Cottonseed oil and fractions market in Latin America and the Caribbean

Earlier Report Observations

The market volume for cottonseed oil and fractions in Latin America and the Caribbean started at 344.7 thousand tons in 2018. It increased to 389.7 thousand tons in 2019, then declined slightly to 371.6 thousand tons in 2020. In 2021, the market stabilized at around 370.6 thousand tons.

In 2022, the market volume fell to 351.1 thousand tons. This decline was influenced by a shift in consumer preference in Brazil towards soybean oil over cottonseed oil, reducing domestic demand. Additionally, global factors such as falling oil prices and favorable weather expectations in the U.S. contributed to lower external prices, affecting the regional market. The following year, in 2023, the market rebounded strongly to 443.8 thousand tons. This growth was driven by continued expansion of cotton and cottonseed oil production in Brazil, supported by sustainable practices and treated seed use. Moreover, increasing health awareness and trends towards low-cholesterol lifestyles boosted demand for cottonseed oil across the region.

Production cottonseed oil and fractions in Latin America and the Caribbean

In kind, 2017-2020, K t

Top producers of cottonseed oil and fractions, 2017-2020

World map of production of cottonseed oil and fractions, 2017-2020

Following two consecutive years of growth, cottonseed oil and fractions production in Latin America and the Caribbean experienced a decline. In 2020, the region produced 357.6 K t, marking a 4.2% decrease compared to the previous year. Looking at the broader period from 2017 to 2020, production actually grew by 50.5%, which translates to an average annual increase of 14.6%. The peak production level was reached in 2019 at 373.3 K t, while the most significant year-over-year surge occurred in 2018 with a 39.4% rise.

Annual dynamics of production in Latin America and the Caribbean in kind, 2017-2020, K t

Exports cottonseed oil and fractions from Latin America and the Caribbean

Exports in kind, t

The export data shows irregular fluctuations, pointing to a volatile market environment. From 2017 to 2018, exports varied dramatically, with a 13.3-fold difference between the highest and lowest points. In 2020, cottonseed oil and fractions shipments from Latin America and the Caribbean totaled 4 728 t, representing a substantial 53.6% increase year-over-year. The lowest export volume was recorded in 2018 at 605 t, which also saw the sharpest decline of 92.5%. Conversely, the largest increase occurred in 2019 with a remarkable 409.0% jump.

Annual dynamics of product's exports from Latin America and the Caribbean in kind, 2017-2020, t

Between 2017 and 2020, South Africa, Malaysia, and Australia were the primary destinations for cottonseed oil and fractions exports from Latin America and the Caribbean. South Africa accounted for 36.6% of exports in kind, Malaysia for 31.1%, and Australia for 17.1%. Together, these three countries represented 84.8% of total exports during this period.

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

World map of product's exports from Latin America and the Caribbean in kind, 2017-2020

Exports in value, K $ US

The export market displayed an unstable trend throughout the analyzed timeframe. From the peak in 2017 to the trough in 2018, export values varied by a factor of 9.7. In 2020, cottonseed oil and fractions shipments from Latin America and the Caribbean amounted to 4 082 K $ US, reflecting a 42.7% increase compared to 2019. The lowest value was recorded in 2018 at 772 K $ US, which also experienced the most significant decline of 89.7%. The largest increase occurred in 2019 with a 270.6% surge.

Annual dynamics of product's exports from Latin America and the Caribbean in value, 2017-2020, K $ US

From 2017 to 2020, South Africa, Malaysia, and Australia consistently served as the main destinations for cottonseed oil and fractions exports in value terms. South Africa's share was 33.1%, Malaysia's was 32.2%, and Australia's was 15.8%. Collectively, these three countries accounted for 81.1% of total export flows during this period.

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

World map of product's exports from Latin America and the Caribbean in value, 2017-2020

Imports cottonseed oil and fractions to Latin America and the Caribbean

Imports in kind, t

After two years of growth, cottonseed oil and fractions imports into Latin America and the Caribbean declined. In 2020, the region imported approximately 18 687 t, indicating a moderate 4.3% decrease compared to 2019. Over the broader span from 2017 to 2020, imports increased by 94.2%, equating to an average annual growth rate of 24.8%. The highest import volume was recorded in 2019 at 19 532 t, while the most substantial increase occurred in 2018 with a 45.9% rise.

Annual dynamics of product's imports to Latin America and the Caribbean in kind, 2017-2020, t

During the 2017–2020 period, the United States held the leading position as the source for cottonseed oil and fractions imports into Latin America and the Caribbean, accounting for 87.0% of imports in kind.

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

World map of product's imports to Latin America and the Caribbean in kind, 2017-2020

Imports in value, K $ US

Following two years of increase, cottonseed oil and fractions imports into Latin America and the Caribbean declined in value terms. In 2020, imports were recorded at 20 486 K $ US, equivalent to a slight 1.4% decrease relative to the prior year. Between 2017 and 2020, imports grew by 56.1%, which translates to an average annual rate of 16.0%. The peak value was reached in 2019 at 20 774 K $ US, while the largest increase occurred in 2018 with a 26.0% rise.

Annual dynamics of product's imports to Latin America and the Caribbean in value, 2017-2020, K $ US

From 2017 to 2020, the United States remained the key partner for cottonseed oil and fractions imports into Latin America and the Caribbean in value terms, with a share of 88.7% of total import flows.

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

World map of product's imports to Latin America and the Caribbean in value, 2017-2020