Palm kernel or babassu oil and fractions market in Central America

Earlier Report Observations

Market volume for palm kernel or babassu oil in Central America peaked at 161.5 thousand tons in 2019, following a rise in domestic production. After a contraction in 2020, it recovered to 154 thousand tons in 2021 before declining steadily to 118.6 thousand tons by 2023. This latter drop coincided with a significant expansion of regional exports, which grew by 106% between 2018 and 2022, reducing the volume available for domestic consumption.

The region's market structure has been increasingly oriented toward international trade. Guatemala and Honduras emerged as key exporters, while Colombia's large-scale production influenced supply dynamics in the Americas. Furthermore, European demand for sustainably produced palm oil is driving changes in production practices across Central America, affecting market access and competitiveness.

Production palm kernel or babassu oil and fractions in Central America

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

Central America's production of palm kernel or babassu oil and fractions declined after two years of growth. In 2020, the region produced 229.3 K t, marking a 1.2% decrease compared to the previous year. Production had increased by 25% between 2017 and 2020, averaging an annual growth rate of 7.7%. The peak was reached in 2019 at 232.0 K t, which also saw the largest annual increase of 18.5%.

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

Exports palm kernel or babassu oil and fractions from Central America

Exports in kind, K t

After two years of decline, Central America's exports of palm kernel or babassu oil and fractions rebounded. In 2020, exports totaled 129.0 K t, a 34.4% increase year-over-year. From 2017 to 2020, exports grew by 9.5%, with a compound annual growth rate of 3.1%. The lowest point was in 2019 at 96.0 K t, which also experienced the largest decline of 10.4%.

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

Between 2017 and 2020, the Netherlands, Germany, and Spain were the top buyers of palm kernel or babassu oil and fractions from Central America, but they did not dominate the market. The Netherlands accounted for 27.3% of exports in kind, Germany for 5.8%, and Spain for 3.1%. Together, these three countries represented 36.2% of total exports, with many smaller partners making up the remainder.

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

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

Exports in value, M $ US

Following a two-year downturn, Central America's exports of palm kernel or babassu oil and fractions in value terms increased. In 2020, exports reached 110.5 M $ US, a 50.8% rise compared to 2019. However, over the period from 2017 to 2020, exports decreased by 29.7%, with a compound annual growth rate of -11.1%. The lowest value was recorded in 2019 at 73.3 M $ US, which also saw the largest decline of 37.3%.

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

From 2017 to 2020, palm kernel or babassu oil and fractions from Central America were exported to numerous countries. Even the largest destinations—the Netherlands, Germany, and Spain—collectively accounted for only 40.5% of total exports in value terms, indicating a diverse market with many smaller trading partners.

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

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

Imports palm kernel or babassu oil and fractions to Central America

Imports in kind, K t

Central America's imports of palm kernel or babassu oil and fractions increased for the third consecutive year. In 2020, imports stood at 40.9 K t, up 60.4% from the previous year. Between 2017 and 2020, imports surged by 200.3%, translating to an annualized growth rate of 44.3%.

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

During 2017–2020, Colombia, Indonesia, and Ecuador consistently led as the main sources of imports in kind for Central America. Colombia accounted for 28.7% of imports, Indonesia for 7.2%, and Ecuador for 4.5%. Together, these three countries made up 40.3% of total import volumes.

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

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

Imports in value, M $ US

The market showed volatility during these years. Imports in value terms reached their lowest point in 2019 and peaked in 2020, with a 1.9-fold difference between these two years. In 2020, imports totaled 36.3 M $ US, reflecting a sharp increase of 88.2% year-over-year. The minimum value was recorded in 2019 at 19.3 M $ US, which also experienced the largest decline of 33.4%.

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

Between 2017 and 2020, imports of palm kernel or babassu oil and fractions to Central America in value terms were distributed across many countries. Colombia, Indonesia, and Ecuador were the top sources, accounting for 26.0%, 10.0%, and 6.0% of imports, respectively. Together, they represented only 42.0% of total import value, highlighting a broad range of suppliers.

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

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