Tallow market in Eastern Asia

Earlier Report Observations

From 2018 to 2023, the tallow market volume in Eastern Asia contracted by nearly half, falling from 258 thousand tons to 133 thousand tons. This sharp decline occurred despite a steady rise in domestic production, which grew from 120 thousand tons to 137 thousand tons, and was primarily driven by a collapse in imports from 141 thousand tons to just 14 thousand tons alongside a simultaneous expansion of exports.

The COVID-19 pandemic in 2020 disrupted supply chains and demand, contributing to altered trade patterns. In later years, the market was shaped by developments in the beef cattle industry, a key source of tallow. Tightening environmental regulations in China led to the closure of some farms, while government policies promoted smart livestock farming and precision feeding systems to enhance production efficiency. Furthermore, China's initiation of a safeguard investigation into beef imports in 2024 supported a continued shift towards domestic supply, reducing import volumes for related animal fats.

The significant growth in tallow exports, which increased from 2.4 thousand tons to 18.2 thousand tons by 2023, indicates rising external demand and a reorientation of regional trade flows. Increased competition among major beef producers and investments in quality certification for export also contributed to the changing market structure during this period.

Production tallow in Eastern Asia

In kind, 2017-2020, K t

Top producers of tallow, 2017-2020

World map of production of tallow, 2017-2020

Eastern Asia's tallow production has increased for the third consecutive year. In 2020, the region produced 133.6 K t of tallow, marking an 8.7% increase compared to the previous year. From 2017 to 2020, production grew by 13.4%, with a compound annual growth rate of 4.3%.

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

In value, 2017-2020, M $ US

Tallow production in Eastern Asia has risen for the second consecutive year. In 2020, the output was valued at 115.2 M $ US, representing a 1.9% increase over 2019. Between 2017 and 2020, production increased by 2.3%, equating to an annualized rate of 0.7%. The lowest value was recorded in 2018 at 111.0 M $ US, which saw the largest decline of 1.5%. In contrast, the largest increase occurred in 2019 at 1.9%.

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

Exports tallow from Eastern Asia

Exports in kind, K t

Eastern Asia's tallow exports have increased for the second consecutive year. In 2020, exports reached 3.0 K t, a 17.5% rise year-over-year. From 2017 to 2020, exports grew by 14.2%, with a compound annual growth rate of 4.5%. The lowest volume was recorded in 2018 at 2.4 K t, which also saw the largest decline of 7.6%.

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

From 2017 to 2020, the United Arab Emirates (8.1% of exports in kind), Israel (7.1% of exports in kind), and Kuwait (1.9% of exports in kind) were the main destinations for exports, collectively accounting for 17.1% of total flows.

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

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

Exports in value, K $ US

Tallow exports from Eastern Asia have increased for the second consecutive year. In 2020, the region exported 2 601 K $ US of tallow, a 10.2% increase over the previous year. Between 2017 and 2020, exports rose by 3%, equating to an annualized rate of 1.0%. The lowest value was recorded in 2018 at 2 262 K $ US, which saw the largest decline of 10.4%.

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

From 2017 to 2020, the United Arab Emirates (13.8% of exports in value terms), Israel (12.0% of exports in value terms), and Kuwait (3.2% of exports in value terms) played a notable but not dominant role as buyers of tallow from Eastern Asia, with their combined share reaching 29.0% of total exports in value terms.

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

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

Imports tallow to Eastern Asia

Imports in kind, K t

Tallow imports into Eastern Asia have declined for the third consecutive year. In 2020, the region imported 109.0 K t of tallow, a 20.9% decrease compared to 2019. Between 2017 and 2020, imports fell by 22.7%, equating to an annualized rate of 8.2%.

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

From 2017 to 2020, Australia and New Zealand together accounted for 84.2% of total imports in kind, with the remaining flows distributed thinly across other markets.

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

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

Imports in value, K $ US

Eastern Asia's tallow import volume has declined for the third consecutive year. In 2020, import volume totaled 80 326 K $ US, reflecting a 6.9% decrease relative to the prior year. Over the period from 2017 to 2020, imports decreased by 18.9%, with a compound annual growth rate of 6.8%.

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

From 2017 to 2020, Australia and New Zealand jointly absorbed 82.8% of total imports in value terms of tallow to Eastern Asia, with the rest of the volume scattered across smaller markets.

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

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