Indonesia: Palm Kernel Oil Market 2025

Palm Kernel Oil Market Size in Indonesia

In 2022, the Indonesian palm kernel oil market increased by 11% to $X, rising for the third consecutive year after two years of decline. Over the period under review, the total consumption indicated resilient growth from 2012 to 2022: its value increased at an average annual rate of +6.7% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, consumption increased by +37.2% against 2019 indices. Palm kernel oil consumption peaked in 2022 and is likely to continue growth in years to come.

Palm Kernel Oil Production in Indonesia

In value terms, palm kernel oil production rose modestly to $X in 2022 estimated in export price. Over the period under review, the total production indicated mild growth from 2012 to 2022: its value increased at an average annual rate of +1.1% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, production increased by +12.1% against 2019 indices. The most prominent rate of growth was recorded in 2014 with an increase of 43% against the previous year. Palm kernel oil production peaked at $X in 2017; however, from 2018 to 2022, production remained at a lower figure.

Palm Kernel Oil Exports

Exports from Indonesia

In 2022, overseas shipments of palm kernel and babassu oil decreased by -21.4% to X tons, falling for the third consecutive year after three years of growth. In general, exports showed a noticeable curtailment. The pace of growth appeared the most rapid in 2015 with an increase of 23% against the previous year. Over the period under review, the exports attained the maximum at X tons in 2019; however, from 2020 to 2022, the exports remained at a lower figure.

In value terms, palm kernel oil exports skyrocketed to $X in 2022. Overall, total exports indicated a resilient expansion from 2012 to 2022: its value increased at an average annual rate of +5.6% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, exports increased by +105.8% against 2019 indices. The growth pace was the most rapid in 2021 with an increase of 45%. The exports peaked in 2022 and are likely to see gradual growth in years to come.

Exports by Country

China (X tons) was the main destination for palm kernel oil exports from Indonesia, with a 33% share of total exports. Moreover, palm kernel oil exports to China exceeded the volume sent to the second major destination, the United States (X tons), twofold. Brazil (X tons) ranked third in terms of total exports with a 14% share.

From 2012 to 2022, the average annual rate of growth in terms of volume to China was relatively modest. Exports to the other major destinations recorded the following average annual rates of exports growth: the United States (+17.9% per year) and Brazil (+1.4% per year).

In value terms, China ($X), the United States ($X) and Brazil ($X) constituted the largest markets for palm kernel oil exported from Indonesia worldwide, together accounting for 63% of total exports. Malaysia, Russia, the Netherlands, Japan, Egypt, South Africa, the Philippines, Thailand and India lagged somewhat behind, together accounting for a further 29%.

Among the main countries of destination, Japan, with a CAGR of +41.9%, 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 kernel oil export price amounted to $X per ton, growing by 73% against the previous year. Over the period under review, the export price showed a strong expansion. The most prominent rate of growth was recorded in 2021 an increase of 73% against the previous year. Over the period under review, the average export prices reached the peak figure in 2022 and is likely to continue growth in years to come.

There were significant differences in the average prices for the major foreign markets. In 2022, amid the top suppliers, the country with the highest price was Egypt ($X per ton), while the average price for exports to Thailand ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was recorded for supplies to South Africa (+10.9%), while the prices for the other major destinations experienced more modest paces of growth.

Palm Kernel Oil Imports

Imports into Indonesia

In 2022, overseas purchases of palm kernel and babassu oil increased by 22% to X tons, rising for the fifth year in a row after five years of decline. Overall, imports posted a noticeable expansion. The growth pace was the most rapid in 2020 when imports increased by 277%. Over the period under review, imports reached the maximum in 2022 and are likely to continue growth in the immediate term.

In value terms, palm kernel oil imports surged to $X in 2022. In general, imports, however, recorded a noticeable reduction. The pace of growth appeared the most rapid in 2020 with an increase of 819%. Imports peaked at $X in 2012; however, from 2013 to 2022, imports remained at a lower figure.

Imports by Country

Malaysia (X tons), the UK (X tons) and Singapore (X kg) were the main suppliers of palm kernel oil imports to Indonesia, with a combined 99.9% share of total imports.

From 2012 to 2022, the biggest increases were recorded for the UK (with a CAGR of +1,725.7%), while purchases for the other leaders experienced a decline.

In value terms, the UK ($X), Malaysia ($X) and Singapore ($X) appeared to be the largest palm kernel oil suppliers to Indonesia, with a combined 99% share of total imports.

Among the main suppliers, the UK, with a CAGR of +911.7%, saw the highest rates of growth with regard to the value of imports, over the period under review, while purchases for the other leaders experienced a decline.

Import Prices by Country

The average palm kernel oil import price stood at $X per ton in 2022, approximately equating the previous year. Overall, the import price showed a abrupt descent. The pace of growth appeared the most rapid in 2020 when the average import price increased by 144% against the previous year. Over the period under review, average import prices attained the maximum at $X per ton in 2012; however, from 2013 to 2022, import prices remained at a lower figure.

Prices varied noticeably by country of origin: amid the top importers, the country with the highest price was Singapore ($X per ton), while the price for Malaysia ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Singapore (+12.4%), while the prices for the other major suppliers experienced a decline.

Source: IndexBox Platform

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