Coconut, palm kernel or babassu oil and fractions market in South America

Earlier Report Observations

The market for coconut, palm kernel or babassu oil and fractions in South America expanded from 402.7 thousand tons in 2018 to 473.2 thousand tons in 2021, driven by sustained demand. At the start of the period, the coconut oil industry in Peru was underdeveloped, accounting for only 0.04% of national vegetable oil production and relying on imports to meet local needs, highlighting a structural dependence on foreign supply.

A sharp contraction occurred in 2022, with market volume dropping by 97.8 thousand tons to 375.4 thousand tons, followed by stabilization at 372.7 thousand tons in 2023. By 2023, the broader market for organic coconut products was growing, supported by consumer preference for nutritious, non-modified ingredients, which helped maintain demand for coconut oil despite the overall decline.

In 2024, the launch of new organic and cold-pressed coconut oil lines by companies such as Edible Oils Corporation expanded production capacity, while growing consumer preference for natural and minimally processed oils in both food and cosmetics supported demand, reflecting ongoing market adaptation.

Production coconut, palm kernel or babassu oil and fractions in South America

In kind, 2017-2020, K 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

Following two years of decline, South America's production of coconut, palm kernel, or babassu oil and fractions has rebounded. In 2019, output reached its lowest point at 274.5 thousand tonnes, but by 2020, production rose to 279.7 thousand tonnes, marking a 1.9% increase from the previous year. Over the period from 2017 to 2020, production fell by 4.6%, which translates to an average annual decline of 1.6%. The most significant drop occurred in 2018, with a decrease of 3.4%.

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

In value, 2017-2020, M $ US

After two years of contraction, South America's production of coconut, palm kernel, or babassu oil and fractions in monetary terms has shown growth. In 2019, the value hit a low of 256.3 million US dollars, but in 2020, it climbed to 262.5 million US dollars, representing a 2.4% rise compared to 2019. From 2017 to 2020, production value decreased by 36%, averaging an annual decline of 13.8%. The sharpest fall was recorded in 2019, with a 23.2% drop.

Annual dynamics of production in South America in value, 2017-2020, M $ US

Exports coconut, palm kernel or babassu oil and fractions from South America

Exports in kind, K t

South America's export volume of coconut, palm kernel, or babassu oil and fractions has declined for the second year in a row. In 2020, exports totaled 77.4 thousand tonnes, down 3.3% from the previous year. Over the 2017-2020 period, exports fell by 15.8%, with a compound annual growth rate (CAGR) of -5.6%. The peak was in 2018 at 102.3 thousand tonnes, while the largest decrease occurred in 2019 with a 21.8% drop. In contrast, 2018 saw the biggest increase at 11.3%.

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

From 2017 to 2020, South America's exports of coconut, palm kernel, or babassu oil and fractions in kind were spread across various partner countries. The top three destinations—the Netherlands (24.8% of exports), Mexico (14.4%), and Italy (7.4%)—collectively accounted for 46.6% of total flows, indicating a relatively diversified export market.

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

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

Exports in value, M $ US

South America's export value of coconut, palm kernel, or babassu oil and fractions has decreased for the third consecutive year. In 2020, exports amounted to 72.6 million US dollars, a slight decline of 2.9% from 2019. Between 2017 and 2020, export value dropped by 43.5%, with a CAGR of -17.3%.

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

Over the 2017-2020 period, South America's exports of coconut, palm kernel, or babassu oil and fractions in value terms were not highly concentrated. The Netherlands (25.1% of exports), Mexico (14.1%), and Italy (5.9%) together made up 45.1% of total flows, reflecting a broad distribution among trading partners.

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

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

Imports coconut, palm kernel or babassu oil and fractions to South America

Imports in kind, K t

After two years of decline, South America's import volume of coconut, palm kernel, or babassu oil and fractions has increased. In 2019, imports were at their lowest at 217.4 thousand tonnes, but in 2020, they rose to 249.5 thousand tonnes, a substantial year-on-year increase of 14.8%. From 2017 to 2020, imports grew by 4%, averaging an annual rise of 1.3%. The largest decrease was in 2018, with a 7.7% drop.

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

Throughout 2017-2020, Indonesia dominated South America's import structure in kind, accounting for 72.5% of total flows, while other sources contributed relatively small shares.

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

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

Imports in value, M $ US

Following two years of decrease, South America's import value of coconut, palm kernel, or babassu oil and fractions has rebounded. In 2019, imports reached a low of 202.0 million US dollars, but in 2020, they increased to 232.4 million US dollars, a robust 15.0% rise from the previous year. Over the 2017-2020 period, import value fell by 34.5%, with a CAGR of -13.2%. The most significant decline was in 2019, with a 29.9% decrease.

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

From 2017 to 2020, Indonesia (68.3% of imports), Malaysia (9.5%), and the Philippines (2.7%) were the leading sources in South America's import structure in value terms, together representing 80.5% of total flows.

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

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