Palm oil and fractions market in South-eastern Asia

Earlier Report Observations

The palm oil market in South-eastern Asia expanded significantly from 24 thousand tonnes in 2018 to nearly 35 thousand tonnes by 2022, reflecting increased regional consumption. Growth was particularly strong in 2019, though specific driving factors for the early years are not highlighted in available sources. After a slight dip in 2020, the market resumed its upward trajectory in 2021.

By 2022, the market reached its peak for the period. In 2023, market volume contracted to 33 thousand tonnes. This coincided with Thailand's increase in the mandatory biodiesel blend rate to B7, which tightened domestic palm oil supply and supported local demand. Additionally, weather impacts such as El Niño affected production yields in key producing countries like Indonesia, contributing to supply constraints and influencing trade flows.

Production palm oil and fractions in South-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

Following two years of growth, palm oil and fractions production in South-eastern Asia experienced a decline. In 2020, the region produced 66 798 thousand tonnes, marking a moderate year-over-year decrease of 4.9%. Over the period from 2017 to 2020, production rose by 10.1%, which translates to an average annual growth rate of 3.3%. The peak was reached in 2019 with 70 227 thousand tonnes, and that year also saw the largest annual increase at 11.4%.

Annual dynamics of production in South-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 South-eastern Asia rebounded. In 2020, the output was valued at 47 203 million US dollars, representing a substantial increase of 16.6% compared to 2019. From 2017 to 2020, production grew by 2.5%, averaging an annualized rate of 0.8%. The lowest value occurred in 2019 at 40 477 million US dollars, while the most significant drop was in 2018 with an 11.7% decrease.

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

Exports palm oil and fractions from South-eastern Asia

Exports in kind, K t

After two years of growth, South-eastern Asia's palm oil and fractions export volume declined. In 2020, exports reached 38 834 thousand tonnes, reflecting a limited decrease of 4.5% from 2019. Between 2017 and 2020, exports increased by 3.2%, equating to an annualized growth rate of 1.0%. The highest volume was recorded in 2019 at 40 648 thousand tonnes, and the largest annual increase was in 2018 at 5.3%.

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

From 2017 to 2020, palm oil and fractions exports in kind were distributed across a diverse range of partner countries. India accounted for 20.3% of exports, China for 12.8%, and Pakistan for 7.6%, with these three countries together making up just 40.7% of total flows, indicating a broad distribution.

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

World map of product's exports from South-eastern Asia in kind, 2017-2020

Exports in value, M $ US

Following two years of decline, palm oil and fractions export values from South-eastern Asia increased. In 2020, exports amounted to 27 442 million US dollars, up by 17.1% compared to the previous year. Over the 2017-2020 period, exports decreased by 4%, averaging an annualized decline of 1.3%. The lowest value was in 2019 at 23 428 million US dollars, and the largest drop occurred in 2018 with a 10.6% decrease.

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

Between 2017 and 2020, India, China, and Pakistan were among the top buyers of palm oil and fractions from South-eastern Asia in value terms, with shares of 19.5%, 12.1%, and 7.6%, respectively. However, even combined, they represented only 39.2% of total export value, highlighting a widely diversified partner base.

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

World map of product's exports from South-eastern Asia in value, 2017-2020

Imports palm oil and fractions to South-eastern Asia

Imports in kind, K t

South-eastern Asia's palm oil and fractions imports increased for the third consecutive year. In 2020, imports totaled 2 509 thousand tonnes, up by 53.2% compared to 2019. From 2017 to 2020, imports surged by 256.6%, averaging an annualized growth rate of 52.8%.

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

During 2017-2020, Papua New Guinea accounted for the largest share of palm oil and fractions imports in kind to South-eastern Asia, representing 2.1% of total flows.

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

World map of product's imports to South-eastern Asia in kind, 2017-2020

Imports in value, M $ US

Palm oil and fractions imports into South-eastern Asia rose for the second consecutive year. In 2020, imports were valued at 2 205 million US dollars, corresponding to a sharp increase of 53.7% compared to the previous year. Over the 2017-2020 period, imports grew by 58.8%, with a compound annual growth rate of 16.7%. The lowest value was recorded in 2018 at 1 383 million US dollars, and that year also saw the largest decline at 0.4%.

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

From 2017 to 2020, Papua New Guinea was the largest source of palm oil and fractions imports in value terms to South-eastern Asia, accounting for 1.7% of total flows.

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

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