Brazil: Market for Industrial Tall Oil Fatty Acids 2024

Market Size for Industrial Tall Oil Fatty Acids in Brazil

The Brazilian tall oil fatty acids market soared to $X in 2021, jumping by 114% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Over the period under review, consumption saw a significant expansion. As a result, consumption reached the peak level and is likely to continue growth in the immediate term.

Exports of Industrial Tall Oil Fatty Acids

Exports from Brazil

In 2021, shipments abroad of industrial tall oil fatty acids increased by 106% to X tons for the first time since 2018, thus ending a two-year declining trend. Over the period under review, exports, however, recorded a precipitous contraction. The most prominent rate of growth was recorded in 2018 with an increase of 126%. Over the period under review, the exports reached the maximum at X tons in 2015; however, from 2016 to 2021, the exports stood at a somewhat lower figure.

In value terms, tall oil fatty acids exports totaled $X in 2021. Overall, exports, however, faced a dramatic shrinkage. The growth pace was the most rapid in 2018 when exports increased by 131% against the previous year. The exports peaked at $X in 2014; however, from 2015 to 2021, the exports stood at a somewhat lower figure.

Exports by Country

Japan (X tons), China (X tons) and Argentina (X tons) were the main destinations of tall oil fatty acids exports from Brazil, with a combined 99.9% share of total exports.

From 2012 to 2021, the most notable rate of growth in terms of shipments, amongst the main countries of destination, was attained by Argentina (with a CAGR of +27.6%), while the other leaders experienced a decline.

In value terms, the largest markets for tall oil fatty acids exported from Brazil were Japan ($X), Argentina ($X) and China ($X), together accounting for 99.9% of total exports.

Argentina, with a CAGR of +16.8%, saw the highest growth rate of the value of exports, among the main countries of destination over the period under review, while shipments for the other leaders experienced a decline.

Export Prices by Country

In 2021, the average tall oil fatty acids export price amounted to $X per ton, declining by -45.8% against the previous year. In general, the export price continues to indicate a pronounced decrease. The most prominent rate of growth was recorded in 2020 an increase of 110% against the previous year. As a result, the export price reached the peak level of $X per ton, and then shrank dramatically in the following year.

There were significant differences in the average prices for the major external markets. In 2021, the country with the highest price was the United States ($X per ton), while the average price for exports to China ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was recorded for supplies to the United States (+10.0%), while the prices for the other major destinations experienced a decline.

Imports of Industrial Tall Oil Fatty Acids

Imports into Brazil

In 2021, approx. X tons of industrial tall oil fatty acids were imported into Brazil; picking up by 125% against 2020. Over the period under review, imports posted a resilient expansion. The pace of growth was the most pronounced in 2017 with an increase of 469%. Over the period under review, imports reached the maximum in 2021 and are expected to retain growth in years to come.

In value terms, tall oil fatty acids imports soared to $X in 2021. Overall, imports posted strong growth. The most prominent rate of growth was recorded in 2017 with an increase of 247%. Over the period under review, imports attained the peak figure in 2021 and are likely to continue growth in the near future.

Imports by Country

In 2021, the United States (X tons) was the main tall oil fatty acids supplier to Brazil, with a 91% share of total imports. Moreover, tall oil fatty acids imports from the United States exceeded the figures recorded by the second-largest supplier, the Netherlands (X tons), more than tenfold.

From 2012 to 2021, the average annual rate of growth in terms of volume from the United States totaled +16.7%. The remaining supplying countries recorded the following average annual rates of imports growth: the Netherlands (+37.4% per year) and the UK (+18.6% per year).

In value terms, the United States ($X) constituted the largest supplier of industrial tall oil fatty acids to Brazil, comprising 86% of total imports. The second position in the ranking was taken by the Netherlands ($X), with a 9.3% share of total imports.

From 2012 to 2021, the average annual growth rate of value from the United States stood at +15.7%. The remaining supplying countries recorded the following average annual rates of imports growth: the Netherlands (+29.3% per year) and the UK (+13.3% per year).

Import Prices by Country

The average tall oil fatty acids import price stood at $X per ton in 2021, with a decrease of -9.3% against the previous year. In general, the import price saw a relatively flat trend pattern. The most prominent rate of growth was recorded in 2020 when the average import price increased by 31%. The import price peaked at $X per ton in 2016; however, from 2017 to 2021, import prices failed to regain momentum.

Prices varied noticeably country of origin: the country with the highest price was the Netherlands ($X per ton), while the price for the United States ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by the United States (-0.9%), while the prices for the other major suppliers experienced a decline.

Source: IndexBox Platform

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