Palm oil and fractions market in ECOWAS

Earlier Report Observations

Between 2018 and 2023, the palm oil market in ECOWAS experienced significant fluctuations in volume. Market size peaked at 4.0 million tonnes in 2018 before declining to 3.2 million tonnes in 2022 and recovering to 3.6 million tonnes in 2023. Domestic production gradually increased after 2019, reaching 2.6 million tonnes in 2023, while imports generally trended downward from 1.5 million tonnes to 1.4 million tonnes, and exports rose substantially, particularly in 2023 to 480 thousand tonnes.

In 2024, trade dynamics shifted with imports falling to 1.1 million tonnes and exports to 294 thousand tonnes. This change coincided with global factors such as the El Niño weather pattern reducing palm oil production in Asia, the key supply region, and sustained biodiesel blending mandates in Indonesia and Brazil limiting global exports. Additionally, the establishment of Interpalm-Cam in late 2023 aimed to boost local African production, potentially altering the regional supply structure.

Production palm oil and fractions in ECOWAS

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, ECOWAS recorded its lowest palm oil and fractions production at 2 320 K t, which then increased to 2 364 K t in 2020, marking a 1.9% year-over-year growth. The peak production occurred in 2018 at 2 635 K t. Over the 2017-2020 period, overall production declined by 6.5%, with a compound annual growth rate of 2.2%. The most significant drop was observed in 2019 at 12.0%, while the largest increase happened in 2018 at 4.2%.

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

In value, 2017-2020, M $ US

ECOWAS experienced a second consecutive year of decline in palm oil and fractions production value. In 2020, output was valued at 18 782 M $ US, representing a 9.6% decrease from the previous year. The highest value was recorded in 2018 at 27 645 M $ US. From 2017 to 2020, production value fell by 17.1%, with a compound annual growth rate of 6.0%. The most substantial decline occurred in 2019 at 24.9%, while the largest increase was in 2018 at 22.1%.

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

Exports palm oil and fractions from ECOWAS

Exports in kind, K t

Market performance showed notable fluctuations during this period. In 2018, exports reached their lowest point at 105 K t, then surged to a peak of 199 K t in 2019, creating a 1.9-fold gap between these years. In 2020, shipments from ECOWAS to abroad totaled 141 K t, reflecting a sharp 29.2% drop compared to 2019. The most significant decline was recorded in 2018 at 45.9%, while the largest increase occurred in 2019 at 89.5%.

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

From 2017 to 2020, Spain, the Netherlands, and Italy were the main destinations for palm oil and fractions from ECOWAS, accounting for 4.6% of total exports in kind. Spain and the Netherlands each contributed 1.8%, while Italy accounted for 1.0%.

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

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

Exports in value, M $ US

Following two years of growth, cross-border shipments of palm oil and fractions from ECOWAS declined. In 2020, exports amounted to 416 M $ US, showing a slight reduction of 2.9% compared to 2019. The peak value was recorded in 2019 at 428 M $ US. Between 2017 and 2020, exports increased by 26.3%, equating to an 8.1% annualized rate. The largest increase occurred in 2019 at 25.7%.

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

The market base for exports in value terms from 2017 to 2020 was diverse. The Netherlands, Spain, and Chad together accounted for just 4.0% of total flows, with the Netherlands at 1.9%, Spain at 1.3%, and Chad at 0.9%. The remaining 96.0% was distributed among numerous other countries.

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

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

Imports palm oil and fractions to ECOWAS

Imports in kind, K t

In 2020, palm oil and fractions deliveries to ECOWAS stood at 1 406 K t, representing an 8.9% year-over-year increase. The lowest import volume was recorded in 2019 at 1 291 K t, while the peak occurred in 2018 at 1 472 K t. Between 2017 and 2020, imports decreased by 2.3%, with an annualized rate of 0.8%. The most significant decline was in 2019 at 12.4%.

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

From 2017 to 2020, Malaysia, Indonesia, and Singapore were the principal suppliers of palm oil and fractions to ECOWAS, jointly accounting for 73.6% of total imports in kind. Malaysia led with 47.2%, followed by Indonesia at 24.8%, and Singapore at 1.5%.

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

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

Imports in value, M $ US

After two years of decline, ECOWAS's palm oil and fractions imports increased. In 2020, import volume totaled 1 048 M $ US, up by 17.2% compared to the previous year. The lowest value was recorded in 2019 at 894 M $ US. Between 2017 and 2020, imports decreased by 6.8%, with an annualized rate of 2.3%. The largest decline occurred in 2019 at 19.0%.

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

Over the 2017-2020 period, Malaysia, Indonesia, and Singapore were the primary suppliers of palm oil and fractions to ECOWAS in value terms, jointly accounting for 71.7% of total imports. Malaysia contributed 49.2%, Indonesia 19.4%, and Singapore 3.1%.

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

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