Coconut oil and fractions market in Central America

Earlier Report Observations

At the start of the period, the coconut oil market volume in Central America was supported by growing demand, spurred by companies such as Coco Fine Cocoa Company in El Salvador promoting varieties and seed exports. However, critical climatic factors periodically affected coconut agricultural production, conditioning raw material supply. By 2020, insufficient production and processing in Nicaragua constrained local supply, leading to increased imports to meet demand and contributing to market volume growth.

In subsequent years, foreign trade dynamics played a role, particularly Honduras' strong dependence on the U.S. market and competition from palm oil. This, alongside the evolution of global demand and trade policy, contributed to reduced coconut oil imports in 2021 and 2022, leading to a contraction in overall market volume.

From 2023 onward, global consumption trends shifted towards products with natural attributes and wellness benefits, while increased consumer stress heightened preference for healthy products, boosting demand for coconut oil. Simultaneously, plantation damage from climatic events and labor shortages limited raw material production, necessitating higher imports to satisfy rising demand, which kept market volume at an elevated level.

Production coconut oil and fractions in Central America

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

In 2019, coconut oil and fractions production in Central America saw its largest decline of 1.1%. This was followed by a 1.9% increase in 2018, and in 2020, production reached 134.3 thousand tons, marking a slight 1.2% rise compared to the previous year.

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

Exports coconut oil and fractions from Central America

Exports in kind, t

The market showed significant volatility during this period. In 2019, coconut oil and fractions exports from Central America hit their lowest point at 310 tons, with the largest decline of 49.7% occurring in 2018. By 2020, exports surged to 849 tons, representing a 173.5% increase from the previous year, creating a 2.7-fold difference between the peak in 2020 and the low in 2019.

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

From 2017 to 2020, the United States and Colombia dominated the export market for coconut oil and fractions from Central America, while other destinations played a smaller role individually.

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

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

Exports in value, K $ US

Exports in value terms grew for the second consecutive year in 2020, reaching 2 019 thousand US dollars, a 50.1% increase from the previous year. The lowest point was in 2018 at 1 175 thousand US dollars, which also saw the largest decline of 52.3%. Over the 2017-2020 period, exports fell by 18%, with an annualized decline of 6.4%.

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

Between 2017 and 2020, the United States and Colombia were the key markets for exports in value terms, accounting for 81.1% of total flows, with the remainder spread across other destinations.

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

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

Imports coconut oil and fractions to Central America

Imports in kind, t

After two years of decline, imports of coconut oil and fractions into Central America rebounded in 2020, rising by 25.2% from the previous year. The lowest level was in 2019 at 3 901 tons, following the largest decline of 11.3% in 2018. From 2017 to 2020, imports grew by 6.3%, with an annualized growth rate of 2.0%.

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

During 2017-2020, the Philippines and the United States together made up 89.8% of total imports in kind, with other countries contributing a more diverse but less significant share.

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

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

Imports in value, K $ US

Imports in value terms increased in 2020 after a two-year decrease, totaling 11 379 thousand US dollars, a 29.0% rise from the previous year. The minimum was recorded in 2019 at 8 819 thousand US dollars, with the largest decline of 23.6% occurring in 2018. Between 2017 and 2020, imports fell by 21.5%, equivalent to an annualized decrease of 7.7%.

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

From 2017 to 2020, the Philippines and the United States accounted for the majority of imports in value terms for coconut oil and fractions into Central America, while other markets represented a smaller portion.

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

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