Coconut oil and fractions market in Madagascar

Earlier Report Observations

The market for coconut oil in Madagascar showed a declining trend in volume from 7.6 thousand tons in 2018 to 6.3 thousand tons in 2023. This contraction was partly driven by calls from the local edible oils industry to limit imports, which led to a sharp drop in imported volumes from 2.7 thousand tons in 2018 to 1.4 thousand tons in 2019. However, domestic artisanal and semi-industrial production, which dominated the sector, was unable to fill the gap, as it remained limited by technological constraints and small-scale operations.

International market dynamics played a significant role. Export prices for Malagasy coconut oil rose from $1.25 per kg in 2018 to a peak of $2.00 per kg in 2021, reflecting growing global demand for virgin, unrefined, and cold-pressed oils, particularly from Europe and the United States. This price incentive supported local ambitions to increase exports and spurred studies and projects aimed at industrializing production, such as the planned creation of an Industrial Coconut Oil Operation (EEIHC).

Throughout the period, the sector grappled with strong competition from imported edible oils from countries like Argentina, Egypt, and Malaysia. In response, local producers focused on improving quality, pursuing organic and fair-trade certifications, and setting up processing units in key regions like Sambava. By 2024, initiatives included the launch of a regulatory portal for essential oils and training for multi-stakeholder partnerships, indicating a gradual move toward a more structured and quality-focused industry.

Production coconut oil and fractions in Madagascar

In kind, 2017-2020, t

Madagascar ranked 29th globally in coconut oil and fractions production from 2017 to 2020.

Top producers of coconut oil and fractions, 2017-2020

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

In 2020, Madagascar produced 4 713 tonnes of coconut oil and fractions, showing a modest year-on-year decline of 3.4%. Over the 2017-2020 period, production fell by 4.9%, which translates to an annualized decrease of 1.7%. The largest increase occurred in 2019, at 0.0%.

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

In value, 2017-2020, K $ US

Coconut oil and fractions production in Madagascar declined for the second consecutive year. In 2020, the output was valued at 6 761 thousand US dollars, reflecting a 2.2% year-on-year drop. From 2017 to 2020, production decreased by 6.9%, with a compound annual growth rate of -2.3%. The highest value was recorded in 2018 at 7 773 thousand US dollars, while the largest decline of 11.1% occurred in 2019. The largest increase of 7.1% was also seen in 2018.

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

Exports coconut oil and fractions from Madagascar

Exports in kind, t

The data shows irregular changes, indicating a volatile market environment. Exports varied significantly, with a 4.4-fold difference between the peak in 2020 and the low in 2017. In 2020, Madagascar's foreign supplies of coconut oil and fractions reached 5 tonnes, marking a sharp increase of 81.0% compared to the previous year. The largest decline of 20.1% was recorded in 2019, while the largest increase of 206.5% occurred in 2018.

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

From 2017 to 2020, France remained the overwhelmingly dominant buyer of coconut oil and fractions from Madagascar, accounting for 95.8% of total exports in volume terms.

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

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

Exports in value, K $ US

The market exhibited an unstable trend throughout the period. Export values varied 4.3 times from the high in 2020 to the low in 2017. In 2020, Madagascar exported 7 thousand US dollars worth of coconut oil and fractions, indicating an abrupt increase of 83.4% compared to 2019. The largest decline of 29.0% was recorded in 2019, while the largest increase of 233.3% occurred in 2018.

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

From 2017 to 2020, France concentrated most of the exports in value terms, taking 88.7% of total flows, with a fragmented tail of other markets.

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

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

Imports coconut oil and fractions to Madagascar

Imports in kind, t

The market showed signs of volatility over the observed period. Imports peaked in 2018 and reached their lowest point in 2017, with a 2.5-fold difference between these years. In 2020, Madagascar imported 1 872 tonnes of coconut oil and fractions, indicating a rise of 34.7% compared to 2019. The maximum volume of 2 672 tonnes was recorded in 2018. The largest decline of 48.0% occurred in 2019, while the largest increase of 154.6% was seen in 2018.

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

Throughout 2017 to 2020, Malaysia played the leading role in imports in volume terms, with a share of 80.6% of total flows, while other markets together accounted for the remainder.

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

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

Imports in value, K $ US

The market showed signs of volatility over the observed period. Import values peaked in 2018 and hit their lowest point in 2019, with a 2.4-fold difference between these years. In 2020, cross-border shipments of coconut oil and fractions to Madagascar stood at 1 876 thousand US dollars, showing a steep advance of 50.2% relative to the prior year. The minimum value of 1 249 thousand US dollars was recorded in 2019, while the maximum value of 2 992 thousand US dollars occurred in 2018. The largest decline of 58.3% was in 2019, and the largest increase of 133.2% was in 2018.

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

Throughout 2017 to 2020, the partner structure for imports in value terms was centred on Malaysia, whose share amounted to 83.1% of total flows, while other markets formed a less significant perimeter.

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

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