Linseed oil and fractions market in Egypt

Earlier Report Observations

Egypt's market for linseed oil and fractions experienced a multi-year contraction from 2018 to 2022, with production falling from 7 300 t to 4 700 t and total market volume declining from 7 345 t to 4 889 t. This downward trend occurred despite several positive underlying developments, including a strategic push by the Ministry of Agriculture to double flax cultivation areas and a rising domestic consumer awareness of the oil's health benefits. The limited impact of the global COVID-19 pandemic on supply chains in 2020 was noted, yet the market's decline persisted through 2021 and 2022.

A decisive recovery took place in 2023, with production jumping to 6 000 t and market volume reaching 6 137 t. This resurgence was primarily driven by a significant expansion of flax cultivation in governorates like Sharqia and Dakahlia, targeting 2 000 acres for the 2023-2024 season, which directly increased the raw material base. Furthermore, challenges in importing raw materials for other vegetable oils shifted focus towards domestic linseed oil production as a strategic alternative, boosting local output. New local companies and initiatives also emerged, promoting cold-pressed and organic oils to meet growing demand.

Looking ahead, market dynamics continued to evolve with increased investment in bottling and refining plants by leading Egyptian companies in 2024. Government policies, including modifications to foreign exchange accounting standards, began influencing the operational landscape for oil sector firms. Simultaneously, rising global vegetable oil prices and continued expansion of flax cultivation areas, such as to 260 acres in Sharqia, reinforced the focus on local production to meet domestic demand.

Production linseed oil and fractions in Egypt

In kind, 2017-2020, t

Egypt ranked 16th globally in linseed oil and fractions production from 2017 to 2020.

Top producers of linseed oil and fractions, 2017-2020

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

Egypt's production of linseed oil and fractions declined for the second year in a row in 2020, reaching 5,400 tonnes. This marked a moderate decrease of 5.3% compared to 2019. Over the 2017–2020 period, production grew by 5.9%, averaging an annualized rate of 1.9%. The highest production volume was recorded in 2018 at 7,300 tonnes, which saw the largest increase of 43.1%. In contrast, 2019 experienced the most significant decline of 21.9%.

Annual dynamics of production in Egypt in kind, 2017-2020, t

In value, 2017-2020, K $ US

In 2020, Egypt's linseed oil and fractions output was valued at 6,566 thousand US dollars, representing a substantial increase of 20.6% from the previous year. From 2017 to 2020, production value rose by 27.2%, with an annualized growth rate of 8.4%. The peak value occurred in 2018 at 7,533 thousand US dollars, which also saw the largest increase of 46.0%. The most notable decline was in 2019, with a drop of 27.8%.

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

Exports linseed oil and fractions from Egypt

Exports in kind, t

Export volumes of linseed oil and fractions from Egypt showed irregular changes, reflecting a volatile market. From a low in 2017 to a high in 2019, volumes varied by 4.3 times. In 2020, exports totaled 15.4 tonnes, declining by 46.4% compared to the prior year. The maximum volume was recorded in 2019 at 28.8 tonnes, which also saw the largest increase of 253.4%.

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

From 2017 to 2020, three key markets—the United States, Nigeria, and France—accounted for 70.7% of Egypt's total linseed oil and fractions exports in volume terms.

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

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

Exports in value, K $ US

Market performance exhibited noticeable fluctuations during this period. Export values peaked in 2019 and reached their lowest point in 2017, with a top-to-bottom ratio of 4 times. In 2020, Egypt's linseed oil and fractions exports were valued at 18.7 thousand US dollars, showing a sharp decrease of 31.7% from 2019. The highest value was recorded in 2019 at 27.5 thousand US dollars, which also experienced the largest increase of 227.0%.

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

From 2017 to 2020, the United States (42.0% of export value), France (14.2%), and Nigeria (12.1%) led as the top buyers of linseed oil and fractions from Egypt, collectively accounting for 68.2% of total export value.

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

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

Imports linseed oil and fractions to Egypt

Imports in kind, t

The import market displayed volatility over the observed period. From a low in 2018 to a high in 2019, import volumes varied by 6.8 times. In 2020, Egypt imported 337.9 tonnes of linseed oil and fractions, a limited drop of 7.0% year-on-year. The minimum volume was recorded in 2018 at 53.3 tonnes, while the maximum was in 2019 at 363.2 tonnes. The largest decline occurred in 2018 at 75.1%, and the largest increase was in 2019 at 581.1%.

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

From 2017 to 2020, Germany and Belgium were the dominant suppliers of linseed oil and fractions to Egypt, together accounting for 89.2% of total imports in volume terms, with other partners playing a less significant role.

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

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

Imports in value, K $ US

Import data reveals irregular changes, indicating a volatile market environment. Values peaked in 2019 and fell to a trough in 2018, with a 5.9-fold swing. In 2020, Egypt imported linseed oil and fractions valued at 6,566 thousand US dollars, which is 6.9% lower than the previous year. The minimum value was recorded in 2018 at 73.0 thousand US dollars, and the maximum in 2019 at 431.5 thousand US dollars. The largest decline was in 2018 at 67.1%, while the largest increase occurred in 2019 at 490.7%.

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

Throughout 2017–2020, Germany and Belgium concentrated most of Egypt's linseed oil and fractions imports in value terms, with other markets being less significant individually.

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

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