Middle East: Palm Oil Market 2024

Palm Oil Market Size in the Middle East

After two years of growth, the Middle Eastern palm oil market decreased by -27.2% to $X in 2022. In general, consumption continues to indicate a relatively flat trend pattern. As a result, consumption reached the peak level of $X, and then dropped remarkably in the following year.

Palm Oil Production in the Middle East

In value terms, palm oil production surged to $X in 2022 estimated in export price. In general, production saw a significant expansion. The growth pace was the most rapid in 2019 when the production volume increased by 9,729%. Over the period under review, production reached the maximum level in 2022 and is likely to see steady growth in years to come.

Palm Oil Exports

Exports in the Middle East

In 2022, overseas shipments of palm oil increased by 3.3% to X tons, rising for the fifth year in a row after two years of decline. In general, exports continue to indicate a remarkable increase. The most prominent rate of growth was recorded in 2019 with an increase of 57% against the previous year. The volume of export peaked in 2022 and is likely to continue growth in the near future.

In value terms, palm oil exports expanded sharply to $X in 2022. Over the period under review, exports saw a buoyant expansion. The pace of growth appeared the most rapid in 2021 with an increase of 56% against the previous year. The level of export peaked in 2022 and is likely to see steady growth in the immediate term.

Exports by Country

Turkey represented the major exporter of palm oil in the Middle East, with the volume of exports finishing at X tons, which was near 59% of total exports in 2022. Oman (X tons) held a 20% share (based on physical terms) of total exports, which put it in second place, followed by the United Arab Emirates (17%) and Saudi Arabia (4.8%).

Turkey was also the fastest-growing in terms of the palm oil exports, with a CAGR of +64.1% from 2012 to 2022. At the same time, Oman (+12.8%) and Saudi Arabia (+3.3%) displayed positive paces of growth. By contrast, the United Arab Emirates (-3.7%) illustrated a downward trend over the same period. Turkey (+57 p.p.) and Oman (+3.2 p.p.) significantly strengthened its position in terms of the total exports, while Saudi Arabia and the United Arab Emirates saw its share reduced by -4.9% and -51.2% from 2012 to 2022, respectively.

In value terms, Turkey ($X) remains the largest palm oil supplier in the Middle East, comprising 60% of total exports. The second position in the ranking was held by Oman ($X), with a 17% share of total exports. It was followed by the United Arab Emirates, with a 16% share.

From 2012 to 2022, the average annual growth rate of value in Turkey amounted to +61.3%. The remaining exporting countries recorded the following average annual rates of exports growth: Oman (+9.1% per year) and the United Arab Emirates (-4.9% per year).

Export Prices by Country

The export price in the Middle East stood at $X per ton in 2022, rising by 7.5% against the previous year. In general, the export price, however, continues to indicate a slight contraction. The most prominent rate of growth was recorded in 2021 an increase of 31% against the previous year. Over the period under review, the export prices attained the maximum at $X per ton in 2012; however, from 2013 to 2022, the export prices remained at a lower figure.

There were significant differences in the average prices amongst the major exporting countries. In 2022, amid the top suppliers, the country with the highest price was Saudi Arabia ($X per ton), while Oman ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Saudi Arabia (+1.2%), while the other leaders experienced a decline in the export price figures.

Palm Oil Imports

Imports in the Middle East

In 2022, the amount of palm oil imported in the Middle East shrank dramatically to X tons, with a decrease of -23.9% compared with the year before. The total import volume increased at an average annual rate of +1.0% from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The pace of growth appeared the most rapid in 2021 when imports increased by 39% against the previous year. As a result, imports attained the peak of X tons, and then fell significantly in the following year.

In value terms, palm oil imports fell dramatically to $X in 2022. Over the period under review, imports, however, showed a relatively flat trend pattern. The pace of growth appeared the most rapid in 2021 with an increase of 100%. As a result, imports reached the peak of $X, and then fell markedly in the following year.

Imports by Country

In 2022, Turkey (X tons), distantly followed by Iran (X tons), the United Arab Emirates (X tons), Yemen (X tons) and Oman (X tons) represented the major importers of palm oil, together committing 89% of total imports. Iraq (X tons) held a little share of total imports.

From 2012 to 2022, the most notable rate of growth in terms of purchases, amongst the main importing countries, was attained by Iraq (with a CAGR of +49.6%), while imports for the other leaders experienced more modest paces of growth.

In value terms, Turkey ($X) constitutes the largest market for imported palm oil in the Middle East, comprising 42% of total imports. The second position in the ranking was held by Iran ($X), with a 20% share of total imports. It was followed by the United Arab Emirates, with a 12% share.

In Turkey, palm oil imports increased at an average annual rate of +10.6% over the period from 2012-2022. In the other countries, the average annual rates were as follows: Iran (-3.3% per year) and the United Arab Emirates (-0.8% per year).

Import Prices by Country

The import price in the Middle East stood at $X per ton in 2022, remaining relatively unchanged against the previous year. Overall, the import price, however, showed a relatively flat trend pattern. The most prominent rate of growth was recorded in 2021 an increase of 44% against the previous year. The level of import peaked at $X per ton in 2012; however, from 2013 to 2022, import prices remained at a lower figure.

Average prices varied somewhat amongst the major importing countries. In 2022, major importing countries recorded the following prices: in Turkey ($X per ton) and Oman ($X per ton), while Iraq ($X per ton) and the United Arab Emirates ($X per ton) were amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Turkey (+1.7%), while the other leaders experienced a decline in the import price figures.

Source: IndexBox Platform

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