Prepared or preserved groundnuts market in Malaysia

Earlier Report Observations

The market for prepared or preserved groundnuts in Malaysia contracted sharply in 2019, with volume dropping to 7 547 tonnes from 11 256 tonnes the previous year. This decline aligned with a 5.12% fall in peanut exports from Malaysia between 2017 and 2019, which reduced the supply available domestically. Import price volatility also played a role, as the cost per kilogram swung from USD 2.69 in 2018 to USD 3.0 in 2019, influencing trade flows.

After stabilizing near 8 100 tonnes in 2020-2021, market volume rebounded to 9 206 tonnes in 2022. This growth was supported by a third consecutive annual increase in the groundnuts market and a sharp reduction in exports, channeling more product into the local market. However, volume fell again to 6 904 tonnes in 2023.

Malaysia maintained a strong position in regional trade, becoming the second-largest exporter of peanut butter and prepared groundnuts in South-Eastern Asia by 2024, with a 12% share. The same year saw average export prices in the region decline by 12.2%. Legislative developments in 2025, including a phased minimum wage increase to RM1 700 and an expanded 5% sales tax on imported agricultural products, are set to influence production costs and import expenses for the sector.

Production prepared or preserved groundnuts in Malaysia

In kind, 2018-2021, t

Top producers of prepared or preserved groundnuts, 2018-2021

World map of production of prepared or preserved groundnuts, 2018-2021

Malaysia's production of prepared or preserved groundnuts declined for the second year in a row. In 2021, the country produced 2 079 tonnes, marking a modest 5.6% decrease compared to the previous year. Looking at the period from 2018 to 2021, production actually grew by 15.3%, with an average annual growth rate of 4.9%. The peak production volume was recorded in 2019 at 2 254 tonnes, which also saw the largest annual increase of 25.0%.

Annual dynamics of production in Malaysia in kind, 2018-2021, t

In value, 2018-2021, K $ US

After two years of growth, Malaysia's production of prepared or preserved groundnuts declined in value terms. In 2021, the output was valued at 6 803 thousand US dollars, down by 1.1% year-over-year. Over the 2018-2021 period, production value increased by 17.9%, with a compound annual growth rate of 5.6%. The highest value was recorded in 2020 at 6 876 thousand US dollars, while the largest annual increase occurred in 2019 at 10.4%.

Annual dynamics of production in Malaysia in value, 2018-2021, K $ US

Exports prepared or preserved groundnuts from Malaysia

Exports in kind, t

Malaysia's exports of prepared or preserved groundnuts declined for the third consecutive year. In 2021, exports amounted to 1 966 tonnes, reflecting a slight reduction of 2.2% compared to the previous year. Between 2018 and 2021, exports decreased by 10.8%, which translates to an average annual decline of 3.7%.

Annual dynamics of product's exports from Malaysia in kind, 2018-2021, t

From 2018 to 2021, Singapore was the main buyer of Malaysia's prepared or preserved groundnuts, accounting for 67.5% of exports in volume. Thailand followed with 8.7%, and Indonesia with 8.4%. Together, these three countries comprised 84.6% of Malaysia's total exports in kind.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Malaysia in kind, 2018-2021

Exports in value, K $ US

Malaysia's exports of prepared or preserved groundnuts increased in value for the second year in a row. In 2021, exports reached 6 433 thousand US dollars, showing a small increase of 2.6% over the past year. However, over the 2018-2021 period, exports decreased by 8.8%, with an average annual decline of 3.0%. The lowest value was recorded in 2019 at 5 915 thousand US dollars, which also saw the largest annual decline of 16.1%. In contrast, 2020 experienced the largest increase at 6.0%.

Annual dynamics of product's exports from Malaysia in value, 2018-2021, K $ US

Between 2018 and 2021, Singapore was the leading market for Malaysia's prepared or preserved groundnuts in value terms, accounting for 69.9% of exports. Brunei Darussalam followed with 7.8%, and Indonesia with 6.2%. Collectively, these three markets represented 83.8% of total export flows.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Malaysia in value, 2018-2021

Imports prepared or preserved groundnuts to Malaysia

Imports in kind, t

Malaysia's imports of prepared or preserved groundnuts increased for the second consecutive year. In 2021, imports were recorded at 7 974 tonnes, showing minimal change from 2020. Over the 2018-2021 period, imports decreased by 31.6%, with an average annual decline of 11.9%. The lowest import volume was in 2019 at 7 385 tonnes, which also saw the largest annual decline of 36.6%. The largest increase occurred in 2020 at 7.6%.

Annual dynamics of product's imports to Malaysia in kind, 2018-2021, t

Throughout 2018-2021, China dominated Malaysia's imports of prepared or preserved groundnuts in volume, concentrating 73.6% of total imports in kind. The remaining volume was distributed among many other countries, each with smaller individual shares.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Malaysia in kind, 2018-2021

Imports in value, K $ US

Malaysia's imports of prepared or preserved groundnuts increased in value for the second year in a row. In 2021, imports were recorded at 24 281 thousand US dollars, indicating a small uptick of 1.0% year-over-year. Between 2018 and 2021, imports increased by 4.5%, equating to an average annual growth rate of 1.5%. The minimum value was in 2019 at 19 570 thousand US dollars, which also saw the largest annual decline of 15.8%. The largest increase was recorded in 2020 at 22.9%.

Annual dynamics of product's imports to Malaysia in value, 2018-2021, K $ US

Over the 2018-2021 period, China was the dominant supplier of prepared or preserved groundnuts to Malaysia, accounting for 80.7% of total imports in value terms. Other countries shared the remaining volume.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Malaysia in value, 2018-2021