Palm kernel or babassu oil and fractions market in Latin America and the Caribbean

Earlier Report Observations

The market for palm kernel and babassu oil in Latin America and the Caribbean expanded from 496 thousand tons in 2018 to a peak of 611 thousand tons in 2021, followed by a contraction to 488 thousand tons in 2022 and a slight decline to 482 thousand tons in 2023.

In 2023, production fell to 415 thousand tons, partly due to a concentration of palm oil output in two regions of Colombia that accounted for 77.4% of the country's production, while output declined in eastern and central areas. This contributed to a lower domestic supply, though increased imports of 288 thousand tons helped stabilize the overall market volume.

By 2024, imports rose to 329 thousand tons, reflecting stronger demand for these oils, particularly from Mexico as a key buyer. Regulatory developments, including health warnings about palm oil in infant formula in Mexico and changes to tax classifications for refined oil blends in Brazil, began influencing trade patterns and consumer preferences.

Production palm kernel or babassu oil and fractions in Latin America and the Caribbean

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

Latin America and the Caribbean saw palm kernel or babassu oil and fractions production rise for the second year in a row. In 2020, the region produced 489.5 K t, maintaining stability compared to the previous year. Looking at the 2017-2020 period, production grew by 5.9%, with an average annual growth rate of 1.9%. The lowest production level was recorded in 2018 at 462.0 K t. That year also saw the smallest change, with essentially no growth. The most significant increase occurred in 2019, when production jumped by 5.8%.

Annual dynamics of production in Latin America and the Caribbean in kind, 2017-2020, K t

In value, 2017-2020, M $ US

Following two years of decline, Latin America and the Caribbean's palm kernel or babassu oil and fractions production value rebounded. In 2020, output was valued at 433.1 M $ US, representing a 2.3% increase year-over-year. However, over the broader 2017-2020 timeframe, production value fell by 32.1%, translating to an average annual decline of 12.1%. The lowest value was recorded in 2019 at 423.3 M $ US, which also marked the steepest drop of 19.4% during this period.

Annual dynamics of production in Latin America and the Caribbean in value, 2017-2020, M $ US

Exports palm kernel or babassu oil and fractions from Latin America and the Caribbean

Exports in kind, K t

After two consecutive years of decline, Latin America and the Caribbean's palm kernel or babassu oil and fractions export volume turned upward. In 2020, exports reached 202.7 K t, showing a substantial 20.5% increase compared to the previous year. The lowest export volume was recorded in 2019 at 168.2 K t, which also saw the most significant decline of 18.5%.

Annual dynamics of product's exports from Latin America and the Caribbean in kind, 2017-2020, K t

An analysis of export volumes from 2017 to 2020 reveals a diverse distribution across multiple markets. The Netherlands accounted for 26.3% of exports, Germany for 5.5%, and Italy for 4.9%. Together, these three countries represented 36.7% of total flows, while the remaining 63.3% went to various other trading partners.

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

World map of product's exports from Latin America and the Caribbean in kind, 2017-2020

Exports in value, M $ US

Following a two-year downward trend, palm kernel or babassu oil and fractions exports from Latin America and the Caribbean rebounded in value terms. In 2020, export value reached 179.4 M $ US, marking a 23.2% increase compared to 2019. However, over the 2017-2020 period, export value declined by 37.1%, with an average annual decrease of 14.3%. The lowest value was recorded in 2019 at 145.6 M $ US, which also experienced the steepest decline of 37.9%.

Annual dynamics of product's exports from Latin America and the Caribbean in value, 2017-2020, M $ US

From 2017 to 2020, the Netherlands, Germany, and Italy emerged as the largest buyers of palm kernel or babassu oil and fractions from Latin America and the Caribbean in value terms. The Netherlands accounted for 29.2% of export value, Germany for 5.0%, and Italy for 4.3%. Together, these three markets represented 38.5% of total export value, while numerous smaller partners accounted for the remaining share.

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

World map of product's exports from Latin America and the Caribbean in value, 2017-2020

Imports palm kernel or babassu oil and fractions to Latin America and the Caribbean

Imports in kind, K t

After two years of reduction, palm kernel or babassu oil and fractions imports into Latin America and the Caribbean increased. In 2020, the region imported approximately 281.1 K t, representing a 19.1% increase compared to 2019. Over the 2017-2020 period, import volume grew by 14%, with an average annual growth rate of 4.5%. The lowest import volume was recorded in 2019 at 236.0 K t, while the most significant decline occurred in 2018 with a 2.7% decrease.

Annual dynamics of product's imports to Latin America and the Caribbean in kind, 2017-2020, K t

From 2017 to 2020, Indonesia and Malaysia consistently served as the primary sources for palm kernel or babassu oil and fractions imports into Latin America and the Caribbean. Together, these two countries accounted for 73.6% of total import volume during this period.

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

World map of product's imports to Latin America and the Caribbean in kind, 2017-2020

Imports in value, M $ US

Following two years of decline, palm kernel or babassu oil and fractions imports into Latin America and the Caribbean increased in value terms. In 2020, import value reached 246.9 M $ US, showing a strong 19.1% advance compared to 2019. However, over the 2017-2020 timeframe, import value decreased by 29.6%, with an average annual decline of 11.0%. The lowest value was recorded in 2019 at 207.2 M $ US, which also experienced the steepest drop of 30.2%.

Annual dynamics of product's imports to Latin America and the Caribbean in value, 2017-2020, M $ US

During the 2017-2020 period, Indonesia and Malaysia played the leading roles in palm kernel or babassu oil and fractions imports into Latin America and the Caribbean in value terms. Together, these two countries accounted for 75.0% of total import value.

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

World map of product's imports to Latin America and the Caribbean in value, 2017-2020