Groundnut oil and fractions market in Western Africa

Earlier Report Observations

From 2018 to 2020, the West African groundnut oil market experienced notable shifts. In 2018, the market volume reached 886 thousand tons, supported by regulatory agreements in Senegal aimed at stabilizing domestic sales and substantial investments in the peanut sector, such as those by the Suneor group, which enhanced production capacity. The following year, the market slightly contracted to 877 thousand tons as increased international competition for African peanut oil encouraged higher exports, reducing domestic availability. A more pronounced decline to 833 thousand tons occurred in 2020, linked to this heightened global competition which constrained regional production and export flows.

The market recovered from 2021 onward. Rising consumer awareness of the health benefits of peanut oil drove demand, helping lift the market volume to 879 thousand tons in 2021. Growth continued to 921 thousand tons in 2022, fueled by the diversification of peanut oil into cosmetic and pharmaceutical applications and the launch of new production facilities by key industry players. By 2023, the market stabilized at 927 thousand tons, supported by ongoing global demand and new investment announcements, such as Shree Ram Proteins Ltd.'s plans for an advanced oil refinery.

Production groundnut oil and fractions in Western Africa

In kind, 2017-2020, K t

Top producers of groundnut oil and fractions, 2017-2020

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

After two years of growth, Western Africa's production of groundnut oil and fractions declined. In 2020, the region produced 842.8 K t, marking a controlled decrease of 9.8% compared to 2019. Production peaked in 2019 at 934.0 K t. Over the period from 2017 to 2020, overall production increased by 5%, which translates to an average annual growth rate of 1.6%. The most significant year-on-year increase occurred in 2018, with a rise of 14.3%.

Annual dynamics of production in Western Africa in kind, 2017-2020, K t

Exports groundnut oil and fractions from Western Africa

Exports in kind, t

The data shows irregular changes, pointing to a volatile market environment. In 2020, Western Africa's exports of groundnut oil and fractions amounted to 11 415 t, reflecting a sharp decrease of 82.0% compared to 2019. Exports reached their lowest point in 2020, while the maximum was recorded in 2019 at 63 249 t, resulting in a 5.5-fold variation between these years. The largest increase occurred in 2018, with a jump of 103.3%.

Annual dynamics of product's exports from Western Africa in kind, 2017-2020, t

From 2017 to 2020, China, the Netherlands, and Italy led the structure of exports in kind. China accounted for 35.3% of exports, the Netherlands for 15.1%, and Italy for 14.7%. Together, these three countries represented 65.1% of total export flows.

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

World map of product's exports from Western Africa in kind, 2017-2020

Exports in value, K $ US

There were noticeable fluctuations in market performance during this period. In 2020, Western Africa exported 15 076 K $ US of groundnut oil and fractions, marking a sharp reduction of 78.8% compared to 2019. The highest value was observed in 2019 at 71 025 K $ US, while the lowest occurred in 2020, with a peak-to-trough ratio of 4.7 times. The largest increase was recorded in 2019, with a rise of 60.5%.

Annual dynamics of product's exports from Western Africa in value, 2017-2020, K $ US

Over the period from 2017 to 2020, China, the Netherlands, and Italy stood out as the main markets for exports in value terms. China represented 34.4% of exports, the Netherlands 16.4%, and Italy 15.8%. Combined, these three countries accounted for 66.7% of total export flows.

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

World map of product's exports from Western Africa in value, 2017-2020

Imports groundnut oil and fractions to Western Africa

Imports in kind, t

Western Africa's imports of groundnut oil and fractions declined for the third consecutive year. In 2020, imports totalled 1 154 t, showing a dramatic drop of 80.8% compared to 2019. Over the period from 2017 to 2020, imports decreased by 94.5%, with a compound annual growth rate of -61.9%.

Annual dynamics of product's imports to Western Africa in kind, 2017-2020, t

From 2017 to 2020, Malaysia, Indonesia, and Singapore remained the leading destinations in the import structure in kind. Malaysia accounted for 44.8% of imports, Indonesia for 19.4%, and Singapore for 5.0%. Together, these three countries held a combined share of 69.3% of total import flows.

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

World map of product's imports to Western Africa in kind, 2017-2020

Imports in value, K $ US

Groundnut oil and fractions deliveries to Western Africa declined for the third consecutive year. In 2020, imports totalled 525 K $ US, reflecting a steep drop of 73.8% compared to 2019. Between 2017 and 2020, imports decreased by 94.7%, equating to an annualized rate of -62.5%.

Annual dynamics of product's imports to Western Africa in value, 2017-2020, K $ US

Over the period from 2017 to 2020, Malaysia, Indonesia, and Singapore headed the ranking of suppliers of groundnut oil and fractions to Western Africa in value terms. Malaysia accounted for 43.9% of imports, Indonesia for 19.3%, and Singapore for 4.8%. Their combined share reached 68.0% of total imports in value terms.

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

World map of product's imports to Western Africa in value, 2017-2020