Groundnut oil and fractions market in Western Asia

Earlier Report Observations

From 2018 to 2023, the peanut oil market in Western Asia underwent a significant transformation. Market volume dropped from 44 052 t in 2018 to 14 307 t in 2019, primarily because imports fell dramatically from 33 445 t to 6 708 t. Over the following years, domestic production steadily increased from 12 008 t to 16 148 t, helping market volume gradually recover to 17 177 t by 2023 despite consistently low import levels.

The market's recovery was aided by shifting consumer preferences and quality improvements. In 2023, health concerns about aflatoxin contamination led to enhanced industrial refining and the use of higher-quality peanuts, boosting product safety and consumer confidence. At the same time, growing awareness of nutritional aspects, such as omega-6 content, increased demand for peanut oil as a perceived healthier vegetable oil option.

Factors observed in 2024 pointed to continued evolution, with expansion of production lines in some countries improving supply chain integration. The market also faced pressure from rising raw material prices for other vegetable oils and saw growing emphasis on sustainability and climate-related impacts on crop quality, all shaping the competitive landscape.

Production groundnut oil and fractions in Western Asia

In kind, 2017-2020, t

Top producers of groundnut oil and fractions, 2017-2020

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

Western Asia's production of groundnut oil and fractions has increased for the third year in a row. In 2020, the region produced 12,965 tonnes, marking a gradual gain of 8.0% compared to 2019. Looking at the period from 2017 to 2020, production rose by 12.4%, which translates to an average annual growth rate of 4.0%.

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

In value, 2017-2020, K $ US

Western Asia's production of groundnut oil and fractions has grown for the third consecutive year. In 2020, the output was valued at 35,836 thousand US dollars, showing a modest increase of 1.0% from 2019. Over the span from 2017 to 2020, production value climbed by 32.6%, averaging an annualized growth rate of 9.9%.

Annual dynamics of production in Western Asia in value, 2017-2020, K $ US

Exports groundnut oil and fractions from Western Asia

Exports in kind, t

The market exhibited significant volatility during these years. Exports peaked in 2019 at 4,409 tonnes, then dropped sharply to 968 tonnes in 2020, representing a 78.0% decline. This resulted in a 4.6-fold difference between the two years. The largest increase occurred in 2019, with a surge of 233.8%.

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

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

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

Exports in value, K $ US

The data points to irregular changes, reflecting a volatile market environment. Export values fluctuated widely, with a 4.9-fold variation between the high of 2019 and the low of 2020. In 2020, Western Asia exported groundnut oil and fractions worth 2,676 thousand US dollars, a sharp drop of 79.5% compared to 2019, when the maximum value of 13,022 thousand US dollars was recorded. The largest increase was in 2019, at 296.3%.

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

From 2017 to 2020, Libya consistently served as the primary and most stable destination for exports in value terms, accounting for 0.7% of total flows.

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

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

Imports groundnut oil and fractions to Western Asia

Imports in kind, t

The market showed signs of volatility over the observed period. Imports reached their highest point in 2018 at 33,445 tonnes, then fell to a low of 2,496 tonnes in 2020, a drop of 62.8% from the previous year. This created a 13.4-fold variation between the maximum and minimum. The largest decline was in 2019, at 79.9%, while the largest increase occurred in 2018, with a rise of 111.6%.

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

Between 2017 and 2020, the main cluster of markets for imports in kind consisted of Iran (27.8% of imports), Malaysia (3.0%), and the United States (0.8%). Together, they accounted for 31.6% of total flows.

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

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

Imports in value, K $ US

Groundnut oil and fractions deliveries to Western Asia declined for the second year in a row. In 2020, imports amounted to 5,432 thousand US dollars, reflecting an intense drop of 68.8% year-over-year. From 2017 to 2020, imports decreased by 77.4%, averaging an annualized decline of 39.0%. The maximum value was recorded in 2018 at 24,509 thousand US dollars, with the largest increase that year at 2.2%.

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

Throughout 2017 to 2020, imports in value terms of groundnut oil and fractions to Western Asia were not heavily concentrated on a few key markets. Iran (16.6% of imports), Malaysia (3.8%), and the United States (2.6%) jointly accounted for only 23.0% of total flows.

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

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