Coconut oil and fractions market in Asia

Earlier Report Observations

Following a year of substantial exports in 2018, the available volume of coconut oil within Asia expanded notably in 2019. This shift occurred as declining international prices and weakened demand for Indonesian coconut oil led to a sharp reduction in outbound shipments, making more supply available for regional consumption. The situation changed abruptly in 2020 when Covid-19 lockdowns disrupted farming operations and lowered yields across key producing nations. Concurrently, heightened demand for coconut water prompted earlier harvesting of nuts, further reducing the mature crop available for oil production, which collectively drove a significant contraction in market volume.

The market stabilized in 2021 against a backdrop of rising prices and India's maintenance of stringent import duties and permit requirements, which influenced regional trade flows. A strong recovery ensued in 2022, propelled by sustained high global prices resulting from long-term production constraints and underinvestment in coconut plantations. After this growth, market volume contracted again in 2023. During this period, the industry's long-term focus was illustrated by feasibility studies for new, large-scale coconut oil extraction plants in the Philippines, signaling continued investment in processing infrastructure.

Production coconut oil and fractions in Asia

In kind, 2017-2020, K t

Top producers of coconut oil and fractions, 2017-2020

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

Coconut oil and fractions production in Asia declined for the second year in a row. In 2020, Asia produced 2 553 K t of coconut oil and fractions, marking a significant contraction of 16.1% compared to 2019. Over the period from 2017 to 2020, production fell by 19.6%, with a compound annual growth rate of 7.0%. The highest production level was recorded in 2018 at 3 217 K t, which also saw the largest increase of 1.3%.

Annual dynamics of production in Asia in kind, 2017-2020, K t

Exports coconut oil and fractions from Asia

Exports in kind, K t

In 2020, coconut oil and fractions exports from Asia reached 799 K t, showing a modest increase of 3.9% compared to 2019. Between 2017 and 2020, exports decreased by 37.5%, translating to an annualized rate of 14.5%. The lowest export volume was recorded in 2019 at 769 K t, while the highest was in 2018 at 1 384 K t. The largest decline occurred in 2019 with a drop of 44.5%, and the largest increase was in 2018 with a rise of 8.4%.

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

From 2017 to 2020, the United States, the Netherlands, and Italy were consistently the main destinations for coconut oil and fractions exports from Asia. The United States accounted for 27.4% of exports in kind, the Netherlands for 24.7%, and Italy for 2.5%. Together, these three countries represented 54.6% of total export flows.

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

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

Exports in value, M $ US

After a two-year decline, Asia's coconut oil and fractions export volume increased. In 2020, exports totaled 1 707 M $ US, reflecting a modest year-over-year increase of 4.9%. Between 2017 and 2020, exports decreased by 36%, equating to an annualized rate of 13.8%. The lowest value was recorded in 2019 at 1 627 M $ US, which also saw the largest decline of 22.4%.

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

Throughout 2017 to 2020, the United States, the Netherlands, and Italy played leading roles in the value of coconut oil and fractions exports from Asia. The United States accounted for 27.3% of exports in value terms, the Netherlands for 27.0%, and Italy for 2.5%. Collectively, these three countries made up 56.8% of total export flows.

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

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

Imports coconut oil and fractions to Asia

Imports in kind, K t

After a two-year fall, foreign coconut oil and fractions supplies to Asia increased. In 2020, Asia imported a total of value_last_year K t of coconut oil and fractions, representing a limited uptick of 8.3% year-over-year. Between 2017 and 2020, imports decreased by 35.3%, equating to an annualized rate of 13.5%. The lowest import volume was recorded in 2019 at 142 K t, and the largest decline occurred in 2018 with a drop of 37.9%.

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

From 2017 to 2020, Papua New Guinea and Australia formed the leading pair of markets for coconut oil and fractions imports to Asia in kind. Papua New Guinea accounted for 4.1% of total flows, while Australia contributed 0.5%.

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

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

Imports in value, M $ US

After a two-year decline, coconut oil and fractions volumes imported by Asia increased. In 2020, Asia imported 769 M $ US of coconut oil and fractions, up by 27.8% compared to the previous year. Between 2017 and 2020, imports decreased by 9.5%, equating to an annualized rate of 3.3%. The lowest value was recorded in 2019 at 602 M $ US, which also saw the largest decline of 20.3%.

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

In 2017 to 2020, Papua New Guinea, the United States, and Australia together accounted for 5.1% of total imports in value terms for coconut oil and fractions to Asia. Papua New Guinea represented 3.6% of imports in value terms, the United States 0.9%, and Australia 0.6%. These countries remained the main destinations for such imports.

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

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