ECOWAS: Palm Oil Market 2024

Palm Oil Market Size in ECOWAS

After two years of growth, the ECOWAS palm oil market decreased by -3.3% to $X in 2022. The market value increased at an average annual rate of +4.3% over the period from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. Over the period under review, the market attained the maximum level at $X in 2021, and then reduced in the following year.

Palm Oil Production in ECOWAS

In value terms, palm oil production expanded modestly to $X in 2022 estimated in export price. The total production indicated a pronounced increase from 2012 to 2022: its value increased at an average annual rate of +2.2% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, production decreased by -7.5% against 2018 indices. The most prominent rate of growth was recorded in 2014 when the production volume increased by 54%. As a result, production reached the peak level of $X. From 2015 to 2022, production growth remained at a lower figure.

Palm Oil Exports

Exports in ECOWAS

In 2022, exports of palm oil in ECOWAS declined to X tons, with a decrease of -8.3% on the previous year. The total export volume increased at an average annual rate of +1.7% over the period from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The most prominent rate of growth was recorded in 2017 with an increase of 23% against the previous year. Over the period under review, the exports reached the maximum at X tons in 2019; however, from 2020 to 2022, the exports remained at a lower figure.

In value terms, palm oil exports declined rapidly to $X in 2022. In general, exports, however, saw a relatively flat trend pattern. The most prominent rate of growth was recorded in 2021 with an increase of 32% against the previous year. As a result, the exports attained the peak of $X, and then contracted rapidly in the following year.

Exports by Country

The shipments of the three major exporters of palm oil, namely Cote d'Ivoire, Ghana and Togo, represented more than two-thirds of total export. It was distantly followed by Liberia (X tons), making up a 13% share of total exports. The following exporters - Sierra Leone (X tons) and Niger (X tons) - each amounted to a 4.3% share of total exports.

From 2012 to 2022, the biggest increases were recorded for Liberia (with a CAGR of +37.1%), while shipments for the other leaders experienced more modest paces of growth.

In value terms, Cote d'Ivoire ($X), Ghana ($X) and Togo ($X) constituted the countries with the highest levels of exports in 2022, with a combined 80% share of total exports. Liberia, Niger and Sierra Leone lagged somewhat behind, together accounting for a further 18%.

Sierra Leone, with a CAGR of +40.3%, saw the highest growth rate of the value of exports, among the main exporting countries over the period under review, while shipments for the other leaders experienced more modest paces of growth.

Export Prices by Country

The export price in ECOWAS stood at $X per ton in 2022, which is down by -7.7% against the previous year. Overall, the export price saw a mild reduction. The most prominent rate of growth was recorded in 2021 when the export price increased by 27%. Over the period under review, the export prices attained the peak figure at $X per ton in 2012; however, from 2013 to 2022, the export prices stood at a somewhat lower figure.

Prices varied noticeably by country of origin: amid the top suppliers, the country with the highest price was Niger ($X per ton), while Togo ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Sierra Leone (+4.8%), while the other leaders experienced more modest paces of growth.

Palm Oil Imports

Imports in ECOWAS

In 2022, the amount of palm oil imported in ECOWAS contracted to X tons, waning by -3.1% against 2021 figures. Total imports indicated a prominent expansion from 2012 to 2022: its volume increased at an average annual rate of +8.1% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, imports decreased by -4.5% against 2019 indices. The pace of growth appeared the most rapid in 2014 with an increase of 53%. The volume of import peaked at X tons in 2019; however, from 2020 to 2022, imports stood at a somewhat lower figure.

In value terms, palm oil imports shrank sharply to $X in 2022. Total imports indicated a strong expansion from 2012 to 2022: its value increased at an average annual rate of +6.1% 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 +26.3% against 2018 indices. The most prominent rate of growth was recorded in 2014 when imports increased by 54% against the previous year. Over the period under review, imports hit record highs at $X in 2021, and then shrank dramatically in the following year.

Imports by Country

In 2022, Nigeria (X tons) represented the largest importer of palm oil, constituting 34% of total imports. Ghana (X tons) ranks second in terms of the total imports with a 14% share, followed by Togo (12%), Niger (9.3%), Senegal (8.4%), Guinea (5.7%), Mali (5%) and Benin (4.7%).

Imports into Nigeria increased at an average annual rate of +11.2% from 2012 to 2022. At the same time, Togo (+27.3%), Niger (+12.0%), Ghana (+10.2%), Mali (+9.1%), Guinea (+7.5%) and Senegal (+5.2%) displayed positive paces of growth. Moreover, Togo emerged as the fastest-growing importer imported in ECOWAS, with a CAGR of +27.3% from 2012-2022. Benin experienced a relatively flat trend pattern. While the share of Togo (+9.3 p.p.), Nigeria (+8.3 p.p.), Niger (+2.8 p.p.) and Ghana (+2.5 p.p.) increased significantly in terms of the total imports from 2012-2022, the share of Senegal (-2.6 p.p.) and Benin (-5.7 p.p.) displayed negative dynamics. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, Nigeria ($X) constitutes the largest market for imported palm oil in ECOWAS, comprising 45% of total imports. The second position in the ranking was held by Ghana ($X), with a 14% share of total imports. It was followed by Senegal, with an 8.8% share.

From 2012 to 2022, the average annual growth rate of value in Nigeria amounted to +11.0%. The remaining importing countries recorded the following average annual rates of imports growth: Ghana (+6.7% per year) and Senegal (+0.7% per year).

Import Prices by Country

The import price in ECOWAS stood at $X per ton in 2022, waning by -16.9% against the previous year. Overall, the import price saw a mild descent. The growth pace was the most rapid in 2021 when the import price increased by 30%. The level of import peaked at $X per ton in 2012; however, from 2013 to 2022, import prices failed to regain momentum.

There were significant differences in the average prices amongst the major importing countries. In 2022, amid the top importers, the country with the highest price was Nigeria ($X per ton), while Togo ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Mali (+3.9%), while the other leaders experienced a decline in the import price figures.

Source: IndexBox Platform