Palm kernel or babassu oil and fractions market in Eastern Asia

Earlier Report Observations

The market for palm kernel or babassu oil in Eastern Asia expanded to 1 030 thousand tonnes in 2019, driven by increased biodiesel production in China following the stock market listing of major producer Zhuoyue New Energy, which boosted demand for feedstock. This growth reversed from 2020 to 2022, with consumption falling to 638 thousand tonnes as import volumes declined. A recovery emerged in 2023, with market volume rising to 820 thousand tonnes, supported by further capacity expansion in China's biodiesel sector and higher imports.

Sustainability initiatives and policy developments shaped the market environment. In Japan, Fuji Oil Group established a grievance mechanism in 2018 to strengthen its responsible palm oil sourcing. By 2022, Japanese government tax incentives and renewable energy policies supported biodiesel blending, with companies like Nisshin Foods Holdings developing sustainable supply chains. Globally, the EU's reinforced Renewable Energy Directive in 2020 increased biodiesel demand, influencing long-term trade patterns for palm oil.

The market's trajectory became increasingly tied to the biodiesel industry. By 2024, policy adjustments in major producing countries Malaysia and Indonesia began affecting global palm oil prices and supply. Meanwhile, China's dual role as a large exporter of used cooking oil and a growing biodiesel producer added complexity to regional feedstock dynamics.

Production palm kernel or babassu oil and fractions in Eastern Asia

In kind, 2017-2020, 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

Eastern Asia's production of palm kernel or babassu oil and fractions fell for the second year in a row. In 2020, the region produced 16,142 tonnes, a slight decrease of 0.7% from the previous year. Looking at the period from 2017 to 2020, production dropped by 38.3%, which translates to an average annual decline of 14.9%. The peak was in 2018, with 26,985 tonnes. The sharpest drop occurred in 2019, at 39.8%, while the largest increase was in 2018, at 3.2%.

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

Exports palm kernel or babassu oil and fractions from Eastern Asia

Exports in kind, K t

Eastern Asia's exports of palm kernel or babassu oil and fractions grew for the third consecutive year. In 2020, export volume reached 0.1 thousand tonnes, up 13.9% from 2019. From 2017 to 2020, exports surged by 197.8%, with a compound annual growth rate of 43.9%.

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

From 2017 to 2020, the key markets for Eastern Asia's exports in kind were Asia, not elsewhere specified (23.3% of exports), the United States (22.8%), and Vietnam (6.2%). Together, these three destinations accounted for 52.3% of total export flows.

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

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

Exports in value, M $ US

The data shows irregular changes, pointing to a volatile market environment. Exports in value terms hit their lowest point in 2017 and peaked in 2018, with a 2.9-fold difference between these years. In 2020, Eastern Asia's exports of palm kernel or babassu oil and fractions totaled 0.3 million US dollars, down 7.6% from the previous year. The highest value was recorded in 2018 at 0.4 million US dollars. The largest decline occurred in 2019, at 7.7%, while the biggest increase was in 2018, at 192.7%.

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

Between 2017 and 2020, the United States and Asia, not elsewhere specified were the dominant markets for exports in value terms, together making up 86.3% of total flows. The remaining share was spread across other destinations.

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

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

Imports palm kernel or babassu oil and fractions to Eastern Asia

Imports in kind, K t

After rising for two years, Eastern Asia's imports of palm kernel or babassu oil and fractions in kind declined. In 2020, imports stood at 825 thousand tonnes, a significant drop of 18.7% compared to 2019. Over the 2017-2020 period, imports increased by 18.5%, with a compound annual growth rate of 5.8%. The highest volume was in 2019, at 1,014 thousand tonnes, which also saw the largest increase of 21.5%.

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

From 2017 to 2020, imports of palm kernel or babassu oil and fractions to Eastern Asia were heavily concentrated, with Indonesia and Malaysia together accounting for 99.6% of total flows in kind.

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

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

Imports in value, M $ US

Eastern Asia's imports of palm kernel or babassu oil and fractions in value terms fell for the third year in a row. In 2020, the region imported approximately 652.5 million US dollars, a moderate reduction of 8.5% from the previous year. Between 2017 and 2020, imports decreased by 30.1%, with an average annual decline of 11.3%.

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

During 2017-2020, Indonesia and Malaysia continued to be the primary suppliers of palm kernel or babassu oil and fractions to Eastern Asia in value terms, with their combined share reaching 99.4% of total imports.

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

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