Soybean oil and fractions market in China

Earlier Report Observations

From 2018 to 2023, China's soybean oil market volume fluctuated between 16 157 thousand tonnes and 17 812 thousand tonnes. The initial decline in 2019 was influenced by the African swine fever outbreak, which reduced demand for vegetable oils in related sectors. The market recovered in 2020 and 2021, supported by state-owned enterprises' capacity expansions and rising consumer preference for non-GMO products. However, in 2022, international soybean price volatility and stricter import quality inspections led to a sharp drop in imports, pulling down the overall market size.

Throughout the period, national policies played a key role. In 2018, grain and oil policies encouraged industry consolidation and large-scale production. By 2020, enhanced food safety supervision and digital transformation of state-owned producers helped stabilize supply chains after COVID-19 disruptions. The government's green development directives further prompted investments in environmentally friendly processing technologies.

Consumer health awareness continued to shape the market, boosting demand for differentiated soybean oil fractions. Despite the absence of major reported drivers in 2023, the market volume grew again to 17 631 thousand tonnes, indicating a return to expansion after the previous year's import-led contraction.

Production soybean oil and fractions in China

In kind, 2017-2020, K t

From 2017 to 2020, China was the world's largest producer of soybean oil and fractions.

Top producers of soybean oil and fractions, 2017-2020

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

In 2020, China produced 16,352 thousand tonnes of soybean oil and fractions, marking a 5.3% increase compared to the previous year. Production grew by 3.4% over the 2017-2020 period, averaging an annual growth rate of 1.1%. The lowest production level was recorded in 2019 at 15,528 thousand tonnes, which also saw the largest decline of 4.0%.

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

In value, 2017-2020, M $ US

Following a two-year decline, China's production of soybean oil and fractions rebounded. In 2020, the output was valued at 15,423 million US dollars, representing a 5.2% increase from the previous year. However, over the 2017-2020 period, production value decreased by 6.3%, with a compound annual growth rate of -2.1%. The lowest value was recorded in 2019 at 14,663 million US dollars, while the largest decline occurred in 2018 at 5.7%.

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

Exports soybean oil and fractions from China

Exports in kind, K t

China's exports of soybean oil and fractions declined for the second consecutive year. In 2020, exports amounted to 108.4 thousand tonnes, a 45.0% decrease compared to the previous year. Over the 2017-2020 period, exports fell by 16.3%, with an average annual decline of 5.8%. The peak export volume was recorded in 2018 at 218.4 thousand tonnes, which also saw the largest increase of 68.7%.

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

Between 2017 and 2020, North Korea and Hong Kong together accounted for 84.6% of China's total soybean oil and fractions exports by volume, with the remaining share distributed among smaller markets.

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

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

Exports in value, M $ US

China's cross-border shipments of soybean oil and fractions declined for the second year in a row. In 2020, exports were valued at 102.2 million US dollars, down 45.1% from 2019. Between 2017 and 2020, export value decreased by 24.1%, averaging an annual decline of 8.8%. The highest value was recorded in 2018 at 209.6 million US dollars, which also experienced the largest increase of 55.5%.

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

From 2017 to 2020, North Korea and Hong Kong were the primary buyers of soybean oil and fractions from China, together representing 86.9% of total export value, with other countries making up the remainder.

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

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

Imports soybean oil and fractions to China

Imports in kind, K t

China's imports of soybean oil and fractions increased for the second consecutive year. In 2020, imports reached 960.8 thousand tonnes, a solid 16.4% rise compared to the previous year. Over the 2017-2020 period, imports grew by 47%, with an average annual growth rate of 13.7%. The lowest import volume was recorded in 2018 at 549.1 thousand tonnes, which also saw the largest decline of 16.0%. The largest increase occurred in 2019 at 50.3%.

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

Between 2017 and 2020, Brazil (32.4% of import volume), Russia (25.1%), and Argentina (23.5%) remained the main suppliers of soybean oil and fractions to China, together accounting for 80.9% of total imports by volume.

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

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

Imports in value, M $ US

China's imports of soybean oil and fractions increased for the second year in a row. In 2020, imports were valued at 723.5 million US dollars, a strong 22.0% increase from 2019. Over the 2017-2020 period, import value rose by 34.9%, with an average annual growth rate of 10.5%. The lowest value was recorded in 2018 at 437.8 million US dollars, which also experienced the largest decline of 18.4%. The largest increase occurred in 2019 at 35.5%.

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

Throughout 2017-2020, Brazil, Russia, and Argentina remained the top three suppliers of soybean oil and fractions to China in value terms, together accounting for 79.8% of total import flows.

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

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