Palm oil and fractions market in Eastern Asia

Earlier Report Observations

The palm oil market in East Asia expanded from 6,783 thousand tons in 2018 to 9,071 thousand tons in 2019, a 33.7% increase. This surge coincided with the World Wildlife Fund's forecast that global demand would double by 2020, which likely prompted increased purchasing. Simultaneously, Indonesia, a key supplier, implemented a $50-per-ton export levy to fund biodiesel subsidies, influencing global trade flows and availability.

After the peak, market volume declined to 7,916 thousand tons in 2020 and further to 6,260 thousand tons in 2022. During this period, Japanese buyers adopted stricter environmental policies, committing to NDPE (No Deforestation, No Peat, No Exploitation) targets from 2018 onward, which may have temporarily constrained supply chains. In South Korea, government policies promoting domestic oilseed production and digital transformation under the Agriculture, Rural and Food Industry Development Plan (2023-2027) reduced reliance on palm oil imports.

By 2023, the market recovered to 7,066 thousand tons. This rebound was supported by steady demand in Japan across food processing, biodiesel, and cosmetics sectors, alongside the continued use of palm oil in bio-crude production in South Korea, even as the country increased its share of domestic feedstocks.

Production palm oil and fractions in Eastern Asia

In kind, 2017-2020, K t

Top producers of palm oil and fractions, 2017-2020

World map of production of palm oil and fractions, 2017-2020

In 2019, Eastern Asia produced 113.0 K t of palm oil and fractions, marking the highest output during the period. The following year, in 2020, production remained virtually unchanged at 112.4 K t. The largest annual increase occurred in 2019, with a growth of 0.5%.

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

In value, 2017-2020, M $ US

After two years of decline, palm oil and fractions production in Eastern Asia rebounded in value terms. In 2019, output was valued at 90.4 M $ US, the lowest point during the period. In 2020, production increased significantly to 102.8 M $ US, representing a 13.8% rise from the previous year. Over the 2017-2020 period, production decreased by 5.5%, with a compound annual growth rate of 1.9%. The largest decline was recorded in 2019 at 15.2%.

Annual dynamics of production in Eastern Asia in value, 2017-2020, M $ US

Exports palm oil and fractions from Eastern Asia

Exports in kind, K t

The market exhibited volatility over the observed period. Exports reached their lowest point in 2017, then peaked in 2018 at 28 K t, representing a 1.7-fold increase from the low. In 2020, Eastern Asia exported 21 K t of palm oil and fractions, a 24.5% reduction compared to the previous year. The largest increase occurred in 2018, with a growth of 71.7%.

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

From 2017 to 2020, Uzbekistan remained the primary destination for exports in kind, accounting for 1.9% of total 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

Eastern Asia's palm oil and fractions export value declined for the second consecutive year. In 2020, exports amounted to 20 M $ US, showing a strong drop of 13.7% compared to 2019. The maximum value was recorded in 2018 at 27 M $ US. Between 2017 and 2020, exports increased by 22.3%, equating to an annualized rate of 6.9%. The largest decline occurred in 2019 at 15.8%, while the largest increase was in 2018 at 68.2%.

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

Throughout 2017-2020, Uzbekistan and Asia, not elsewhere specified, held leading positions in the export structure by value, jointly accounting for 2.8% of total flows.

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 oil and fractions to Eastern Asia

Imports in kind, K t

After two years of growth, palm oil and fractions import volumes in Eastern Asia declined. In 2019, imports peaked at 8 986 K t. In 2020, imports contracted substantially to 7 825 K t, a 12.9% decrease from the previous year. Over the 2017-2020 period, imports increased by 24%, with a compound annual growth rate of 7.4%. The largest increase was recorded in 2019 at 34.1%.

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

From 2017 to 2020, Indonesia and Malaysia remained the dominant sources for imports in kind of palm oil and fractions to Eastern Asia, jointly accounting for 99.7% of total flows.

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 palm oil and fractions import value increased for the second consecutive year. In 2018, imports reached their lowest point at 4 330 M $ US, with a decline of 1.5%. In 2019, imports saw the largest increase at 14.6%. In 2020, import volume amounted to 5 088 M $ US, which is 2.5% greater compared to the previous year. Between 2017 and 2020, imports increased by 15.7%, equating to an annualized rate of 5.0%.

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

Over 2017-2020, Indonesia and Malaysia accounted for the bulk of imports in value terms, jointly taking 99.7% of total flows.

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

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