THE IMPORTANCE OF MARKET DIVERSIFICATION STRATEGY FOR PALM OIL IN FACING CONTEMPORARY MARKET DYNAMICS

Abstract

The global palm oil industry is increasingly exposed to shifting trade policies, environmental pressures, and changing consumer demands, prompting a re-evaluation of how market diversification strategies are conceptualized and implemented. This study aims to explore the strategic role of market diversification in enhancing the resilience and competitiveness of palm oil producers in responding to contemporary global market dynamics. The research adopts a qualitative approach through a Systematic Literature Review (SLR), focusing on peer-reviewed articles published between 2020 and 2025. Data collection was conducted using structured keyword queries across the Scopus database, yielding 4,173 initial results. Through a multistage selection process based on topic relevance, publication year, and open-access availability, 26 articles were identified as meeting the inclusion criteria. Data analysis used thematic coding to identify dominant patterns in conceptual framing, implementation practices, and outcome assessments related to diversification strategies. The findings reveal that market diversification is increasingly viewed as a multidimensional strategy that encompasses geographical expansion, product innovation, regulatory compliance, and digital transformation. Implementation varies significantly across actor types: large firms adopt integrated approaches, while smallholders face institutional constraints. Despite growing academic attention, standardized tools for measuring diversification outcomes remain limited. This review concludes that diversification is not merely a tactical response but a structural pathway for sustainable transformation in the palm oil sector. Future studies are encouraged to develop integrated impact metrics and explore inclusive strategies that empower small-scale actors in global value chains.

DOI: https://doi.org/10.56238/sevened2026.008-064