Coconut, palm kernel or babassu oil and fractions market in Eastern Asia

Earlier Report Observations

The market for coconut, palm kernel, and babassu oil in Eastern Asia expanded from 1 106 thousand tons in 2018 to 1 300 thousand tons in 2019, driven by government policies promoting biodiesel blending, which increased demand for palm oil, and rising consumption of organic oils for cosmetics and lubricants.

From 2020 to 2022, the market contracted, reaching 950 thousand tons in 2022. This decline was influenced by the COVID-19 pandemic, which disrupted overall vegetable oil production and consumption in the region, leading to reduced imports.

In 2023, the market recovered to 1 094 thousand tons as refined edible vegetable oil production increased, and consumer demand shifted towards healthier, non-GMO, and organic oil products, boosting palm oil consumption.

Production coconut, palm kernel or babassu oil and fractions in Eastern Asia

In kind, 2017-2020, t

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

Eastern Asia's production of coconut, palm kernel, or babassu oil and fractions has declined for the second year in a row. In 2020, the region produced 16,593 tonnes, marking a 2.3% decrease from the previous year. Looking at the period from 2017 to 2020, production fell by 38.1%, which translates to an average annual decline of 14.8%. The highest production level was recorded in 2018 at 27,529 tonnes, with a modest increase of 2.7% that year. However, the most significant drop occurred in 2019, when production plummeted by 38.3%.

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

Exports coconut, palm kernel or babassu oil and fractions from Eastern Asia

Exports in kind, K t

Following a two-year decline, exports of coconut, palm kernel, or babassu oil and fractions from Eastern Asia to international markets have rebounded. In 2020, exports reached 0.2 thousand tonnes, representing a sharp increase of 44.6% compared to 2019. Over the 2017-2020 period, overall exports decreased by 35.4%, with a compound annual growth rate of -13.6%. The lowest export volume was recorded in 2019 at 0.2 thousand tonnes, while the largest decline occurred in 2018 with a drop of 48.7%.

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

From 2017 to 2020, Eastern Asia's exports of coconut, palm kernel, or babassu oil and fractions were distributed across a diverse range of buyers. The United States accounted for 7.0% of exports in volume, Indonesia for 5.1%, and Asia, not elsewhere specified, for 4.5%. Together, these three markets contributed just 16.5% of total exports, with numerous other countries holding smaller but still notable shares.

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

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

Exports in value, M $ US

After a two-year decrease, the value of exported coconut, palm kernel, or babassu oil and fractions from Eastern Asia has risen. In 2020, export value stood at 1 million US dollars, indicating a 17.7% increase from the previous year. Between 2017 and 2020, however, exports declined by 40.6%, averaging an annual decrease of 16.0%. The lowest value was recorded in 2019 at 1 million US dollars, which also saw the largest decline of 30.7%.

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

During the 2017-2020 period, the buyer portfolio for Eastern Asia's exports of coconut, palm kernel, or babassu oil and fractions in value terms was broad. The United States led with 28.9% of export value, followed by Asia, not elsewhere specified, at 6.3%, and the United Kingdom at 3.1%. Combined, these three markets made up only 38.4% of total export value, with many other countries contributing smaller yet significant portions.

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

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

Imports coconut, palm kernel or babassu oil and fractions to Eastern Asia

Imports in kind, K t

After two years of growth, Eastern Asia's imports of coconut, palm kernel, or babassu oil and fractions in volume have declined. In 2020, the region imported 1,073 thousand tonnes, reflecting a substantial decrease of 16.4% year-over-year. Over the 2017-2020 span, imports increased by 16.4%, with a compound annual growth rate of 5.2%. The peak import volume was recorded in 2019 at 1,283 thousand tonnes, which also saw the largest increase of 18.9%.

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

From 2017 to 2020, Indonesia dominated Eastern Asia's imports of coconut, palm kernel, or babassu oil and fractions in volume, accounting for 73.4% of total imports. The remaining volume was spread across many other countries, each with relatively minor individual shares.

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

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

Imports in value, M $ US

Imports of coconut, palm kernel, or babassu oil and fractions into Eastern Asia have declined for the third consecutive year. In 2020, import value totaled 907 million US dollars, showing a moderate decrease of 5.9% compared to 2019. Between 2017 and 2020, imports fell by 32.4%, averaging an annual decline of 12.2%.

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

Throughout 2017-2020, Indonesia was the primary supplier of coconut, palm kernel, or babassu oil and fractions to Eastern Asia in value terms, capturing 71.2% of total imports. Other trading partners held relatively modest shares in comparison.

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

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