Palm oil and fractions market in Peru

Earlier Report Observations

From 2018, Peru's palm oil production began a steady climb, supported by government-led crop substitution programs and alternative development initiatives in the Ucayali region. These efforts, involving national and regional authorities as well as international organizations, aimed to replace illicit crops and reduce imports, leading to expanded cultivation areas and improved technologies. As a result, production increased from 203 thousand tons in 2018 to 220 thousand tons in 2019.

The growth trajectory continued into the early 2020s, with production reaching 270 thousand tons by 2021. This period saw the concentration of harvested area in Ucayali, where two major companies, Oleaginosas Amazónicas and Servicios Agrarios de Pucallpa, drove output and export growth. However, in 2022, the domestic market volume fell to 153 thousand tons despite production rising to 280 thousand tons, as companies faced allegations of deforestation and social conflicts, prompting supply chain investigations and increased scrutiny over sustainability standards.

By 2023, the industry made significant strides in sustainability certification. Grupo Palmas became the first Peruvian company to obtain RSPO certification for sustainable palm oil processing and production, while the small producer association APROMAN achieved RSPO eligibility. These advancements, coupled with new regulations from the Ministry of Agriculture, helped push production to 300 thousand tons and allowed the domestic market volume to recover to 168.9 thousand tons.

Production palm oil and fractions in Peru

In kind, 2017-2020, K t

On a global scale, Peru ranked as the 20th largest producer of palm oil and fractions between 2017 and 2020.

Top producers of palm oil and fractions, 2017-2020

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

Peru's production of palm oil and fractions grew for the third consecutive year. In 2020, the country produced 230.0 K t, marking a 4.5% increase from the previous year. From 2017 to 2020, overall production rose by 29.2%, which translates to an annualized growth rate of 8.9%.

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

In value, 2017-2020, M $ US

Peru's production of palm oil and fractions increased for the second consecutive year. In 2020, the output was valued at 164.1 M $ US, up by 23.0% compared to 2019. Over the period from 2017 to 2020, production grew by 16.1%, with a compound annual growth rate of 5.1%. The lowest value was recorded in 2018 at 125.8 M $ US, which also saw the largest decline of 11.0%.

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

Exports palm oil and fractions from Peru

Exports in kind, t

Peru's exports of palm oil and fractions rose for the third consecutive year. In 2020, exports totaled 93 133 t, showing a moderate year-on-year increase of 7.6%. Between 2017 and 2020, exports surged by 121.7%, equivalent to an annualized growth rate of 30.4%.

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

From 2017 to 2020, two key markets—Colombia and Chile—together accounted for 84.3% of Peru's total exports in volume, while the remainder was distributed among various other countries.

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

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

Exports in value, K $ US

Peru's exports of palm oil and fractions increased for the third consecutive year. In 2020, the country exported 66 453 K $ US worth of these products, representing a steep rise of 26.6% over the previous year. From 2017 to 2020, exports grew by 99.2%, with an annualized rate of 25.8%.

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

Between 2017 and 2020, Peru's exports of palm oil and fractions in value terms were primarily directed towards Colombia and Chile, which together made up 83.2% of total flows, while other destinations played a secondary role.

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

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

Imports palm oil and fractions to Peru

Imports in kind, t

Peru's imports of palm oil and fractions grew for the third consecutive year. In 2020, import volume reached 20 956 t, indicating a sharp increase of 139.9% compared to the prior year. From 2017 to 2020, imports soared by 335.4%, equating to an annualized growth rate of 63.3%.

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

From 2017 to 2020, Indonesia and Malaysia dominated Peru's imports in volume, together accounting for 86.6% of total flows, with other countries contributing smaller shares individually.

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

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

Imports in value, K $ US

Peru's imports of palm oil and fractions increased for the third consecutive year. In 2020, imports were recorded at 19 015 K $ US, up by 192.9% versus the previous year. Between 2017 and 2020, imports grew by 329.3%, with an annualized rate of 62.5%.

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

Throughout 2017 to 2020, Indonesia and Malaysia remained the key partner countries for Peru's imports in value terms, holding a combined share of 86.9% of total flows, while other partners accounted for the remainder.

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

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