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

Earlier Report Observations

From 2018 to 2019, the market volume for coconut, palm kernel or babassu oil and fractions in Southern Asia grew modestly from 723 thousand tons to 734 thousand tons. This period saw continued government support for the coconut sector through financial assistance for area expansion and crop insurance schemes, which helped sustain production. In 2020, market volume jumped to 781 thousand tons, driven by a near-doubling of imports to 123 thousand tons, indicating increased supply from international markets.

After peaking in 2020, the market contracted to 753 thousand tons in 2021 and further to 692 thousand tons in 2022. The decline in 2022 coincided with high retail food inflation averaging 7%, which dampened consumer demand for edible oils. Imports fell by more than half during this year, reflecting reduced consumption and market adjustment to higher prices.

The market recovered to 737 thousand tons in 2023, supported by a resurgence in imports to 129 thousand tons. This rebound was accompanied by the entry of new major players like Adani Wilmar and Cargill India in the palm oil import segment, while health-conscious trends shifted consumer preference towards coconut oil and other perceived healthier alternatives.

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

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

In Southern Asia, production of coconut, palm kernel, or babassu oil and fractions reached 679.2 thousand tons in 2020, marking a slight decrease of 1.2% compared to 2019. The lowest production level was recorded in 2018 at 676.6 thousand tons, which saw the largest decline of 1.6%. Conversely, 2019 experienced the largest increase, also at 1.6%.

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

In value, 2017-2020, M $ US

Following a two-year decline, production of coconut, palm kernel, or babassu oil and fractions in Southern Asia rebounded in value terms. In 2020, the output was valued at 2 692 million US dollars, representing a 1.6% increase year-over-year. However, from 2017 to 2020, overall production value decreased by 16.2%, averaging an annual decline of 5.7%. The lowest value was recorded in 2019 at 2 651 million US dollars, which also saw the largest drop of 14.0%.

Annual dynamics of production in Southern Asia in value, 2017-2020, M $ US

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

Exports in kind, K t

In 2020, exports of coconut, palm kernel, or babassu oil and fractions from Southern Asia totaled 21.4 thousand tons, showing a significant gain of 35.7% compared to the previous year. Over the period from 2017 to 2020, exports increased by 5.4%, with a compound annual growth rate of 1.8%. The lowest export volume was in 2019 at 15.8 thousand tons, which also experienced the largest decline of 23.5%.

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

From 2017 to 2020, the United States, Germany, and Australia were the leading destinations for exports in kind of coconut, palm kernel, or babassu oil and fractions from Southern Asia. The United States accounted for 24.6% of exports, Germany for 16.1%, and Australia for 11.5%, together representing 52.3% of total flows.

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

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

Exports in value, M $ US

After a two-year contraction, cross-border shipments of coconut, palm kernel, or babassu oil and fractions from Southern Asia increased in value. In 2020, exports amounted to 84.9 million US dollars, reflecting a sharp rise of 39.5% over the previous year. However, from 2017 to 2020, overall export value decreased by 10.5%, averaging an annual decline of 3.6%. The lowest value was recorded in 2019 at 60.9 million US dollars, which also saw the largest drop of 35.3%.

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

During 2017–2020, the United States, Germany, and Australia formed the main cluster of markets for exports in value terms. The United States accounted for 24.3% of exports, Germany for 16.0%, and Australia for 12.3%, together comprising 52.7% of total flows.

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

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

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

Imports in kind, K t

The import market showed volatility over the observed period. In 2019, imports reached their lowest point at 62.5 thousand tons, with the largest decline of 6.9%. By 2020, imports surged to 123.3 thousand tons, marking a substantial increase of 97.4% compared to 2019 and reflecting a two-fold gap between the two years.

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

From 2017 to 2020, Indonesia, Malaysia, and the United Arab Emirates accounted for the largest share of imports in kind. Indonesia represented 40.5% of imports, Malaysia 30.0%, and the United Arab Emirates 13.9%, together comprising 84.4% of total flows.

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

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

Imports in value, M $ US

Volatility characterized the import market during these years. In 2019, imports hit their lowest point at 60.4 million US dollars, with the largest decline of 35.1%. By 2020, imports rose sharply to 137.1 million US dollars, representing an abrupt advance of 127.0% year-over-year and a difference of 2.3 times compared to 2019.

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

Throughout 2017–2020, Indonesia, Malaysia, and the United Arab Emirates played the leading roles in imports in value terms. Indonesia accounted for 37.9% of imports, Malaysia for 30.3%, and the United Arab Emirates for 14.4%, jointly taking 82.6% of total flows.

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

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