Castor oil and fractions market in MERCOSUR

Earlier Report Observations

The castor oil market in MERCOSUR experienced notable shifts between 2018 and 2023. Market volume reached a high of 22 591 t in 2020, supported by rising demand for natural and eco-friendly products in cosmetics, pharmaceuticals, and industrial applications like biofuels. This growth was underpinned by Brazil's key role as a producer and exporter, with family farming in semi-arid regions central to castor bean cultivation. However, climatic factors, including monsoon rain patterns, introduced volatility in raw material supply, contributing to market contractions in subsequent years.

Government policies and corporate initiatives provided stability. Brazil's Petrobras Biodiesel Program (PBio) and public support for long-term contracts encouraged castor bean production, while the ricinochemical industry expanded into new industrial uses, maintaining production interest. These efforts helped counterbalance challenges such as competition from synthetic substitutes and supply chain disruptions, which constrained market growth. The expansion of export volumes also influenced domestic availability, reflecting international demand for castor oil derivatives.

By 2023, the market volume settled at 10 978 t, illustrating the interplay of demand drivers and supply-side limitations. The market's trajectory highlighted the importance of agricultural sustainability, regulatory frameworks, and the role of state-owned entities like Petrobras in shaping the castor oil sector within MERCOSUR.

Production castor oil and fractions in MERCOSUR

In kind, 2017-2020, t

Top producers of castor oil and fractions, 2017-2020

World map of production of castor oil and fractions, 2017-2020

MERCOSUR's castor oil and fractions production has grown for the third consecutive year. In 2020, production reached 19 300 tonnes, marking a 32.2% increase compared to 2019. Over the 2017-2020 period, production surged by 117.2%, with a compound annual growth rate of 29.5%.

Annual dynamics of production in MERCOSUR in kind, 2017-2020, t

In value, 2017-2020, K $ US

Castor oil and fractions production in MERCOSUR has risen for the third year in a row. In 2020, the output was valued at 35 262 thousand US dollars, representing a significant 25.2% increase from 2019. From 2017 to 2020, production grew by 93.4%, with a compound annual growth rate of 24.6%.

Annual dynamics of production in MERCOSUR in value, 2017-2020, K $ US

Exports castor oil and fractions from MERCOSUR

Exports in kind, t

The data shows irregular changes, indicating a volatile market environment. Exports reached their lowest point in 2018 at 365 tonnes, with the largest decline that year at 8.3%. In 2020, MERCOSUR's castor oil and fractions exports amounted to 888 tonnes, a sharp 78.8% year-on-year increase, marking the peak with a 2.4-fold difference from the 2018 trough.

Annual dynamics of product's exports from MERCOSUR in kind, 2017-2020, t

From 2017 to 2020, the United States (44.7% of exports in kind), Colombia (21.4%), and Mexico (11.8%) were the main buyers of castor oil and fractions from MERCOSUR, together accounting for 77.9% of total exports in kind.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from MERCOSUR in kind, 2017-2020

Exports in value, K $ US

Castor oil and fractions exports from MERCOSUR have increased for the second consecutive year. In 2020, export volume reached 1 623 thousand US dollars, a sharp 69.3% rise compared to 2019. Over the 2017-2020 period, exports grew by 98.6%, with a compound annual growth rate of 25.7%. The lowest value was recorded in 2018 at 815 thousand US dollars, with the largest decline that year at 0.2%.

Annual dynamics of product's exports from MERCOSUR in value, 2017-2020, K $ US

Throughout 2017-2020, the United States (37.2% of exports in value terms), Colombia (21.3%), and Mexico (12.7%) formed the core of exports, together representing 71.2% of total flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from MERCOSUR in value, 2017-2020

Imports castor oil and fractions to MERCOSUR

Imports in kind, t

After a two-year decline, castor oil and fractions imports into MERCOSUR have increased. In 2020, imports registered 4 179 tonnes, a 34.9% rise compared to the previous year. Between 2017 and 2020, imports decreased by 56.1%, equating to an annualized rate of 24.0%. The lowest value was recorded in 2019 at 3 099 tonnes, with the largest decline that year at 50.1%.

Annual dynamics of product's imports to MERCOSUR in kind, 2017-2020, t

From 2017 to 2020, India effectively monopolised imports in kind of castor oil and fractions to MERCOSUR, accounting for 96.9% of total flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to MERCOSUR in kind, 2017-2020

Imports in value, K $ US

After a two-year decline, castor oil and fractions imports into MERCOSUR have risen. In 2020, import volume amounted to 5 971 thousand US dollars, an uptick of 20.2% compared to the previous year. Between 2017 and 2020, imports decreased by 59.8%, equating to an annualized rate of 26.2%. The lowest value was recorded in 2019 at 4 969 thousand US dollars, with the largest decline that year at 49.6%.

Annual dynamics of product's imports to MERCOSUR in value, 2017-2020, K $ US

Throughout 2017-2020, India played a dominant role in imports in value terms of castor oil and fractions to MERCOSUR, consistently accounting for 94.2% of total flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to MERCOSUR in value, 2017-2020