Coconut oil and fractions market in Sri Lanka

Earlier Report Observations

The market for coconut oil and fractions in Sri Lanka expanded from $174.6 million in 2018 to $286.4 million in 2021, driven primarily by a surge in imports which offset fluctuations in domestic production. While production volumes varied, imports rose sharply from $12.8 million in 2018 to $177.1 million in 2021, significantly enlarging the total market supply.

After reaching its peak in 2021, the market size stabilized at $280.3 million in 2022 before contracting sharply to $190.1 million in 2023. This decline coincided with a substantial drop in domestic production value, which fell from $335.8 million in 2022 to $141.8 million in 2023.

The coconut oil sector operates within a global context of supply-side constraints, including aging plantations, slow replanting rates, and competition for raw coconuts from higher-value products like virgin coconut oil. These factors limit copra availability for crushing. Concurrently, increasing health consciousness and the growing popularity of plant-based oils continue to support underlying demand, with Sri Lanka maintaining its role as an exporter of refined coconut oil.

Production coconut oil and fractions in Sri Lanka

In kind, 2017-2020, t

From 2017 to 2020, Sri Lanka ranked sixth globally in the production of coconut oil and fractions.

Top producers of coconut oil and fractions, 2017-2020

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

In 2020, Sri Lanka produced 53,600 tonnes of coconut oil and fractions, marking a 16.9% year-over-year decrease. Production declined by 2.9% over the 2017-2020 period, averaging an annualized rate of 1.0%. The peak was in 2019 at 64,500 tonnes, with the largest increase of 16.8% also occurring that year.

Annual dynamics of production in Sri Lanka in kind, 2017-2020, t

In value, 2017-2020, M $ US

Sri Lanka's production of coconut oil and fractions fell for the third year in a row. In 2020, the output was valued at 213.0 million US dollars, down 11.0% from the previous year. From 2017 to 2020, production dropped by 17.8%, with a compound annual growth rate of -6.3%.

Annual dynamics of production in Sri Lanka in value, 2017-2020, M $ US

Exports coconut oil and fractions from Sri Lanka

Exports in kind, t

After two years of decline, Sri Lanka's exports of coconut oil and fractions rebounded. In 2020, the country exported 21,335 tonnes, a sharp 30.1% increase compared to 2019. Over the 2017-2020 period, exports grew by 6%, averaging an annualized rate of 2.0%. The lowest volume was in 2019 at 16,400 tonnes, which also saw the largest decline of 18.0%.

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

From 2017 to 2020, the United States, Germany, and Australia were the top buyers of coconut oil and fractions from Sri Lanka, accounting for 25.0%, 15.9%, and 11.4% of exports in kind, respectively. Together, they made up 52.3% of total exports in kind.

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

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

Exports in value, K $ US

Following a two-year downturn, Sri Lanka's exports of coconut oil and fractions in value terms rose. In 2020, exports totaled 84,787 thousand US dollars, a 39.4% year-over-year gain. However, from 2017 to 2020, exports decreased by 10.3%, with an annualized rate of -3.5%. The lowest value was in 2019 at 60,828 thousand US dollars, which also experienced the largest decline of 33.8%.

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

Between 2017 and 2020, the United States, Germany, and Australia were the leading markets for Sri Lanka's coconut oil and fractions exports in value terms, with shares of 24.5%, 15.9%, and 12.2%, respectively. Combined, they represented 52.6% of total export flows.

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

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

Imports coconut oil and fractions to Sri Lanka

Imports in kind, t

The data shows irregular changes, pointing to a volatile market environment. Imports bottomed in 2019 at 3,683 tonnes and peaked in 2020 at 76,664 tonnes, a 21-fold difference. In 2020, imports surged by 1,981.7% compared to the previous year. The largest decline of 59.1% occurred in 2019.

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

From 2017 to 2020, Indonesia and Malaysia were the primary sources for Sri Lanka's imports of coconut oil and fractions in kind, together accounting for 82.0% of total flows, with the remainder distributed among other markets.

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

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

Imports in value, K $ US

Volatility characterized the market during these years. Imports reached their lowest point in 2019 at 3,648 thousand US dollars and their highest in 2020 at 88,148 thousand US dollars, a 24-fold swing. In 2020, imports skyrocketed by 2,316.2% compared to 2019. The largest decline of 71.5% was recorded in 2019.

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

Over the 2017-2020 period, Indonesia, Malaysia, and the Philippines were the main sources for Sri Lanka's imports of coconut oil and fractions in value terms, with shares of 53.2%, 24.9%, and 12.6%, respectively. Together, they absorbed 90.7% of total imports in value terms.

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

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