Sunflower or safflower oil and fractions market in Lebanon

Earlier Report Observations

The market for sunflower and safflower oil in Lebanon grew steadily from 89.9 thousand tons in 2018 to 96.6 thousand tons in 2020. A significant policy shift in 2020 supported this trend when the Ministry of Economy included crude sunflower oil in the subsidized food basket, a measure backed by the Bank of Lebanon to regulate import and distribution.

A sharp contraction followed in 2021, with market volume dropping to 73.0 thousand tons. This was primarily driven by a critical shortage of raw materials for domestic oil processing and the early effects of the Russia-Ukraine crisis, which immediately threatened supplies as Lebanon traditionally sourced 60% of its sunflower oil from Ukraine. Concurrently, global sunflower oil prices surged due to poor harvests and high freight costs, further straining import capacity.

The market recovered strongly to 90.0 thousand tons in 2022 and expanded further to 99.6 thousand tons in 2023. This rebound occurred despite the ongoing Russia-Ukraine war, which continued to cause global supply volatility and high prices, and was compounded by persistent delays in the Bank of Lebanon's subsidy payments for vegetable oil imports.

Production sunflower or safflower oil and fractions in Lebanon

In kind, 2017-2020, t

Top producers of sunflower or safflower oil and fractions, 2017-2020

World map of production of sunflower or safflower oil and fractions, 2017-2020

Lebanon's production of sunflower or safflower oil and fractions saw a two-year increase before declining. In 2019, production reached its peak at 6 100 tonnes. However, in 2020, it fell to 4 800 tonnes, marking a 21.3% decrease from the previous year. Over the 2017-2020 period, production grew by 4.3%, with an average annual growth rate of 1.4%. The most significant increase occurred in 2018, when production rose by 21.7%.

Annual dynamics of production in Lebanon in kind, 2017-2020, t

In value, 2017-2020, K $ US

Lebanon's production value of sunflower or safflower oil and fractions experienced a two-year rise before dropping. In 2019, it peaked at 7 439 thousand US dollars. By 2020, the value had decreased to 5 352 thousand US dollars, a 28.0% decline from the year before. From 2017 to 2020, production value increased by 14.5%, translating to an average annual growth rate of 4.6%. The largest increase was recorded in 2019, with a 26.5% rise.

Annual dynamics of production in Lebanon in value, 2017-2020, K $ US

Exports sunflower or safflower oil and fractions from Lebanon

Exports in kind, t

Lebanon's exports of sunflower or safflower oil and fractions declined for the second year in a row. In 2018, exports reached their highest point at 3 584 tonnes. They then fell to 2 462 tonnes in 2020, an 11.3% drop from 2019. Over the 2017-2020 period, exports decreased by 20.8%, with an average annual decline of 7.5%. The largest decrease occurred in 2019, with a 22.6% fall, while the biggest increase was in 2018, at 15.3%.

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

From 2017 to 2020, Syria, Saudi Arabia, and the United Arab Emirates were the primary markets for Lebanon's exports of sunflower or safflower oil and fractions in volume terms. Syria accounted for 33.2% of exports, Saudi Arabia for 23.5%, and the United Arab Emirates for 15.0%. Together, these three countries represented 71.7% of total export flows.

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

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

Exports in value, K $ US

Lebanon's export value of sunflower or safflower oil and fractions fell for the second consecutive year. In 2018, it hit a maximum of 3 764 thousand US dollars. By 2020, exports had dropped to 2 745 thousand US dollars, an 18.9% decrease from the previous year. Between 2017 and 2020, export value declined by 13.1%, with an average annual reduction of 4.6%. The largest increase was in 2018, with a 19.1% rise.

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

During 2017-2020, Syria, Saudi Arabia, and the United Arab Emirates were the key destinations for Lebanon's exports of sunflower or safflower oil and fractions in value terms. Syria made up 32.3% of exports, Saudi Arabia 23.0%, and the United Arab Emirates 16.3%. Combined, these three markets accounted for 71.6% of total export value.

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

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

Imports sunflower or safflower oil and fractions to Lebanon

Imports in kind, t

Lebanon's imports of sunflower or safflower oil and fractions increased for the second year in a row. In 2018, imports were at their lowest point, totaling 87 925 tonnes. By 2020, they had risen to 94 241 tonnes, a 4.7% increase from the previous year. The largest decline occurred in 2018, with a 6.2% drop.

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

From 2017 to 2020, Ukraine and Russia dominated Lebanon's imports of sunflower or safflower oil and fractions in volume terms, together accounting for 82.6% of total flows. Other countries held much smaller shares.

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

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

Imports in value, K $ US

After a two-year decline, Lebanon's import value of sunflower or safflower oil and fractions from abroad increased. In 2019, it reached its minimum at 74 016 thousand US dollars. By 2020, imports had grown to 83 464 thousand US dollars, a 12.8% rise from the past year. Between 2017 and 2020, import value decreased by 9%, equivalent to an average annual decline of 3.1%. The largest decrease was in 2019, with a 14.0% fall.

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

Throughout 2017-2020, Ukraine, Russia, and Turkey were the main sources for Lebanon's imports of sunflower or safflower oil and fractions in value terms. Ukraine accounted for 49.3% of imports, Russia for 30.4%, and Turkey for 9.4%. Together, these three countries represented 89.1% of total import flows.

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

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