Malaysia: Margarine And Shortening Market 2024

Margarine And Shortening Market Size in Malaysia

In 2022, the Malaysian margarine and shortening market was finally on the rise to reach $X for the first time since 2016, thus ending a five-year declining trend. In general, consumption recorded strong growth. Margarine and shortening consumption peaked at $X in 2016; however, from 2017 to 2022, consumption failed to regain momentum.

Margarine And Shortening Production in Malaysia

In value terms, margarine and shortening production dropped modestly to $X in 2022 estimated in export price. Overall, production, however, continues to indicate significant growth. The pace of growth was the most pronounced in 2016 with an increase of 326% against the previous year. Over the period under review, production hit record highs at $X in 2017; however, from 2018 to 2022, production failed to regain momentum.

Margarine And Shortening Exports

Exports from Malaysia

In 2022, margarine and shortening exports from Malaysia fell sharply to X tons, waning by -15.5% compared with the previous year. In general, total exports indicated a modest increase from 2012 to 2022: its volume increased at an average annual rate of +1.7% 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 +22.4% against 2020 indices. The most prominent rate of growth was recorded in 2021 when exports increased by 45% against the previous year. As a result, the exports reached the peak of X tons, and then dropped markedly in the following year.

In value terms, margarine and shortening exports shrank markedly to $X in 2022. Overall, total exports indicated perceptible growth from 2012 to 2022: its value 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, exports increased by +32.5% against 2020 indices. The growth pace was the most rapid in 2021 when exports increased by 65%. As a result, the exports attained the peak of $X, and then fell sharply in the following year.

Exports by Country

Thailand (X tons), China (X tons) and Australia (X tons) were the main destinations of margarine and shortening exports from Malaysia, together accounting for 23% of total exports.

From 2012 to 2022, the biggest increases were recorded for Thailand (with a CAGR of +17.6%), while shipments for the other leaders experienced more modest paces of growth.

In value terms, China ($X), Australia ($X) and Thailand ($X) appeared to be the largest markets for margarine and shortening exported from Malaysia worldwide, together accounting for 24% of total exports. Brazil, Singapore, the Philippines, South Korea, Taiwan (Chinese), Pakistan, Saudi Arabia, Vietnam, Algeria and Iraq lagged somewhat behind, together comprising a further 37%.

In terms of the main countries of destination, Brazil, with a CAGR of +20.1%, 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 more modest paces of growth.

Export Prices by Country

In 2022, the average margarine and shortening export price amounted to $X per ton, falling by -5% against the previous year. Over the period from 2012 to 2022, it increased at an average annual rate of +1.3%. The pace of growth appeared the most rapid in 2015 an increase of 14%. Over the period under review, the average export prices hit record highs at $X per ton in 2021, and then fell in the following year.

There were significant differences in the average prices for the major export markets. In 2022, amid the top suppliers, the country with the highest price was Brazil ($X per ton), while the average price for exports to Iraq ($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 the Philippines (+4.7%), while the prices for the other major destinations experienced more modest paces of growth.

Margarine And Shortening Imports

Imports into Malaysia

In 2022, the amount of margarine and shortening imported into Malaysia dropped to X tons, with a decrease of -7.7% against the previous year. Overall, imports, however, showed a prominent increase. The growth pace was the most rapid in 2018 with an increase of 109% against the previous year. Over the period under review, imports reached the peak figure at X tons in 2019; however, from 2020 to 2022, imports remained at a lower figure.

In value terms, margarine and shortening imports reduced to $X in 2022. In general, imports, however, posted perceptible growth. The most prominent rate of growth was recorded in 2018 when imports increased by 69%. Over the period under review, imports attained the maximum at $X in 2019; however, from 2020 to 2022, imports remained at a lower figure.

Imports by Country

In 2022, Singapore (X tons) constituted the largest supplier of margarine and shortening to Malaysia, accounting for a 45% share of total imports. Moreover, margarine and shortening imports from Singapore exceeded the figures recorded by the second-largest supplier, Indonesia (X tons), twofold. The third position in this ranking was taken by South Korea (X tons), with a 7.1% share.

From 2012 to 2022, the average annual growth rate of volume from Singapore stood at +9.1%. The remaining supplying countries recorded the following average annual rates of imports growth: Indonesia (+41.0% per year) and South Korea (+90.2% per year).

In value terms, the largest margarine and shortening suppliers to Malaysia were Singapore ($X), Indonesia ($X) and South Korea ($X), together accounting for 72% of total imports. Australia, the United States, the Netherlands, Morocco, Taiwan (Chinese), Germany, Sweden and Chile lagged somewhat behind, together accounting for a further 16%.

Morocco, with a CAGR of +93.1%, saw the highest growth rate of the value of imports, in terms of the main suppliers over the period under review, while purchases for the other leaders experienced more modest paces of growth.

Import Prices by Country

In 2022, the average margarine and shortening import price amounted to $X per ton, standing approx. at the previous year. Overall, the import price continues to indicate a perceptible reduction. The most prominent rate of growth was recorded in 2019 when the average import price increased by 14% against the previous year. The import price peaked at $X per ton in 2012; however, from 2013 to 2022, import prices remained at a lower figure.

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

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Indonesia (-0.9%), while the prices for the other major suppliers experienced a decline.

Source: IndexBox Platform

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