Malaysia: Palm Oil Market 2024

Palm Oil Market Size in Malaysia

In 2022, after two years of growth, there was decline in the Malaysian palm oil market, when its value decreased by -4.1% to $X. In general, consumption recorded a relatively flat trend pattern. Palm oil consumption peaked at $X in 2017; however, from 2018 to 2022, consumption stood at a somewhat lower figure.

Palm Oil Production in Malaysia

In value terms, palm oil production rose modestly to $X in 2022 estimated in export price. Overall, production showed a noticeable descent. The most prominent rate of growth was recorded in 2017 when the production volume increased by 24%. Palm oil production peaked at $X in 2012; however, from 2013 to 2022, production remained at a lower figure.

Palm Oil Exports

Exports from Malaysia

In 2022, shipments abroad of palm oil was finally on the rise to reach X tons for the first time since 2019, thus ending a two-year declining trend. In general, exports, however, continue to indicate a mild setback. The pace of growth appeared the most rapid in 2019 when exports increased by 17%. As a result, the exports attained the peak of X tons. From 2020 to 2022, the growth of the exports failed to regain momentum.

In value terms, palm oil exports shrank notably to $X in 2022. Over the period under review, exports, however, recorded a perceptible curtailment. The growth pace was the most rapid in 2021 when exports increased by 45%. The exports peaked at $X in 2012; however, from 2013 to 2022, the exports remained at a lower figure.

Exports by Country

India (X tons) was the main destination for palm oil exports from Malaysia, with a 22% share of total exports. Moreover, palm oil exports to India exceeded the volume sent to the second major destination, China (X tons), twofold. The Netherlands (X tons) ranked third in terms of total exports with a 5.5% share.

From 2012 to 2022, the average annual growth rate of volume to India stood at +2.1%. Exports to the other major destinations recorded the following average annual rates of exports growth: China (-6.0% per year) and the Netherlands (-5.4% per year).

In value terms, India ($X) remains the key foreign market for palm oil exports from Malaysia, comprising 25% of total exports. The second position in the ranking was held by China ($X), with an 11% share of total exports. It was followed by the Netherlands, with a 5.7% share.

From 2012 to 2022, the average annual growth rate of value to India stood at +2.2%. Exports to the other major destinations recorded the following average annual rates of exports growth: China (-6.9% per year) and the Netherlands (-6.2% per year).

Export Prices by Country

In 2022, the average palm oil export price amounted to $X per ton, with a decrease of -16.8% against the previous year. Overall, the export price recorded a slight shrinkage. The most prominent rate of growth was recorded in 2021 when the average export price increased by 53% against the previous year. As a result, the export price attained the peak level of $X per ton, and then shrank significantly in the following year.

Prices varied noticeably by country of destination: amid the top suppliers, the country with the highest price was Japan ($X per ton), while the average price for exports to Pakistan ($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 India (+0.1%), while the prices for the other major destinations experienced mixed trend patterns.

Palm Oil Imports

Imports into Malaysia

In 2022, imports of palm oil into Malaysia declined to X tons, which is down by -7.9% against 2021 figures. Overall, imports recorded a abrupt decrease. The most prominent rate of growth was recorded in 2015 with an increase of 127% against the previous year. Imports peaked at X tons in 2012; however, from 2013 to 2022, imports stood at a somewhat lower figure.

In value terms, palm oil imports shrank rapidly to $X in 2022. In general, imports saw a drastic downturn. The pace of growth was the most pronounced in 2018 with an increase of 108%. Imports peaked at $X in 2012; however, from 2013 to 2022, imports stood at a somewhat lower figure.

Imports by Country

In 2022, Indonesia (X tons) was the main supplier of palm oil to Malaysia, accounting for a 90% share of total imports. Moreover, palm oil imports from Indonesia exceeded the figures recorded by the second-largest supplier, Papua New Guinea (X tons), more than tenfold.

From 2012 to 2022, the average annual rate of growth in terms of volume from Indonesia amounted to -5.3%. The remaining supplying countries recorded the following average annual rates of imports growth: Papua New Guinea (+5.1% per year) and Niger (+13.8% per year).

In value terms, Indonesia ($X) constituted the largest supplier of palm oil to Malaysia, comprising 78% of total imports. The second position in the ranking was taken by Niger ($X), with a 15% share of total imports.

From 2012 to 2022, the average annual growth rate of value from Indonesia totaled -7.7%. The remaining supplying countries recorded the following average annual rates of imports growth: Niger (+26.1% per year) and Papua New Guinea (+3.2% per year).

Import Prices by Country

In 2022, the average palm oil import price amounted to $X per ton, reducing by -14.3% against the previous year. In general, the import price continues to indicate a slight descent. The growth pace was the most rapid in 2021 when the average import price increased by 46% against the previous year. As a result, import price attained the peak level of $X per ton, and then reduced in the following year.

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

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Niger (+10.7%), while the prices for the other major suppliers experienced a decline.

Source: IndexBox Platform

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