MENA: Palm Kernel Oil Market 2024

Palm Kernel Oil Market Size in MENA

In 2022, the MENA's palm kernel oil market decreased by -7.9% to $X for the first time since 2019, thus ending a two-year rising trend. The market value increased at an average annual rate of +1.0% over the period from 2012 to 2022; the trend pattern remained consistent, with somewhat noticeable fluctuations in certain years. The level of consumption peaked at $X in 2017; however, from 2018 to 2022, consumption failed to regain momentum.

Palm Kernel Oil Production in MENA

In value terms, palm kernel oil production stood at $X in 2022 estimated in export price. The total output value increased at an average annual rate of +2.9% 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 2016 when the production volume increased by 9.6%. Over the period under review, production attained the peak level at $X in 2020; afterwards, it flattened through to 2022.

Palm Kernel Oil Exports

Exports in MENA

In 2022, shipments abroad of palm kernel and babassu oil increased by 45% to X tons, rising for the fifth year in a row after two years of decline. Overall, exports enjoyed resilient growth. The most prominent rate of growth was recorded in 2019 with an increase of 107%. Over the period under review, the exports hit record highs in 2022 and are expected to retain growth in the immediate term.

In value terms, palm kernel oil exports soared to $X in 2022. In general, exports saw a resilient increase. The growth pace was the most rapid in 2020 with an increase of 94% against the previous year. The level of export peaked in 2022 and is likely to see gradual growth in years to come.

Exports by Country

In 2022, Turkey (X tons) represented the largest exporter of palm kernel and babassu oil, constituting 79% of total exports. The United Arab Emirates (X tons) ranks second in terms of the total exports with a 15% share, followed by Yemen (5.4%).

Turkey was also the fastest-growing in terms of the palm kernel and babassu oil exports, with a CAGR of +76.7% from 2012 to 2022. The United Arab Emirates experienced a relatively flat trend pattern. Yemen (-4.8%) illustrated a downward trend over the same period. Turkey (+78 p.p.) significantly strengthened its position in terms of the total exports, while Yemen and the United Arab Emirates saw its share reduced by -19.3% and -31.7% from 2012 to 2022, respectively.

In value terms, Turkey ($X) remains the largest palm kernel oil supplier in MENA, comprising 78% of total exports. The second position in the ranking was held by the United Arab Emirates ($X), with a 15% share of total exports.

From 2012 to 2022, the average annual growth rate of value in Turkey stood at +77.3%. The remaining exporting countries recorded the following average annual rates of exports growth: the United Arab Emirates (-0.9% per year) and Yemen (-1.4% per year).

Export Prices by Country

The export price in MENA stood at $X per ton in 2022, therefore, remained relatively stable against the previous year. Overall, the export price, however, saw a relatively flat trend pattern. The growth pace was the most rapid in 2021 an increase of 48% against the previous year. As a result, the export price attained the peak level of $X per ton, and then reduced in the following year.

Average prices varied somewhat amongst the major exporting countries. In 2022, amid the top suppliers, the country with the highest price was Yemen ($X per ton), while the United Arab Emirates ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Yemen (+3.5%), while the other leaders experienced mixed trends in the export price figures.

Palm Kernel Oil Imports

Imports in MENA

In 2022, the amount of palm kernel and babassu oil imported in MENA reduced to X tons, falling by -14.8% compared with 2021 figures. Over the period under review, imports, however, saw a relatively flat trend pattern. The growth pace was the most rapid in 2015 with an increase of 14%. Over the period under review, imports hit record highs at X tons in 2018; however, from 2019 to 2022, imports remained at a lower figure.

In value terms, palm kernel oil imports expanded slightly to $X in 2022. Total imports indicated a measured increase from 2012 to 2022: its value increased at an average annual rate of +2.4% 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 +63.9% against 2019 indices. The most prominent rate of growth was recorded in 2021 when imports increased by 48%. Over the period under review, imports reached the peak figure in 2022 and are expected to retain growth in the immediate term.

Imports by Country

Turkey dominates imports structure, resulting at X tons, which was approx. 62% of total imports in 2022. Saudi Arabia (X tons) held the second position in the ranking, followed by the United Arab Emirates (X tons), Egypt (X tons) and Morocco (X tons). All these countries together took near 26% share of total imports. Tunisia (X tons) and Yemen (X tons) followed a long way behind the leaders.

Turkey experienced a relatively flat trend pattern with regard to volume of imports of palm kernel and babassu oil. At the same time, the United Arab Emirates (+9.2%), Morocco (+4.4%), Saudi Arabia (+2.7%) and Tunisia (+2.0%) displayed positive paces of growth. Moreover, the United Arab Emirates emerged as the fastest-growing importer imported in MENA, with a CAGR of +9.2% from 2012-2022. Yemen experienced a relatively flat trend pattern. By contrast, Egypt (-4.9%) illustrated a downward trend over the same period. The United Arab Emirates (+4.5 p.p.) and Saudi Arabia (+1.8 p.p.) significantly strengthened its position in terms of the total imports, while Turkey and Egypt saw its share reduced by -2.2% and -3.7% from 2012 to 2022, respectively. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, Turkey ($X) constitutes the largest market for imported palm kernel and babassu oil in MENA, comprising 64% of total imports. The second position in the ranking was taken by Saudi Arabia ($X), with an 8.5% share of total imports. It was followed by Egypt, with a 7.4% share.

In Turkey, palm kernel oil imports increased at an average annual rate of +2.6% over the period from 2012-2022. In the other countries, the average annual rates were as follows: Saudi Arabia (+5.0% per year) and Egypt (-2.5% per year).

Import Prices by Country

In 2022, the import price in MENA amounted to $X per ton, increasing by 22% against the previous year. Import price indicated a moderate expansion from 2012 to 2022: its price 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, palm kernel oil import price increased by +96.0% against 2019 indices. The growth pace was the most rapid in 2021 when the import price increased by 52%. The level of import peaked in 2022 and is likely to see steady 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 Egypt ($X per ton), while the United Arab Emirates ($X per ton) was amongst the lowest.

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

Source: IndexBox Platform