Palm kernel or babassu oil and fractions market in Malaysia

Earlier Report Observations

From 2018 to 2020, the Malaysian market for palm kernel or babassu oil and fractions experienced notable changes. In 2018, the market volume stood at 1 976 thousand tonnes, supported by Malaysia's position as a top exporter of crude palm kernel oil, where state-owned or influential companies played a significant role. The market volume then slightly declined to 1 957 thousand tonnes in 2019 and dropped more substantially to 1 631 thousand tonnes in 2020.

Between 2021 and 2023, market volume stabilized around 1 600-1 700 thousand tonnes. It reached 1 628 thousand tonnes in 2021, showing minimal change from the previous year. A recovery occurred in 2022, with volume rising to 1 712 thousand tonnes, before edging down to 1 653 thousand tonnes in 2023.

Looking at export trends beyond 2023, Malaysia continued to strengthen its global export position. Export volumes grew significantly to 756 thousand tonnes in 2024 and 835 thousand tonnes in 2025, driven by global demand and price dynamics, with evidence of active major companies and possible new players expanding production or export capacity.

Production palm kernel or babassu oil and fractions in Malaysia

In kind, 2018-2021, K t

Malaysia was one of the world's top producers of palm kernel or babassu oil and fractions from 2018 to 2021, ranking second globally by production volume.

Top producers of palm kernel or babassu oil and fractions, 2018-2021

World map of production of palm kernel or babassu oil and fractions, 2018-2021

Malaysia's production of palm kernel or babassu oil and fractions declined for the second year in a row. In 2021, the country produced 2 049 K t, marking a gradual decrease of 7.0% from the previous year. Over the period from 2018 to 2021, production fell by 10.9%, which translates to an annualized decline of 3.8%. The highest production level was recorded in 2019 at 2 322 K t, with the largest increase of 1.0% also occurring that year.

Annual dynamics of production in Malaysia in kind, 2018-2021, K t

Exports palm kernel or babassu oil and fractions from Malaysia

Exports in kind, K t

Following two years of growth, Malaysia's exports of palm kernel or babassu oil and fractions declined. In 2021, exports totaled 775.6 K t, representing a significant drop of 10.2% compared to the year before. From 2018 to 2021, exports overall increased by 20.4%, averaging an annual growth rate of 6.4%. The peak export volume was in 2020 at 864.1 K t, with the largest increase of 30.7% also recorded that year.

Annual dynamics of product's exports from Malaysia in kind, 2018-2021, K t

From 2018 to 2021, the Netherlands, China, and India were the primary buyers of Malaysia's palm kernel or babassu oil and fractions in terms of volume. The Netherlands accounted for 34.4% of exports, China for 21.5%, and India for 9.5%, together making up 65.3% of total exports.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Malaysia in kind, 2018-2021

Exports in value, M $ US

Malaysia's exports of palm kernel or babassu oil and fractions in value terms grew for the second consecutive year. In 2021, exports reached 1 118 M $ US, showing a sharp increase of 59.0% from 2020. Over the 2018-2021 period, exports rose by 70.2%, with a compound annual growth rate of 19.4%. The lowest value was in 2019 at 448 M $ US, which also saw the largest decline of 31.8%.

Annual dynamics of product's exports from Malaysia in value, 2018-2021, M $ US

Between 2018 and 2021, the Netherlands, China, and India were the key markets for Malaysia's exports in value terms. The Netherlands held a 35.2% share, China 19.7%, and India 9.0%, collectively accounting for 63.9% of total export value.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Malaysia in value, 2018-2021

Imports palm kernel or babassu oil and fractions to Malaysia

Imports in kind, K t

After two years of decline, Malaysia's imports of palm kernel or babassu oil and fractions increased. In 2021, imports amounted to 354.5 K t, reflecting a gain of 21.3% year-over-year. From 2018 to 2021, imports grew by 10.6%, with an annualized rate of 3.4%. The lowest import volume was in 2020 at 292.2 K t, while the largest decrease of 7.7% occurred in 2019.

Annual dynamics of product's imports to Malaysia in kind, 2018-2021, K t

During 2018-2021, Indonesia and Thailand dominated Malaysia's imports of palm kernel or babassu oil and fractions in volume, together accounting for 96.3% of total imports, with other markets having minimal shares.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Malaysia in kind, 2018-2021

Imports in value, M $ US

The market showed an unstable trend over the period. From 2019 to 2021, there was a 2.4-fold difference between the peak and trough values. In 2021, imports in value terms stood at 442 M $ US, indicating a dramatic rise of 85.8% compared to 2020. The lowest value was recorded in 2019 at 187 M $ US, which also experienced the largest decline of 35.7%.

Annual dynamics of product's imports to Malaysia in value, 2018-2021, M $ US

Throughout 2018-2021, Indonesia and Thailand were the main sources for Malaysia's imports in value terms, jointly making up 95.5% of total imports, while other destinations had relatively small shares.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Malaysia in value, 2018-2021