Latin America and the Caribbean: Tall Oil Market 2024

Tall Oil Market Size in Latin America and the Caribbean

In 2021, the Latin American tall oil market increased by 1.6% to $X, rising for the third consecutive year after three years of decline. Over the period under review, consumption, however, continues to indicate a mild shrinkage. The level of consumption peaked at $X in 2012; however, from 2013 to 2021, consumption failed to regain momentum.

Tall Oil Production in Latin America and the Caribbean

In value terms, tall oil production shrank to $X in 2021 estimated in export price. Over the period under review, production, however, showed a mild downturn. The growth pace was the most rapid in 2019 with an increase of 33%. Over the period under review, production reached the maximum level at $X in 2012; however, from 2013 to 2021, production remained at a lower figure.

Tall Oil Exports

Exports in Latin America and the Caribbean

After three years of growth, overseas shipments of tall oil decreased by -5.7% to X tons in 2021. Overall, exports, however, showed significant growth. The most prominent rate of growth was recorded in 2019 with an increase of 934% against the previous year. The volume of export peaked at X tons in 2020, and then fell in the following year.

In value terms, tall oil exports skyrocketed to $X in 2021. Over the period under review, exports, however, posted a significant increase. The most prominent rate of growth was recorded in 2019 when exports increased by 854%. The level of export peaked at $X in 2016; however, from 2017 to 2021, the exports failed to regain momentum.

Exports by Country

In 2021, Brazil (X tons) was the major exporter of tall oil in Latin America and the Caribbean, achieving 100% of total export.

Brazil was also the fastest-growing in terms of the tall oil exports, with a CAGR of +39.9% from 2012 to 2021. From 2012 to 2021, the share of Brazil increased by +11 percentage points, while the shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, Brazil ($X) also remains the largest tall oil supplier in Latin America and the Caribbean.

In Brazil, tall oil exports expanded at an average annual rate of +26.4% over the period from 2012-2021.

Export Prices by Country

The export price in Latin America and the Caribbean stood at $X per ton in 2021, with an increase of 24% against the previous year. Over the period under review, the export price, however, continues to indicate a deep setback. The level of export peaked at $X per ton in 2014; however, from 2015 to 2021, the export prices failed to regain momentum.

As there is only one major export destination, the average price level is determined by prices for Brazil.

From 2012 to 2021, the rate of growth in terms of prices for Brazil amounted to -9.6% per year.

Tall Oil Imports

Imports in Latin America and the Caribbean

In 2021, approx. X tons of tall oil were imported in Latin America and the Caribbean; picking up by 12% on the previous year. Over the period under review, imports, however, recorded a abrupt contraction. The most prominent rate of growth was recorded in 2013 with an increase of 150% against the previous year. As a result, imports attained the peak of X tons. From 2014 to 2021, the growth of imports remained at a lower figure.

In value terms, tall oil imports rose remarkably to $X in 2021. Overall, imports, however, showed a abrupt setback. The growth pace was the most rapid in 2019 when imports increased by 55% against the previous year. The level of import peaked at $X in 2013; however, from 2014 to 2021, imports failed to regain momentum.

Imports by Country

Brazil represented the largest importer of tall oil in Latin America and the Caribbean, with the volume of imports recording X tons, which was near 52% of total imports in 2021. Mexico (X tons) ranks second in terms of the total imports with a 26% share, followed by Costa Rica (11%). Trinidad and Tobago (X tons) and Colombia (X tons) followed a long way behind the leaders.

Imports into Brazil increased at an average annual rate of +11.7% from 2012 to 2021. At the same time, Trinidad and Tobago (+36.9%) displayed positive paces of growth. Moreover, Trinidad and Tobago emerged as the fastest-growing importer imported in Latin America and the Caribbean, with a CAGR of +36.9% from 2012-2021. By contrast, Costa Rica (-3.3%), Mexico (-7.7%) and Colombia (-7.8%) illustrated a downward trend over the same period. While the share of Brazil (+42 p.p.), Trinidad and Tobago (+3.2 p.p.) and Costa Rica (+2.8 p.p.) increased significantly in terms of the total imports from 2012-2021, the share of Mexico (-3.5 p.p.) displayed negative dynamics. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, the largest tall oil importing markets in Latin America and the Caribbean were Brazil ($X), Mexico ($X) and Costa Rica ($X), together comprising 86% of total imports. These countries were followed by Trinidad and Tobago and Colombia, which together accounted for a further 6.1%.

Among the main importing countries, Trinidad and Tobago, with a CAGR of +29.2%, 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 mixed trends in the imports figures.

Import Prices by Country

In 2021, the import price in Latin America and the Caribbean amounted to $X per ton, leveling off at the previous year. Overall, the import price, however, saw a noticeable decline. The growth pace was the most rapid in 2014 an increase of 70% against the previous year. Over the period under review, import prices reached the peak figure at $X per ton in 2012; however, from 2013 to 2021, import prices stood at a somewhat lower figure.

There were significant differences in the average prices amongst the major importing countries. In 2021, amid the top importers, the country with the highest price was Colombia ($X per ton), while Brazil ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Brazil (+7.1%), while the other leaders experienced more modest paces of growth.

Source: IndexBox Platform

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