Soybean oil and fractions market in Brazil

Earlier Report Observations

The market for soybean oil in Brazil grew significantly in 2019, reaching 10.8 million tons, driven by the continued expansion of the national soybean and soybean oil production chain. This was followed by a contraction in 2020 and 2021, with the market settling at 8.2 million tons in 2021. During this period, the market was influenced by substantial investments in the vegetable oils industry, with processing capacity growing, and by rising domestic demand for biodiesel, which stimulated soybean crushing.

A sharp decline to 6.2 million tons occurred in 2022, primarily driven by high global soybean oil prices, fueled by strong international demand and tight supply in Argentina. This price environment encouraged greater export volumes, reducing domestic availability. The market rebounded strongly to 8.6 million tons in 2023, supported by a key policy change: the increase in the mandatory biodiesel blend in commercial diesel, which boosted local consumption. This period was also marked by ongoing investment in industrial capacity expansion and the introduction of new regulatory standards for product classification and labeling in 2022. Subsequent policy, such as the further increase of the biodiesel blend to 14% from March 2024, continued to shape the market landscape.

Production soybean oil and fractions in Brazil

In kind, 2018-2021, K t

From 2018 to 2021, Brazil maintained its position as the world's third-largest producer of soybean oil and fractions.

Top producers of soybean oil and fractions, 2018-2021

World map of production of soybean oil and fractions, 2018-2021

In 2021, Brazil produced 9 790 K t of soybean oil and fractions, marking a slight year-on-year increase of 2.8%. Over the period from 2018 to 2021, production grew by 4.5%, averaging an annual growth rate of 1.5%. Production peaked in 2019 at 11 802 K t, which represented a significant increase of 26.0% from the previous year. However, in 2020, production experienced its largest decline, dropping by 19.3%.

Annual dynamics of production in Brazil in kind, 2018-2021, K t

Exports soybean oil and fractions from Brazil

Exports in kind, K t

Brazil's exports of soybean oil and fractions have grown for the second consecutive year. In 2021, exports reached 1 651 K t, a substantial increase of 48.7% compared to 2020. From 2018 to 2021, exports rose by 16.7%, with an average annual growth rate of 5.3%. The lowest export volume was recorded in 2019 at 1 041 K t, which also saw the largest decline of 26.4% during this period.

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

Between 2018 and 2021, the primary destinations for Brazil's soybean oil and fractions exports in volume terms were India, China, and Bangladesh. India accounted for 41.9% of exports, China for 21.1%, and Bangladesh for 12.1%. Together, these three countries represented 75.1% of Brazil's total export flows.

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

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

Exports in value, M $ US

The market for soybean oil and fractions exports from Brazil showed considerable volatility during these years. The lowest export value was recorded in 2019 at 695 M $ US, while the highest was in 2021 at 2 017 M $ US, reflecting a 2.9-fold difference. In 2021, export value surged by 164.9% compared to the previous year. The largest decline occurred in 2019, with a drop of 32.3%.

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

From 2018 to 2021, India, China, and Bangladesh were the top destinations for Brazil's soybean oil and fractions exports in value terms. India accounted for 40.6% of export value, China for 20.3%, and Bangladesh for 11.5%. Collectively, these three countries made up 72.4% of Brazil's total export value.

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

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

Imports soybean oil and fractions to Brazil

Imports in kind, K t

Brazil's imports of soybean oil and fractions showed an unstable trend over this period. The lowest import volume was in 2018, while the peak occurred in 2020, with a 5.7-fold difference between these years. In 2021, imports amounted to 107 K t, a decrease of 46.3% from the previous year. The maximum volume was recorded in 2020 at 199 K t, which also saw the largest increase of 316.5%.

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

Between 2018 and 2021, Argentina and Paraguay were the dominant suppliers of soybean oil and fractions to Brazil, together accounting for 98.4% of total imports in volume terms. Other partners contributed a smaller share to Brazil's import flows.

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

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

Imports in value, M $ US

Brazil's imports of soybean oil and fractions in value terms experienced noticeable fluctuations during this period. The lowest value was in 2018, and the highest was in 2020, showing a 6.4-fold gap. In 2021, import value was recorded at 108 M $ US, a sharp decline of 36.4% year-on-year. The maximum value was in 2020 at 170 M $ US, which also saw the largest increase of 399.4%.

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

From 2018 to 2021, Argentina was the leading supplier of soybean oil and fractions to Brazil in value terms, accounting for 70.5% of total imports. Other countries shared the remaining import volume.

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

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