Palm kernel or babassu oil and fractions market in ASEAN

Earlier Report Observations

The market volume for palm kernel and babassu oil in the ASEAN region demonstrated consistent growth from 2018 to 2023, rising from 4.7 million tons to 5.5 million tons. This expansion was characterized by a particularly sharp increase in 2022, when the market size jumped by over 500 thousand tons, representing a 10% annual growth rate. Other years saw more modest gains, with near-stability in 2020 and a slight acceleration in 2021.

The overall growth trajectory was supported by increasing production, which climbed from 6.9 million tons to 7.4 million tons over the same period. Trade flows also evolved, with exports declining notably after 2021, which contributed to greater domestic availability. Imports remained relatively low compared to production and exports, though they showed some volatility, such as a spike in 2020.

By 2023, the market had reached 5.5 million tons, reflecting a total increase of approximately 17% since 2018. The period thus marked a phase of solid expansion for the ASEAN palm kernel and babassu oil sector, with the most dynamic change occurring in the early 2020s.

Production palm kernel or babassu oil and fractions in ASEAN

In kind, 2017-2020, K t

Top producers of palm kernel or babassu oil and fractions, 2017-2020

World map of production of palm kernel or babassu oil and fractions, 2017-2020

ASEAN's production of palm kernel or babassu oil and fractions saw a two-year increase before declining. In 2020, production reached 6 928 K t, marking a modest year-over-year decrease of 3.7%. Over the 2017-2020 period, production grew by 7.8%, with a compound annual growth rate of 2.5%. The highest production volume was recorded in 2019 at 7 196 K t, while the largest annual increase occurred in 2018 at 8.0%.

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

Exports palm kernel or babassu oil and fractions from ASEAN

Exports in kind, K t

ASEAN's exports of palm kernel or babassu oil and fractions remained virtually unchanged in 2020, totaling 2 433 K t compared to the previous year. The lowest export volume was recorded in 2018 at 2 388 K t, while the peak occurred in 2019 at 2 437 K t. The largest decline took place in 2018 at 1.9%, and the most significant increase was in 2019 at 2.1%.

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

From 2017 to 2020, China, the Netherlands, and the United States were the top contributors to ASEAN's exports in kind. China accounted for 28.5% of exports, the Netherlands for 16.6%, and the United States for 10.8%. Together, these three markets represented 56.0% of total export flows.

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

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

Exports in value, M $ US

Following a two-year decline, ASEAN's export value of palm kernel or babassu oil and fractions rebounded. In 2020, exports amounted to 2 084 M $ US, reflecting a 20.9% increase from the previous year. Over the 2017-2020 period, however, exports decreased by 34.9%, with a compound annual decline rate of 13.3%. The lowest value was recorded in 2019 at 1 723 M $ US, which also saw the largest annual drop of 30.3%.

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

Between 2017 and 2020, China, the Netherlands, and the United States formed the primary cluster of markets for ASEAN's exports in value terms. China contributed 26.8% of export value, the Netherlands 16.9%, and the United States 11.8%. Collectively, these three countries accounted for 55.5% of total export flows.

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

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

Imports palm kernel or babassu oil and fractions to ASEAN

Imports in kind, K t

The market displayed an unstable trend throughout the period. Imports hit their lowest point in 2019 at 43 K t and peaked in 2020 at 310 K t, representing a 7.1-fold fluctuation. In 2020, imports surged by 614.8% compared to 2019. The largest decline occurred in 2019 at 70.3%.

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

From 2017 to 2020, Papua New Guinea was the largest source for ASEAN's imports in kind of palm kernel or babassu oil and fractions, accounting for 0.9% of total import flows.

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

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

Imports in value, M $ US

After a two-year decrease, ASEAN's import value of palm kernel or babassu oil and fractions rose. In 2020, imports totaled 301 M $ US, up by 36.8% from the previous year. Over the 2017-2020 period, imports fell by 34.5%, with a compound annual decline rate of 13.2%. The lowest value was recorded in 2019 at 220 M $ US, which also experienced the largest annual decrease of 46.7%.

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

Throughout 2017 to 2020, Papua New Guinea held the largest share in ASEAN's imports in value terms, representing 0.9% of total import flows.

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

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