Castor oil and fractions market in Brazil

Earlier Report Observations

From 2018 to 2020, the domestic market for castor oil in Brazil grew from 14 518 t to 19 793 t. This expansion was fueled by rising industrial demand for castor oil derivatives in sectors like cosmetics, pharmaceuticals, and biofuels. Key developments included the acquisition of A. Azevedo Óleos by the Oleon group in 2019 and BASF's launch of new castor oil-based ingredients in 2020, which diversified applications and stimulated consumption. Even the COVID-19 pandemic, which introduced price volatility and logistics challenges, did not halt this trend, as the National Biodiesel Production and Use Program (PNPB) and support for family farmers continued to underpin the market.

After peaking in 2020, the domestic market volume fell to 7 939 t by 2023. This contraction was primarily due to a sharp rise in exports, which increased from 862 t in 2020 to 4 946 t in 2023, while imports dwindled. The growth in exports was facilitated by stable domestic production and surplus volumes directed to the international market, where global demand for castor oil derivatives in plastics, cosmetics, and pharmaceuticals remained strong. Domestically, small and medium producers began supplying castor oil for biodiesel with support from Petrobras Biocombustíveis, but this demand did not offset the volumes channeled for export.

In the following years, support policies such as the PNPB, with its crop purchase contracts and technical assistance, continued to strengthen the production chain. Research by Embrapa into non-toxic castor bean varieties advanced, with a commercial launch expected in several years, which could add future value. However, the market faced price pressures from climatic conditions, logistics volatility, and the lingering effects of the pandemic.

Production castor oil and fractions in Brazil

In kind, 2018-2021, t

Brazil was the world's third-largest producer of castor oil and fractions from 2018 to 2021.

Top producers of castor oil and fractions, 2018-2021

World map of production of castor oil and fractions, 2018-2021

Brazil's production of castor oil and fractions declined after two years of growth. In 2021, the country produced 14,200 tonnes, marking a 17.0% decrease from 2020. Over the 2018-2021 period, production rose by 54.3%, with an average annual growth rate of 15.6%. The highest output was recorded in 2020 at 17,100 tonnes, which also saw the largest increase of 36.8%.

Annual dynamics of production in Brazil in kind, 2018-2021, t

In value, 2018-2021, K $ US

Brazil's production value of castor oil and fractions fell following two years of gains. In 2021, output was valued at 25,765 thousand US dollars, a 19.9% drop from the previous year. From 2018 to 2021, production value grew by 13.9%, equivalent to an annualized rate of 4.4%. The peak value occurred in 2020 at 32,179 thousand US dollars, which also experienced the largest increase of 25.1%.

Annual dynamics of production in Brazil in value, 2018-2021, K $ US

Exports castor oil and fractions from Brazil

Exports in kind, t

Brazil's exports of castor oil and fractions increased for the third year in a row. In 2021, exports reached 2,114 tonnes, up 145.2% from 2020. Over the 2018-2021 period, exports surged by 537.4%, with an average annual growth rate of 85.4%.

Annual dynamics of product's exports from Brazil in kind, 2018-2021, t

From 2018 to 2021, the United States, France, and Colombia were the top destinations for Brazil's castor oil and fractions exports by volume. The United States accounted for 45.4% of exports, France for 22.4%, and Colombia for 6.5%, together representing 74.3% of total flows.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Brazil in kind, 2018-2021

Exports in value, K $ US

Brazil's export value of castor oil and fractions rose for the third consecutive year. In 2021, exports totaled 3,835 thousand US dollars, a sharp increase of 136.4% compared to 2020. Between 2018 and 2021, export value grew by 370.4%, equating to an annualized rate of 67.5%.

Annual dynamics of product's exports from Brazil in value, 2018-2021, K $ US

Between 2018 and 2021, the United States, France, and Paraguay were the leading markets for Brazil's castor oil and fractions exports by value. The United States contributed 40.0% of exports, France 17.0%, and Paraguay 9.3%, collectively accounting for 66.3% of total flows.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Brazil in value, 2018-2021

Imports castor oil and fractions to Brazil

Imports in kind, t

Market performance showed noticeable fluctuations during this period. Import volumes peaked in 2018 and fell to their lowest point in 2021, with a 40-fold difference between these years. In 2021, Brazil imported 140 tonnes of castor oil and fractions, a sharp decline of 96.1% from 2020. The largest increase was recorded in 2020 at 35.0%.

Annual dynamics of product's imports to Brazil in kind, 2018-2021, t

From 2018 to 2021, nearly all of Brazil's castor oil and fractions imports by volume came from India, which held a 99.7% share of total flows.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Brazil in kind, 2018-2021

Imports in value, K $ US

The data indicates irregular changes, reflecting a volatile market environment. Import value peaked in 2018 and bottomed out in 2021, with a 22-fold difference. In 2021, imports were valued at 403 thousand US dollars, a sharp drop of 91.8% from the previous year. The largest increase occurred in 2020 at 22.6%.

Annual dynamics of product's imports to Brazil in value, 2018-2021, K $ US

During 2018-2021, India was overwhelmingly dominant in Brazil's castor oil and fractions imports by value, accounting for 97.6% of total flows.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Brazil in value, 2018-2021