Latin America and the Caribbean: Palm Oil Market 2024

Palm Oil Market Size in Latin America and the Caribbean

The Latin American palm oil market totaled $X in 2022, flattening at the previous year. Overall, consumption saw a relatively flat trend pattern. The level of consumption peaked at $X in 2020; afterwards, it flattened through to 2022.

Palm Oil Production in Latin America and the Caribbean

In value terms, palm oil production amounted to $X in 2022 estimated in export price. Over the period under review, production recorded a relatively flat trend pattern. The pace of growth was the most pronounced in 2017 when the production volume increased by 17%. The level of production peaked at $X in 2020; however, from 2021 to 2022, production failed to regain momentum.

Palm Oil Exports

Exports in Latin America and the Caribbean

For the third year in a row, LatAmerica and the Caribbean recorded growth in overseas shipments of palm oil, which increased by 1.2% to X tons in 2022. Total exports indicated a prominent expansion from 2012 to 2022: its volume increased at an average annual rate of +7.2% 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 +15.2% against 2019 indices. The most prominent rate of growth was recorded in 2015 with an increase of 21% against the previous year. Over the period under review, the exports attained the maximum in 2022 and are likely to see gradual growth in the immediate term.

In value terms, palm oil exports shrank to $X in 2022. In general, exports continue to indicate buoyant growth. The growth pace was the most rapid in 2021 when exports increased by 57%. As a result, the exports attained the peak of $X, and then reduced modestly in the following year.

Exports by Country

The shipments of the three major exporters of palm oil, namely Guatemala, Honduras and Colombia, represented more than two-thirds of total export. Costa Rica (X tons) took an 8.7% share (based on physical terms) of total exports, which put it in second place, followed by Ecuador (5.3%). Peru (X tons) and Nicaragua (X tons) followed a long way behind the leaders.

From 2012 to 2022, the most notable rate of growth in terms of shipments, amongst the main exporting countries, was attained by Peru (with a CAGR of +53.3%), while the other leaders experienced more modest paces of growth.

In value terms, the largest palm oil supplying countries in Latin America and the Caribbean were Guatemala ($X), Honduras ($X) and Colombia ($X), with a combined 75% share of total exports. Costa Rica, Ecuador, Nicaragua and Peru lagged somewhat behind, together comprising a further 20%.

Peru, with a CAGR of +53.1%, saw the highest rates of growth with regard to 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 Latin America and the Caribbean stood at $X per ton in 2022, shrinking by -3% against the previous year. In general, the export price showed a relatively flat trend pattern. The growth pace was the most rapid in 2021 an increase of 50%. 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 remained at a lower figure.

Average prices varied somewhat amongst the major exporting countries. In 2022, major exporting countries recorded the following prices: in Nicaragua ($X per ton) and Guatemala ($X per ton), while Costa Rica ($X per ton) and Colombia ($X per ton) were amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Guatemala (+1.9%), while the other leaders experienced mixed trends in the export price figures.

Palm Oil Imports

Imports in Latin America and the Caribbean

Palm oil imports reduced to X tons in 2022, waning by -8.6% compared with the year before. In general, imports, however, recorded a relatively flat trend pattern. The most prominent rate of growth was recorded in 2020 with an increase of 15% against the previous year. The volume of import peaked at X tons in 2018; however, from 2019 to 2022, imports remained at a lower figure.

In value terms, palm oil imports rose sharply to $X in 2022. Total imports indicated a temperate expansion from 2012 to 2022: its value increased at an average annual rate of +2.1% 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 +96.2% against 2019 indices. The most prominent rate of growth was recorded in 2020 when imports increased by 38% against the previous year. Over the period under review, imports hit record highs in 2022 and are likely to continue growth in the immediate term.

Imports by Country

The countries with the highest levels of palm oil imports in 2022 were Brazil (X tons), Mexico (X tons), Haiti (X tons) and Colombia (X tons), together resulting at 66% of total import. It was distantly followed by El Salvador (X tons) and the Dominican Republic (X tons), together creating a 12% share of total imports. Nicaragua (X tons), Guatemala (X tons), Chile (X tons), Honduras (X tons), Uruguay (X tons) and Venezuela (X tons) took a minor share of total imports.

From 2012 to 2022, the biggest increases were recorded for Chile (with a CAGR of +35.8%), while purchases for the other leaders experienced more modest paces of growth.

In value terms, the largest palm oil importing markets in Latin America and the Caribbean were Brazil ($X), Mexico ($X) and Haiti ($X), with a combined 54% share of total imports. El Salvador, Colombia, the Dominican Republic, Nicaragua, Guatemala, Chile, Uruguay, Honduras and Venezuela lagged somewhat behind, together accounting for a further 39%.

In terms of the main importing countries, Chile, with a CAGR of +39.0%, recorded the highest rates of growth with regard to 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 import price in Latin America and the Caribbean amounted to $X per ton, growing by 19% against the previous year. Import price indicated mild growth from 2012 to 2022: its price increased at an average annual rate of +1.8% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, palm oil import price increased by +99.9% against 2019 indices. The most prominent rate of growth was recorded in 2021 when the import price increased by 39% against the previous year. The level of import peaked in 2022 and is likely to see gradual growth in years to come.

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 Uruguay ($X per ton), while Colombia ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Brazil (+4.0%), while the other leaders experienced more modest paces of growth.

Source: IndexBox Platform

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