Middle East: Palm Kernel Oil Market 2024

Palm Kernel Oil Market Size in the Middle East

In 2022, the Middle Eastern palm kernel oil market increased by 2.3% to $X, rising for the third year in a row after two years of decline. The market value increased at an average annual rate of +1.2% over the period from 2012 to 2022; however, the trend pattern remained consistent, with only minor fluctuations throughout the analyzed period. Over the period under review, the market hit record highs at $X in 2017; however, from 2018 to 2022, consumption remained at a lower figure.

Palm Kernel Oil Production in the Middle East

In value terms, palm kernel oil production reached $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 pace of growth appeared the most rapid in 2016 when the production volume increased by 9.6% against the previous year. The level of production peaked at $X in 2020; afterwards, it flattened through to 2022.

Palm Kernel Oil Exports

Exports in the Middle East

In 2022, overseas shipments 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 showed a prominent expansion. The pace of growth was the most pronounced in 2020 with an increase of 119% against the previous year. Over the period under review, the exports hit record highs in 2022 and are likely to continue growth in years to come.

In value terms, palm kernel oil exports skyrocketed to $X in 2022. Over the period under review, exports recorded a prominent increase. The growth pace was the most rapid in 2020 when exports increased by 109%. The level of export peaked in 2022 and is expected to retain growth in years to come.

Exports by Country

Turkey was the major exporter of palm kernel and babassu oil in the Middle East, with the volume of exports amounting to X tons, which was near 79% of total exports in 2022. The United Arab Emirates (X tons) took the second position in the ranking, distantly followed by Yemen (X tons). All these countries together took approx. 21% share of total exports.

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. From 2012 to 2022, the share of Turkey increased by +78 percentage points.

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

In Turkey, palm kernel oil exports increased at an average annual rate of +77.3% over the period from 2012-2022. 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

In 2022, the export price in the Middle East amounted to $X per ton, almost unchanged from the previous year. Overall, the export price, however, continues to indicate a relatively flat trend pattern. The pace of growth appeared the most rapid in 2021 an increase of 48%. As a result, the export price reached the peak level of $X per ton, and then fell slightly 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 the Middle East

In 2022, overseas purchases of palm kernel and babassu oil decreased by -7.2% to X tons, falling for the second consecutive year after three years of growth. Over the period under review, imports, however, saw a relatively flat trend pattern. The pace of growth appeared the most rapid in 2015 when imports increased by 26% against the previous year. As a result, imports attained the peak of X tons. From 2016 to 2022, the growth of imports remained at a somewhat lower figure.

In value terms, palm kernel oil imports expanded rapidly to $X in 2022. The total import value increased at an average annual rate of +2.8% over the period from 2012 to 2022; the trend pattern indicated some noticeable fluctuations being recorded in certain years. The growth pace was the most rapid in 2021 with an increase of 32%. The level of import peaked in 2022 and is likely to continue growth in years to come.

Imports by Country

Turkey was the main importing country with an import of around X tons, which accounted for 72% of total imports. It was distantly followed by Saudi Arabia (X tons) and the United Arab Emirates (X tons), together comprising a 19% share of total imports. The following importers - Yemen (X tons) and Iran (X tons) - each resulted at a 3.6% share of total imports.

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%) and Saudi Arabia (+2.7%) displayed positive paces of growth. Moreover, the United Arab Emirates emerged as the fastest-growing importer imported in the Middle East, with a CAGR of +9.2% from 2012-2022. Yemen experienced a relatively flat trend pattern. By contrast, Iran (-6.6%) illustrated a downward trend over the same period. While the share of the United Arab Emirates (+5.2 p.p.) and Saudi Arabia (+1.8 p.p.) increased significantly in terms of the total imports from 2012-2022, the share of Iran (-1.9 p.p.) and Turkey (-4.7 p.p.) displayed negative dynamics. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, Turkey ($X) constitutes the largest market for imported palm kernel and babassu oil in the Middle East, comprising 77% of total imports. The second position in the ranking was held by Saudi Arabia ($X), with a 10% share of total imports. It was followed by the United Arab Emirates, with a 6% share.

From 2012 to 2022, the average annual growth rate of value in Turkey totaled +2.6%. In the other countries, the average annual rates were as follows: Saudi Arabia (+5.0% per year) and the United Arab Emirates (+7.0% per year).

Import Prices by Country

In 2022, the import price in the Middle East amounted to $X per ton, surging by 24% against the previous year. Import price indicated a noticeable 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 +93.5% against 2019 indices. The most prominent rate of growth was recorded in 2021 when the import price increased by 50%. Over the period under review, import prices attained the maximum in 2022 and is expected to retain growth in the near future.

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 Turkey ($X per ton), while the United Arab Emirates ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Turkey (+2.6%), while the other leaders experienced more modest paces of growth.

Source: IndexBox Platform

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