Soybean oil and fractions market in Japan

Earlier Report Observations

The soybean oil market in Japan grew from 475 thousand tons in 2018 to 499 thousand tons in 2019, supported by industry shifts toward sustainable sourcing. Major player Miyoshi Oil & Fat obtained RSPO supply chain certification in 2018, aligning with increasing demand for environmentally responsible products. Additionally, the anticipated approval of genome-edited high-oleic soybean oil for the Japanese market, expected from summer 2020, likely bolstered market expectations and preparatory activities among processors.

Market volume contracted to 456 thousand tons in 2020, likely reflecting pandemic-related supply chain disruptions, before recovering to 477 thousand tons in 2021. This recovery occurred against a backdrop of global supply tightness, as highlighted by the Japan Vegetable Oil Association, which reported sustained oilseed demand and weather-related production shortfalls in key regions like Canada, maintaining pressure on prices and encouraging domestic output.

A surge in worldwide demand for oils and fats, compounded by the Ukraine conflict and a sharply weaker yen, drove a sharp expansion in 2022, with market volume reaching 551 thousand tons. This prompted multiple price revisions by leading manufacturers such as Showa Sangyo. Subsequently, the market adjusted to 495 thousand tons in 2023, indicating a normalization after the previous year’s supply-driven peak.

Production soybean oil and fractions in Japan

In kind, 2018-2021, K t

Japan ranked 15th globally in soybean oil and fractions production between 2018 and 2021.

Top producers of soybean oil and fractions, 2018-2021

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

In 2021, Japan produced 474.0 thousand tons of soybean oil and fractions, marking a 4.8% increase from the previous year. Production reached its highest point in 2019 at 488.9 thousand tons, with a 4.8% rise that year. The lowest production occurred in 2020 at 452.4 thousand tons, reflecting a 7.5% decline.

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

Exports soybean oil and fractions from Japan

Exports in kind, t

Japan's soybean oil and fractions exports declined in 2021 after two consecutive years of growth. Exports fell to 459 tons, representing a significant 13.1% year-over-year decrease. Over the 2018-2021 period, exports grew by 15.8%, averaging 5.0% annually. The peak was in 2020 at 528 tons, with a 22.2% increase that year.

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

From 2018 to 2021, Hong Kong, Singapore, and Malaysia were the primary destinations for Japan's soybean oil and fractions exports by volume. Hong Kong accounted for 51.6% of exports, Singapore for 13.2%, and Malaysia for 12.1%, together making up 76.9% of total export flows.

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

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

Exports in value, K $ US

Japan's soybean oil and fractions exports by value increased in 2021 following a two-year decline. Exports reached 906 thousand US dollars, a 37.5% rise compared to 2020. Over the 2018-2021 period, exports decreased by 3.5%, with an average annual decline of 1.2%. The lowest value was recorded in 2020 at 659 thousand US dollars, reflecting a 27.3% drop that year.

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

Between 2018 and 2021, Hong Kong, China, and Singapore were the key partners for Japan's soybean oil and fractions exports by value. Hong Kong represented 45.2% of exports, China 16.3%, and Singapore 11.6%, collectively accounting for 73.2% of total export value.

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

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

Imports soybean oil and fractions to Japan

Imports in kind, t

Japan imported 3 926 tons of soybean oil and fractions in 2021, showing a slight 0.8% increase from the previous year. Over the 2018-2021 period, imports decreased by 57.6%, with an average annual decline of 24.9%. Imports peaked in 2019 at 10 842 tons, with a 17.2% increase that year, and fell to their lowest in 2020 at 3 895 tons, marking a 64.1% decline.

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

From 2018 to 2021, Asia not elsewhere specified, China, and the United States were the leading sources for Japan's soybean oil and fractions imports by volume. Asia not elsewhere specified accounted for 46.4% of imports, China for 19.9%, and the United States for 19.6%, together comprising 85.9% of total import flows.

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

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

Imports in value, K $ US

Japan's soybean oil and fractions imports by value amounted to 6 632 thousand US dollars in 2021, an 11.8% increase from 2020. Over the 2018-2021 period, imports decreased by 44.7%, with an average annual decline of 17.9%. The highest value was in 2019 at 12 328 thousand US dollars, while the lowest was in 2020 at 5 932 thousand US dollars, reflecting a 51.9% drop that year.

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

Between 2018 and 2021, the United States, Asia not elsewhere specified, and China were the top sources for Japan's soybean oil and fractions imports by value. The United States represented 38.3% of imports, Asia not elsewhere specified 34.0%, and China 14.1%, jointly making up 86.5% of total import value.

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

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