Malaysia: Palm Kernel Oil Market 2024

Palm Kernel Oil Market Size in Malaysia

In 2022, the Malaysian palm kernel oil market increased by 1.9% to $X, rising for the second year in a row after three years of decline. Overall, consumption, however, showed a perceptible slump. As a result, consumption reached the peak level of $X. From 2018 to 2022, the growth of the market failed to regain momentum.

Palm Kernel Oil Production in Malaysia

In value terms, palm kernel oil production fell slightly to $X in 2022 estimated in export price. In general, production saw a perceptible decrease. The growth pace was the most rapid in 2017 with an increase of 23% against the previous year. As a result, production attained the peak level of $X. From 2018 to 2022, production growth failed to regain momentum.

Palm Kernel Oil Exports

Exports from Malaysia

In 2022, after four years of growth, there was significant decline in overseas shipments of palm kernel and babassu oil, when their volume decreased by -9.7% to X tons. The total export volume increased at an average annual rate of +1.3% over the period from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The most prominent rate of growth was recorded in 2013 when exports increased by 34% against the previous year. As a result, the exports reached the peak of X tons. From 2014 to 2022, the growth of the exports remained at a lower figure.

In value terms, palm kernel oil exports declined significantly to $X in 2022. Overall, total exports indicated a modest increase from 2012 to 2022: its value increased at an average annual rate of +1.2% 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 +46.4% against 2019 indices. The most prominent rate of growth was recorded in 2021 with an increase of 59%. As a result, the exports reached the peak of $X, and then fell significantly in the following year.

Exports by Country

China (X tons), Germany (X tons) and Turkey (X tons) were the main destinations of palm kernel oil exports from Malaysia, with a combined 40% share of total exports. India, the Netherlands, Japan, the United States, Brazil, Italy, Mexico, the United Arab Emirates, Egypt and Ukraine lagged somewhat behind, together comprising a further 31%.

From 2012 to 2022, the most notable rate of growth in terms of shipments, amongst the main countries of destination, was attained by Mexico (with a CAGR of +25.0%), while the other leaders experienced more modest paces of growth.

In value terms, the largest markets for palm kernel oil exported from Malaysia were China ($X), Germany ($X) and the Netherlands ($X), with a combined 40% share of total exports. Turkey, India, Japan, the United States, Brazil, Italy, Mexico, Ukraine, the United Arab Emirates and Egypt lagged somewhat behind, together comprising a further 33%.

Italy, with a CAGR of +23.2%, recorded the highest growth rate of the value of exports, among the main countries of destination over the period under review, while shipments for the other leaders experienced more modest paces of growth.

Export Prices by Country

The average palm kernel oil export price stood at $X per ton in 2022, with a decrease of -9.8% against the previous year. Over the period under review, the export price saw a relatively flat trend pattern. The growth pace was the most rapid in 2021 when the average export price increased by 52%. The export price peaked at $X per ton in 2017; however, from 2018 to 2022, the export prices failed to regain momentum.

Prices varied noticeably by country of destination: amid the top suppliers, the country with the highest price was Ukraine ($X per ton), while the average price for exports to the United Arab Emirates ($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 Ukraine (+18.6%), while the prices for the other major destinations experienced more modest paces of growth.

Palm Kernel Oil Imports

Imports into Malaysia

In 2022, the amount of palm kernel and babassu oil imported into Malaysia declined to X tons, reducing by -8.8% compared with 2021. Over the period under review, imports recorded a pronounced downturn. The growth pace was the most rapid in 2015 when imports increased by 48%. Over the period under review, imports attained the maximum at X tons in 2012; however, from 2013 to 2022, imports remained at a lower figure.

In value terms, palm kernel oil imports declined significantly to $X in 2022. Overall, imports saw a noticeable curtailment. The growth pace was the most rapid in 2021 with an increase of 85% against the previous year. Over the period under review, imports reached the peak figure at $X in 2012; however, from 2013 to 2022, imports failed to regain momentum.

Imports by Country

Thailand (X tons) and Indonesia (X tons) were the main suppliers of palm kernel oil imports to Malaysia.

From 2012 to 2022, the biggest increases were recorded for Thailand (with a CAGR of +9.8%).

In value terms, the largest palm kernel oil suppliers to Malaysia were Thailand ($X) and Indonesia ($X).

Among the main suppliers, Thailand, with a CAGR of +9.3%, saw the highest rates of growth with regard to the value of imports, over the period under review.

Import Prices by Country

The average palm kernel oil import price stood at $X per ton in 2022, which is down by -15.6% against the previous year. In general, the import price saw a relatively flat trend pattern. The most prominent rate of growth was recorded in 2021 an increase of 53%. The import price peaked at $X per ton in 2017; however, from 2018 to 2022, import prices stood at a somewhat lower figure.

Average prices varied noticeably amongst the major supplying countries. In 2022, amid the top importers, the country with the highest price was Thailand ($X per ton), while the price for Indonesia stood at $X per ton.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Thailand (-0.4%).

Source: IndexBox Platform

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