Cottonseed oil and fractions market in Japan

Earlier Report Observations

From 2018 to 2020, the cottonseed oil market in Japan contracted significantly, with volume falling from 8 595 t to 6 066 t. The sharp decline in 2020 was primarily driven by reduced domestic demand due to the COVID-19 pandemic, which led to restrictions on movement and economic activity. Although technological innovations in bio-lubricants and investments by major energy companies were emerging during this period, they were insufficient to offset the overall market shrinkage.

The market showed a slight recovery in 2021, reaching 6 088 t, as the economy began to rebound from the pandemic. However, this was short-lived, and volumes continued to decline through 2023, dropping to 4 601 t. During these years, the development of bio-lubricants gained momentum, with Cosmo Oil Lubricants launching a new bio-based diesel engine oil in 2021 and Idemitsu Kosan investing in biotechnology for biofuel production in 2022. These advancements indicated a shift towards sustainable industrial oils, but the cottonseed oil market faced persistent headwinds from the post-pandemic adjustment.

Throughout the period, the edible vegetable oil sector in Japan remained highly concentrated, dominated by a few large players like Nisshin Oillio Group and J-Oil Mills. This consolidation influenced supply dynamics, while the overall market volume was more directly affected by macroeconomic and sector-specific demand shocks.

Production cottonseed oil and fractions in Japan

In kind, 2018-2021, t

Top producers of cottonseed oil and fractions, 2018-2021

World map of production of cottonseed oil and fractions, 2018-2021

In 2021, Japan produced 4 241 tons of cottonseed oil and fractions, which was an 8.3% decrease compared to the previous year. Looking at the period from 2018 to 2021, production fell by 13.5%, with an average annual decline of 4.7%. The only year that saw growth was 2020, with a modest increase of 1.1%.

Annual dynamics of production in Japan in kind, 2018-2021, t

In value, 2018-2021, K $ US

Japan's cottonseed oil and fractions production increased for the second consecutive year in 2021, reaching a value of 16 876 thousand US dollars. This represented a modest rise of 7.9% compared to the previous year. Over the 2018-2021 period, production grew by 10.7%, equating to an annualized rate of 3.4%. The lowest value was recorded in 2019 at 14 915 thousand US dollars, which also saw the largest decline of 2.2%.

Annual dynamics of production in Japan in value, 2018-2021, K $ US

Exports cottonseed oil and fractions from Japan

Exports in kind, t

The data reveals irregular changes, indicating a volatile market environment. Japan's exports of cottonseed oil and fractions reached 84 tons in 2021, marking a significant rise of 342.5% compared to the previous year. The lowest point was in 2020 at 19 tons, which also experienced the largest decline of 16.7%. From the peak in 2021 to the trough in 2020, exports changed by a factor of 4.4.

Annual dynamics of product's exports from Japan in kind, 2018-2021, t

Throughout the 2018–2021 period, the United States, accounting for 39.2% of exports in kind, Asia (not elsewhere specified) at 23.0%, and Hong Kong with 15.7% were the key partners. Together, these three markets represented 77.9% of total export flows.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Japan in kind, 2018-2021

Exports in value, K $ US

The market showed signs of volatility over the observed period. Japan's exports of cottonseed oil and fractions reached 336 thousand US dollars in 2021, up by 420.7% compared to the previous year. The largest decline was recorded in 2020 at 13.6%. Exports hit their maximum in 2021 and fell to the lowest point in 2018, with an amplitude of 5.3 times.

Annual dynamics of product's exports from Japan in value, 2018-2021, K $ US

Throughout 2018–2021, the United States, with 44.2% of exports in value terms, Asia (not elsewhere specified) at 18.6%, and Singapore with 15.0% formed the core group of markets. Together, these three accounted for 77.9% of total export flows in value terms.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Japan in value, 2018-2021

Imports cottonseed oil and fractions to Japan

Imports in kind, t

After a two-year decrease, Japan's volume of cottonseed oil and fractions imports increased in 2021, amounting to 1 931 tons. This was up by 32.4% compared to the previous year. Over the 2018-2021 period, imports decreased by 48%, with an average annual decline of 19.6%. The minimum value was recorded in 2020 at 1 459 tons, which also saw the largest decline of 50.5%.

Annual dynamics of product's imports to Japan in kind, 2018-2021, t

In the 2018–2021 period, the United States, accounting for 47.9% of imports in kind, Turkey at 27.2%, and Australia with 12.1% consistently remained the main sources for imports. Together, these three destinations represented 87.3% of total import flows.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Japan in kind, 2018-2021

Imports in value, K $ US

There were noticeable fluctuations in market performance during the period. In 2021, Japan's cottonseed oil and fractions import volume reached 2 867 thousand US dollars, constituting a sudden gain of 73.6% versus the previous year. The minimum value was recorded in 2020 at 1 652 thousand US dollars, which also experienced the largest decline of 46.7%. From the peak in 2018 to the trough in 2020, imports changed by 2.4 times.

Annual dynamics of product's imports to Japan in value, 2018-2021, K $ US

In 2018–2021, the United States, with 46.7% of imports in value terms, Turkey at 28.0%, and Australia with 10.5% consistently remained the main destinations for imports. Together, these three accounted for 85.2% of total import flows in value terms.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Japan in value, 2018-2021