Palm oil and fractions market in Thailand

Earlier Report Observations

The domestic market for palm oil in Thailand showed considerable volatility between 2018 and 2021. In 2018, local palm oil prices were subdued due to high stockpiles in Thailand and Malaysia, while government policies aimed to enhance the industry's competitiveness. The following year, domestic consumption surged to over 3 million tonnes as exports collapsed to just 11 thousand tonnes, making more supply available locally. This trend reversed from 2020 onward, when exports began to recover and then expand rapidly, drawing supply away from the home market and reducing domestic availability despite rising production.

From 2022, the market was shaped by several clear drivers. Thai production capacity grew that year supported by expanded planting areas, attractive farm-gate prices, and favorable weather. At the same time, Indonesia's export ban from April 2022 tightened global supplies and boosted demand for Thai palm oil abroad, pushing the country's exports near 1 million tonnes. In response to domestic supply concerns, the Thai Ministry of Commerce banned exports of crude palm oil in 2023 to stabilize local availability, coinciding with production challenges from drought and disease outbreaks late in the year. These measures contributed to a modest recovery in domestic consumption in 2023. Regulatory efforts continued into 2024, including a reduction in the biodiesel blending mandate and closer price monitoring, reflecting the government's focus on balancing local needs with export opportunities.

Production palm oil and fractions in Thailand

In kind, 2017-2020, K t

Thailand was one of the world's top producers of palm oil and fractions from 2017 to 2020, ranking third globally by production volume during this period.

Top producers of palm oil and fractions, 2017-2020

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

Thailand's production of palm oil and fractions saw a decline after two years of growth. In 2020, output reached 2 690 K t, marking an 11.5% decrease from the previous year. Over the 2017-2020 period, production increased by 3.4%, which translates to an average annual growth rate of 1.1%. The highest production level was recorded in 2019 at 3 040 K t, with the largest year-on-year increase of 9.6% also occurring that year.

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

In value, 2017-2020, M $ US

In 2020, the value of palm oil and fractions production in Thailand was 1 935 M $ US, reflecting an 11.5% drop from 2019. From 2017 to 2020, production value rose by 7.5%, with a compound annual growth rate of 2.5%. The lowest value was in 2018 at 1 791 M $ US, while the peak was in 2019 at 2 188 M $ US, which also saw the largest increase of 22.1%.

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

Exports palm oil and fractions from Thailand

Exports in kind, K t

Export volumes of palm oil and fractions from Thailand showed significant volatility during this period. The lowest point was in 2019 at 10.8 K t, followed by a peak in 2018 at 347.3 K t, representing a 32-fold difference. In 2020, exports surged to 219.5 K t, a dramatic increase of 1,931.0% compared to 2019. The largest decline occurred in 2019, with a drop of 96.9%.

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

From 2017 to 2020, Thailand's exports of palm oil and fractions were heavily concentrated on India, which accounted for 78.3% of total shipments, while other countries made up the remaining share.

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

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

Exports in value, M $ US

The export value of palm oil and fractions from Thailand displayed an unstable trend over this timeframe. The lowest point was in 2019 at 7.8 M $ US, with the peak in 2018 at 224.2 M $ US, showing a 29-fold variation. In 2020, export value jumped to 157.9 M $ US, a remarkable increase of 1,930.3% from the previous year. The largest decline was in 2019, with a 96.5% drop.

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

During 2017-2020, India dominated Thailand's palm oil and fractions exports in value terms, capturing 72.9% of the total, while other markets accounted for the rest.

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

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

Imports palm oil and fractions to Thailand

Imports in kind, K t

Import volumes of palm oil and fractions into Thailand exhibited volatility from 2017 to 2020. The lowest level was in 2019 at 0.2 K t, with the peak in 2017, resulting in a 74-fold difference. In 2020, imports rose to 3.1 K t, a substantial increase of 1,381.2% from 2019. The largest decline occurred in 2019, with a 90.8% decrease.

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

Throughout 2017-2020, Thailand's imports of palm oil and fractions in kind were entirely dominated by Indonesia and Malaysia, which together accounted for 100.0% of total inflows.

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

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

Imports in value, M $ US

The value of palm oil and fractions imports into Thailand showed irregular changes, indicating a volatile market. The lowest point was in 2019 at 0.1 M $ US, with the peak in 2017, representing a 106-fold variation. In 2020, import value climbed to 2.1 M $ US, a sharp increase of 1,733.4% from the previous year. The largest decline was in 2019, with a 92.6% drop.

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

From 2017 to 2020, Indonesia and Malaysia accounted for all of Thailand's palm oil and fractions imports in value terms, jointly representing 100.0% of total flows.

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

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