Coconut, palm kernel or babassu oil and fractions market in China, 2026

Earlier Report Observations

From 2018 to 2019, the market volume for coconut, palm kernel or babassu oil in China grew from 918 thousand tons to 1 118 thousand tons. This expansion was primarily driven by government policies promoting the blending of biofuels with traditional fuels, which increased demand for palm oil in biodiesel production. Additionally, rising demand for organic cosmetics, lubricants, and surfactants further stimulated the market.

The market then contracted to 920 thousand tons in 2020 and fell further to 818 thousand tons in 2021. By 2022, it declined to 772 thousand tons, a period where the COVID-19 pandemic significantly reduced overall edible oil consumption in the country. Recovery followed in 2023, with the market volume returning to 920 thousand tons, supported by a 5.7% year-on-year increase in refined edible vegetable oil production in the first seven months and sufficient palm oil import procurement.

In 2024, import volumes decreased to 822 thousand tons. This reduction occurred as a historic price inversion between soybean and palm oil led to significant substitution with soybean oil. Concurrently, climate anomalies such as El Niño and La Niña disrupted production and transportation in major supplying countries like Indonesia and Malaysia, affecting supply.

Production coconut, palm kernel or babassu oil and fractions in China

In kind, 2017-2020, t

Globally, China ranked 22nd in the production of coconut, palm kernel, or babassu oil and fractions from 2017 to 2020.

Top producers of coconut, palm kernel or babassu oil and fractions, 2017-2020

World map of production of coconut, palm kernel or babassu oil and fractions, 2017-2020

China's production of coconut, palm kernel, or babassu oil and fractions declined for the second year in a row. In 2020, output reached 16 142 tonnes, marking a 0.7% decrease from 2019. Over the period from 2017 to 2020, production fell by 38.3%, which translates to an average annual decline of 14.9%. The peak was recorded in 2018 at 26 985 tonnes. The sharpest drop occurred in 2019, with a 39.8% decrease, while the largest increase was seen in 2018 at 3.2%.

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

Exports coconut, palm kernel or babassu oil and fractions from China

Exports in kind, K t

Market performance showed notable fluctuations during this period. Exports hit their lowest point in 2019 and peaked in 2020, with a 3.8-fold difference between these years. In 2020, China exported 0.2 thousand tonnes of coconut, palm kernel, or babassu oil and fractions, representing a 276.9% surge from the previous year. The minimum volume was recorded in 2019 at 0.0 thousand tonnes, with the largest decline that year at 63.4%.

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

From 2017 to 2020, China's exports of coconut, palm kernel, or babassu oil and fractions in kind were heavily concentrated on Mongolia, which accounted for 88.3% of total flows. Other countries combined made up the remaining share.

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

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

Exports in value, M $ US

The market exhibited volatility over the observed period. Exports reached their lowest point in 2019 and peaked in 2017, with a 4.3-fold gap between these years. In 2020, exports from China totaled 0.2 million US dollars, showing a 124.3% increase compared to the previous year. The minimum value was recorded in 2019 at 0.1 million US dollars, with the largest decline occurring in 2018 at 62.4%.

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

Between 2017 and 2020, Mongolia led as the top buyer of coconut, palm kernel, or babassu oil and fractions from China in value terms, accounting for 57.2% of exports. The United States followed with 16.0%, and the United Kingdom with 10.8%. Together, these three countries represented 84.0% of total export value.

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

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

Imports coconut, palm kernel or babassu oil and fractions to China

Imports in kind, K t

After two years of growth, imports of coconut, palm kernel, or babassu oil and fractions into China declined. In 2020, imports stood at 904 thousand tonnes, down by 17.9% from the previous year. Over the 2017–2020 period, imports increased by 20.7%, averaging an annual growth rate of 6.5%. The highest volume was recorded in 2019 at 1 102 thousand tonnes, with the largest increase that year at 23.7%.

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

Throughout 2017–2020, Indonesia dominated China's imports in kind of coconut, palm kernel, or babassu oil and fractions, holding 75.8% of the total volume. The remainder was distributed among various countries with smaller individual shares.

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

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

Imports in value, M $ US

China's imports of coconut, palm kernel, or babassu oil and fractions in value terms declined for the third consecutive year. In 2020, imports amounted to 737 million US dollars, reflecting a modest 8.0% reduction from the previous year. Between 2017 and 2020, imports decreased by 30.6%, equating to an average annual decline of 11.5%.

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

From 2017 to 2020, Indonesia was the dominant source for China's imports in value terms of coconut, palm kernel, or babassu oil and fractions, accounting for 74.4% of total flows. The remaining share was spread across several smaller markets.

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

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