Brazil: Palm Oil Market 2024

Palm Oil Market Size in Brazil

After two years of growth, the Brazilian palm oil market decreased by -11.2% to $X in 2022. Overall, consumption, however, continues to indicate a relatively flat trend pattern. Palm oil consumption peaked at $X in 2021, and then fell in the following year.

Palm Oil Production in Brazil

In value terms, palm oil production expanded modestly to $X in 2022 estimated in export price. In general, production, however, showed a slight slump. The growth pace was the most rapid in 2016 with an increase of 14% against the previous year. Over the period under review, production hit record highs at $X in 2012; however, from 2013 to 2022, production stood at a somewhat lower figure.

Palm Oil Exports

Exports from Brazil

In 2022, shipments abroad of palm oil increased by 40% to X tons, rising for the second consecutive year after three years of decline. In general, exports, however, recorded a drastic downturn. The most prominent rate of growth was recorded in 2017 when exports increased by 94%. The exports peaked at X tons in 2015; however, from 2016 to 2022, the exports remained at a lower figure.

In value terms, palm oil exports soared to $X in 2022. Over the period under review, exports, however, recorded a abrupt downturn. The most prominent rate of growth was recorded in 2017 when exports increased by 92% against the previous year. Over the period under review, the exports reached the peak figure at $X in 2014; however, from 2015 to 2022, the exports stood at a somewhat lower figure.

Exports by Country

Switzerland (X tons), Uruguay (X tons) and the United States (X tons) were the main destinations of palm oil exports from Brazil, with a combined 88% share of total exports. The Netherlands, Bolivia, Argentina, Germany and Mexico lagged somewhat behind, together accounting for a further 11%.

From 2012 to 2022, the biggest increases were recorded for Bolivia (with a CAGR of +127.2%), while shipments for the other leaders experienced more modest paces of growth.

In value terms, the largest markets for palm oil exported from Brazil were Switzerland ($X), Uruguay ($X) and the United States ($X), together accounting for 85% of total exports.

Among the main countries of destination, Uruguay, with a CAGR of +153.7%, saw the highest rates of growth with regard to the value of exports, over the period under review, while shipments for the other leaders experienced more modest paces of growth.

Export Prices by Country

In 2022, the average palm oil export price amounted to $X per ton, jumping by 20% against the previous year. Over the period under review, the export price enjoyed resilient growth. The pace of growth was the most pronounced in 2019 an increase of 126% against the previous year. The export price peaked in 2022 and is likely to continue growth in the near future.

Average prices varied somewhat for the major external markets. In 2022, amid the top suppliers, the highest price was recorded for prices to the Netherlands ($X per ton) and the United States ($X per ton), while the average price for exports to Switzerland ($X per ton) and Uruguay ($X per ton) were amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was recorded for supplies to Uruguay (+29.8%), while the prices for the other major destinations experienced more modest paces of growth.

Palm Oil Imports

Imports into Brazil

In 2022, after two years of growth, there was significant decline in overseas purchases of palm oil, when their volume decreased by -23.9% to X tons. Overall, total imports indicated a tangible increase from 2012 to 2022: its volume increased at an average annual rate of +2.0% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, imports increased by +93.7% against 2019 indices. The pace of growth was the most pronounced in 2020 with an increase of 70%. Over the period under review, imports reached the peak figure at X tons in 2021, and then fell markedly in the following year.

In value terms, palm oil imports expanded sharply to $X in 2022. Over the period under review, imports, however, posted a buoyant increase. The growth pace was the most rapid in 2021 when imports increased by 118%. Over the period under review, imports reached the maximum in 2022 and are expected to retain growth in the near future.

Imports by Country

Indonesia (X tons), Colombia (X tons) and Malaysia (X tons) were the main suppliers of palm oil imports to Brazil, with a combined 97% share of total imports. Denmark and Ecuador lagged somewhat behind, together accounting for a further 2.3%.

From 2012 to 2022, the most notable rate of growth in terms of purchases, amongst the main suppliers, was attained by Denmark (with a CAGR of +130.6%), while imports for the other leaders experienced more modest paces of growth.

In value terms, the largest palm oil suppliers to Brazil were Indonesia ($X), Colombia ($X) and Malaysia ($X), with a combined 96% share of total imports. Denmark and Ecuador lagged somewhat behind, together comprising a further 3%.

Among the main suppliers, Denmark, with a CAGR of +118.0%, saw the highest growth rate of the value of imports, over the period under review, while purchases for the other leaders experienced more modest paces of growth.

Import Prices by Country

In 2022, the average palm oil import price amounted to $X per ton, growing by 39% against the previous year. In general, the import price posted a noticeable expansion. The growth pace was the most rapid in 2021 when the average import price increased by 46% against the previous year. The import price peaked in 2022 and is expected to retain growth in the near future.

Average prices varied somewhat amongst the major supplying countries. In 2022, amid the top importers, the countries with the highest prices were Denmark ($X per ton) and Malaysia ($X per ton), while the price for Indonesia ($X per ton) and Colombia ($X per ton) were amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Indonesia (+4.1%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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