Soybean oil and fractions market in Bangladesh

Earlier Report Observations

The soybean oil market in Bangladesh underwent a major shift between 2018 and 2023. The total market volume dropped sharply from over 2 million metric tons in 2018 to around 1 million metric tons in 2019, establishing a new, lower baseline for the following years. This level then fluctuated moderately, ranging between 1.0 and 1.2 million metric tons through 2023.

The dramatic market contraction was driven primarily by a steep fall in imports, which more than halved from 1.9 million metric tons in 2018 to under 800,000 metric tons annually from 2019 onward. Concurrently, domestic production more than doubled from its 2018 level, peaking at 414,000 metric tons in 2021, which partially offset the import reduction but could not prevent the overall market decline.

By 2023, the market volume had stabilized at approximately 970,000 metric tons. Domestic output had receded to 294,000 metric tons, while imports held steady at 676,000 metric tons, indicating a market structure that had adjusted to a lower total supply compared to the pre-2019 period.

Production soybean oil and fractions in Bangladesh

In kind, 2017-2020, K t

From 2017 to 2020, Bangladesh ranked 21st globally in terms of soybean oil and fractions production volume.

Top producers of soybean oil and fractions, 2017-2020

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

Soybean oil and fractions production in Bangladesh increased for the third consecutive year. In 2020, the country produced 413.1 K t, marking a significant 41.1% rise compared to the previous year. Over the 2017-2020 period, production grew by 123.7%, with a compound annual growth rate of 30.8%.

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

Exports soybean oil and fractions from Bangladesh

Exports in kind, K t

The market showed an unstable trend throughout this period. Exports reached their lowest point in 2019 at 1 K t and peaked in 2018, with a 45-fold difference between these years. In 2020, Bangladesh exported 3 K t of soybean oil and fractions, representing a sharp increase of 106.3% compared to 2019. The largest decline occurred in 2019, at 97.8%.

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

Between 2017 and 2020, 100.0% of Bangladesh's soybean oil and fractions exports in volume terms were directed to India, making this market overwhelmingly dominant.

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

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

Exports in value, M $ US

The data reveals irregular changes, indicating a volatile market environment. Exports reached their minimum in 2019 at 1 M $ US and their maximum in 2018, with a 36-fold variation between these years. In 2020, Bangladesh exported 3 M $ US of soybean oil and fractions, corresponding to a sharp increase of 114.5% compared to the previous year. The largest decline was recorded in 2019, at 97.2%.

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

From 2017 to 2020, India was by far the main destination for Bangladesh's soybean oil and fractions exports in value terms, accounting for 100.0% of total flows.

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

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

Imports soybean oil and fractions to Bangladesh

Imports in kind, K t

Bangladesh's volume of soybean oil and fractions imports declined for the second consecutive year. In 2020, imports were recorded at 666 K t, down by 13.0% compared to the previous year. Between 2017 and 2020, imports decreased by 61.9%, equating to an annualized rate of 27.5%. The maximum value was recorded in 2018 at 1 892 K t. The largest decline occurred in 2019, at 59.5%, while the largest increase was in 2018, at 8.3%.

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

Throughout 2017-2020, Argentina and Brazil remained the primary suppliers of soybean oil and fractions to Bangladesh, with a combined share of 87.5% of total imports in volume terms, while other countries accounted for the remainder.

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

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

Imports in value, M $ US

Bangladesh's soybean oil and fractions import volume declined for the second consecutive year. In 2020, imports were recorded at 461 M $ US, which is 6.8% lower than the previous year. Over the 2017-2020 period, imports decreased by 67.1%, with a compound annual growth rate of 31.0%. The maximum value was recorded in 2018 at 1 430 M $ US. The largest decline occurred in 2019, at 65.4%, while the largest increase was in 2018, at 2.1%.

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

Throughout 2017-2020, the partner structure for imports in value terms was centered on Argentina, whose share amounted to 70.1% of total flows, while other markets formed a less significant portion.

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

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