communities with vitamin A deficiency.
  • Use functional traits (stability, shelf-life) to compete in processed foods, industrial uses.
• Address Perception & Consumer Demand
  • Transparent communication about health impacts; science-based messaging.
  • Engage consumers both regionally and globally about sustainable palm oil.
• Focus on Regional Markets First
  • Africa has rising demand internally. Serving regional markets is logistically simpler and avoids many quality, tariff, and transport hurdles.
  • Use regional hubs for processing and distribution.

Potential Risks & What Could Go Wrong

No advantage is guaranteed. These are things to watch out for:

• Environmental backlash or regulatory restrictions if unsustainable expansion, deforestation, or land conflicts occur.
• Health-driven consumer shifts away from saturated-fat oils could reduce demand in some markets.
• Price volatility: As demand for biofuels and industrial uses rise, palm oil prices could become volatile, possibly narrowing cost advantage.
• Trade barriers: Importing countries may impose strict standards (e.g., sustainability, certification, pesticide residues) that small producers struggle to meet.

Conclusion

Palm oil clearly holds significant advantages over other vegetable oils: vastly higher yields per hectare, lower land and input costs per unit of oil, functional stability, and a diversity of uses that make it hard to displace. For Africa, especially in West and Central regions, the opportunity is real and large.

But advantage alone isn’t enough. Success depends on how well the continent addresses current gaps: yield improvement, processing capacity, sustainability, and trade policy. If Africa can leverage its climatic and land resources, scale up production efficiently, meet quality demands, and integrate more fully into regional and global value chains, then “palm oil vs other vegetable oils” will become less a debate about competition and more a story of Africa’s rise in agricultural commodities.

For TAPALM’s stakeholders—farmers, traders, exporters, policymakers—the path is clear. Invest smartly. Honor sustainability. Own the value chain. Serve the local and regional markets first. And then reach outward.