Eastern Asia: Palm Kernel Oil Market 2024

Palm Kernel Oil Market Size in Eastern Asia

The East Asian palm kernel oil market declined slightly to $X in 2022, waning by -2.1% against the previous year. The market value increased at an average annual rate of +2.3% over the period from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The level of consumption peaked at $X in 2021, and then declined modestly in the following year.

Palm Kernel Oil Production in Eastern Asia

In value terms, palm kernel oil production rose significantly to $X in 2022 estimated in export price. Overall, production showed a mild reduction. The most prominent rate of growth was recorded in 2015 when the production volume increased by 153%. Over the period under review, production reached the maximum level at $X in 2016; however, from 2017 to 2022, production stood at a somewhat lower figure.

Palm Kernel Oil Exports

Exports in Eastern Asia

In 2022, overseas shipments of palm kernel and babassu oil increased by 28% to X tons for the first time since 2018, thus ending a three-year declining trend. In general, exports, however, showed a abrupt decrease. The growth pace was the most rapid in 2014 when exports increased by 417%. As a result, the exports attained the peak of X tons. From 2015 to 2022, the growth of the exports failed to regain momentum.

In value terms, palm kernel oil exports declined to $X in 2022. Over the period under review, exports saw noticeable growth. The pace of growth appeared the most rapid in 2014 with an increase of 123%. The level of export peaked at $X in 2018; however, from 2019 to 2022, the exports failed to regain momentum.

Exports by Country

China was the major exporting country with an export of around X tons, which resulted at 64% of total exports. Hong Kong SAR (X tons) ranks second in terms of the total exports with a 26% share, followed by South Korea (5.7%). Japan (X tons) followed a long way behind the leaders.

From 2012 to 2022, average annual rates of growth with regard to palm kernel oil exports from China stood at +2.6%. At the same time, South Korea (+87.1%) displayed positive paces of growth. Moreover, South Korea emerged as the fastest-growing exporter exported in Eastern Asia, with a CAGR of +87.1% from 2012-2022. By contrast, Hong Kong SAR (-14.0%) and Japan (-14.2%) illustrated a downward trend over the same period. China (+35 p.p.), South Korea (+5.7 p.p.) and Japan (+3.6 p.p.) significantly strengthened its position in terms of the total exports, while Hong Kong SAR saw its share reduced by -43.6% from 2012 to 2022, respectively.

In value terms, the largest palm kernel oil supplying countries in Eastern Asia were South Korea ($X), China ($X) and Hong Kong SAR ($X), with a combined 92% share of total exports.

In terms of the main exporting countries, South Korea, with a CAGR of +69.5%, recorded the highest rates of growth with regard to the value of exports, over the period under review, while shipments for the other leaders experienced mixed trends in the exports figures.

Export Prices by Country

The export price in Eastern Asia stood at $X per ton in 2022, dropping by -30.8% against the previous year. Over the period under review, the export price, however, recorded a buoyant increase. The pace of growth appeared the most rapid in 2015 an increase of 80% against the previous year. Over the period under review, the export prices reached the maximum at $X per ton in 2021, and then fell dramatically in the following year.

Prices varied noticeably by country of origin: amid the top suppliers, the country with the highest price was South Korea ($X per ton), while Hong Kong SAR ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by China (+3.8%), while the other leaders experienced mixed trends in the export price figures.

Palm Kernel Oil Imports

Imports in Eastern Asia

In 2022, purchases abroad of palm kernel and babassu oil decreased by -13.4% to X tons, falling for the third year in a row after three years of growth. Over the period under review, imports, however, recorded a relatively flat trend pattern. The most prominent rate of growth was recorded in 2017 when imports increased by 24%. The volume of import peaked at X tons in 2019; however, from 2020 to 2022, imports failed to regain momentum.

In value terms, palm kernel oil imports reached $X in 2022. Total imports indicated temperate growth from 2012 to 2022: its value increased at an average annual rate of +3.6% 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 +56.1% against 2020 indices. The pace of growth appeared the most rapid in 2021 when imports increased by 51%. Over the period under review, imports attained the peak figure in 2022 and are expected to retain growth in years to come.

Imports by Country

China represented the major importer of palm kernel and babassu oil in Eastern Asia, with the volume of imports resulting at X tons, which was near 86% of total imports in 2022. It was distantly followed by Japan (X tons), comprising a 12% share of total imports.

China was also the fastest-growing in terms of the palm kernel and babassu oil imports, with a CAGR of +1.0% from 2012 to 2022. Japan (-1.6%) illustrated a downward trend over the same period. While the share of China (+3.5 p.p.) increased significantly in terms of the total imports from 2012-2022, the share of Japan (-3 p.p.) displayed negative dynamics.

In value terms, China ($X) constitutes the largest market for imported palm kernel and babassu oil in Eastern Asia, comprising 83% of total imports. The second position in the ranking was held by Japan ($X), with a 14% share of total imports.

From 2012 to 2022, the average annual rate of growth in terms of value in China totaled +3.9%.

Import Prices by Country

In 2022, the import price in Eastern Asia amounted to $X per ton, jumping by 20% against the previous year. Import price indicated a moderate increase from 2012 to 2022: its price increased at an average annual rate of +3.0% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, palm kernel oil import price increased by +132.6% against 2019 indices. The pace of growth was the most pronounced in 2021 when the import price increased by 73% against the previous year. Over the period under review, import prices reached the peak figure in 2022 and is likely to continue growth in the near future.

Average prices varied noticeably amongst the major importing countries. In 2022, amid the top importers, the country with the highest price was Japan ($X per ton), while China totaled $X per ton.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Japan (+3.7%).

Source: IndexBox Platform

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