Monocarboxylic fatty acids and acid oils from refining market in Western Asia

Earlier Report Observations

The market volume for industrial monocarboxylic fatty acids and acid oils from refining in Western Asia experienced significant fluctuations between 2018 and 2023. Starting at 308 thousand tons in 2018, it dropped sharply to 218 thousand tons in 2019 and further to 204 thousand tons in 2020. A recovery followed in 2021, lifting the market to 221 thousand tons, and it peaked at 265 thousand tons in 2022 before declining again to 208 thousand tons in 2023.

These movements were primarily driven by changes in import volumes and export activity. The sharp contraction in 2019 coincided with a drop in imports from 245 thousand tons to 173 thousand tons, while exports increased. The recovery in 2021 and 2022 was supported by a resurgence in imports, which reached 291 thousand tons in 2022. However, in 2023, despite imports remaining high at 296 thousand tons, a surge in exports to 177 thousand tons pulled the market volume down. Domestic production remained relatively stable, fluctuating between 75 and 92 thousand tons over the period.

In 2024, several developments shaped the market landscape. Geopolitical tensions affecting the Strait of Hormuz disrupted oil flows and raised refining margins, impacting production costs. Simultaneously, new investments entered the region, such as Godrej Industries' memorandum of understanding to invest $71.8 million in oleochemical capacity in Gujarat. The EU's Renewable Energy Directive (RED II) continued to encourage bio-based raw materials, boosting demand for oleochemicals. Additionally, consumer shifts toward healthier products led to launches of edible oils fortified with omega-3, vitamin D, and antioxidants.

Production monocarboxylic fatty acids and acid oils from refining in Western Asia

In kind, 2017-2020, K t

Top producers of monocarboxylic fatty acids and acid oils from refining, 2017-2020

World map of production of monocarboxylic fatty acids and acid oils from refining, 2017-2020

In Western Asia, production of monocarboxylic fatty acids and acid oils from refining reached 86.2 thousand tons in 2020, marking a 6.6% decrease compared to 2019. Over the period from 2017 to 2020, production declined by 14.2%, which translates to an average annual decrease of 5.0%. The most significant drop occurred in 2018, with a 10.0% reduction, while the largest increase was recorded in 2019 at 2.1%.

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

In value, 2017-2020, K $ US

Production of monocarboxylic fatty acids and acid oils from refining in Western Asia continued to decline for the third year in a row. In 2020, the output was valued at 67 143 thousand US dollars, down by 10.1% from the previous year. From 2017 to 2020, production fell by 28.6%, with a compound annual growth rate (CAGR) of -10.6%.

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

Exports monocarboxylic fatty acids and acid oils from refining from Western Asia

Exports in kind, K t

The market showed an unstable trend over the observed period. Export volumes reached their lowest point in 2018 at 27.4 thousand tons and peaked in 2019 at 47.6 thousand tons, representing a 1.7-fold difference. In 2020, foreign supplies from Western Asia totaled 43.1 thousand tons, a decrease of 9.4% year-over-year. The largest decline was recorded in 2018 at 10.8%, while the most significant increase occurred in 2019 with a 73.9% rise.

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

From 2017 to 2020, the export structure in kind was diversified, with Belgium (13.9% of exports in kind), India (11.2%), and Malaysia (8.0%) together accounting for only 33.2% of total flows. The remaining 66.8% was distributed among numerous smaller markets.

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, M $ US

In 2020, Western Asia's export value of monocarboxylic fatty acids and acid oils from refining reached 33.6 million US dollars, down by 12.9% compared to 2019. Over the period from 2017 to 2020, exports increased by 16.9%, with a CAGR of 5.3%. The lowest value was recorded in 2018 at 26.4 million US dollars, while the highest was in 2019 at 38.6 million US dollars. The largest increase occurred in 2019 with a 46.2% rise.

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

Between 2017 and 2020, Belgium (16.0% of exports in value terms), Malaysia (11.5%), and the United States (7.6%) were notable buyers of monocarboxylic fatty acids and acid oils from refining from Western Asia, but their combined share reached only 35.1% of total exports in value terms, indicating a lack of dominance.

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 monocarboxylic fatty acids and acid oils from refining to Western Asia

Imports in kind, K t

Imports of monocarboxylic fatty acids and acid oils from refining in Western Asia declined for the second consecutive year. In 2020, imports totaled 161.1 thousand tons, a 6.8% decrease from 2019. From 2017 to 2020, imports fell by 19.8%, with a CAGR of -7.1%. The highest volume was recorded in 2018 at 245.2 thousand tons. The largest decline occurred in 2019 with a 29.5% drop, while the most significant increase was in 2018 with a 22.1% rise.

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

From 2017 to 2020, Malaysia (28.0% of imports in kind), Indonesia (17.9%), and Russia (8.7%) formed the core of imports in kind, together accounting for 54.5% 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, M $ US

In 2020, Western Asia imported 163.6 million US dollars worth of monocarboxylic fatty acids and acid oils from refining, reflecting a modest increase of 4.2% compared to 2019. Between 2017 and 2020, imports decreased by 18%, equating to an annualized rate of -6.4%. The lowest value was recorded in 2019 at 157.0 million US dollars, while the highest was in 2018 at 200.1 million US dollars. The largest decline occurred in 2019 with a 21.5% drop.

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

From 2017 to 2020, Malaysia (26.1% of imports in value terms), Indonesia (16.1%), and the United States (9.5%) continued to lead as suppliers of monocarboxylic fatty acids and acid oils from refining to Western Asia, jointly accounting for 51.7% 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 Asia in value, 2017-2020