MERCOSUR: Market for Industrial Tall Oil Fatty Acids 2024

Market Size for Industrial Tall Oil Fatty Acids in MERCOSUR

In 2021, the MERCOSUR tall oil fatty acids market increased by 66% to $X for the first time since 2018, thus ending a two-year declining trend. The total consumption indicated a noticeable expansion from 2012 to 2021: its value increased at an average annual rate of +2.7% over the last nine years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. The level of consumption peaked at $X in 2018; however, from 2019 to 2021, consumption stood at a somewhat lower figure.

Production of Industrial Tall Oil Fatty Acids in MERCOSUR

In value terms, tall oil fatty acids production expanded notably to $X in 2021 estimated in export price. In general, production, however, saw a precipitous slump. The pace of growth was the most pronounced in 2013 when the production volume increased by 141%. The level of production peaked at $X in 2015; however, from 2016 to 2021, production failed to regain momentum.

Exports of Industrial Tall Oil Fatty Acids

Exports in MERCOSUR

Tall oil fatty acids exports expanded remarkably to X tons in 2021, with an increase of 13% compared with the previous year's figure. Over the period under review, exports, however, showed a dramatic slump. The pace of growth was the most pronounced in 2018 with an increase of 114% against the previous year. Over the period under review, the exports hit record highs at X tons in 2015; however, from 2016 to 2021, the exports failed to regain momentum.

In value terms, tall oil fatty acids exports surged to $X in 2021. Overall, exports, however, faced a sharp decline. The most prominent rate of growth was recorded in 2018 with an increase of 118%. The level of export peaked at $X in 2014; however, from 2015 to 2021, the exports stood at a somewhat lower figure.

Exports by Country

The shipments of the three major exporters of industrial tall oil fatty acids, namely Argentina, Venezuela and Brazil, represented more than two-thirds of total export. It was distantly followed by Chile (X tons), constituting an 8.4% share of total exports.

From 2012 to 2021, the biggest increases were recorded for Chile (with a CAGR of +7.8%), while shipments for the other leaders experienced a decline in the exports figures.

In value terms, Argentina ($X), Chile ($X) and Brazil ($X) were the countries with the highest levels of exports in 2021, with a combined 91% share of total exports.

Chile, with a CAGR of +4.6%, recorded the highest growth rate of the value of exports, in terms of the main exporting countries over the period under review, while shipments for the other leaders experienced a decline in the exports figures.

Export Prices by Country

In 2021, the export price in MERCOSUR amounted to $X per ton, picking up by 5.6% against the previous year. In general, the export price, however, saw a noticeable downturn. The most prominent rate of growth was recorded in 2016 an increase of 27%. Over the period under review, the export prices attained the maximum at $X per ton in 2012; however, from 2013 to 2021, the export prices failed to regain momentum.

There were significant differences in the average prices amongst the major exporting countries. In 2021, the country with the highest price was Chile ($X per ton), while Venezuela ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Argentina (-2.3%), while the other leaders experienced a decline in the export price figures.

Imports of Industrial Tall Oil Fatty Acids

Imports in MERCOSUR

After two years of decline, purchases abroad of industrial tall oil fatty acids increased by 53% to X tons in 2021. Total imports indicated temperate growth from 2012 to 2021: its volume increased at an average annual rate of +2.0% over the last nine years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. The volume of import peaked at X tons in 2018; however, from 2019 to 2021, imports remained at a lower figure.

In value terms, tall oil fatty acids imports skyrocketed to $X in 2021. Total imports indicated slight growth from 2012 to 2021: its value increased at an average annual rate of +1.2% over the last nine years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. The level of import peaked at $X in 2018; however, from 2019 to 2021, imports failed to regain momentum.

Imports by Country

In 2021, Colombia (X tons) was the major importer of industrial tall oil fatty acids, constituting 59% of total imports. Brazil (X tons) held the second position in the ranking, distantly followed by Chile (X tons). All these countries together took approx. 32% share of total imports. The following importers - Ecuador (X tons), Suriname (X tons) and Argentina (X tons) - together made up 6.4% of total imports.

Colombia experienced a relatively flat trend pattern with regard to volume of imports of industrial tall oil fatty acids. At the same time, Suriname (+21.6%), Brazil (+17.0%), Argentina (+15.7%) and Chile (+2.9%) displayed positive paces of growth. Moreover, Suriname emerged as the fastest-growing importer imported in MERCOSUR, with a CAGR of +21.6% from 2012-2021. Ecuador experienced a relatively flat trend pattern. While the share of Brazil (+19 p.p.) and Suriname (+1.6 p.p.) increased significantly in terms of the total imports from 2012-2021, the share of Colombia (-9.2 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 fatty acids importing markets in MERCOSUR were Colombia ($X), Brazil ($X) and Chile ($X), with a combined 91% share of total imports.

Among the main importing countries, Brazil, with a CAGR of +16.6%, recorded the highest growth rate of the value of imports, over the period under review, while purchases for the other leaders experienced more modest paces of growth.

Import Prices by Country

In 2021, the import price in MERCOSUR amounted to $X per ton, rising by 6.2% against the previous year. In general, the import price, however, recorded a relatively flat trend pattern. The pace of growth appeared the most rapid in 2018 an increase of 16% against the previous year. Over the period under review, import prices attained the peak figure at $X per ton in 2013; however, from 2014 to 2021, import prices remained at a lower figure.

Average prices varied somewhat amongst the major importing countries. In 2021, major importing countries recorded the following prices: in Brazil ($X per ton) and Ecuador ($X per ton), while Argentina ($X per ton) and Suriname ($X per ton) were amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Chile (+1.7%), while the other leaders experienced mixed trends in the import price figures.

Source: IndexBox Platform