Palm nuts and kernels market in Eastern Asia

Earlier Report Observations

From 2018 to 2020, production of palm nuts and kernels in Eastern Asia remained stable at around 667–670 thousand tons. Government policies promoting biodiesel blending, notably Indonesia's rising mandate, increased demand for palm oil but did not trigger a significant expansion in raw material output within the region. Concurrently, stringent environmental regulations raised production costs, likely restraining new entrants and limiting supply growth.

The market demonstrated continued resilience through 2021–2022, with production volumes holding between 666.8 and 667.6 thousand tons. Import fluctuations did not substantially alter the overall market size, which remained within a narrow band, reflecting a balanced supply-demand environment.

In 2023, production settled at 667 thousand tons, showing remarkable stability despite global headwinds. Extreme climate events such as El Niño and La Niña disrupted oil palm phenology, while pandemic-related labor shortages persisted in major producing countries. Slowing expansion of oil palm plantation area in Indonesia and Malaysia further contained potential supply increases, contributing to the steady market volume.

Production palm nuts and kernels in Eastern Asia

In kind, 2017-2020, K t

Top producers of palm nuts and kernels, 2017-2020

World map of production of palm nuts and kernels, 2017-2020

Eastern Asia's production of palm nuts and kernels has increased for the third year in a row. In 2020, the region produced 669.5 thousand tonnes, showing only minor fluctuations compared to 2019.

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

Exports palm nuts and kernels from Eastern Asia

Exports in kind, t

In 2019, Eastern Asia exported 3 tonnes of palm nuts and kernels, marking a significant 14.2% increase from the previous year. However, over the 2017-2019 period, exports fell by 40.7%, with an average annual decline of 16.0%. The lowest export volume was recorded in 2018 at 2 tonnes, which also saw the sharpest drop of 48.1%.

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

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

Exports in value, K $ US

In 2019, Eastern Asia's palm nuts and kernels exports were valued at 8 thousand US dollars, up 7.7% from the year before. From 2017 to 2019, export value decreased by 54.9%, with an average annual decline of 23.3%. The lowest value was in 2018 at 7 thousand US dollars, which also experienced the largest decline of 58.1%.

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

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

Imports palm nuts and kernels to Eastern Asia

Imports in kind, t

Import volumes showed considerable volatility during this period. In 2020, Eastern Asia imported 679 tonnes of palm nuts and kernels, a 9.2% decrease from 2019. The peak was in 2018 at 2 608 tonnes, while the lowest point was in 2020, resulting in a 3.8-fold difference between these years. The largest decline occurred in 2019 at 71.3%, and the biggest increase was in 2018 at 225.4%.

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

From 2017 to 2020, Indonesia was the dominant supplier of palm nuts and kernels to Eastern Asia, accounting for 83.2% of total imports by volume, with the remaining share distributed among other trading partners.

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, K $ US

Import values exhibited volatility over the observed years. In 2020, Eastern Asia's imports of palm nuts and kernels were valued at 167 thousand US dollars, down 48.6% from the previous year. The highest value was recorded in 2018 at 1 176 thousand US dollars, while the lowest was in 2020, creating a 7-fold difference between these two years. The largest decline happened in 2019 at 72.3%, and the biggest increase was in 2018 at 109.3%.

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

Between 2017 and 2020, the main suppliers of palm nuts and kernels to Eastern Asia by value were Indonesia (31.2% of imports), the United States (30.7%), and Brazil (8.9%). Together, these three countries accounted for 70.9% of total import value.

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

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