Palm oil and fractions market in Sweden

Earlier Report Observations

In 2018, Sweden introduced a ban on new oil palm plantations on peatlands, tightening sustainability requirements for imported palm oil. The country's largest vegetable oil producer, AAK, began improving supply chain traceability, though criticism persisted over sourcing from uncertified plantations. These early pressures set the stage for a market increasingly focused on sustainability. By 2020, the COVID-19 pandemic introduced uncertainty, affecting demand and logistics, with the market volume recorded at 175.8 thousand tonnes.

The market surged in 2021, with volume growing by 23.8% to 217.6 thousand tonnes and value jumping 56.7% to $258.7 million. This expansion was driven by increased exports of palm kernel oil to new European markets like the Netherlands and Italy, coupled with heightened industry focus on sustainability certifications. In 2022, the launch of the Swedish Platform for Risk Crops and preparations for the EU Deforestation Regulation (EUDR) began to reshape supply chains. This contributed to a market volume contraction to 183.6 thousand tonnes, though the market value remained stable at $264.0 million, reflecting a shift toward higher-value certified products.

The full implementation of the EU Deforestation Regulation (EUDR) in 2024, requiring full traceability and a ban on oil from land deforested after 2020, led to a profound market shift. Swedish palm oil imports plummeted by 36% in volume to 120.4 thousand tonnes, as the regulation and related sustainability demands from the Swedish Platform for Risk Crops redirected supply chains toward certified and traceable sustainable oil.

Production palm oil and fractions in Sweden

In value, 2017-2020, K $ US

Annual dynamics of production in Sweden in value, 2017-2020, K $ US

In kind, 2017-2020, t

Top producers of palm oil and fractions, 2017-2020

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

Annual dynamics of production in Sweden in kind, 2017-2020, t

Exports palm oil and fractions from Sweden

Exports in kind, K t

In 2020, Sweden exported 25.4 K t of palm oil and fractions, marking a 3.1% decrease from the previous year. Over the period from 2017 to 2020, exports fell by 4.1%, which translates to an annualized decline of 1.4%. The lowest export volume was recorded in 2018 at 24.5 K t. That year also saw the largest drop of 7.6%, while 2019 experienced the biggest increase at 7.1%.

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

From 2017 to 2020, Russia, Finland, and Germany were the primary destinations for Sweden's palm oil and fractions exports in volume terms. Russia accounted for 36.2% of exports, Finland for 13.5%, and Germany for 8.5%. Together, these three countries represented 58.2% of total export flows.

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

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

Exports in value, M $ US

Sweden's palm oil and fractions exports in value terms grew for the second year in a row in 2020, reaching 36.3 M $ US, with minimal change from the previous year. Over the 2017-2020 period, exports decreased by 4.3%, corresponding to a compound annual growth rate of -1.4%. The lowest value was in 2018 at 34.8 M $ US, which also saw the steepest decline of 8.1%. In contrast, 2019 recorded the largest increase at 4.1%.

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

Between 2017 and 2020, the top destinations for Sweden's palm oil and fractions exports in value terms were Russia, Finland, and Germany. Russia held a 38.3% share, Finland 11.9%, and Germany 8.6%. Collectively, these three markets made up 58.9% of total export value.

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

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

Imports palm oil and fractions to Sweden

Imports in kind, K t

In 2020, Sweden imported 172.7 K t of palm oil and fractions, showing a modest 7.8% increase compared to the year before. From 2017 to 2020, imports rose by 21.8%, averaging an annual growth rate of 6.8%. The peak import volume occurred in 2018 at 181.1 K t, which also saw the largest surge of 27.8%. The most significant decline was in 2019, with an 11.6% drop.

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

During 2017-2020, Malaysia, Denmark, and Indonesia were the main sources for Sweden's palm oil and fractions imports in volume terms. Malaysia contributed 36.0% of imports, Denmark 27.8%, and Indonesia 24.9%. Together, these three countries accounted for 88.7% of total import flows.

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

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

Imports in value, M $ US

In 2020, Sweden's palm oil and fractions imports in value terms totaled 161.4 M $ US, reflecting a robust 15.0% growth from 2019. Over the 2017-2020 span, imports increased by 22.3%, equating to an annualized rate of 6.9%. The highest value was recorded in 2018 at 163.2 M $ US, which also experienced the largest jump of 23.6%. The biggest decrease was in 2019, with a 14.0% decline.

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

From 2017 to 2020, Denmark, Malaysia, and Indonesia were the key partners for Sweden's palm oil and fractions imports in value terms. Denmark represented 33.3% of imports, Malaysia 31.3%, and Indonesia 21.8%. Combined, these three nations constituted 86.5% of total import value.

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

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